RSC Motions (Oct 2010)
     • MOTION 1: RSC recommends that SPP review what is the best manner to 
       address significant cost increases and/or overruns of transmission 
       projects that are regionally funded.
     • MOTION 2: RSC recommends that SPP review the Novation Process and 
       report to the RSC by April 2011.
     • MOTION 3: RSC recommends that SPP consider establishing design and 
       construction standards for transmission projects at 200 kV and above that 
       are regionally funded.
     • MOTION 4: SPP evaluate how cost estimates are established for 
       transmission projects before Cost Benefit Analysis are performed.
     • MOTION 5:  CAWG to study various methods on how costs that exceed 
       some standard can be addressed with different cost allocation 
       mechanisms and recommend strategies to RSC.
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     Cost Estimation Improvements
     •    Standardized Cost Estimate Reporting Template (SCERT)
         –   All cost estimates
         –   Quarterly reporting
     •    Conditional Notification to Construct (CNTC) 
         –   > $20 Million
         –   > 100 kV
     •    Establish Project Estimate baseline
         –   CNTC Project Estimate (CPE)
         –   NTC Project Estimate (NPE)
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     Cost Estimation Improvements
     •   Project Cost Working Group
     •   Deviates or is expected to deviate +/- 10% from established 
         baseline cost 
        –    Report monthly
     •   Deviates or is expected to deviate +/-20% from established 
         baseline cost 
        –    Provide detailed cost variances via updated SCERT with 
             explanations regarding the variances 
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     Project Cost Working Group (PCWG)
     •   Oversee a quarterly report
     •   Study Estimate Design Guide (SEDG)
     •   Review estimation variances
        –   Regionally funded project >300 kV and >$20 million  
        –   Explanation for the cost estimate variances as well as 
        –   Reasons why the project should or should not move 
            forward 
     •   Develop business practices
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    Stages of Cost Estimation
    •  Conceptual  Estimate (Staff)
       –  prepared by SPP from historical data
       –  used for screening purposes only
    •  Study Estimate (DTO)
       –  submited by DTO if project passes Conceptual screening and requires 
          more refined estimate
    •  NTC Project Estimate (NPE)/CNTC Project Estimate (CPE) (DTO)
       –  submited by DTO in response to CNTC/NTC issuance
       –  established as baseline for project cost variance
    •  Design/Construction Estimate (DTO)
       –  submited by DTO in quarterly tracking process for cost estimates as 
          engineering and construction for project is underway/completed
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