Transmission Engineer Meeting Summary - August 23, 2024

John Weber, Senior Transmission Engineer, led a meeting discussing MRES true-up for 2023 historical rate information, regulatory changes, and transmission projects. The meeting covered MRES member rate information and highlighted MRES transmission facilities, FERC background, and recent projects including the energization of the Lorain Substation and approval of LRTP Tranche 1 projects.

• Transmission Engineer
• Meeting Summary
• MRES
• Regulatory Changes
• Transmission Projects

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1. August 23, 2024 John Weber, Senior Transmission Engineer

2. Agenda Meeting Purpose MRES Profile MRES, MMU & WMU True-up for 2023 MRES member historical rate information Question/Answer

3. Meeting Purpose MRES background Regulatory Changes / Timelines MRES, MMU & WMU specific rate information MRES true-up info on Attachment O/GG/MM from 2023. MMU true-up info on Attachment O from 2023. WMU true-up info on Attachment O from 2023. True-up from 2023 along with forecast for 2025 will be incorporated into rates to be effective on January 1, 2025. MRES member rate information ALP Utilities (ALP), Atlantic Municipal Utilities (AMU), Benson Municipal Utilities (BMU), Breckenridge Public Utilities (BPU), Detroit Lakes Public Utilities (DLPU), Hutchinson Utilities Commission (HUC), City of Pella Electric Department (Pella) and Worthington Public Utilities (WPU).

4. - 61 Members served - Transmission: ~362 miles - Generation: ~788 MW - Renewable: ~130.2 MW MRES MISO & SPP Members, Generation and Transmission Rugby Wind Project Fort Peck Dam d ITA Garrison Dam Canyon Ferry Dam Big HornRiver YellowtailDam Marshall WindProject Pierre Solar Project Watertown PowerPlant Irv Simmons Oahe Dam Big BendDam PointBeach NuclearPlant Odin WindProject Gavin s Point Dam Fort RandallDam Worthington WindProject Hancock Co. Wind Laramie River Station MBPP Exira Station Red Rock Hydroelectric Plant MRES Member in MISOMarket MRES Member in SPPMarket MRES GenerationResource Federal Hydroelectric Dam CapX 2020 Transmission Routes

5. MRES FERC Background Transmission facilities are owned by Western Minnesota Municipal Power Agency (WMMPA) FERC Declaratory Order (EL08-22, 12/08) combines financial statements for ATRR Attachment O effective 6/1/11 Incentive filing (EL11-45, 6/11) CapX; Fargo P2 & P3, and Brookings CWIP, Abandon Plant, Hypothetical cap structure 205 filing (ER12-351, 11/11) FERC Approved ER12-351, and EL 11-45 on January 20, 2012 MRES filed for direct assignment of property taxes in ER17-1515, which was accepted 7/25/17. Incentive filing (ER23-2284, effective 9/1/23) MISO LRTP Tranche 1, Big Stone Alexandria Big Oaks 345 kV CWIP, Abandon Plant, Hypothetical cap structure (50/50)

6. MRES Transmission Projects The Lorain Substation near Worthington, MN was energized in January and closed out in December ($5.8M total cost) On July 25, 2022 the MISO board approved the LRTP Tranche 1 projects, including a new 345 kV line from Big Stone to Alexandria to Big Oaks Attachment MM Project with an estimated cost of $573.5M MRES received rate incentives for the project in ER23- 2284, including CWIP which is included going forward

7. MRES Member Updates In 2023, WMU finished relocating its old plant/dist. sub($3M total cost) The Willmar power plant building was being decommissioned and removed. Sub protection and controls were in the building and needed to be moved. The entire sub was be moved to a new location.

8. Regulatory / FERC Issues, Procedures and Timing cont. By May 1st Post Historical entity Attachment O Rate Information By June 1st Post FLTY entity actual calculations and true-ups based on prior year s Rate Information By September 1st Meet with Interested Parties to discuss the historical and actual prior year s Rate information By October 1st Post FLTY info for MRES, MMU & WMU By October 31st Meet with Interested Parties to discuss the FLTY Rate information December 1st Deadline for information requests By January 10th Must respond to information requests January 31st Deadline for informal challenges March 15th Annual Informational filing April 15th Deadline for formal challenges

9. MRES 2023 True-Up Adjustment Overview Actual $ 6,257,429 Projected $7,882,196 Difference $1,624,767 (a) Net Revenue Requirement Divisor True-Up Divisor (kW) 756,969 743,983 12,986 Projected Rate ($/kW/Yr) $8.2664 True-Up (Divisor Difference x Projected Rate) $107,348 (b) Interest ((a + b) * interest rate) $274,616 (c) Total 2023 True-Up Adjustment (Under Recovery) $2,006,731 (a+b+c)

10. 2023 MRES Annual Transmission Revenue Requirement Distribution MRES Total ATRR Attachment O, GG, MM $19,770,472 Attachment O MISO MISO $6,257,429 Attachment GG Attachment MM 31.7% CapX Fargo CapX Brookings $8,271,250 $5,241,792 MISO SPP $3,207,985 $3,049,445 41.8% 26.5% 10

11. MRES Member Attachment O Information MRES is MISO TO on behalf of 10 MRES members MRES is contact for any initial questions Standard MISO templates for 8, and FLTY for 2 OTP Zone ALP Prior Year BMU 1 Year Lag BPU 1 Year Lag DLPU 1 Year Lag GRE Zone HUC 1 Year Lag WMU - FLTY ITC-M Zone - WPU 1 Year Lag MEC Zone AMU Prior Year Pella 6 mo. Lag (7/1-6/30 financial year) NSP Zone MMU - FLTY

12. MMU 2023 True-Up Adjustment Overview Actual $1,756,188 Projected $1,722,247 Difference ($33,941) Net Revenue Requirement (a) Divisor True-Up Divisor 71,935 74,187 2,252 Projected Rate ($/kW/Yr) $23.2149 True-Up (Divisor Difference x Projected Rate) ($52,280) (b) Interest ((a + b) * interest rate) ($13,834) (c) Total 2023 True-Up Adjustment (Under Recovery) ($100,005) (a+b+c)

13. WMU 2023 True-Up Adjustment Overview Received $2,784,535 Actual $2,276,909 Difference ($507,626) (a) Revenue Received vs Requirement Interest ((a) * interest rate) ($96,907) (b) Total 2023 True-Up Adjustment (Over Recovery) ($604,534) (a+b)

14. Revenue Requirements for 2023 Historical ALP AMU BMU BPU DLPU HUC Pella WPU Net Attachment O Revenue Requirement $ 307,540 $ 765,101 $ 85,177 $ 52,204 $ 347,860 $ 963,834 $ 2,187,536 $ 352,626 Revenue Requirements for 2024 FLTY MRES MMU WMU Net Attachment O Revenue Requirement $ 5,020,246 $ 1,723,430 $ 2,237,529

15. Questions If you have any questions after the meeting, please submit via e-mail to John Weber: john.weber@mrenergy.com All questions and answers will be posted on the MRES OASIS website along with any follow-up questions received within two weeks from the date of inquiry on the OASIS site. (https://www.oasis.oati.com/MRET/index.html)