Unscheduled Flow Administrative Subcommittee ISAS Report Pete Heiman April 20, 2016 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Lifting 1995 Caps On March 11, 2016 FERC accepted the amended Plan and agreed with the effective date of January 1, 2016 for calculation of Qualified Device compensation with the Caps removed. 2 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Lifting 1995 Caps The FERC acceptance document for Docket ER and ER can be found at the following link: – = = W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology As requested by the OC at the October meeting, USFTF and UFAS explored additional options regarding the cost allocation methodology. 4 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology UFAS believes that the latest proposal to use a Balancing Authority’s absolute value of their Net Actual Interchange (NAI) continues to be the best solution for the following reasons: 5 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology – Net Actual Interchange data excludes generation used to serve native load – Net Actual Interchange captures dynamic and pseudo-tied resources for each BA – The new method uses the same year for COPS costs and NAI data, greatly simplifying the calculations – This method maintains the correlation between COPS use and Interchange 6 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology Using 2014 data: – The total amount of NAI (in MW) utilizing absolute hourly values is 277,667,320 – The top 12 BAs carry 80% of the costs – The average cost per MW would be 1.5 cents 7 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology The data for this latest proposal is available on the WECC website under the Unscheduled Flow Administrative Subcommittee by selecting the Supporting Documents link. 8 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology The current Methodology applies to all WECC Class 1-4 members. Entities required to furnish data/assessed dues include: – Balancing Authority – Load-Serving Entity – Purchasing-Selling Entity – Transmission Operator – Transmission Service Provider 9 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology The new Methodology would be assessed to the 38 Balancing Authorities only. Because of this, a direct comparison between the current methodology and the proposed is not possible. Looking at using data from only the hours of COPS operation but crunching the numbers to get to this refined number is proving challenging. When/if we get these numbers a comparison will be made to see if the complexity it adds to the calculation offsets the accuracy appreciably to warrant the effort. 10 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology Following is an example of how the dues would be determined under this proposal. 11 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology 12 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology 13 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology UFAS will host an information session to discuss the proposed Methodology and allow an opportunity to review the latest data on May 16, 2016 at WECC. Again, UFAS believes this is the fairest proposal thus far presented after years of exploration and would appreciate its serious consideration by the committee members. 14 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

New Cost Allocation Methodology Questions? 15 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Path and Device Updates WECC OC approved UFAS deletion of Path 22 (Southwest of Four Corners) and Path 23 (Four Corners 345/500) as Qualified Transfer Paths on March 22, Both Paths have been removed from the WebSAS model and cost allocations have been updated. 16 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

UFAS ISAS Report Questions? 17 W ESTERN E LECTRICITY C OORDINATING C OUNCIL