T-D Interface Working Group November 2, 2017 Energy Storage and Distributed Energy Resources Phase 3 (“ESDER 3”) UPDATE Jill Powers

ISO Policy Initiative Stakeholder Process POLICY AND PLAN DEVELOPMENT We are here Issue Paper Straw Proposal Draft Final Proposal Board Stakeholder Input Milestone Date Post issue paper September 29, 2017 Stakeholder call October 12, 2017 Stakeholder comments due October 18, 2017 11 set of comments received Page 4

Below are the potential scope items that were proposed in the Issue Paper Demand Response Multiple-Use Application Demand response modeling limitations 24x7 CAISO participation requirement for DERs Weather-sensitive demand response Wholesale market participation model for a micro-grid Resource design constraints Demand response aggregation rules Non-Generator Resource Reflecting costs and NGR use limitations RDRR economic buy-back of day-ahead awards Managing SOC and throughput limitations for MUA Recognition of behind the meter EVSE load curtailment Load consumption and regulation Load shift product

Next Steps Agenda Milestone Date Stakeholder workshop - Issue Paper November 6, 2017 Stakeholder comments due – Nov 6 workshop discussion and presentations November 13, 2017 Agenda Time Item Speaker 9:00 – 9:10 Introductions James Bishara 9:10 – 9:15 Review Agenda and Expectations Eric Kim Emotorwerks STEM 9:15 – 11:00 Potential Scope for Demand Response 11:00 – 12:00 Potential Scope for Multiple-Use Applications 12:00 – 1:00 Lunch 1:00 – 2:45 Potential Scope for Non-Generator Resource 2:45 - 3:00 Next Steps Materials related to the ESDER Phase 3 initiative are available on the ISO website at http://www.caiso.com/informed/Pages/StakeholderProcesses/EnergyStorage_DistributedEnergyResources.aspx