Integration of Variable Generation Task Force (IVGTF): Status Warren Frost (Presented by John Kehler) Chair, IVGTF NERC Operating & Planning Committee June 4-5, 2008 Toronto, Canada

IVGTF Scope The Task Force will prepare The document will include: A concepts document that includes the philosophical and technical considerations for integrating variable resources Specific recommendations for practices and requirements, including reliability standards, that cover the planning, operations planning, and real-time operating timeframes The document will include: Planning timeframe issues, such as contribution to capacity margins modeling requirements to test system reliability and planning transmission Operational Planning and Real-time operating timeframe issues, including forecasting, short term adequacy, operator awareness, interconnection frequency control, operating reserves, and wind power management Review NERC Standards for any gaps Review of future developments including storage and other technologies Conclusions and recommendations.

IVGTF Status Report With 50 participants, 5 Subgroups formed Introduction Characteristics of Variable Generation Planning and Technical Impact Operational Planning & System Operations Other and Future Considerations Leadership Team Drove first Draft (250 pages)

IVGTF Status Report First Face-to-Face meeting held Identify consistent themes Focus on the impacts and implications - “what” not the “how to” Develop key conclusions/recommendations Review comments on each section Identify overlaps and gaps Excellent participation and shared learnings A key observation is technical barriers for large scale wind integration can be overcome. The challenges are policy and costs.

IVGTF Report – Key Themes Identified Uncertainty Transmission Flexibility Efficiency and Reliability Equipment Performance Introduction Characteristics Planning Operations Future CHAPTERS Common Thread Common Thread Common Thread Common Thread Common Thread

Examples of the Themes and Common Threads Uncertainty Variable resources lead to uncertainty in time frames of minutes from real time operation to years away from real-time operation Transmission Planning transmission with variable resources connecting to the grid Consideration of planning transmission with the potential of large amounts of distribution connected generation connecting Flexibility Variable generation will require flexible resources Examples of flexibility can be in future development of new conventional generators, quicker access to generation across the interconnection, increasing balancing area size, demand side options, storage, etc. Efficiency and Reliability Wind power forecasting for example is one area where reliability and efficiency will benefit Equipment Performance Wind power facility equipment standards will identify the requirements and performance for items such as LVRT and voltage regulation. Decisions made today on equipment performance we will live with for the life of that facility

IVGTF Next Steps Next Steps include: Develop 30-40 page report with key themes & identifying recommendations Remainder of research will be contained in appendix that will provide an excellent reference for industry Complete 2nd Draft Send to OC/PC for comment in Sept.

Questions?