Reliability & Market Impacts Resulting from RC Expansion OC Leadership Team Rich Hydzik & Bert Peters MIC Leadership Team Andy Meyers & Brad Bouillon April 30th 2018

Reliability & Market Impacts Resulting from RC Expansion RC Expansion & Market Impacts Proposed construct has 3-4 Reliability Coordinators in the West Binding commitments by entities are expected late 2018 (~November) Many entities currently saying “all options” are on the table meaning they are evaluating PEAK, CAISO, SPP (for MTWG) Respective RC’s will have clear visibility to the footprint of their Market Coordination agreements between RC’s would be required Will RC’s have clear visibility to neighboring RC’s footprints? Potential for Swiss Cheese West is currently contiguous but with all the choices, neighboring entities could select differing RC’s/Markets (resulting in each RC footprint looking like Swiss Cheese)

Reliability & Market Impacts Resulting from RC Expansion Markets Impacts to watch for Affects on bilateral liquidity Differences in market products and scheduling timelines Is one market incentivizing a product compared to another Resource availability to meet energy emergencies & reliability issues Barriers to market entry and participation

Reliability & Market Impacts Resulting from RC Expansion Today’s Operating Conditions with Single RC Visibility of entire interconnection Common data sharing process and library Consistent System Operating Limit methodology Single West System Model at RC level EOP coordination (EEA, restoration, etc.) with one RC Reliability Messaging Tool Unscheduled Flow Mitigation coordination Western Interchange Tool (WIT) administrator Coordinated Outage System

Reliability & Market Impacts Resulting from RC Expansion Peak RC developed tools Hosted Advanced Applications Enhanced Curtailment Calculator Voltage Stability Tool Real Time Displays Synchrophaser applications

Reliability & Market Impacts Resulting from RC Expansion Multiple RC Challenges Interconnection wide operational processes and tools Unscheduled Flow Mitigation Western Interchange Tool Coordinated Outage System West System Model Remote Messaging Tool Next Day Study library Merchant Alert Protocol These responsibilities must be coordinated among RC’s or delegated to one RC

Reliability & Market Impacts Resulting from RC Expansion Multiple RC Challenges Process Coordination System Restoration, review, training RAS review and coordination There are others that will come up It may be appropriate to consider a Reliability Coordinator coordinating group similar to NERC’s Operating Reliability Subcommittee

Reliability & Market Impacts Resulting from RC Expansion Conclusions Conditions are changing in the West, and will continue to change for the next several months Most entities have not confirmed their direction so far as RC choice There is no requirement to confirm an RC provider until after summer Interconnection wide operating processes will require careful coordination

Questions? Andy Meyer (BPA) MIC Chair Brad Bullion (CISO) MIC Vice Chair Rich Hydzik (AVA) OC Chair Bert Peters (APS) OC Vice Chair