ISAS Update August 2, 2011 Market Issues Subcommittee

2 Leadership Changes Gary Nolan is stepping down as Chair Brenda Ambrosi will be moving into the role –Brenda will work on making other necessary changes

3 The group assigned to work on the guidelines was unable to reach consensus on over scheduling of transmission rights –FERC says that you can be penalized if you do not have the reserved capacity –No penalty, for use, if you had the capacity but did not schedule it –Other penalties may be included in individual Transmission Provider’s tariffs Dynamic Scheduling Guidelines

4 Dynamic Transfer Capability Limits Gordon Dobson-Mack made a presentation on the work the DTCTF has been performing Biggest challenges are the large changes not the “in hour” variations Hope to have suggestions for TPL standards by Sept 1, 2011 Developing common DTC limit methodology Hope to have DTC limits identified for several BAs by Oct 2011

5 Workgroup Process ESWG –WECC Registry Training –Charter was approved Real Time Scheduling Workgroup –focused on the rewrite of INT-005-WECC-1 and INT-008-WECC-1 –First draft of INT-008-WECC-1 is ready for posting –WECC-064 WIT Checkout Confirmation Has been forwarded to OC for approval

6 INT Regional Criterion Rewrite Project Status Started with nine and currently working on seven rewrites Asking for input due to the possibility that these may become sanctionalbe Unclear how INT-014-WECC-CRT-1 is being utilized, need more input –This CRT would be rescinded if BAL-002-WECC-1 as implemented as proposed Once all rewrites are posted there will be a mapping table to show how they are connected

7 Update on WECC Regional Standards BAL-002-WECC-1 drafting team has finalized the standard and it was passed to the OC for approval IRO-006-WECC-1 went into effect July 1, 2011 –Reminder that market participants must be aware of the changes and take the appropriate actions –Training material is being developed by the UFAS –Some discussion at UFAS about penalties if you fail to replace lost generation during an event

8 WIT Automatic Time Error Calculation / BAL-004-WECC-1 o FERC has expressed some concerns o A draft has been posted and a final is expected in October 2011 o At this time inadvertent balances will not be zeroed out again o Numbers should be correct now o BAs will retain responsibility for the data but the group is exploring whether or not WECC can take on that role

9 E-Tag Issues Workgroup Lots of discussion as to whether or not a sink BA can refuse an e-tag if they suspect it isn’t firm A motion to take the question to JGC passed –“Can an entity deny an E-tag if they believe that the E-tag does not accurately reflect the specifics, or any portion of, the entire transaction if that entity believes it has direct impact to them? “

10 Other Updates 2012 Pre-Schedule Calendar was approved Scheduler’s Meeting was a success BANC is now in effect MOD implementation extension was granted by NERC but no official word from FERC at the time of the meeting

Questions?