PacifiCorp-CAISO EIM Initiative Overview January 28, 2015

Agenda Introduction PacifiCorp background Real-time operations of EIM Base Schedules and dispatches Transmission Congestion Outages Entity’s Responsibilities Challenges, changes, tools Implementation status

PacifiCorp customers (go over statistics on slide) Investor owned utility – subsidiary of Berkshire Hathaway Energy 6,447 staff in U.S. 1.8million customers in 6 states Utah (42%) Oregon (25%) Wyoming (17%) Washington (8%) Idaho (6%) California (2%) (go over statistics on slide) no retail gas customers retail customers in 6 states facilities (generation and transmission facilities in 10 western states PacifiCorp Peak Load:12,558 MW PACW: 4354 MW 80+ Ties with other Balancing Areas PACE: 8989 MW 50+ Ties with other Balancing Areas

PAC Control Room EIM desk (EGO) works closely with all desks B&I has accepted delegation of balancing tasks TOs monitor Transmission Congestion Shift Supervisor oversees all reliability functions

EIM Concept What is an EIM EIM in real-time BAA’s responsibilities It is not an ISO It is not balancing our BAA EIM in real-time Generation redispatch Forward looking transmission management BAA’s responsibilities Not changing New tools and processes

Redispatch

Variable Energy Operation Quick pic of one of our wind displays in System Ops. You can see the lack of conformity or alignment in just these few units from Wyoming.

Operational Concept Overview Expansion of CAISO’s current 5 minute market Security Constrained Economic Dispatch Transmission constraint management Network model visibility and accuracy Terminology: Market Operator, EIM Entity, Participating Resources, Manual Dispatch, Instructed/Uninstructed Imbalance charges, Scheduling Coordinator….. Detailed outage reporting and situational awareness

EIM Real-Time Operations Timing criticality of a 5 minute system Base Schedules Hourly vs. 15 minute vs. 5 minute markets Dispatches Transmission congestion Outages

Base Schedules Entity must come to the market balanced Base Schedule (G + I = L) (feasibility check) Forecast of load Forecast of generation Forecast of interchange Submitted by all customers to EIM Entity Data aggregated and validated by PacifiCorp Grid Entity retains all BAA responsibilities

Base Schedule data flow (via SCs)

Balance and Feasibility Tests Base Schedule Balancing Test Bid Range Capacity Test Flex Ramp Required Sufficiency Test Transmission Feasibility Test

Hourly vs. 15 minute vs. 5 minute Hourly market (HASP) Unit start up, shut down, and transitions 15 minute market (RTPD) Market awards, e-tags Runs approx. 40 minutes ahead 5 minute market (RTD) Dispatches based on 15 min awards Runs approx. 7.5 minutes before ramp

Dispatch Dispatch sent to PacifiCorp’s Ranger (EMS), to RTU, and to the plant

Transmission Congestion Forward looking congestion management 15 minute market awards published for 8+ intervals Correcting limits in state estimator Collaboration between Energy Grid Operator (EIM desk) and TO desks

Outage Reporting Requirements Outage reporting is critical to SE and dispatches Planned outages must be submitted at least 7 days in advance For EIM, at least seven days Forced outages must be reported within 30 minutes Less imbalance the sooner it is reported PAC using COMPASS to interface to CAISO’s OMS Market run criticality

PacifiCorp Implementation Network model expansion (FNM) 17,000 points via ICCP 24 systems and 92 interfaces modified Over 250 revenue meters upgraded Replaced, reprogrammed, or installed Over 30 generation units upgraded EMS, RTUs, DCSs, AGC

PAC and CAISO responsibilities PAC retains all reliability function responsibility PAC will balance their ACE, manage reserves (no impact to NWPP RSG) and manage their voltage Under EIM, CAISO operates the market and publishes market results for both PAC and CAISO (the EIM footprint) Under EIM, PAC will operate transmission, monitor generation, process outages, and balance ACE for PACW and PACE

Tools COMPASS BSAP (and CAS) Existing tool but increased use in real-time BSAP (and CAS) Base schedule aggregation portal BAAOP tool (aka RTM tool, aka Siemens tool) UI to the market operations Management of dispatches EMS (and PI) Increased generation management and oversight

Changes to PAC’s operations Outage management Grid Ops and C&T management processing BAAOP Tool (aka RTM Tool, aka Siemens tool) 5 minute automated dispatches Increased generation monitoring Operations coordination between all desks Communication 15 minute scheduling parallels

Challenges Typical IT software refining Accuracy of generation unit outages and derates for informing market Disciplined generation and interchange resource plan that aligns with market Network model accuracy Change management

Current Status (Jan 25) Continued tuning of model Continue to replace manual processes with automation Refinement of real-time processes Delegation of balancing responsibilities Settlements ramp-up

Questions John Schaffroth (503) 251-5154 john.schaffroth@pacificorp.com