Unscheduled Flow Administrative Subcommittee Report David Lemmons March 27, 2013 Salt Lake City, UT

2 Presently fully seated at 9 members – roster is on WECC.biz Next Meetings are May 28 & 29 UFAS: Membership and Meetings

3 Looking to move dues calculation methodology to 1 years data rather than a 3 year average Further evaluation at last USFTF meeting Drafting a 1 year methodology UFAS recommends moving to a 1 year average calculation Will ask for formal OC approval later this year Simplifying USF Dues Calculation

4 JGC tasked UFAS to investigate and report back on high number of USF events in 2012 Concentrated on Path 66, expect to look at other Qualified Paths in the future Full presentations made to OC and JGC can be found on the WECC.biz site Investigation of High Number of 2012 USF Events

5 Degree of Utilization (on-Path scheduled energy as a percentage of Path Limit (SOL)) Effectiveness of Qualified Controllable Devices (Phase Shifters) Appropriateness of Initiation and Termination of Unscheduled Flow Mitigation Plan Events Interconnection-Wide Generation Dispatch Patterns Effect of Reliability-Based Control Field Trial (RBC) Contributing Causes to 2012 Path 66 USF Events

6 Path 66 Investigation Conclusions The degree of utilization of Path 66 was deemed to be large contributor to the increase of Path 66 USF events. Phase Shifter effectiveness was deemed to be a large contributor to the increase of Path 66 USF events. Event Initiation and Termination was deemed to be a small/negligible contributor to the increase of Path 66 USF events.

7 Path 66 Investigation Conclusions --- Continued There were changes in generation dispatch patterns, resulting in higher exports from the Pacific Northwest, and higher imports to California. This was deemed as a medium contributor to the increase of USF events on Path 66 Majority of the facts suggest that RBC is a small contributor to the 2012 Path 66 USF events. Additional study is necessary to make a definitive conclusion To pursue this analysis, study engineering resources would be necessary No recommendation is warranted at this time for alteration of the RBC Field Trial based on UFAS examination of the facts

8 FERC Filing of New Unscheduled Flow Reduction Guideline Cut by NERC priority, off-path, then on-path schedules via 16 bucket methodology Will result in fewer over all MW cuts and tag curtailments to reduce flows Approved by OC March 9, 2012 Several pre-filing conference calls with FERC held, the latest on March 13th

9 FERC Pre-Filing Conference FERC Staff indicated problems with 16 bucket methodology. They were concerned it may violate OATT and suggested an 8 bucket methodology. Would mix on-path and off-path schedules simultaneously, by NERC transmission priority If Guideline filed as is FERC may not approve. Possibility of not filing?

10 Next Steps? WECC staff investigating other FERC orders on similar issues Should we file? Should we proceed and implement Guideline changes without filing or file as informational only? Seeking input from WECC members WECC members should consult their attorneys regarding OATT compliance and risks.

11 Next Steps? Will hold special session of some sort before next OC meeting – we need to move forward

12 There are currently no Paths or Devices pending for disqualification Path 22 may be subject to disqualification in October 2013 Path and Device Qualification Status

13 Plan Year 19 (CY2013) activity as of February 28 th has 190 hours of Coordinated Operations of Phase Shifters (COPS) with 31 of curtailments The primary users were Path 30 and 66 No hours of COPS overlap to date Closing thoughts: This year is shaping up similar to last – UFAS is watching events and will discuss at next meeting Operating Statistics

Thank you! Questions?