The contents of these materials are provided "as is" without any warranties of any kind and the Independent Electricity Market Operator (IMO) makes no representation and disclaims all express and implied warranties and conditions of any kind, including without limitation, representations, warranties or conditions regarding accuracy, timeliness, completeness, non-infringement, merchantability or fitness for any particular purpose and the IMO assumes no responsibility to you or any third party for the consequences of any errors or omissions. The IMO is not liable to the reader of these materials for any revisions of these materials or to any third party for any damages of any kind arising out of or relating to the use of this material including, but not limited to, any lost profits, lost opportunities, special, incidental, indirect, consequential or punitive damages, even if the IMO is advised of such possibility. These are conditions of access to these materials which you agree to by receiving these materials. If you do not agree to these conditions, you are to return these materials to us unread and without any manner of duplication. Commercial Reconciliation Technical Advisory Team June 25, 2002 NEW CHARGE TYPES: Emergency Demand Response Program

Governing Documents EDRP Contracts Contractual Terms between the IMO and the ASP Calculation formula Application to Specific delivery points Rates Emergency Demand Response Program (EDRP) IMO “Market Rules” Objectives Public/marketplace framework Authority for the IMO to contract for EDRP Cost recovery framework

Agenda for this Presentation: 1) Sequence of Events 2) Impact on Settlements Charge Types Emergency Demand Response Program (EDRP)

PART 1 - Sequence of Events Emergency Demand Response Program (EDRP)

Sequence of Events: Emergency Demand Response Program (EDRP) From a settlements standpoint, the EDRP sequence is identical to that of other Ancillary Services procured by the IMO on behalf of the real-time energy market (e.g. regulation, black start, etc.). Follows the real-time energy market billing period (monthly) Simultaneous payment to ancillary service providers and cost recovery

Beginning of Billing Period EDRP Triggering Event End of Billing Period Preliminary Settlement Statement for last trading day Sequence of Events: Emergency Demand Response Program (EDRP) Corresponding RMS Data Contractual Calculations Contractual Terms Simultaneous Payment and Cost Recovery Market Rule Terms

PART 2 - Impact on Settlements Charge Types Emergency Demand Response Program (EDRP)

Charge Type Implications: With respect to the EDRP, the settlements process must support 2 basic functions: 1) Payments to individual EDRP participants; and, 2) Cost recovery Emergency Demand Response Program (EDRP)

Charge Type Implications: Emergency Demand Response Program (EDRP) 1) Payments to individual EDRP participants: This first requirement is met by a NEW charge type: NEW charge type ID number: 406 NEW charge type name: Emergency Demand Response Program Credit frequency: monthly (when applicable, and for the last trading day of the billing period) scope: only seen by EDRP ancillary service providers

Charge Type Implications: Emergency Demand Response Program (EDRP) 1) Payments to individual EDRP participants: This first requirement is met by a NEW charge type: NEW charge type ID number: 406 NEW charge type name: Emergency Demand Response Program Credit FORMAT: Manual Entry (Type “MP”) charge type Absolute dollar value of contractual settlement amount owing to the Ancillary Service Provider enrolled in the EDRP

Emergency Demand Response Program (EDRP) Charge Type Implications: This second requirement is met by a CURRENT charge type with a REVISED NAME and SCOPE: CURRENT charge type ID number: 167 (no change) REVISED charge type name: Emergency Energy and EDRP Debit frequency: monthly (when applicable, and for the last trading day of the billing period) scope: seen by any market participant with an AQEW (domestic load) or SQEW (export) quantity during the billing period. Now includes EDRP AND Emergency Energy Payments in the same charge type. 2) Cost recovery:

Emergency Demand Response Program (EDRP) Charge Type Implications: This second requirement is met by a CURRENT charge type with a REVISED NAME and SCOPE: CURRENT charge type ID number: 167 (no change) REVISED charge type name: Emergency Energy and EDRP Debit FORMAT: Manual Per Unit Allocation (Type “DP”) charge type Includes Cost Recovery amount and the underlying AQEW/SQEW quantities that form the basis of its distribution. 2) Cost recovery:

Emergency Demand Response Program (EDRP) 1) Technical Interface document: “IMO Charge Types and Equations” (IMP_LST_0001), Issue 8.1 Currently on the PENDING CHANGES page. To be released on the TECHNICAL INTERFACES page as Issue 9.0 Official listing of charge types 406 and 167 Includes GST treatment Rounding Conventions

Emergency Demand Response Program (EDRP) 2) Technical Interface document: “File Format Specification for Settlement Statement Files and Data Files” (IMP_SPEC_0005), Issue 7.1 Currently on the PENDING CHANGES page. To be released on the TECHNICAL INTERFACES page as Issue 8.0 Describes implementation of charge type 406 as a MANUAL LINE ITEM charge type Describes implementation of charge type 167 as a MANUAL PER UNIT ALLOCATION charge type Anomalous field usage - charge type 167: section 2.2.5