JJ Jamieson MIC Chair MIC Report for ISAS August 2014 Salt Lake City

2 MIC leadership informed the MIC of a recent decision of the WECC Board to reclassify WECC Regional Business Practices as WECC Criteria WECC members voiced concern about the lack of communication to the membership regarding this change Reclassification of Regional Business Practices as Regional Criterion

3 WECC members felt that the implications of the change were not fully investigated o E.g.: Criteria can become sanctionable in certain circumstances More effective communication is necessary MIC to follow results of motion to ensure that BOD and MAC address the issues Reclassification of Regional Business Practices as Regional Criterion (2)

4 The WECC Market Interface Committee (WECC MIC) has learned of the action taken by the WECC Board of Directors to reclassify the WECC Business Practices to WECC Regional Criteria. This action was taken without the knowledge of the WECC MIC and concurrence of the WECC membership. The WECC MIC believes that the action that the WECC Board took was taken without full knowledge of the action and consequences. The WECC MIC hereby moves to request that the WECC Member Advisory Committee, acting as the member advisory to the WECC Board of Directors take action on this issue to prevent reoccurrence of similar Board resolutions in future Board action and seek to rescind the action to reclassify the WECC Business practices and seek member advisory for this reclassification project. Motion passed with some entities abstaining and no votes opposing MOTION:

5 Discussion of the future of the MIC and its subcommittees WECC has to conduct a review per Section 4.9 of the WECC Bylaws The MIC will prepare a paper to the Board explaining the value and importance of the MIC Evaluating the MIC’s subcommittees future roles to capture optimal efficiency MIC members encouraged to take an active role in directing the committee’s future MIC leadership will reach out to the subcommittee chairs and release a broad statement regarding the future of the subcommittees for MIC comment. Committee Structures

6 Shawn Davis provided background and an update on the proposed MID-C Scheduling changes A MID-C Scheduling Forum was created on April 18, 2014 with the objective to: o generate comments regarding the Grant County proposal o investigate alternate proposals o define MID-C scheduling needs The MIC is concerned about impacts on scheduling and liquidity at the MID-C Proposed Mid-Columbia (MID-C) Scheduling Changes

7 The EIM is currently running system testing and market simulation The EIM operation should begin October 1, 2014 Staff has been selected and a draft EIM Business Practice Manual has been prepared. FERC conditionally approve the implementation for PacifiCorp and other EIM participants on June 19, 2014 A Stakeholder Transitional Committee was formed as an advisory committee to the ISO Board in May MIC is following the development of the EIM closely CAISO- PacifiCorp EIM Report

8 Kathy Anderson apprised the group of the status of the Northwest EIM MC Initiative The initiative is still in Phase III and will begin implementing educational outreach in August 2014 Information regarding the initiative can be found on Northwest Power Pool’s website. Northwest EIM MC Initiative Phase III Report

9 The ECCAC was dissolved at the June 2014 JGC meeting. Peak Reliability will lead a task force focusing on the ECC chaired by Raj Hundal Mr. Hundal is looking for volunteers to participate Information on the task force’s activities will be available on Peak Reliability’s Project webpage. ECC Functional Specification Discussion

10 A new task force being formed under the JGC Evaluate whether Dynamic and Pseudo ties are both necessary initial phase of the task force’s goal would be an evaluation only Members of the MIC expressed that there were legitimate reasons for both Pseudo-Tie and Dynamic Schedules

General Updates Gas-Electric Coordination Updates Information Sharing Policy (ISP) Update NAESB Wholesale Electric Report Data Sharing Update Natural Gas/Electric Update Unscheduled Flow Mitigation Plan (UFMP) Software Changes Update WECC/Peak Reliability Update Path Operator Task Force (POTF) Recommendations Time Error Correction Update

12 MIC held their Spring meeting via webinar o Comments received were supportive o MIC is planning to hold one of their meetings per year via webinar  Webinar meeting could be replaced with a Face to face meetings if deemed necessary / beneficial Next meeting is October 7, 2014 in Salt Lake City, Utah MIC Meetings

JJ Jamieson MIC Chair Questions?