OASIS SUBCOMMITTEE STATUS EC Meeting 4/29/14

Preemption and Competition Annual Plan Items Affected  2013 AP Item 2(a) Develop version 2 business practice standards to better coordinate the use of the transmission system among neighboring transmission providers. Request R was expanded to include the Order No. 890 (Docket Nos.RM and RM ), (Order No. 890-A (Docket Nos. RM , 002 and RM , 002), and Order No. 890-B (Docket Nos. RM and RM ) “Preventing Undue Discrimination and Preference in Transmission Services”Order No. 890 (Docket Nos.RM and RM )Order No. 890-A (Docket Nos. RM , 002 and RM , 002Order No. 890-B (Docket Nos. RM and RM ) – (i) Group 4: Pre-Emption; Request No. R05019R05019 (1) Pre-Emption (2) Request No. R05019R05019  2013 AP Item 5(c) Add language to WEQ Online Negotiation and Confirmation process to clarify Table 4-3 (R09003)R09003

Preemption and Competition  Working on all phases of Preemption and Competition o Short-Term Firm Preemption and Competition o Non-Firm Preemption and Competition o Competition for Rollover Rights (Long-Term Competition)  Main Outstanding Scope Issues o Resales (including aggregation of resales and redirect of resales) o Competition for Rollover Rights  Make revisions to Business Practice Standards o WEQ-000 o WEQ-001 o WEQ-002 o WEQ-003 o WEQ-013  Out for formal comments 4Q 2014

Preemption and Competition  Main Outstanding Issues o Resales (including aggregation of resales and redirect of resales) Scheduling Rights vs Transmission Capacity Scheduling Rights – Parent reservation has ROFR Transmission Capacity – Assignee has ROFR Resales may be aggregated for larger capacity or longer duration resale Resales may be redirected o Competition for Rollover Rights Competition opportunity whenever LT request is queued Competition opportunity when Renewal is queued

Scheduling and Capacity Rights are different. Only TSRs with Capacity Rights have ROFR. This example will be used to show the difference. TSR #10 for 30 MW Conditional TSR #11 for 20 MW Conditional TSR #12 for 40 MW Conditional TSR #20 30 MW (Scheduling) 10 Resale TSR #30 20 MW (Scheduling) TSR #40 15 MW Resale Redirect Aggregate Where does the capacity come from? Customer A Customer B Customer A Customer C Preemption and Competition

When only Scheduling Rights are assigned to Resales there are instances where Scheduling Rights and Capacity Rights are different (mis-matched). When a Redirect of an aggregated Resale is performed, it is not possible under current templates to determine the remaining Capacity Rights on the original parent reservations. ScenarioTSR #10TSR #11TSR #12TSR #20TSR #30TSR #40 1. Prior to Resales/Redirects 30 MW - C 30 MW - S 20 MW - C 20 MW - S 40 MW - C 40 MW - SN/A 2. After Aggregation to TSR #20 30 MW - C 20 MW - S 20 MW - C 10 MW - S 40 MW - C 30 MW - S 0 MW - C 30 MW - SN/A 3. After Resale to TSR #30 30 MW - C 20 MW - S 20 MW - C 10 MW - S 40 MW - C 30 MW - S 0 MW - C 10 MW - S 0 MW - C 20 MW - SN/A 4. After Redirect to TSR #40 ?? MW - C 20 MW - S ?? MW - C 10 MW - S ?? MW - C 30 MW - S 0 MW - C 10 MW - S 0 MW - C 5 MW - S 15 MW - C 15 MW - S Assignment of Scheduling Rights only to Resales

Preemption and Competition When Capacity Rights are assigned to Resales there are no mis-matched capacities to track and all capacities are known. The process is simplified because there is no longer a need to track Scheduling Capacity. ScenarioTSR #10TSR #11TSR #12TSR #20TSR #30TSR #40 1. Prior to Resales/Redirects 30 MW - C 30 MW - S 20 MW - C 20 MW - S 40 MW - C 40 MW - SN/A 2. After Aggregation to TSR #20 20 MW - C 20 MW - S 10 MW - C 10 MW - S 30 MW - C 30 MW - S 30 MW - C 30 MW - SN/A 3. After Resale to TSR #30 20 MW - C 20 MW - S 10 MW - C 10 MW - S 30 MW - C 30 MW - S 10 MW - C 10 MW - S 20 MW - C 20 MW - SN/A 4. After Redirect to TSR #40 20 MW - C 20 MW - S 10 MW - C 10 MW - S 30 MW - C 30 MW - S 10 MW - C 10 MW - S 5 MW - C 5 MW - S 15 MW - C 15 MW - S Assignment of Capacity Rights to Resales

OASIS Calendar  May 1 Conference Call  May Seattle, WA (Seattle City Light) FTF  May 30 Conference Call  Jun Carmel, IN (MISO) FTF  July 10 Conference Call  July Boise, ID (Idaho Power) FTF  July 31 Conference Call  Aug Dallas, TX (Oncor) FTF