B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Resales, Aggregations & Redirects of Resales NAESB OS Presentation August 20, 2014 BPA Presenting

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Recap  Motion 113 was passed by a balanced vote. A redirect on a firm basis will not be permitted if the redirect's parent (a) is an aggregated reservation with a conditional parent or (b) is a descendent of an aggregated reservation with a conditional parent.  Customer’s will control the recall process.  TP may annul (Recall) or issue overuse charges if the customer doesn’t follow through within a designated time. 2

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Motion 113 Illustration Unconditional Monthly TSR01 Original 100 MW Start 8/1 Safe 7/1 Conditional Monthly TSR03 Original 100 MW Start 10/1, Safe 9/1 TSR12 25 MW Safe 7/1 TSR14 25 MW Safe 9/1 TSR20 75 MW Aggregated Resale Safe 9/1 TSR32 25 MW Safe 9/1 Resale TSR31 25 MW Resale Redirect of an Aggregation with a Conditional Parent Conditional Monthly TSR02 Original 100 MW Start 9/1 Safe 8/1 TSR13 25 MW Safe 8/1 TSR32 25 MW Redirect of a Resale with an Aggregation with a Conditional Parent upstream. Resale NO YES NO Which Conditional Parent is Reduced? On 9/1 the final Parent becomes safe, so this restriction will no longer apply.

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N The Secondary Market under Option 1  What transactions are ‘do-able’ under Option 1? Conditional and Unconditional Original Full or Partial Resale of a Conditional or Unconditional Original Full or Partial Redirect of a Conditional or Unconditional Original Full or Partial Resale of a Resale of a Conditional or Unconditional parent. Full or Partial Redirect of Resale of a Conditional or Unconditional parent. Full or Partial Resale of a Conditional or Unconditional Redirect Full or Partial Redirect of a Conditional or Unconditional Redirect Full or Partial Resale of an aggregated resale of Conditional or Unconditional parents Full or Partial Redirect of an aggregated resale of all Unconditional parents Etc.  What transaction(s) is not viable under Option 1? Redirect of an aggregated resale where somewhere upstream there remains a conditional parent. (Motion 113) 4

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 5 1."Preemptable Capacity" bucket is a new concept and is used solely to provide the capacity available for P&C on that reservation. a)On an Original Reservation (includes Redirects and Transfers), this bucket is reduced via a new Reduction Template when there is a Redirect or Transfer against it or one of its downstream Resales. A Recall or Preemption will also reduce this field on the Parent Reservation. b)It is not reduced on the parent for a Resale. c)It is zero on a Resale or when a reservation is unconditional. d)Should it be visible on OASIS? 2.The "Scheduling Capacity" bucket is what is currently known as "capacity" and is used for supporting scheduling rights and for calculating ATC. a)On an Original Reservation (includes Redirects and Transfers), it is reduced via the Reduction Template when there is a Resale, Transfer, Redirect, Recall or Preemption. 3.The "Safe" Date/Time is when a firm or non firm reservation will become safe from losing capacity to a preemption. a)On an Original, Redirect, or Transfer it is set based upon its Service Increment (M,W,D) and its Start Date. b)On a Resale it is based upon the “Safe” Date/Time of its parent. c)For an aggregated Resale, this will be the “Safe” Date/Time of the latest reservation being aggregated. d)The “Safe” Date/Time must be visible on OASIS. New Definition of Terms

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 6 Illustration of Definition of Terms

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 7 Mechanics of a Resale

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 8 Mechanics of a Redirect

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 9 Mechanics of a Redirect of a Resale

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 10 Mechanics of a Preemption with Resales

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 11 Mechanics of a Preemption with Resales

B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 12 Mechanics of a Preemption with Resales