Directions Session Briefing WSPP Executive Committee Meeting June 15, /15/20101

What Was It? Origin: WSPP Admin Committee had a strategic discussion in Washington D.C looking at overall long-term direction of WSPP – Reviewing how business is done (financial & otherwise) – Considering how to maximize value to the membership – Realized that member input would be instructive on many issues – Wanted to take member pulse to gauge priorities, where there is consensus, identify sense of purpose & direction Result: Issues Forum held at the Operating Committee Meeting in Park City, UT March 7, 2010 – Brainstorming Session – Beginning of Membership Dialogue 6/15/20102

What is the Purpose of WSPP? From the website: “WSPP Mission is the provide a catalyst for an efficient & robust power market – that allows WSPP members to effectively manage their power deliverability and price risk and create opportunity – accomplished by constantly facilitating refinements to the Agreement and promoting trading relationships.” Is maintaining the Agreement enough? If not, what should we be doing? – Catalyst for an efficient & robust wholesale power market – Allowing members to effectively manage their power deliverability/price risk and create opportunity – By constantly facilitating refinements to the Agreement and promoting trading relationships. Should we take an active role in furthering the development of dynamic markets? – What are some ways of doing that? Issues Forums – What are some of the advantages/benefits of doing that? – What are some impediments to accomplishing that? 6/15/20103

What is the Purpose of WSPP (con’t) What are the top issues/market forces confronting WSPP and its membership? – Do we respond correctly/quickly enough with the contract? With comments? How could we improve? Should we improve? – (Diversity) Are all members impacted equally or similarly by these issues? – What should we do with issues of partial impact – or partial consensus? Is 90% a protection or an impediment? – From whom or what do we need protection? Are we protecting positions and preventing progress? – Is there a way – abstention or reconciliation – to have protection and change? – Build trust, improve communication – dialogue How would you like to see WSPP change or evolve? 6/15/20104

Meetings What is the purpose? – Just business Get in, vote, get out? – Networking (Important) – Education (Important) – Diversions (De-emphasize) – Issues Forum or Sector Discussions – Should interest subgroups (e.g., banks, renewables, utilities) be encouraged? What’s the comfort zone price-wise for meeting hotels? (Consider Runzheimer Index as a guide, but look for nice places) Is it OK to have government and non-government rates? (Yes, but not essential) Suggestions for locations? Should non-members – Brokers, Vendors – be allowed/encouraged to attend? (Yes) – Should they be charged? (Yes, unless they are sponsors) How much? (TBD) Should members be charged to attend training? (Yes) The meeting? (No) How much? (For training, nominal amount, but enough to cover costs) Meeting Committee? (venue, training, communication, diversions, sponsorship) 6/15/20105

Some Other General Conclusions WSPP has a good cash buffer, but it would be prudent to protect and grow the coffers Many value the networking opportunities presented by the Operating Committee meetings and want to preserve that There is support for WSPP’s educational efforts (at meetings/issues forums/webcasts), and most are willing to pay to attend While many enjoy social activities at meetings, they should not be emphasized in meeting notices so much. Keep notices focused on business issues, shouldn’t look like a vacation brochure! 6/15/20106