1. Evolution of the ISO Power Markets
Steve Berberich
Vice President of Technology and Corporate
Services and Chief Financial Officer
PANC Meeting
November 3, 2009

2. The new market is performing relatively well
A new nodal wholesale market went live on April 1, 2009
Transition was smoother than expected but there were issues:
Exceptional Dispatch
Volatility in the Real Time Market
Periodic system failures
The systems have now been through three seasons
Shoulder months have strained ramping
Summer peak was about 46,000 MW

3. Now that the new market is in, we have several critical initiatives that are “in the plan”
Capability
Planned Deployment
Payment Acceleration
November 1, 2010
Scarcity pricing
Proxy demand resource
Procurement of ancillary services in HASP
April 1, 2010
Multi-stage generator modeling
Convergence bidding
Refinements to participating load
February 1, 2011
We’ll need to talk about the message on this slide. I’ve tried to pull out the program, deployment date, and risk.

4. There are also several initiatives that are anticipated
Market efficiency enhancements
Auctions for long term congestion revenue rights
Increased granularity of default load aggregation points
Renewable integration support
Changes to ancillary services products and markets
Resource adequacy program enhancements
Promote demand response
Leverage smart grid technologies
Enable storage technologies

5. Renewable integration is going to dominate the landscape as far as the eye can see.
2000 MW ramp down
2000 MW ramp down and then 2000 MW ramp up

6. So, what are we going to do??
Work together
A principals group has been created
Collaborate on technologies and technology deployment
Create a road map demonstrating a few key scenarios
High wind
High solar
Combinations
Deploy market products
Encourage technologies
Demand Response
Storage