1. WECC Compliance Program 2006 vs 2005 2006 vs 2005 76 Violations identified through Self-Certification in 2006 76 Violations identified through Self-Certification in 2006 83 in 2005 83 in 2005 22 Stds. Self-Certified in 2006 22 Stds. Self-Certified in 2006 18 in 2005 18 in 2005 24 Non-RMS violations in 2006 24 Non-RMS violations in 2006 40 in 2005 40 in 2005 Readiness Audits Readiness Audits Operator Cert. TOPs Operator Cert. TOPs

2. 2006 CEP Update Repeat violations reported through Self-Certification Repeat violations reported through Self-Certification 32 in 2006 32 in 2006 43 in 2005 43 in 2005 Five organizations have not yet provided their 2006 Self-Certification submittals Five organizations have not yet provided their 2006 Self-Certification submittals One incomplete submittal One incomplete submittal 8 in 2005 at this same time 8 in 2005 at this same time Failure to respond results in Level 4 non-compliance Failure to respond results in Level 4 non-compliance

3. Trends Reported violations are down Reported violations are down TOP Operator Certification TOP Operator Certification 9 in 2006 (one entity) 9 in 2006 (one entity) 17 in 2005 (1/2 year, 41 for entire year?) 17 in 2005 (1/2 year, 41 for entire year?) Reported repeat violations are down Reported repeat violations are down Submittals are more timely Submittals are more timely

4. RMS Statistics – through 3 rd Q Number of reported violations is down Number of reported violations is down 53 in 2006 vs. 84 in 2005 53 in 2006 vs. 84 in 2005 $34,865 in 2006 vs. $163,307 in 2005 $34,865 in 2006 vs. $163,307 in 2005 Operator Certification Operator Certification 15 violations, $112,000 in 2005 15 violations, $112,000 in 2005 0 violations, $0 in 2006 (BA) 0 violations, $0 in 2006 (BA) Minimal reductions in Minimal reductions in USFR USFR CPS2 CPS2 Minor increase in PSS Minor increase in PSS