1. Variable Generation Subcommittee Paul Arnold and Michelle Mizumori Northwest Wind Integration Forum Technical Work Group October 29, 2009

2. Topics ● Background ● VGS Background and Work Groups Activity Update ● Relationship to NW Wind Integration Action Plan Issues and Activities ● Next Steps

3. Background—VGS Reporting and Staffing ● VGS Reports to the Joint Guidance Committee ● VGS Staffing includes:  Scott Gutting – Chair  Leonard Dorr – Vice-Chair  Paul Arnold – MWG Chair  Bart McManus/Grant Rosenblum – OWG Chairs  Ross Guttromson – PWG Chair  Leonard Dorr – TWG Chair  Michelle Mizumori – WECC Staff

4. Background—VGS Purpose ● Identify issues associated with variable generation integration, facilitate and implement solutions that add distinct value to WECC members ● Focus is on the regional operations and planning reliability, effective markets, and new technology ● Be a source of information, analysis, and coordination

5. Background- VGS Activities ● VG issued a survey in December 2008 ● Kickoff call January 15 ● Applied for and received DOE Grant ● Work Plan presented and approved August 11 ● Work Groups —next meeting is November 16-18 in Salt Lake City ● VGS – next meeting is December 1 in Phoenix

6. Marketing Workgroup Update ● Chair – Paul Arnold (ColumbiaGrid) ● Workplan Activities  Markets for Ancillary Services  Product Codes used in scheduling VG  Effect of REC market on VG development, marketing, reliability  NAESB activities 6

7. Operating Workgroup Update ● Chairs - Bart McManus (BPA)and Grant Rosenblum (CAISO) ● Workplan Activities  Assess methodologies for determining reserve requirements  Inventory VG performance standards  Investigate mechanisms for better utilizing resource flexibility  Inventory forecasting practices  Quantify the benefits of BA cooperation 7

8. Planning Workgroup Update ● Chair – Ross Guttromson (PNNL) ● Workplan Activities  Participate in variable generator model validation  Review the NERC IVGTF report and participate in relevant NERC activities  Investigate transmission capacity assignment for VG resources  Inventory best practices and provide recommendations to aid in the standardizing and validating of planning criteria and methodologies and interconnection standards  Provide input to transmission adequacy analyses for accommodating the integration of VG  Create a centralized database for VG information  Develop a VG-heavy case for TSS and SRWG to use in analyzing dynamics related issues 8

9. Technology Workgroup Update ● Chair – Len Dorr (First Solar) ● Draft Workplan Activities  Investigate performance requirements for VG technologies  Evaluate the impact of technology cost changes on resource allocation and transmission planning  Identify complementary technologies to aid in the integration of VG  Storage  Inverters  Communications and Measurement  Smart Grid 9

10. Current State of WECC VGS Effort ● Task Teams are being formed and assignments have been made to address issues and activities ● If you are interested, now is a good time to get involved  Anyone can join a work group

11. Current State of WECC VGS Effort ● WECC Study  VGS Chairs, NREL and PNNL are scoping a study to evaluate benefits of Balancing Area cooperation techniques that capture flexibility and diversity of existing resources and loads over a wider geographic area  Similar to an expanded Western Wind and Solar Integration Study effort  Further discussion at December 1 VGS Meeting

12. Relationship to NW Wind Integration Action Plan—Action 13 ● Action 13 of the Wind Integration Action Plan  Address the transmission scheduling, product design, demand management, regulatory, contractual and cost recovery barriers to expanding the market for flexible products and services

13. Relationship to NW Wind Integration Action Plan-Expanded Markets for flexibility Leverage daily and seasonal differences in system flexibility among the regions utilities  WECC-wide study will address this Through Dynamic Scheduling, allow two or more utilities to exchange the balancing requirements for a portion of the wind in their different systems  WECC-wide study will address this

14. Relationship to NW Wind Integration Action Plan—Expanded Markets for flexibility Allow independent power producers to generate additional income by monetizing the flexibility characteristics of their assets  MWG will address in white paper Create price signals for innovative demand management strategies  MWG will address in white paper

15. Relationship to NW Wind Integration Action Plan—Expanded Markets for flexibility Access some of the benefits of shorter term markets without fundamental changes to Northwest market structure  MWG will address in white paper, but from larger WECC perspective

16. Relationship to NW Wind Integration Action Plan—WECC is starting to address markets ● MWG has an action item to develop white paper on Markets ● MIC/SIS has started discussions on a congestion management and will be making a presentation to the WECC Board in December

17. Next Steps ● Next meetings  Work Groups – November 16-18--Salt Lake  VGS – December 1--Phoenix

18. Questions Michelle Mizumori Managing Director of Operations and Market Interface (360) 213-2675 mmizumori@wecc.biz Paul Arnold Vice President- ColumbiaGrid (503) 857-5720 arnold@columbiagrid.org