2. WECC - Addressing Commercial Practices Ed Beck Chair, Market Interface Committee

3. Western Governors WGA asked in 2004 if the Western electric power industry in place effective institutions to address both reliability and commercial regional electric power issues. Western electric industry responded by forming the Western Assessment Group (WAG) consisting of industry and governmental representatives from across the West

4. Western Assessment Group Stakeholder meeting May 23, 2005 Stakeholders indicated preference to: investigate whether the Western Electricity Coordinating Council (WECC) would be able to address both reliability and commercial issues, and what if any structural or governance changes would be necessary for it to do so.

5. MIC Response to WAG WAG Initiatives Task Force formed by the Market Interface Committee (MIC) concludes: No interconnection-wide institution to address commercial issues. Support exists for developing an institution to address commercial issues with a western focus. MIC supports being the WECC institution to address commercial issues in the West. Need clear understanding of what constitutes commercial issues. MIC voting structure and governance needs review relative to expansion beyond reliability functions.

6. July 05 Board Action WECC Board supported the role of the Market Interface Committee (MIC) to: address both commercial issues and business practices and make related recommendations to the Board Develop a proposed charter, scope, deliverables, budget, focus and needed Bylaws changes. Examine the effects of the Seams Steering Group- Western Interconnection ceasing to exist to assure no current efforts are lost.

7. Activities White Paper addresses WECCs proposed role in Commercial issues –Examples of what MIC will and will not do –Input will shape MIC Charter redraft White Paper posted in August of 05 regarding direction of MIC – no comments GNC /RPIC suggested reposting white paper –reposted on 3-24-06 –As of today 286 views, 0 comments Scheduled workshop for next week Lack of interest or total agreement with direction?

8. Responsibilities Identify issues affecting open and competitive markets Make recommendations for evaluation and assignment of issues to appropriate committees Identify market issues - current and future Develop procedures or BPs to solve issues Establish issue tracking mechanism

9. Subcommittee Assignments Develop Scope Statement Work Groups – Permanent –Deals with ongoing issues –Develops items to be handled by subcommittee Task Forces –Issue Specific (Temporary) Goal – Build Consensus among members on specific issues

10. Market Issues Subcommittee Chair – Robert Schwermann (SMUD) Possible Work Groups –Preschedule and Trading Issues –NAESB and related NERC Activities

11. NAESB Coordination MIC Coordination with NAESB will assure there is no overlap of efforts –Three scenarios WECC Creates BP –After board approval the BP becomes a WECC standard WECC Creates BP and files with NAESB WECC submits request for BP to NAESB and requests NAESB draft standard.

12. SEAMS Issues Subcommittee Chair – Jerry Smith (APS) Where Seams occur: –Between Balancing Authorities –Between Regions (Northwest, California, Rocky Mountain and Desert Southwest)

13. Potential Seams Issues Tagging timing Congestion management methodologies at boundaries Differences in non-firm curtailment

14. Possible SIS Work Groups Review SSG-WI Issues list Review RTO Seams Task Force Scheduling Timeline Working Group in 2001

15. Next Steps Commercial Practices Workshop April 26 – at the Marriott University Park Hotel, Salt Lake City, Utah, from 10:00 am to 3:00 pm Bring results of white paper review to Board in July –Including proposed revised charter for MIC

16. Challenge to Members Respond Provide comments – both in support or with concerns Let us know what you, the membership, wants