1. 2007 Goals

4. Introduction Western Electricity Coordinating Council (WECC) will be primarily defined throughout the 2007 year by Electric Reliability Organization (ERO) Mandatory Standards, Compliance, and Enforcement. Additional challenges are expected due to: Transmission Expansion studies Seams reliability issues from the California Independent System Operators (CAISO) implementation of their Market Redesign Technology Upgrade (MRTU) Resolution of reserve capacity issues Implementation of the Reliability Coordinator strategy

5. ERO Implementation Lead: Rueckert/McCarren 1. 1.Complete negotiations with North American Electric Reliability Council (NERC) regarding the Delegation Agreement, gain Federal Energy Regulatory Commission (FERC) approval, and successfully implement. 2. 2.Develop and implement the WECC Compliance Enforcement Program, including Compliance Audits and participation on NERC Reliability Readiness Audits. 3. 3.Complete an agreement between WECC and the Canadian Provinces of Alberta and British Columbia for a Standards and Compliance Enforcement Program in Canada. 4. 4.Register all owners, operators, and users of the bulk power system.

6. ERO Implementation (cont.) Lead: Rueckert/McCarren 5. 5.Implement billing process for all Balancing Authorities and/or Load Serving Entities. 6. 6.Transition to ERO Mandatory Standards. 7. 7.Maintain the WECC Reliability Management System for Comision Federal de Electricidad (CFE). 8. 8.Develop and implement a transition plan for WECC Tier One and Two Standards into ERO Mandatory Standards.

8. Technical Services Lead: Loock 1. 1.Fully engage the Transmission Expansion Planning Policy Committee (TEPPC) toward developing a functioning transmission database, Technical Advisory Subcommittee, and Work Groups. 2. 2.Continue the development of Department of Energy (DOE) National Congestion Studies, and Regional transmission expansion studies. 3. 3.Continue the improvement of Loads and Resources analysis. 4. 4.Continue the development of Base Case studies with improved data inputs. 5. 5.Improve resource adequacy assessment.

9. Reliability Coordination Lead: Patterson 1. 1.Implement all aspects of the Board approved Reliability Coordinator Strategic Principles through coordination with the Operating Committee. 2. 2.Complete implementation of the Western Interchange Tool. 3. 3.Complete Phases One and Two (begin phase Three) of the West- wide System Model. 4. 4.Assure Reliability Center compliance with ERO mandatory standards.

10. Market Interface Committee Lead: Wells 1. 1.Identify, evaluate and make recommendations on any new seams issues with CAISOs implementation of their MRTU. 2. 2.Establish effective coordination with North American Energy Standards Board (NAESB). 3. 3.Evaluate NERC, WECC and NAESB standards and business practices under development for market interface concerns. Operations Lead: Ashbaker 1.Finalize the Frequency Response Reserve program.

11. Training Lead: Ashbaker 1. 1.Expand training efforts to deliver NERC Continuing Education (CE) approved learning activities requirements. WREGIS Lead: McCarren 1.Integrate Western Renewable Energy Generation Information System (WREGIS) program and employees into WECC with appropriate separation.

13. Internal Operations Lead: Maher 1. 1.WECC Administration In coordination with Reliability Policy Issues Committee (RPIC), develop a process for completing the 2008-2012 Strategic Plans in October 2007. Finalize office database to improve communication within the WECC Membership. Increase WECC committee and subgroup effectiveness by implementing appropriate staff service and support. Continue improvements in outreach and communication with Board Members and Stakeholders (regulators and states). Develop 2008 budget and business plan for Board approval during the April 2007 meeting. Complete the WECC office expansion to accommodate growth.

14. Internal Operations (cont.) Lead: Maher 2. 2.Information Technology Develop and install new website to include data bases for WECC activities, and the Compliance program. Improve desktop support and reduce contractor involvement.

15. Budget 2007 Lead: Maher

18. Concerns, Problems, Questions