1. WECC Response to BAL-002-WECC-1 Remand Order December 10, 2010 WECC Board of Directors Meeting Steve Rueckert Director of Standards

2. WECC Response to BAL-002-WECC-1 Remand Order Standard Request The DT shall address issues identified in the Order, including Replace Spinning Reserve and Non-Spinning Reserve with Operating Reserve – Spinning and Operating Reserve – Supplemental Explicitly identify Demand-side Management as an acceptable type of reserve (R3.7) Must be technically capable of providing contingency reserve service Change default of continent-wide requirement of 105 minutes back to more stringent 60 minutes For firm load, clarify EEA level necessary

3. WECC Response to BAL-002-WECC-1 Remand Order Timeline Mathematically feasible to meet March OC meeting Many concerns with that approach Assumes rushing SAR development by Monday Assumes either no comments received or comments do not change draft Assumes concurrent posting for first industry comment and posting for OC approval Would require special meeting of the Board in April 30 days between OC approval and BOD consideration

4. WECC Response to BAL-002-WECC-1 Remand Order Somewhat more reasonable Timeline 12/10 post DT meeting notice (Note: Today) 12/17 submit SAR to SRRC (and seek additional DT members) Skipping JGC guidance to seek industry feedback on Standards Requests 1/10-13 First DT meeting 1/17 Post for 45 days (Note: Assumes DT can develop draft after 1 meeting) 3/3 Comments due 4/4 DT respond to comments and post V2 4/11 Post for OC (Note: concurrent w/ comment posting) 5/4 Comments due 5/11 Special OC meeting (Note: Assume V2 is final version) 6/23-24 Board approval in June Meeting

5. WECC Response to BAL-002-WECC-1 Remand Order Phase II Subsequent Standard Request to revise Contingency Reserve Restoration Period Back to NERC default Include technical justification Taking this two-phase approach is our best bet for getting a FERC approved Contingency Reserve Regional Reliability Standard Approved

6. Discussion Steve Rueckert Director of Standards Western Electricity Coordinating Council 155 North 400 West, Suite 200 Salt Lake City, Utah 84103 801 883-6878 steve@wecc.biz