1. OC ORSTF Position WECC Board Meeting December 8, 2006

2. Reasons for No 5/7% Is Greater Than 5% No Technical Basis for Current 5/7% or ORSTF 5%, Cost Shifting Proposal Results in Shifting the Costs of Maintaining Reserves Between Members

3. Reasons for No New Complexity Proposal Reduces Complexity of Current Criteria, however, New Complexity is Added: Grandfathered Contracts Self-Provided Loads Tariff Changes Ancillary Service Schedules in Open Access Transmission Tariffs May Require Changes Spinning and Non-Spinning Reserve Services may be Based on Current 5/7% Numbers

4. Reasons for No Implementation Costs EMS Reserve Accounting Programs Reserve Sharing Group Agreements and Software Training Frequency Response Standard Base Contingency Reserve Requirements on Frequency Response Standard Currently Being Developed, not ORSTF

5. Reasons for No Track Reserves with E-Tags Contingency Reserve Identification Task Force (CRITF) Effort will Utilize E-Tag to Track Contingency Reserve Transfers Between Balancing Authorities This Eliminates Many of the Problems ORSTF Attempted to Address CRITF Effort can Apply to all Contingency Reserve Standards