1. Transmission Customer Forum Operating Agreement Update Cheryl Johnson 9/21/06

2. Operating Agreement Update It’s time to update the Operating Agreements Some older Operating Agreements may need updating. Some sections are out of date: –Contact Information –Computer Technical Specifications –Communication Requirements

3. Operating Agreement Background Operating Agreement Update Process –Create Updated Operating Agreement Template Communicate draft changes during Customer Forum. Communicate draft changes to each plant and solicit input. Incorporate input to create new Operating Agreement template. –Using new template, provide new draft agreements to each plant. Work with each plant to add site specific information. Incorporate changes and execute. Update contact and other information as needed and review at least annually. –Required per the Interconnection Agreement. –Specify operating practices, contact info, communication protocol, etc.

4. Operating Agreement Template Most Operating Agreements look something like this. Changes will be mostly to Exhibits to update contacts and computer info.

5. Sample Update to Contacts

6. Sample Update to Computer Specs BEFORE : AFTER:

7. Reflect Change to GENCOMM BEFORE: AFTER:

8. Summary/Next Steps Email Generic Agreements for customer review. Incorporate input into new template. Email site specific agreements to each plant. –Hold conference calls or schedule meetings as needed. –Iterative Process. Sign Updated Operating Agreements. Review Operating Agreements on an annual basis and update contact info as needed.

10. Reminder of Key Provisions

11. Use GENCOMM as the primary communication path. GENCOMM serves as the official operating documentation. Follow-up phone conversations with a GENCOMM message. –Include all necessary details.

12. Reminder of Key Provisions Generators shall notify the Control Area Operator of any deviation from its annually reported planned outage schedule. To keep the Control Area Operator apprised of the availability of generation resources across the transmission system. To ensure that the Control Area Operator has an inventory of generation to call upon in an emergency situation.

13. Reminder of Key Provisions Some Interconnection Agreements may require varying maintenance schedules (i.e. 5 year or 10 year maintenance schedules). The Generator shall send an annual maintenance schedule to the Control Area Operator and to the Company Operating Agreement notification contacts. Incorporated into operational planning studies. Utilized to more efficiently coordinate outages.

14. Reminder of Key Provisions Generator shall adhere to voltage schedule during normal operations. Company Operator may require Generator to deviate from voltage schedule under adverse system conditions.

15. Reminder of Key Provisions This information is used to develop the next day system security study for reliability purposes. More advance notification (i.e. several days) of the Generator energy profile will result in more accurate forecasts.

16. Reminder of Key Provisions Time permitting, the Reliability Coordinator will act through marketing channels. If an immediate response is needed, the Control Area Operator may direct the Generator to reduce generation or increase generation for reliability purposes.

17. Questions