November 19, 2012

1. Defining the Future InitiativeJoint Outreach Team Update Jointly Sponsored by: November 19, 2012

2. Agenda Background Introduction Draft Recommendations JOT Milestones Q&A JOT Contacts

3. JOT Mission & Vision Mission Identify opportunities and develop strategies to ensure the viability, sustainability, and resiliency of Western to continue to meet its core mission and respond to the energy challenges of the 21st Century. Vision Develop recommendations through a creative, deliberative, robust, informed and collaborative process in support of JOT’s mission.

4. JOT Goals Support engagement with Western, DOE, and stakeholders. Gather input through an extensive public engagement process to inform this effort. Conduct a meaningful review of all stakeholder input gathered. Ensure that JOT’s efforts are complementary with any ongoing parallel efforts both internal and external to Western.

5. JOT Goals Provide draft recommendations for review and comment and consider comments when developing final recommendations. Submit final recommendations to the Secretary of Energy for consideration.

6. JOT Guiding Principles For JOT Conduct an open and transparent process. Maintain JOT autonomy and independence necessary to achieve the mission. Conduct periodic reviews of both process and products.

7. JOT Guiding Principles For Draft Recommendations Remember the unique attributes of the regions. Coordinate with federal generation agencies (COE, BOR &IBWC). Beneficiary/User pays. Capture existing efforts that are being done and done well. Consider limitations to Western’s authority and address as appropriate.

9. Introduction Beyond the guiding principles, Western needs: To work with customers, stakeholders & tribes to understand the potential impacts of implementation The ability to adapt to new obligations Financial resource adequacy & certainty To focus on activities at the wholesale level, leaving issues such as, energy efficiency, demand response or electric vehicles to retail providers To continually examine its organizational capabilities To engage in Enterprise Planning

10. Draft recommendationsin three primary areas: Increasing Operational Efficiencies Transmission Products and Service Opportunities Variable Energy Integration

11. Increasing Operational Efficiencies Determine the Required Regulation Reserve Capacity for each BA Consolidate Western’s Four OASIS sites within the Western Interconnection Revise Western’s Large Generation Interconnection Procedures Study Western’s Transmission and Ancillary Services Rates to identify potential opportunities for consolidation; intra-regionally, inter-regionally, or Western-wide.

12. Transmission Products and Services Opportunities Evaluate Western’s Rate-Setting Methodologies Evaluate Western's EPAMP Integrated Resource Planning Program and improve program administration Perform an Infrastructure Investment Study Identify Potential Combined Transmission System Opportunities within CRSP, DSW & RMR Explore Options for moving from Contract Path to a Flow Based environment Evaluate transitioning Western’s Electric Power Training Center to NREL.

13. Variable Energy Integration Coordinate implementation of FERC Order 764, including, Intra-Hour Scheduling Evaluate the implementation of ACE Diversity Interchange, Reliability Based Controls, & Dynamic Scheduling System Evaluate sub-regional and regional Energy Imbalance Market Initiatives Establish a Renewable Energy Tribal Liaison position to help facilitate the integration of renewable energy projects.

14. JOT Milestones

15. JOT Contacts Online at: http://ww2.wapa.gov/sites/western/about/Pages/Definingfuture.aspx Email: JOT@wapa.gov JOT Leads: Jenn DeCesaro, DOE jennifer.decesaro@hq.doe.gov Ron Moulton, Western moulton@wapa.gov

16. Clarifying Questions ?