Unscheduled Flow Administrative Subcommittee Update for ISAS

1. Unscheduled Flow Administrative Subcommittee Updatefor ISAS Robin Chung January 29, 2014

2. Membership and Meetings • Last UFAS and USFTF meetings were held January 8th and 9th, 2014 • Added Deane Lyon, new Path Operator member from CAISO • Awaiting appointment of new At Large Member

3. Charter Update • Yearly review required by charter • Proposed changes: • Reaffirm UFAS role in collecting, reviewing and analyzing USF event data • Remove training materials requirement • Remove dispute resolution language • Remove involvement in WECC budgeting • Will leave current membership balance intact for now

4. Current Dues Calculation • For 2012 dues calculation we require: • Import, Export, Generation & Load Data for 2008, 2009 & 2010 • COPS hours for 2012 • PST O & M Costs for 2011 • Capped based on 1995 dues • Six different years being utilized in calculation! • 13 largest entities pay more • Only WECC members are charged

5. OC Guidance on Dues Calculation • Special OC webinar held December 12, 2013 • UFAS asked for direction OC Membership was willing to support in new dues calculation methodology • All OC members supported compensating device operators full amount charged • Two options were discussed, UFAS is working on a formal proposal for March OC Approval

6. Proposed Methodology – Base Fee • Base amount will be charged to all NERC registrants in Western Interconnection • Base amount based on approximately 415 registered entities, with duplicate registrations removed • Running numbers with 10%/25%/50% and flat fee with 2012 charges for comparison purposes

7. Proposed Methodology - Causation • Excess amount left will be assigned to cost causation via tag data • Split 50/50 between first PSE and last LSE on tag • Capture all Off Path tags from Step 3 and higher events and applied TDF • Tag values prior to any event curtailments • Specialized sorting for tags submitted to Market Operators (CAISO)

8. Known Deficiencies • Does not take untagged energy into account • Current TDF methodology based on zones • UFAS current auditor to its own process • Still believe this is better than current methodology!!!

9. 15 Minute Scheduling • Change Order 34, detailing changes to webSAS for 15 minute scheduling, has been implemented • webSAS will allow tag to go implemented, but it if the TDF is above threshold, tag will be curtailed to zero, or to it’s original amount if it was an adjustment

10. Competing Path Matrixes • New competing Path Matrixes for Paths 66/30 and 66/31 have been completed • Were included in the Winter Matrix Update

11. FERC Filing Update • Unscheduled Flow Reduction Guideline and updated regional reliability standard IRO-006-WECC-3 have been filed • Cut by NERC priority, off-path, then on-path schedules via 16 “bucket” methodology, resulting in few MW cuts • OATI has completed roughly half of the work, but WECC has halted payments until bifurcation budgeting issues have been resolved

12. Other Meeting Activities • Data sharing issues and discussion is ongoing • Continued coordination with the Enhanced Curtailment Calculator Advisory Task Force • Discussions regarding the CISO/PAC EIM Market and its impact on Unscheduled Flow Mitigation

13. Path and Device Qualification Status • There are currently no Devices pending for disqualification • Path 22 has met requirements for disqualification; UFAS has requested further information from APS

14. Operating Statistics • Plan Year 20 (CY2014) activity as of January 22, 2014 has 2 hours of Coordinated Operations of Phase Shifters (COPS) with 0 hours of contributing schedule curtailments • Total of 0 MWhs of Unscheduled Flow relief was provided by curtailments • Both events were Path 30

15. Thank you! Questions?