Establishment and Review of Capacity Network Resource Capability values for Existing Generators

1. Establishment and Review of Capacity Network Resource Capability values for Existing Generators Al McBride Project Manager – System Planning

2. Objectives • Review the proposed definition of Capacity Network Resource Capability (“CNR Capability”) • Review previous discussions at Reliability Committee regarding data collection for establishing generator interconnection capability limits • Report on the data collection efforts performed by the ISO • Explain how Market Participants can review the result of the data collection for their units • Address efforts to memorialize CNR Capabilities in the Forecast report of Capacity, Energy, Loads and Transmission (the “CELT”)

3. Background • The October 31, 2008 Filing of FCM/Queue Amendments,* which is currently under review by FERC, establishes the CNR Capability Capacity Network Resource Capability (“CNR Capability”) shall mean: (i) in the case of a Generating Facility that is a New Generating Capacity Resource pursuant to Section III.13.1 of the Tariff or an Existing Generating Capacity Resource that is increasing its capability pursuant to Section III.13.1.2.2.5 of the Tariff, the highest megawatt amount of the Capacity Supply Obligation obtained by the Generating Facility in accordance with Section III.13 of the Tariff, and, if applicable, as specified in a filing by the System Operator with the Commission in accordance with Section III.13.8.2 of the Tariff, or (ii) in the case of a Generating Facility that meets the criteria under Section 5.2.3 of this LGIP, the total megawatt amount reflected in an existing Interconnection Agreement, whether executed or filed in unexecuted form with the Commission, an application pursuant to Section I.3.9 of the Tariff (or its predecessor provision, if any), or as determined by the System Operator based on documented historic capability of the Generating Facility. The CNR Capability shall not exceed the maximum net megawatt electrical output of the Generating Facility at an ambient temperature at or above 90 F. degrees for Summer and at or above 20 degrees F. for Winter. Where the Generating Facility includes multiple production devices, the CNR Capability shall not exceed the aggregate maximum net megawatt electrical output of the Generating Facility at an ambient temperature at or above 90 degrees F. for Summer and at or above 20 degrees F. for Winter. (emphasis added) * FERC Docket ER09-237

4. CNR Capability • Defines the Capacity Network Resource interconnection service rights that must be maintained for the generator • Defines whether an Interconnection Request is required for a proposed increase in Capacity Network Resource Capability in accordance with the LGIP/SGIP • Defines whether an initial interconnection analysis is required under FCM qualification for a proposed increase in output from an Existing Generating Capacity Resource

5. Previous RC Discussion Regarding Data Collection • At the April and May 2008 Reliability Committee meetings, the ISO discussed a process to memorialize interconnection capabilities • The process, as conveyed in a memo to the Committee, relies on available documentation of the capacity rating of generating resources

6. The Process for Data Collection Approach • The interconnection capability of the generator shall be: • The summer and winter MW quantities expressed in the Interconnection Agreement, where available • If the above quantities are not available, the interconnection capability will be the higher of the following: • The summer and winter MW quantities expressed in the I.3.9 or 18.4 approval for the generator, since December 31, 1996; • The highest recorded summer and winter Claimed Capability Audit – Establish test result for the generator. The test must have occurred during or before the summer testing period of summer 2007, but after December 31, 1996; or • The maximum claimed capability for the generator as recorded in a CELT report starting with the April, 1997.

7. ISO Data Collection and Distribution • The ISO has completed a review of: • Interconnection Agreements • I.3.9/18.4 Applications • CELT Reports going back to 1997 • Maximum Claimed Capability values going back to 1997 • FCM Qualified Capacity values for Existing Generators • Market Participants (for their own resources) can see, in the Forward Capacity Tracking System, the CNR Capability values developed by the ISO: • Click the “Basic Info” tab for the given Resource • Any questions/comments should be directed to Customer Service

8. CNR Capabilities in the Forward Capacity Tracking System • The CNR Capabilities will be used first for FCM qualification purposes, as part of 2010-2011 Annual Reconfiguration Auction/Annual Bilateral qualification (April-May 2009 timeframe)

9. CELT publishing of the CNR Capability • The May 2008 RC memo proposed that interconnection capabilities for existing generators be documented in the CELT report, starting in 2009 • The draft CELT is normally published in the 2nd half of February to all Market Participants for comment • Usual comment process (Customer Service) will be used to collect feedback on the CNR Capabilities • Market Participants should collect and provide documentation support if they have comments on the values • Final CELT • Final CELT to memorialize values will published in April • Market Participants should contact Customer Services with comments thereafter

10. Questions