Directions Session Briefing

1. Directions Session Briefing WSPP Executive Committee Meeting June 15, 2010

2. What Was It? • Origin: WSPP Admin Committee had a strategic discussion in Washington D.C looking at overall long-term direction of WSPP • Reviewing how business is done (financial & otherwise) • Considering how to maximize value to the membership • Realized that member input would be instructive on many issues • Wanted to take member pulse to gauge priorities, where there is consensus, identify sense of purpose & direction • Result: Issues Forum held at the Operating Committee Meeting in Park City, UT March 7, 2010 • Brainstorming Session • Beginning of Membership Dialogue

3. What is the Purpose of WSPP? • From the website: “WSPP Mission is the provide a catalyst for an efficient & robust power market – that allows WSPP members to effectively manage their power deliverability and price risk and create opportunity – accomplished by constantly facilitating refinements to the Agreement and promoting trading relationships.” • Is maintaining the Agreement enough? If not, what should we be doing? • Catalyst for an efficient & robust wholesale power market • Allowing members to effectively manage their power deliverability/price risk and create opportunity • By constantly facilitating refinements to the Agreement and promoting trading relationships. • Should we take an active role in furthering the development of dynamic markets? • What are some ways of doing that? • Issues Forums • What are some of the advantages/benefits of doing that? • What are some impediments to accomplishing that?

4. What is the Purpose of WSPP (con’t) • What are the top issues/market forces confronting WSPP and its membership? • Do we respond correctly/quickly enough with the contract? With comments? • How could we improve? Should we improve? • (Diversity) Are all members impacted equally or similarly by these issues? • What should we do with issues of partial impact – or partial consensus? • Is 90% a protection or an impediment? • From whom or what do we need protection? • Are we protecting positions and preventing progress? • Is there a way – abstention or reconciliation – to have protection and change? • Build trust, improve communication – dialogue • How would you like to see WSPP change or evolve?

5. Meetings • What is the purpose? • Just business • Get in, vote, get out? • Networking (Important) • Education (Important) • Diversions (De-emphasize) • Issues Forum or Sector Discussions • Should interest subgroups (e.g., banks, renewables, utilities) be encouraged? • What’s the comfort zone price-wise for meeting hotels? (Consider Runzheimer Index as a guide, but look for nice places) • Is it OK to have government and non-government rates? (Yes, but not essential) • Suggestions for locations? • Should non-members – Brokers, Vendors – be allowed/encouraged to attend? (Yes) • Should they be charged? (Yes, unless they are sponsors)How much? (TBD) • Should members be charged to attend training? (Yes) The meeting? (No) How much? (For training, nominal amount, but enough to cover costs) • Meeting Committee? (venue, training, communication, diversions, sponsorship)

6. Some Other General Conclusions • WSPP has a good cash buffer, but it would be prudent to protect and grow the coffers • Many value the networking opportunities presented by the Operating Committee meetings and want to preserve that • There is support for WSPP’s educational efforts (at meetings/issues forums/webcasts), and most are willing to pay to attend • While many enjoy social activities at meetings, they should not be emphasized in meeting notices so much. Keep notices focused on business issues, shouldn’t look like a vacation brochure!