CPS Reporting and Milestones Forward Capacity Market

1. CPS Reporting and MilestonesForward Capacity Market Eric Winkler, Ph.D. FCM & Tariff Administration ISO New England, Inc. September 3, 2008

2. Topics • Market Rule Requirements • CPS Report Submission • Milestone Data

3. Quarterly Critical Path Schedule Report • Required Submission to ISO-NE no later than 10 Business Days after the end of each calendar quarter. (MR 1. Section III.13.3.2.) • Update CPS Must include (MR 1. Section III.13.3.2.1.) • Updated Schedule (no changes still need to update). • Indicate any changes to values or dates from previously submitted versions. • Include explanation of any proposed changes. • Explain any proposed changes to project design and impact on amount of capacity the resource will be able to provide.

4. Documentation of Milestones Achieved • Demand Resource projects from a single facility with a Demand Reduction Value 5 MW or greater (MR 1. Section III.13.3.2.2.1.a.) • Major Permits • Project Financing Closing • Interconnection Request • Major Equipment Orders • Substantial Site Construction • Major Equipment Delivery • Major Equipment Testing • Commissioning • Commercial Operation • Additional Relevant Information: The Project Sponsor must include in the critical path schedule report any other information regarding the status or progress of the project or any of the project milestones that might be relevant to the ISO’s evaluation .

5. Documentation of Milestones Achieved • Demand Resource projects installed at multiple facilities and Demand Resource projects from a single facility with a Demand Reduction Value of less than 5 MW (MR 1. Section III.13.3.2.2.1.b.) • Substantial Project Completion: the cumulative percentage of total Demand Reduction Value • Pipeline Analysis: if cumulative percentage of total Demand Reduction Value is 30 percent or less by the second critical path schedule target date, then the Project Sponsor shall provide a pipeline analysis. • Additional Relevant Information: The Project Sponsor must include in the critical path schedule report any other information regarding the status or progress of the project or any of the project milestones that might be relevant to the ISO’s evaluation .

6. Failure to Meet Critical Path Schedule (MR1 Section III.13.3.3.) • If the ISO determines that any critical path schedule milestone date has been missed, or if the Project Sponsor proposes a change to any milestone date in a quarterly critical path schedule report then the ISO shall • consult with the Project Sponsor to determine the impact of the missed milestone or proposed revision, and • shall determine a revised date for the milestone and for any other milestones affected by the change including Commercial Operation of the project. • If a milestone date is revised for any reason, the ISO may • require the Project Sponsor to submit a written report to the ISO each month until the revised milestone is achieved detailing the progress toward meeting the revised milestone. • Such a monthly reporting requirement, if imposed, shall be in addition to the quarterly critical path schedule reports.

7. Withdrawal from CPS Monitoring (MR1 Section III.13.3.6.) • Project Sponsor may withdraw its resource from critical path schedule monitoring by the ISO at any time by submitting a written request to the ISO. • The ISO also may deem a resource withdrawn from critical path schedule monitoring if the Project Sponsor does not adhere to the requirements of MR1 Section III.13.3. • Any resource withdrawn from critical path schedule monitoring shall lose its Capacity Supply Obligation and its right to any payments associated with that Capacity Supply Obligation in the Capacity Commitment Period, and it shall forfeit any financial assurance provided with respect to that Capacity Supply Obligation.

8. Return of Financial Assurance (FERC Electric Tariff No. 3, Financial Assurance Policy) • Once a Resource is declared commercial and successfully tested for its capacity rating by the ISO, that Resource shall no longer be considered New Capacity. • For any Load Response Resource that is comprised of a number of discrete load response projects has achieved the milestones under the Market Rules for at least seventy-five percent (75%) of the capacity awarded to it, the ISO will return to the portion of the financial assurance within four (4) Business Days after receipt of a written request.

9. Reinstatement of Financial Assurance (FERC Electric Tariff No. 3, Financial Assurance Policy) • In the event that any financial assurance is returned to a Designated FCM Participant under the immediately preceding sentence and the applicable Load Response Resource subsequently fails to achieve seventy-five percent (75%) of all of its milestones and seventy-five percent (75%) of previously achieved milestones, that Designated FCM Participant will reinstate the full amount of additional financial assurance required within four (4) Business Days after the ISO provides notice to that Designated FCM Participant.

10. Quarterly Critical Path Schedule ReportSubmission Methodology • Prior to Q3 2008 - Manual Process • Q3 2008 and after – Through FCTS • FCTS Functionality in next FCTS release • FCTS training to be provided prior to Q3 deadline after next FCTS release.

11. Quarterly Critical Path Schedule ReportSubmission Issues • COD Date (6/1/10 v 5/31/10) • COD inconsistent with milestone values • Milestone value at COD greater than cleared • Missing values • Missing COD

12. FCA#1 Milestone Data • LRP and ODR, September 30, 2008 Cutoff • New ODR project must be registered and approved by ISO by September 30, 2008. • Demand Response Assets performing in events after September 30, 2008 will not be considered successfully tested. • Only Assets that have been mapped to Resources • System to map Assets to Resource in Q4 CAMS release • Training to be held Mid October • Five day window at end of October

13. FCA#1 Milestone Data (continued) • Validated SMS data for DR • Validated ODR tracking system data • Complete Passed for month of October (e.g. Installed as of September 30th)

14. Questions