Western Area Power Administration – SNR

1. Western Area Power Administration – SNR Brief overview of WASN Sub-Control Area Operations

2. Overview • Introduction to the new WASN Sub-Control Area. • Review Western’s current business model and post 2004 marketing plan. • WASN Sub-Control Area Operations.

3. History • Contracts between Western and PG&E end December 31, 2004 (2947A & 2948A). • Western provides PG&E with CVP Generation, the output of the Bureau of Reclamation (BOR) units, in return for 1152 MW around the clock from PG&E (24/7/365). • Western’s Customers received Contract Rate of Delivery - CRD energy.

4. Old World • Western’s Customers Energy needs were tracked by the ACES scheduling system. • Prescheduled by Western’s Merchant • Adjusted real-time by the TSS (Transmission Scheduling and Security) Dispatcher

5. Decisions • Western was faced with the following choices. • Become a Federal Control Area • Operate a contractually based Sub-Control Area in one of the following Host Control Areas: • CAISO • SMUD

6. Outcome • Western initially worked to become a Federal Control Area. • Political and Operational concerns turned Western’s efforts toward becoming a Hosted Sub-CA. • SMUD was eventually chosen as Western’s Host Control Area.

7. Approval • WECC Compliance Monitoring and Operating Practices Subcommittee (CMOPS) peer review team had a positive recommendation for the SMUD Control area that includes the WASN footprint

8. The New Footprint

9. New World On November 1, Western – SNR changed its Transmission Provider name from WAP to WASN • The name change is in keeping with the other Western Regions • Beginning January 1, 2005, Western will allocate Base Resource energy (formerly CRD energy) to its Customers.

10. New Provider Name • Western’s Transmission Provider change notice has been on SNR’s OASIS node located @ www.oatioasis.com since late September. The Transmission Provider name change is the most visible step toward WASN Sub-CA Operations. • WAUE – Western’s Upper Great Plains Region • WALC – Western’s Desert Southwest Region • WAPA – Western’s Upper Great Plains Region • WACM – Western’s Rocky Mountain Region • WASN – Western’s Sierra Nevada Region

11. New Systems • Western will implement a number of new systems for its post 2004 Marketing Plan • Merchant System - webTrader • WebTrans – Western’s Reliability - will be the primary tool for Transmission scheduling beginning January 1, 2005 • OATi product • Integrates webOASIS, ETS (webTag), and transmission scheduling features

12. 2005 WASN Operations • WASNwill operate the BOR units via AGC • WebTrans will develop the WASN Sub-CA NSI via E-tags • All Sub-Control Area Transmission Schedules will be E-tagged • WASN E-tags will create a schedule in webTrans

13. Regulation & Reserves • The WASN Sub-CA will have a 25% portion on the SMUD CA regulation signal. • Also, WASN will be responsible for 44% of contingency reserves for the SMUD Host CA.

14. Scheduling • PSEs Using CVP transmission will electronically tag their schedules. • Western’s Merchant will E-tag the Base Resource Deliveries. • Internal Entities will E-tag the remainder of their transmission schedules. • PSEs are responsible for adjustments to E-tags for market reasons. • Western’s TSS Dispatcher will curtail E-tags for reliability concerns. • The TSS Dispatcher will reload the E-tags when appropriate.

15. Closing • Thank you for your time and attention, Please visit • Western’s Home Page @ www.wapa.gov for more information on Western’s post 2004 marketing plan • SNR’s OASIS node @ www.oatioasis.com and click on the SNR logo for the latest information