1. ISO Confidential Climate & Energy Law Symposium University of San Diego School of Law Karen Edson Vice President Policy & Client Services November 6, 2015

2. ISO Confidential Operational challenges arise as more renewables are added to the grid. Typical Spring Day Net Load 14,160 MW on April 5, 2015 at 15:46

3. ISO Confidential Regional markets are key to mitigating the risk of renewable curtailment. Solutions Target energy efficiency Increase storage and demand response Enable economic dispatch of renewables Decarbonize transportation fuels Retrofit existing power plants Align time-of-use rates with system conditions Diversify resource portfolio Deepen regional coordination 3 Copyright – 2015 California ISO

4. ISO Confidential EIM is continuing to deliver expected cost savings and is expanding. Slide 4 EIM is growing: PacifiCorp has been in operations for almost a year. NV Energy starts up on November 1 Puget Sound Energy and Arizona Public Service will start the Fall of 2016 Two additional utilities – Idaho Power and Portland General -- have announced that they are considering the ISO imbalance market