1. SLIDE 1 Extended reserve Technical working group 11 September 2014

2. Introductions BACKGROUND The purpose of the working group: Review the technical requirements schedule and the selection methodology Consider how the proposals could be implemented Test key implementation and operational elements and assumptions Report on the findings of the investigation and outcomes of the trial. SLIDE 2

3. Introductions BACKGROUND Progress to date: Reviewed the data requirements Participants provided data Creation of a trial procurement schedule. Which includes : Example demand unit allocation Example payment and cost allocation SLIDE 3

4. Introductions SESSION PURPOSE Review procurement schedule Key issues and concerns Information provision Assess operational impact Terms and conditions Assess implementation impact Time and cost estimates SLIDE 4

5. Introductions INPUT: PROVIDING CAPABILITY SLIDE 5 Overview Total of 642 demand units provided Majority currently providing AUFLS

6. Introductions INPUT: RELAY CAPABILITY SLIDE 6 404 62.9% 212 33.0% 26 4.0% 286 146 642

7. Introductions OUTPUT: PROVIDING CAPABILITY SLIDE 7 Overview Total of 308 demand units allocated Block 4 includes 20 units which required new relays 404 62.9% 212 33.0% 80 12.5% 222 34.6% 26 4.0% 6 0.9% 642 308

8. Introductions OUTPUT: Region 1 Allocation Summary SLIDE 8 Currently providing Not currently providing but has existing functionality No existing functionality 60 27 26 10 (39) (19) (2) (4) (21) (22) (3) (1) (6) (4) Total demand units allocated: 123

9. Introductions OUTPUT: Region 2 Allocation Summary SLIDE 9 Currently providing Not currently providing but has existing functionality No existing functionality 35 21 15 (11) (4) (20) (1) (34) (1) (30) (5) Total demand units allocated: 106

10. Introductions OUTPUT: Region 3 Allocation Summary SLIDE 10 Currently providing Not currently providing but has existing functionality No existing functionality 28 27 12 (3) (5) (4) (12) (24) (3) (4) Total demand units allocated: 79

11. Introductions OUTPUT: MEDIAN DEMAND UNIT SLIDE 11 Overview The model tends to allocate larger sized demand units

12. OUTPUT: ALLOCATION ANALYSIS SLIDE 12 Low VoLL – high MW High VoLL – high MW Low VoLL – low MW High VoLL – low MW Example some good candidates that were NOT selected

13. OUTPUT: ALLOCATION ANALYSIS SLIDE 13 Good candidates that were not selected Low VoLL – high MW High VoLL – high MW Low VoLL – low MW High VoLL – low MW Sensitive load selected

14. Introductions BREAKOUT: SCHEDULE REVIEW In your company groups Discuss your top 3 issues/concerns from the trial procurement schedule – Write each on post-it note (one per note) Report back to group – Place each post-it on graph (size of impact/size of concern) – Discuss how the changes would impact on your organisation SLIDE 14

15. Introductions CUSTOMER CLASS STRAW MAN SLIDE 15 Customer Class VoLL ($/MWh) Residential$16k Commercial$66k Light Industrial$37k Heavy Industrial$12k Highly Sensitive$100k* User Submitted- Public health and safety (including important public services) Demand unit excluded Sensitive load broken into 2 categories Public health and safety PROPS Priority (1-3) Hospitals, water and sewage pumping, fuel delivery systems etc. Will not be allocated to an AUFLS block Highly Sensitive Load Captures those that don’t fall into other categories (food production) Standard VoLL value applied Possible to allocate to an AUFLS block User submitted VoLL Customers over 25GWh per year Customer class percentages must sum to 100% *Value needs further consideration

16. Introductions BREAKOUT: INFORMATION PROVISION In small groups Identify any strengths/weaknesses of the straw man proposal – Write each on post-it note (one per note) Report back to group – Discuss how each would impact on your organisation – POLL: Are you likely to submit user submitted VoLL for your demand units? SLIDE 16

17. Introductions DISCUSSION: INFORMATION PROVISION As a large group Were there any specific challenges to meeting the 60% compliance requirement? – White board session Poll: Will the proposed straw man alleviate the challenges? – Follow up: If no, what issue remains? SLIDE 17

18. Introductions LUNCH Lunch will be in the café – Billi room 30 minutes SLIDE 18

19. Introductions BREAKOUT: ONGOING INFO REQUIREMENTS In small groups Discuss the impact of the ongoing information requirements (See 5.c-d of Sched. 2) – Are the notice and response requirements achievable? – Based on the TPS how often do you expect to be notifying the System Operator? Report back to group – POLL: Are the requirements achievable? Follow up: If not, what is the causing factor? – Indicate which yearly occurrence you expect to be notifying? SLIDE 19

20. Introductions DISCUSSION: PROFILE INFORMATION As a large group Discuss the profile information requirements – Is the provision of embedded station data practical? – How many embedded generators would meet this requirement in your network? – Do any of your demand units have embedded generation connected? How many (estimate)? – How much time is required to prepare information? If the information was provided twice a year would it be onerous? Identify size of the impact (# effected/time/resources) POLL: Are the profile information requirements practical? – Follow up: If not, what is the concern? SLIDE 20

21. Introductions EXERCISE: COST ESTIMATES In your company groups Complete the cost estimate worksheet – What work, time, and cost are required to test the different relay types (uf and df/dt)? reconfigure relay settings install new relay (df/dt capable)? Report back to group – Hand in worksheets – Share any comments SLIDE 21

22. Introductions BREAKOUT: IMPLEMENTATION In small groups Discuss the relay testing straw man – What is your biggest concern with implementation? Write on post-it – Would you be able to prepare an implementation plan from the TPS? (what/when for existing/new) – Would you be able to complete testing? – What additional information would you require? Write each on post-it Report back to group – POLL: Able to prepare an implementation plan? – POLL: Are the straw man testing requirements achievable? – Share your concerns and requirements SLIDE 22

23. Introductions Next steps Outcomes from this meeting ERTWG Findings Report Final teleconference to discuss report SLIDE 23