1. NWPP MC Initiative WECC Update March 25th, 2015 Kathy Anderson
Idaho Power

2. NWPP Market Coordination Members
Avista Corporation
Balancing Authority of Northern California (BANC)
Bonneville Power Administration
B.C. Hydro and Power Authority
Eugene Water & Electric Board
Idaho Power Company
NaturEner Wind Holding
NorthWestern Energy
PacifiCorp*
Portland General Electric
Puget Sound Energy
Chelan County PUD
Clark County PUD*
Grant County PUD*
Snohomish County PUD
Seattle City Light
Tacoma Power
Turlock Irrigation District
WAPA, Upper Great Plains
* Currently pending Phase 4 transition

3. NWPP MC Initiative Approach and Timing
Collaborate to deliver near- and long-term benefits to NWPP MC members and their customers by enhancing the reliability and efficiency of meeting the region’s power needs while preserving local decision making.
Phases 1 & 2
Initial cost/benefit assessments of centralized-market structures and providers
Exploration of non-centralized-market solutions and operational enhancements
Phase 3
Operational tools development
Bilateral market assessments
SCED market detail development
SCED market operator RFP issuance
Regulatory due diligence
Phase 4
Continue operational tools and regional infrastructure upgrades
Install advanced bilateral and centralized clearing market capabilities
Complete SCED market due diligence
Phase 5
Full 5- or 15-min SCED with centralized market operator functions and tariff
< and/or >
Next generation of operational tools and regional infrastructure upgrades

4. NWPP MC SCED – 2015 Activity To Date
Received bids from Southwest Power Pool and California Independent System Operator to perform SCED Market Operator functions
Comprehensive bids received did not result in actionable path forward for NWPP MC based on design, governance, and cost challenges
Engaged in further exploration with each on go-forward options for the NWPP MC following the February 17 closure of the initial Request for Proposals process
MC Members are continuing due diligence activity in advance of a Q decision on next-steps for the MC Initiative
Key Issues: FERC Petition for Declaratory Order, member equity protection through resource sufficiency and transmission access policies, cost/benefit calculus and funding capability of MC members

5. Other 2015 MC Initiative Activity to Date
Implemented regional data sharing consolidation through Peak Reliability
Testing Regional Flow Forecast tool in live production environment
Testing Resource Monitoring and Deliverability tool in off-line table-tops
Exploring programs to access balancing reserves diversity with and without the SCED
Preliminary evaluation of complementary initiatives, such as automated 15-min market capabilities and operations-based reliability enhancements.
Regional Flow Forecast tool shows real-time loading and limits of critical flow-gates to inform operator and merchant activities

6. Proposed NWPP MC Major Deliverables Phase 4 Kickoff – April-May 2015
NWPP MC PRIMEs (Platforms for Reliability, Integration, and Market Enhancements)
Module 1: Regional Flow Forecast Tool*
Module 2: Resource Monitoring and Deliverability Tool*
Module 3: Resource Sufficiency Program to support Modules 4,5,6,8
Module 4: 15 Minute Centralized Clearing Economic Dispatch
Module 5: Regulation Diversity Group
Module 6: Balancing Reserves Diversity Group
Module 7: TSP/TOP Coordination Opportunities
Module 8: Security Constrained Economic Dispatch (15-min, 5-min)
All modules are complementary and lead to a reliable, efficient operations and marketing paradigm for the region
Priority for Module implementation will be set initially by the Executive Committee at their May 2015 meeting, with implementation of key modules likely for 2015/16
* under transitional funding in 2015

7. Questions?