1. Operating Committee Report WECC Board Meeting December 7, 2006

2. Topics OC Goals Public Service of Colorado Disturbance Reliability Coordination – LeRoy Patterson WECC Mandatory Standards – Don Watkins

3. 2003 Blackout Recommendations Status: Complete

4. Westwide System Model Status: Project Will Meet Completion Date WECC-AREVA Contract Executed November 13, 2006 Significant Effort on the Parts of LeRoy Patterson and Sarah Dennison-Leonard Project Kickoff Meeting December 1, 2006 First Step – Merge 3 Reliability Coordination System Models

5. WSM – Milestones Nov 2006 - Contract signed July 2007 - Start Stages 2 & 3 Sept 2007 - Stage 1 Complete Model Delivered May 2008 - Stages 2 & 3 Complete State Estimator and Network Applications Delivered

6. WSM Challenges Finding a Host Site for WSM Member Participation and Cooperation

7. WECC Interchange Tool Status: Project Will Meet Completion Date WECC-OATI Contract Executed July 2006 Stage 1 Pre-Factory Acceptance Testing November 1-2, 2006 Stage 2 Factory Acceptance Testing December 6-7, 2006 WECC Staff – Eric Langhorst Coordinating Project Development

8. WIT – Milestones July 2006 - Contract signed Jan 2007 - Module 1 In Production Jan-Dec 2007 – WECC Member Testing & Process Integration July 2007 - Module 3 Complete July 2008 - Module 2 Completion

9. WIT Challenges Member Participation and Cooperation Companion Business Practices Approved

10. Operating Reserve Standard Status: Multiple Standards In Different Phases of Consideration BAL-STD-002-1 Operating Reserve Standards Task Force (ORSTF) Proposal MIC Will Request Board Approval Consideration

11. Frequency Response Standard BAL-00X-1 Second 60 Day Posting Began Nov 2006 Extensive Changes to First Version Static Distribution of FRR Replaced with Dynamic Distribution (System Droop) Controversial FRR Marketing Restrictions Simplified Still Controversial

12. FRS Timeline Recommendation Jan 2007 - Comment Period Ends If Comments are Extensive, Another 60 (or 30) Day Posting Will Be Required Mar 2007 - Joint Meeting/OC Meeting Discussion Apr 2007 - Board Meeting/Technical Session? Jun 2007 – OC/MIC Approval Jul 2007 – Board Approval FPA Section 215 Standard

13. CRITF Proposal Contingency Reserve Identification Task Force (CRITF) Utilize Current E-Tagging Platform and Methodology to Track Movement of Contingency Reserve Transactions Between BAs Two Business Practices Currently Being Developed

14. CRITF Proposal Timeline Business Practices are Currently Drafted Nov 2006 - Response to Comments Mar 2007 - OC Consideration Apr 2007 - BOD Consideration Dec 2007 - Implementation

15. Reliability Coordination Strategy Status: Project Will Meet Completion Date (July 2007) OC Reliability Coordination Strategy Task Force Formed 2 OC Representative from Each of the 4 WECC Sub-regions No Representatives from Current RC Hosts

16. RC Strategy Current Steps Hire Consultant Objective 3 rd Party for Specifications, Request for Proposals, and Recommendation Resolve Controversial Member Issues

17. RC Strategy Primary Objectives Infrastructure Host and RC Center Host Specifications, Request for Proposals, and Recommendation Consultant Resolve Controversial Member Issues and Consultant Oversight RC Strategy Task Force Tool Integration, Training, Staffing OC Subcommittees, WECC Staff

18. RCSTF Members Tom Botello – SCE Terry Baker – PRPA Steve Cobb – SRP Tom Glock – APS Doug Hincks – AESO Mike McAvoy – CSU LeRoy Patterson – WECC Jerry Rust – NWPP Jan Sharpless - BOD Ken Silver – LDWP John Stout - BOD

19. RC Strategy Timeline Dec 2006 - Select Consultant Feb 2007 - Define RC Configuration May 2007 - Consultant Recommends Host Sites Jun 2007 - OC Approval of Recommendations Jul 2007 - Board Approval of Recommendations

20. OC – Other Issues LDWP Completed its Control Area Certification Signed Reliability Coordination Empowerment Agreement with CMRC Renewable Resource Task Force Creation of Whitepaper Is Behind Schedule WECC Members Slow to Return Surveys Future Workshop is Still Planned WECC Staff Coordinating PCC-OC Activities

21. PSCO CONTROLLED LOAD SHEDDING 2/18/2006

22. SUMMARY Saturday, Feb 18, 2006 Public Service Company of Colorado (PSCO) Conducted Controlled Outages 0848 to 1018 MST 300,000 Total Customers Impacted 3 Groups Shed for 30 Minute Intervals with 100,000 Customers in Each Group 428MW Firm Load

23. Report Team Fred LeBlanc, WASN, Chair 17 Members NERC Included Colorado Public Utilities Commission Heavily Involved

24. SUMMARY contd. February 17 – 18 Presidents Day Weekend Actual Temperature in Denver was -13 F Temperature Forecast Error Was -14 F Resulting in Gas LDC Over Burning Due to Forecast Error Low Gas System Pressure Interruption of Gas Supply to Electric Generators to Ensure Residential Supply Remained Viable

25. SUMMARY contd. 3,132 MW of Generation Capacity Was Forced Off Line 2,277 MW Due to Freezing/Mechanical Trouble 855 MW Due to Lack of Natural Gas Fuel Existing Gas Trading Cycle is not Dynamic Enough to Meet Changing System Conditions Gas Traders Left Early for Holiday Weekend

26. SUMMARY contd. Communication Between Internal PSCO Units Was Not Adequate to Identify Scope of the Problem Early On Communication with Reliability Coordination Occurred but Follow-up Was Lacking PSCO Interruptible Procedures Were Out of Date

27. SUMMARY contd. PSCO Shed Load for the Loss of the Front Range Power Plant at 454 MW. The Rocky Mountain Reserve Group Was Reporting 1,000 + MW When Load Shedding Was Initiated System Operators Acted Appropriately To Initiate Controlled Load Shedding

28. Recommendation Summary The Report Includes 22 Conclusions Resulting in 28 Recommendations. Significant Recommendations: WECC to Request NERC & NAESB to make Gas Trading Cycle More Responsive WECC Members to Review their Emergency Operating Plans Relative to a Gas Supply Emergency

29. Recommendation Summary contd. RDRC Will Review Their Procedures for Actively Soliciting System Information During Unusual Operating Events. PSCO Shall Improve Their Internal Communication Between Gas Supply, Gas Control, Real-time Dispatch, and Transmission Operations During Fuel and Electric Energy Emergencies

30. Recommendation Summary contd. RMRG to Review their Reserve Procedures PSCO to Review their Weather Forecasting Tools and Processes Generator Owners Shall Correct Identified Freezing Problems