1. WECC Operating Committee Report WECC Member Meeting April 20, 2006

2. Strategic Plan Develop an Operating Committee 5-year Strategic Plan The 5 year plan identifies future projects and initiatives, associated justifications, timelines, and cost estimates. Support the development of the 5-year budget plan Goal Status: On Going in 2006 Normal Course of Business

3. OC Strategic Plan Components Knowns – Tools Westwide System Model WECC Interchange Tool Reasonable Assumptions Training Requirements Regional Reliability Plan WECC Standards Modernization

4. Strategic Plan Components Unknowns ERO Environment ERO-WECC Relationship Standard Development Compliance Reliability Coordination Strategy

5. 2003 Northeast Blackout Recommendations Resolve the Recommendations Identified in Final Report on the August 14, 2003 in the United States and Canada that are Assigned to the Operating Committee Status: Final Recommendation Scheduled for Completion in 2007 Remains in 2006 Goals

6. NE Blackout Recommendations: OC Status OC Items 98% Resolved/Monitor Total Items43 Resolved34 Monitor 8 Resolve 2007 1

7. NE Blackout Recommendations: WECC Status WECC Items 91% Resolved/Monitor Total Items92 Resolved76 Monitor 8 Resolve 2006 7 Resolve 2007 1

8. West-Wide System Model (WSM) Develop a West-wide System Model (WSM) Business Plan and Pursue Implementation of the WSM Based on WECC Board Approval

9. WSM Description System Database Western Interconnection Topology Model Facilities >100kV. Near Real-Time System Measurements Network Applications Load Flow Contingency Analysis Dynamic Stability System Data Archiving

10. WSM Status 2005 Goal: Complete WSM Business Plan and Funding for Stage 1 Approved by WECC Board October 2005 2006 Goal:Complete WSM Stage 1 Vendor Selected April 2006 Award Stage 1 Contract June 2006 Revise Business Plan for OC and Board Consideration June/July 2006

11. Western Interchange Tool (WIT) Develop a Western Interchange Tool (WIT) Business Plan and pursue implementation of WIT based on WECC Board approval

12. WIT Description Utilizes Current Electronic Tagging Infrastructure to Automate Interchange Scheduling Checkout Improved E-Tag Validation Automated NERC Reporting Foundation for Electronic Scheduling

13. WIT Status 2005 Goal: Complete WIT Business Plan and Funding for Module 1 Approved by WECC Board in October 2005 2006 Goal: Complete WIT Module 1 Vendor Selected – January 2006 Award Stage 1 Contract – June 2006 Revise Business Plan for OC and Board Approval – June/July 2006

14. OC Document Modernization Develop A Modernization Plan For All OC Documentation Completed Tasks Include: Standard Document Template Numbering Convention Standard Request Form Document Assignment

15. OC Document Modernization Status 2005 Goal: Complete 2006 Goal: Complete Conversion of 100% OC Standards into New Format Currently in Progress: WECC Minimum Operating Reliability Standards Reliability Coordination Operating Procedures Interchange Scheduling Business Practices

16. Operating Reserves Provide Recommendations that Will Identify and Require Adequate Levels of Operating Reserves within the WECC 2005 Status: Complete Three Task Forces Proposed Recommendations Proposed Revised Contingency Reserve Standard – Currently Posted as BAL-STD-002-1 Frequency Responsive Reserve Standard Under Development E-Tag Contingency Reserve Tracking Methodology Recommended

17. Operating Reserves 2006 Goal: Develop Operating Reserve Standards to Improve Reliability in the Western Interconnection Coordinate with Market Interface Committee and Planning Coordination Committee

18. Regional Reliability Plan New for 2006: Develop a Regional Reliability Plan and Submit it to the Standing Committees for Review Defines Roles and Responsibilities of all Reliability Entities within the Western Interconnection Coordinate Plan Development Will Be coordinated between the OC, PCC and MIC Regional Reliability Plan Task Force (RRPTF) will Be responsible for oversight

19. NERC Standards – WECC Participation

20. NERC Standards Process Represents Major Exposure for WECC Risk Significantly Increases as Standards Become FERC Approved and Sanctions Are Applied NERC Standards Drafting Phase is the Most Effective Point of Influence WECC Needs Representation on Standards Drafting Teams Member Interests versus WECC Interests