1. Ancillary Services Market at Watt-Ex

2. 2 WHAT ARE ANCILLARY SERVICES?  Maintain stability of electricity grid  Dispatched by the System Controller (AESO) to balance changes in supply and demand  Supplied by facilities that meet technical specifications set out by the System Controller  Regulating Reserves  Spinning Reserves  Supplemental Reserves

3. 3 ANCILLARY SERVICES CONTRACTS ActiveStandby Market: Commodity: Instrument: Day -1Day -2Day -3Day -4Day -5Base LoadOff PeakOn PeakRegulatingSpinningSupplemental

4. 4 ANCILLARY SERVICES EXCHANGE STRUCTURE Watt-Ex AS Contracts Load & Generation AESO Commercial Group AESO System Controller merit order $ $ offersbids trade data & unit position compliance data compliance & settlement dispatch & directives response

5. 5 NON-PERFORMANCE  Trade cancellations prior to performance  Trades in Error  Trades that do not meet AESO standards  Overcommited units  Events of Force Majuere  Non-performance  Events of Force Majuere  Non-compliance

6. 6 QUESTIONS