1. Self-Supply: Next Steps Carol Opatrny, for CECD NIPPC Board Meeting - 21 June 2010 Portland, Oregon 1

2. Self-Supply: Objective Separately account for and provide Generation Imbalance Service using non-federal resources for specific resources (Iberdrola Renewables) located in the BPA Balancing Authority Area. – Meet 1-minute; 30-minute; and, 60-minute operating parameters that change monthly or more often. – Demonstrate that this arrangement does not “lean” on the federal system (cross zero requirement and timers). – Demonstrate adequate infrastructure, e.g., secure transmission rights, respect specified ramp rates; coordinate AGC; transfer information (ICCP); tag and update tags; satisfy reliability requirements (e.g., RAS, DSO 216); handle energy accounting. 2

3. Balancing Resources: Dynamic Dynamic Transfer Capability – Most flexible and responsive – Quantity (MW) – Ramp rate (50 MW/minute) BPA’s DTC Methodology AGC system compatibility – 4 second signals – After-the-fact energy tag adjustment – Infrastructure ICCP data exchange AGC/EMS/Build specific logic for this arrangement Energy Accounting 3

4. Balancing Resources: Static Fixed, hourly transactions Mid-hour transactions – Intra-hour schedule – On-Demand Rights Firm Transmission Rights – No energy tag adjustment – Limited Infrastructure requirements System modification by BPA to recognize ODR transactions among non-federal entities. 4

5. Balancing Resource Arrangements Commercial terms between Buyer (IBR) and Seller – One-off Contracts/Terms Sheets INCs DECs – Versify Bid/Offer interface (available June 2010) – IBR Dispatch Model (drive dispatch priorities) – CECD (effects transactions; manages self-supply operations) Transmission – Fixed (Intra-hour transactions; On-Demand Rights) – Dynamic Transfers Infrastructure – Efforts underway to streamline the infrastructure requirements – Exploring how best to expand those involved 5

6. Balancing Transactions Accepted Transaction Multiple Tranches Trade Detail Offer Expiration 6

7. Bid/Offer Index + AdderIndex Based Offer Fixed Price OfferEnergy Price Multiple Products Multiple Sources Multiple Resources 7

8. Summary Reports Summary By Hour Back Office Support 8

9. Detail Reports Transaction Level Detail 9

10. Email Notification 10

11. Next Steps Self-supply Expansion – Enable more sellers to participate Immediate option – Expand to enable more buyers Coordinate with Iberdrola Leverage infrastructure for other purposes – PNW “Energy Imbalance Market” – Transition to WECC EIM concept 11

12. CECD Contact Information JT Thompson, CECD Managing Director – 713.332.2901 – jt.thompson@constellation.com jt.thompson@constellation.com Carol Opatrny, Consultant to CECD – 360.666.8510 – ccopat@e-z.net ccopat@e-z.net 12