Bert Peters Chair, Path Operator Task Force Path Operator Task Force Update March 26, 2014 Salt Lake City, UT

Path Operations Issues The Path SOL Concept muddies the waters between reliability limitations and commercial limitations. Path SOLs do not take into consideration real-time tools and information. The Path SOL paradigm potentially disguises other critical limitations The Path SOL paradigm results in “Chasing the SOL” The Path SOL paradigm results in increased TOP compliance risk

Path Operations Issues (cont’d) The Path SOL paradigm pre-supposes the need for monitoring all WECC Paths The Path SOL concept is extraneous and duplicative in light of the revised SOL Methodology The Path Operators and the TOPs have limited ability to manage Path SOL exceedances Path operators have responsibility without the authority to mitigate path exceedances. Path Operator is not a NERC defined term.

Alternatives Considered Define the Authority of Path Operator Eliminate Path Operator Flow Based Methodology Peak Reliability(PR)/RC as Path Operator Develop Coordinate procedures/agreements

Alternatives Considered (cont’d) Split Path Operator Role by task Rater: Responsible for developing the TTC Monitor: Monitors system performance and real-time flow Response Initiator: Initiates the response to pre and post contingency SOL exceedances. Action Taker(s): responsible for taking action (i.e. cutting schedules, generation redispatch, shedding load, reconfiguring the system, operating phase shifters etc.) Overseer/Director: Oversees/monitors/directs at a higher level to ensure actions are taken (Peak RC)

Brief Concept The “OTC/Path SOL” concept is retired. SOLs are now simply BES Facility Ratings, voltage limits, and stability limits. All of which are not to be exceeded in both the pre- and post-contingency state. Paths do have Transfer Capability as defined by NERC. But the TTC is separate and distinct from SOLs (though overlap may occur for stability limits). TTC is not the SOL itself (as in the current paradigm); rather, TTC respects SOLs. Commercial considerations are upheld, but they do not determine the SOL. Commercial considerations, like the TTC, respect SOLs. More complete description and explanations included in the “Draft” white paper located (link).

Next Steps Reach out to the following entities: Peak Reliability Board of Directors. WECC Board WECC Standing Committees (i.e. Operating Committee, Planning Coordination Committee, and Market Interface Committee). WECC Chief Dispatchers. Other WECC groups or industry groups concerned with operations of the Bulk Electric System.

Next Steps WECC OC concurrence adoption to memorialize the recommendations.   Develop criteria to outline what facilities are included in TOP-007-WECC-1. This will facilitate the modification of Attachment 1. Assemble WECC standards drafting team to retire TOP-007-WECC-1. Soliciting Industry comments to the Draft white paper.

Questions? Bert Peters, APS 602-250-1112 Albert.peters@aps.com