Unscheduled Flow Administrative Subcommittee Report Pete Heiman March 22, 2016 Western Electricity Coordinating Council

Western Electricity Coordinating Council Meetings UFAS last met on January 19-20, 2016 in Salt Lake City. The next meeting is scheduled for May 17-18, in Salt Lake City. Please refer to the UFAS page of the WECC website for further information about scheduled meetings. Western Electricity Coordinating Council

Western Electricity Coordinating Council Membership Igor Kormaz of Tri-State has been selected by WECC OC Device Operator members as the third representative on UFAS for the Device Operators. The WECC OC Chair appointed Julius Fields of Bonneville Power Administration and Chris Nebrigich of Idaho Power Company to the At-Large positions. Western Electricity Coordinating Council

Western Electricity Coordinating Council Lifting 1995 Caps On March 11, 2016 FERC accepted the amended Plan and agreed with the effective date of January 1, 2016 for calculation of Qualified Device compensation with the Caps removed. Western Electricity Coordinating Council

Western Electricity Coordinating Council Lifting 1995 Caps The FERC acceptance document for Docket ER16-193-000 and ER16-193-001 can be found at the following link: http://elibrary.ferc.gov/idmws/file_list.asp?accession_num=20160311-3021 Western Electricity Coordinating Council

New Cost Allocation Methodology As requested by the OC at our last meeting, USFTF and UFAS explored additional options regarding the cost allocation methodology. Western Electricity Coordinating Council

New Cost Allocation Methodology UFAS believes that the latest proposal to use a Balancing Authority’s Net Actual Interchange (NAI) continues to be the best solution for the following reasons: Western Electricity Coordinating Council

New Cost Allocation Methodology Net Actual Interchange data excludes generation used to serve native load Net Actual Interchange captures dynamic and pseudo-tied resources for each BA The new method uses the same year for COPS costs and NAI data, greatly simplifying the calculations This method maintains the correlation between COPS use and Interchange Western Electricity Coordinating Council

New Cost Allocation Methodology By modifying the proposal from the last OC meeting to use the hourly absolute value of a BAs NAI for each month, UFAS believes this addresses the concern that netting NAI would not accurately reflect true interconnection use Western Electricity Coordinating Council

New Cost Allocation Methodology Comparison of the data utilizing the absolute hourly NAI values sorted by month rather than absolute monthly NAI values produced the following: The total amount of NAI (in MW) utilizing absolute hourly values increased to 277,667,320 from 241,049,816 (an increase of 15%) The top 12 BAs carry 80% of the costs (up slightly from the previous method) The average cost per MW was reduced from 1.72 to 1.5 cents (as a result of the increase in total NAI) Western Electricity Coordinating Council

New Cost Allocation Methodology The data for this latest proposal is available on the WECC website under the Unscheduled Flow Administrative Subcommittee by selecting the Supporting Documents link. Western Electricity Coordinating Council

New Cost Allocation Methodology UFAS plans to set up a webinar for discussion of the proposal in the coming months after BAs and other interested entities have been afforded an opportunity to review the latest data. Again, UFAS believes this is the fairest proposal thus far presented after years of exploration and would appreciate its serious consideration by the committee members. Western Electricity Coordinating Council

New Cost Allocation Methodology Questions? Western Electricity Coordinating Council

Western Electricity Coordinating Council UFAS Charter UFAS is in the process of reviewing their charter and will present it to the OC for approval once changes have been agreed upon by the subcommittee. Western Electricity Coordinating Council

Western Electricity Coordinating Council Other UFAS Activities UFAS continues to participate in and coordinate with Peak Reliability’s Enhance Curtailment Calculator (WebIntegrity) project. PEAK is anticipating integration of the webSAS program into the ECC late 2016 after parallel testing is complete. WebSAS functionality should not be impacted by the integration and no changes in how events are handled (from present) are expected. Western Electricity Coordinating Council

Path and Device Updates PacifiCorp continues to coordinate with UFAS on the documentation to support qualification of the new PST at Pinto. Western Electricity Coordinating Council

Path and Device Updates UFAS is recommending to the WECC OC the deletion of Path 22 (Southwest of Four Corners) and Path 23 (Four Corners 345/500) as Qualified Transfer Paths. Western Electricity Coordinating Council

Path and Device Updates The Unscheduled Flow Mitigation Policy states: If the following conditions are maintained for 36 consecutive months, the UFAS shall make a determination as to whether the WECC system configuration has been altered sufficiently so that USF Schedule reductions on the Qualified Transfer Path would no longer be expected: There have been no Schedule reductions; and The actual flow across a Qualified Transfer Path has not exceeded 97 percent of the SOL. An affirmative finding of the UFAS and approval by the WECC OC will be required to delete a Qualified Transfer Path. Western Electricity Coordinating Council

Path and Device Updates Although UFAS could not identify a particular WECC system configuration change accounting for these Paths lack of Unscheduled Flow, the Paths have not called on assistance for at least the last 36 months and UFAS does not see any changes in system configuration in the foreseeable future that would warrant maintaining these Paths in the program. Western Electricity Coordinating Council

Request to OC Resolved, That the Western Electricity Coordinating Council Operating Committee (OC) hereby approves the deletion of Path 22 (Southwest of Four Corners) and Path23 (Four Corners 345/500) as Qualified Transfer Paths.

Plan Year 22 Operating Statistics Activity as of March 2016: 770 hours of COPS 231 hours of tag curtailments. Activity for 2014: 2,264 hours of COPS 986 hours of tag curtailments COPS hours continue to run at very low levels compared to previous years. Western Electricity Coordinating Council