1 Reliability Policy Issues Committee Report to Members – 2006 Annual Meeting Presented by: Scott A. Gutting RPIC Chair April 2006 Key Activities and Accomplishments

2 RPIC Members AESO – Diana PommenPG&E – Kevin Dasso ACC - Jerry SmithPSC – Robin Kittel BPAT - Vickie VanZandtMariner Consulting – John Stout CISO - Armie PerezREI – John Meyer UAE - Scott GuttingSCE – Gary Tarplee SRP – David Areghini IPUC - Marsha Smith PAC - Mark MaherTANC – Richard Ferreira NAD*- Jananne SharplessTSGT – Ken Anderson NAD*- Tim NewtonUCCS – Nancy Kelly NMPRC - Prasad Potturi WECC – Louise McCarren

3 Key Activities and Accomplishments Top 10 RPIC Issues for 2005/06 Top 10 RPIC Issues for 2005/06 Response to WAG Requests of WECC Response to WAG Requests of WECC Data Sharing & Confidentiality Policies Data Sharing & Confidentiality Policies Transmission Expansion Planning Efforts Transmission Expansion Planning Efforts Reliability Centers – 5 Year Strategic Plan Reliability Centers – 5 Year Strategic Plan Energy Act Implementation Energy Act Implementation

4 Top 10 RPIC Issues for 2005/06 Data Sharing Issues Data Sharing Issues Resource Adequacy Assessment Resource Adequacy Assessment Transmission Expansion Planning Transmission Expansion Planning WECCs Role in Commercial Issues WECCs Role in Commercial Issues WECC/NERC Relationship WECC/NERC Relationship Energy Act Implementation Energy Act Implementation Reliability Benchmarks/OTC ratings/FRR Efforts Reliability Benchmarks/OTC ratings/FRR Efforts Other Other

5 Data Sharing & Confidentiality Policies Policy documents circulated to committees & members for comment Policy documents circulated to committees & members for comment RPIC reviewed comments and recommended final policy in December RPIC reviewed comments and recommended final policy in December Board approved new policy in December Board approved new policy in December

6 Transmission Expansion Planning in WECC WAG requested WECC address the issue WAG requested WECC address the issue RPIC commissioned white paper RPIC commissioned white paper White paper posted for member comment – Sept. – Jan. White paper posted for member comment – Sept. – Jan. RPIC recommend new board committee and charter RPIC recommend new board committee and charter RPIC sponsored Member workshop in February RPIC sponsored Member workshop in February Near unanimous member approval of RPIC recommendations Near unanimous member approval of RPIC recommendations RPIC presents charter and committee recommendations to Board in April 2006 RPIC presents charter and committee recommendations to Board in April 2006

7 Recommended Transmission Expansion Planning Policy Committee

8 Reliability Centers 5 Year Strategic Plan OC requested RPIC investigate RC policy issues OC requested RPIC investigate RC policy issues RPIC created subcommittee to evaluate RC strategic issues RPIC created subcommittee to evaluate RC strategic issues Subcommittee represents all member classes & regions Subcommittee represents all member classes & regions Subcommittee has drafted recommendations to be presented to Board in April Subcommittee has drafted recommendations to be presented to Board in April

9 Other Items WAG Response - RA, Transmission Planning and Commercial Issues came from WAG efforts. WAG Response - RA, Transmission Planning and Commercial Issues came from WAG efforts. WECC role in commercial issues – MIC outreach initiative in process. WECC role in commercial issues – MIC outreach initiative in process. Energy Act Implementation – activities conducted by broader WECC Ad Hoc team Energy Act Implementation – activities conducted by broader WECC Ad Hoc team

10 Member Comments & Questions of RPIC