SIS Report Jerry Smith Albuquerque, NM March 7, 2008

GOALS Identify areas for improving congestion management and work other groups to implement Identify areas for improving congestion management and work other groups to implement Identify, coordinate, and propose solutions to seams issues Monitor the implementation of MRTU and take actions as necessary Monitor the implementation of MRTU and take actions as necessary

CAISO MRTU Status Report Completed and presented to board Report Completed and presented to board Currently awaiting implementation Currently awaiting implementation In observation mode In observation mode

Congestion Management Is an ongoing SEAMS issue Is an ongoing SEAMS issue Team is being formed Team is being formed

Seams Operational Impact Evaluation Guide

To provide a process to identify and potentially remedy issues that inhibit regional coordination. Purpose

To trigger an investigation the concerned party must provide objective evidence of actual increased curtailment impacts

Initiating an Investigation A concerned party must provide objective evidence of actual increased curtailment impacts to trigger an investigation

Adequate Documentation A 15% change in the monthly incidence of mitigation or curtailment on a path or element A 15% change in the monthly incidence of mitigation or curtailment on a path or element More than 6 events per month change in the incidence of mitigation or curtailment More than 6 events per month change in the incidence of mitigation or curtailment Other documentation of change to historical patterns or incidence of new practices causing curtailment Other documentation of change to historical patterns or incidence of new practices causing curtailment

Procedure An entity that experiences increased curtailment impacts, should utilize the following process steps: notify all appropriate operating and reliability personnel notify all appropriate operating and reliability personnel determine if curtailments are the result of conditions on its system determine if curtailments are the result of conditions on its system If it believes that they are the result of a neighboring systems actions, the entity will so notify the adjacent system If it believes that they are the result of a neighboring systems actions, the entity will so notify the adjacent system If the two entities believe that further review of the matter is required either party may refer to the matter to the WECC Seams Issues Subcommittee (SIS) If the two entities believe that further review of the matter is required either party may refer to the matter to the WECC Seams Issues Subcommittee (SIS) The SIS will determine the need for further investigation The SIS will determine the need for further investigation

Procedure (cont.) If SIS determine the need to investigation the SIS Chair will convene an investigation team If SIS determine the need to investigation the SIS Chair will convene an investigation team The investigation team will return findings that will result in one of the following: The investigation team will return findings that will result in one of the following: Remedy team formed to addressed issue Remedy team formed to addressed issue Referred to the appropriate stakeholder process Referred to the appropriate stakeholder process Team finds no seams impact Team finds no seams impact If the SIS declines to investigate, the concerned party may to appeal to the WECC Joint Guidance Committee. If the SIS declines to investigate, the concerned party may to appeal to the WECC Joint Guidance Committee.