Joint Outreach Team Implementation Plan July 12, :30-11:30 a.m.

Overview WelcomeMark Gabriel – Plan Purpose – General Execution Issues Implementation Plan Tony Montoya – Tier 1 – Tier 2 Questions Open 2

Welcome 3 Mark Gabriel Administrator

Plan Purpose Prioritize tasks and establish schedule Identify needs for customer and stakeholder collaboration Comply with request to submit implementation plan Meld recommendations into Western business, existing initiatives 4

General Execution Issues Incorporate into normal course of doing business Budget, costs and funding Collaboration and outreach Benefits Timing 5

Implementation Plan 6 Tony Montoya Chief Operating Officer

Tier 1: Immediate Implementation or Consideration 1A: Required Regulation Reserve Capacity 1B: OASIS Consolidation 1C: LGIP Revisions 1D: Rate-Setting Methodologies 1E: Combined Transmission System Opportunities 1F: Intra-hour Scheduling 1G: Efforts to Integrate VERs 7

1A: Required Regulation Reserve Capacity Description: Conduct analysis and develop consistent methodology for determining and reviewing regulation reserve capacity needed by each BA and sub-BA to meet requirements Actions: In progress Evaluating BPA’s method Received two BA results with others expected in October Will evaluate results and schedule periodic updates Expected completion: October

1B: Common OASIS Description: Consolidate the four Western Interconnection OASIS sites into one Actions: In progress since 2011 Review business plan Create a charter and milestones Expected completion: June

1C: LGIP Revisions Description: Revise and conform Western’s LGIP to implement recommendations from WestConnect’s Work Group Actions: Initiated May 2013 Includes specific recommendations by JOT Possible additional reforms Public process and FERC approval Expected completion: December

1D: Rate-Setting Methodologies Description: Evaluate potential to standardize transmission and ancillary service rate methodologies Actions: Initiated May 2013 Phase 1: Survey existing methodologies Phase 2: Evaluate potential for standardization with customers Expected completion: December

1E: Combined Transmission System Opportunities Description: Identify opportunities and interest for increased transmission integration within DSW, RM and CRSP Actions: Discuss opportunities with power and tariff customers, neighbors and partners Pursue only if there is sufficient interest in area Expected completion: 1-3 years 12

1F: Intra-hour Scheduling Description: Comply with FERC Order 764 Actions: In progress Coordination with other scheduling utilities Expected completion: November

1G: Integrate VERs Description: Participate in efforts to identify and find solutions to support reliable, cost effective and efficient use of variable energy resources Actions: In progress Continue participation in field trials for new technologies (i.e. WECC initiatives) Participate in regional or sub-regional efforts (i.e. NWPP) Examine benefits of WAUE BA joining RTO Expected completion: Up to 2 years 14

Tier 2: Further Evaluation and Consideration 2A: New Transmission Products 2B: Transition from Contract Path to Flow Based 2C: Integrated Resource Planning Program 15

2A: New Transmission Products Description: Explore developing new, intra-regional, inter-regional, Western-wide transmission products Actions: In progress Update business case of redirecting service between Federal hydroelectric project transmission systems 16

2B: Transition to Flow Based Approach Description: Study achievability, cost and benefits of moving move from contract-path to flow-based approach Actions: Identify appropriate forum to discuss Include broad segment of transmission community within WECC 17

2C: Integrated Resource Planning Program Description: Evaluate compliance, quality and execution of EPAMP and IRP programs Actions: In progress with two parts Part 1: Implement automated tool for annual and five-year submissions—partially complete Part 2: Evaluate contractor’s findings and establish action plan 18

Questions? 19