Reload PFV September 12, 2012

Reload PFV  Concern that need to be addressed:  The RC need to have an option in PFV to allow gradual reload of markets and non markets during TLR level 3, 4 or 5 events.  Without the option of a gradual reload in PFV, a reload situation without capping the net impact of markets and non markets could cause an unexpected sudden increase of the real time loading of the flow gate above the SOL that was not anticipated by the RC and could not have been anticipated by the RC.  The RC doesn’t know how much economic dispatch potential of markets and non-markets was temporary re-dispatched during a TLR level 3, 4 or 5 event to resolve the congestion and maintain the flow gate loading below limit.

Current hour Next hour GTL Real time TLR in effective several hours TLR 3A re-issued or TLR 5A GTL Next hour TAGS Impact CH 100% reload Other SOL Flow gate Other value CH TAGS Impact 100% reload Real time MW total flow Flow gate Forecasted Flow Next hour Potential GTL impact Potential economic dispatch of markets and non-markets that was temporary re-dispatched to resolve the congestion. Unknown to the RC how much Calculation for next hour CONCERN MW

Current hour Next hour GTL Real time TLR in effective several hours TLR 3A re-issued GTL Next hour TAGS Impact CH 100% reload Other SOL Flow gate Other Value CH TAGS Impact 100% reload Real time MW total flow Flow gate Forecasted Flow Next hour Potential GTL impact Calculation for next hour PFV allows RC to set a max flow Target for reload. Net GTL Target Market / Non Market SOLUTION MW

Reload PFV  Solution  PFV software allows the RC to set a max flow Target for a reload situation. (see example previous slide)  In that situation the Markets and Non-Markets will still get a net GTL Target that is higher than their current hour net GTL impact. The Target will be based on their current impacts calculated from real time plus a calculated reload value.  The reload value will be allocated to the GTL of Markets and non- Markets based on their >5% FWD impact. For TLR level 3 based on the Non Firm >5% FWD GTL impacts and for TLR Level 5 based on all >5% FWD GTL impacts.  Full reload without Targets for Markets and Non Markets will only occur if a TLR level 1 or 0 is issued.