1. Availability Assessment Hours for SCP/RAAIM Portfolio Management Commercial Policy, Planning & Compliance May 18, 2016

2. 2 Purpose: Provide information on the availability assessment hours as defined by the CAISO tariff and its application to current operations Agenda: 1.Current Issue & Impact 2.Background on Availability Assessment Hours 3.Frequency of Availability Assessment Hours (2014-Current) CAISO System Load DA Market Prices

3. Issue: An analysis performed by Portfolio Management confirms that the current generic RA RAAIM assessment hours are NOT reflective of current system conditions based on system load and DA market prices. 3

4. Purpose of Availability Assessment Hours (Section 40.9.3): The CAISO shall establish availability assessment hours to assess the extent to which each Resource Adequacy resource has met the availability standards of Section 40.9. The availability assessment hours shall correspond to the operating periods when high demand conditions typically occur and when the availability of Resource Adequacy capacity is most critical to maintaining system reliability. The CAISO shall annually determine the five hour range for the availability assessment hours for each month and shall specify them in the Business Practice Manual. 4 Required Bidding HoursRequired Bidding Days November – March HE 17-21Non-Holiday Weekdays* April – October HE 14-18Non-Holiday Weekdays*

5. 5 Data Source: CAISO OASIS

6. Notes: Comparable results for DLAP-SCE, DLAP-SDGE, TH-NP15, TH-SP15 and TH-ZP26 price nodes. 6 Data Source: CAISO OASIS

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9. Next Steps: Confirm that the ISO is reviewing the five hour range for the assessment hours for each month per the ISO tariff and is able to provide supporting documentation. (e.g. LCT Study) Communicate high-level analysis to the ISO that the assessment hours are NOT reflective with 2014/2015 load curve and future forecasts of the load curve. The 2016 load curve remains uncertain at the moment 9