1. Peak Reliability Transitional RC Overview RC User Group May 3, 2018
Completed Peak/PJM Business Plan March 30
Compelling numbers
Positive response
Includes providing RC only service (this will be the comparable to what CAISO has said ….)

2. Today’s Discussion Status Updates Transitional RC
Services
Cost
Commitments
Optional/Shared Services Discussion
Q & A

3. Today’s Discussion Status Updates Transitional RC
Services
Cost
Commitments
Optional/Shared Services Discussion
Q & A
Purpose of these status update – solicit input on how the new RC integration is going to work, issues, concerns, etc.

4. Status Updates – Discussion Points
RC Certifications
WECC Role
Technical Challenges

5. NERC RC Certifications
Required certifications
Adequacy of certifications
Who has participated?
What else could or should be done?
Potential areas of concern
Possible solution options

6. WECC Role Current effort description What else if anything is needed?
What should WECC role be during transition?
What should WECC role be with multiple RCs?
Need for Reliability Coordination Subcommittee?

7. Multi-RC Technical Issue Discussion
Energy Management Systems
Model Management
Data Transfer and Exchange
Parallel Operation (3 months prior to cutover)
Then what?
Energy Management System – how do we ensure accurate models? SCADA point mappings? SE solution quality?
Data transfer and exchange – multiple issues – networks, ICCP connections, data requests
Parallel Operations – what does it look like for CAISO or SPP to operate “in parallel”?

8. Today’s Discussion Status Updates Transitional RC
Services
Cost
Commitments
Optional/Shared Services Discussion
Q & A

9. Transitional RC – Services
Most effective mechanism to transition reliably to future market/reliability providers
High degree of reliability
Best RC System Operators in the West
No risks related to switching (cost, compliance)
Almost a decade of growth, innovation and operations in the West
Peak Reliability
Evolving RC function
Developing tools and processes
$45M 2018 budget
Transitional RC
2020–2021
Mature tools and processes
$23.5M 2020 “Core RC” budget
Peak/PJM (PPM) RC
2021 and beyond
Bundled market & RC functions
RC only service available at significantly reduced price
Transitional RC can go on longer than 1 yr; help bridge the gap for several options – Peak/PJM or other RC service provider.
Emphasize that Peak/PJM offerings do not require BAs to take market services; can take stand alone RC services at a much lower cost!

10. Transitional RC – Services
Services include:
Core RC Services – “Primary” functions to ensure reliability and meet NERC standards
Customers: BAs and TOPs
Optional Reliability Services – Important services but not directly tied to RC function such as HAA and WIT
Interconnection Shared Services – Services that support reliable and efficient operations in the entire Western Interconnection such as: RMT, ECC, WIT
Customers: AESO and Future RCs

11. Transitional RC – Core Services
Core Reliability Coordination Services
Core RC
$23.5 million
Total “base” RC cost that all Peak RC service takers must pay.
Reliability Messaging Tool (RMT)
Included in Core RC
RMT supports RC, TOP and BA real-time communication and coordination.
Coordinated Outage Scheduling Tool (COS)
COS is the primary tool for coordinating scheduled transmission and generation outages in the Western Interconnection.
Voltage and Transient Stability
IROL and stability limit calculations and monitoring.
DTS – Interconnection Simulation
Dispatcher Training Simulator hosted RCSO training, restoration drills, IROL drills and other simulation-based training for the RC Area.
SharePoint Coordination
Use of Peakrc.org for coordinating data, such as
studies, TOP/BA data requests, models, etc.
“Included in Core RC” means that those BAs and TOPs that are participating in Peak’s Transitional RC pay no additional cost for those services beyond their share of the Core RC cost.
Individual entity cost allocation determined by number of participants

12. Transitional RC – Optional Services
Bucket 1 – TOP/BA services, “à la carte”
Hosted Advanced Applications
NWPP tools – Regional Flow Forecast
Bucket 2 – Non-core tools or services
WECC Interchange Tool (WIT)
Enhanced Curtailment Calculator (ECC)
EHV/ICCP real-time operational data sharing
Synchro phasor tools
Peak Visualization Platform (geospatial interconnection monitoring)
Expect these services to be governed by contracts between Peak and other RCs, TOPs, and/or BAs (similar to existing HAA and NWPP service agreements)

13. Transitional RC – Optional Services
Optional Reliability Services
WIT
$575,000
WECC Interchange Tool supports all BAs in managing scheduled interchange.
EHV/ICCP Management
$60,000
Real-time operational data sharing system used by TOPs, BAs and RCs.
ECC
$925,000
Enhanced Curtailment Calculator manages Qualified Paths and is being expanded to incorporate other facilities in the Western Interconnection.
Synchrophasor Technology
$520,000
Synchrophasor technology supports wide-area situational awareness across the entire Western Interconnection.
Peak Visualization Platform (PVP)
$250,000
Geo-spacial visualization tool. PVP allows weather, fire and other non-electrical information to be monitored on power system situational awareness displays.
These are costs for BAs/TOPs within Peak’s footprint
Other individual BA/TOP choices are not included here (like HAA, NWPP Regional Flow Forecast tool), but Peak will continue to support those types of optional services.
Individual entity cost allocation determined by number of participants

14. Transitional RC – Shared Services
Offered to other RCs in the West
Tools/Services that are used and valued by BAs, TOPs or RCs outside of Peak’s RC Area
Provided at a cost to other RCs
How do they add value to other RCs?
Reduce duplication of tools and projects
Continues a focus on reliability for the entire Western Interconnection
Continued focus on reliability of the entire West. We are at a crossroads as an interconnection. Peak believes we should collectively continue to focus on reliability solutions that support our unique Western Interconnection. These services support that mission.

15. Transitional RC – Shared Services
Shared and Optional Services for RC Service Providers
Reliability Messaging Tool (RMT)
$200,000
RMT supports RC, TOP and BA real-time communication and coordination.
Coordinated Outage Scheduling Tool (COS)
$325,000
COS is the primary tool for coordinating scheduled transmission and generation outages in the Western Interconnection.
Voltage and Transient Stability
$260,000
Additional services such as TTC calculation engine, frequency response monitoring and system model validation.
Dispatcher Training Simulator – Interconnection Simulation
$375,000
Restoration drills, IROL drills and other simulation-based training for the Interconnection.
SharePoint Coordination Services
$190,000
Use of Peakrc.org for coordinating data, such as
studies, TOP/BA data requests, models, etc.
WIT
WECC Interchange Tool supports all BAs in managing scheduled interchange.
EHV/ICCP Management
$40,000
Real-time operational data sharing system used by TOPs, BAs and RCs.
ECC
$600,000
Enhanced Curtailment Calculator manages Qualified Paths and is being expanded to incorporate other facilities in the Western Interconnection.
Synchrophasor Technology
$340,000
Synchrophasor technology supports wide-area situational awareness across the entire Western Interconnection.
Peak Visualization Platform (PVP)
$170,000
Geo-spacial visualization tool. PVP allows weather, fire and other non-electrical information to be monitored on power system situational awareness displays.
These are costs for the other RC service providers; assumption in cost is still that CAISO and MWTG are leaving Peak.
Cost allocation determined by number of RC participants

16. Transitional RC – Services
Revenue Requirement
Core RC $23.5M
Optional Services $2.3M
Interconnection Shared Services* $2.9M
Total Revenue Requirement = $28.7M
With CAISO 31.2 Million 30 percent discount with CAISO, 10 percent without but includes MWTG
*Interconnection Shared Services offered to other RCs in the West.

17. Transitional RC – Services
Cost savings
Board seats reduced to three
Executive team reductions
Vendor contract savings
Harris network, EMS
FTEs, licenses, maintenance, hardware
Reduction in Peak’s “innovative capacity”
Changes in operational scope
Tout the efforts to look for lower cost vendor support, example EMS and network costs being reduced by over $1M.
Reduction in “innovative capacity” – Peak spends a tremendous amount of time supporting the interconnection needs (standards, custom tools, new technology)
Last year’s RC innovations include: Implementation of TSAT, development of oscillation detection and source (gen) location tools, Peak Visualization Tool.
FTEs – operational scope is changing due to a smaller footprint – Peak will evaluate operational support and operations staffing based on new footprint.
“Why haven’t you reduced your costs before?”
Funding amounts have remained flat for three years while costs have increased
Scope of services beyond traditional RC (WIT, ECC) in support of Funders desire for West Wide View
Focus on innovation, per Funders input on strategic plan
Emergence of RC as a commodity has changed expectations

18. Summary A Transitional RC provides for:
Enables a “Wait Option” for market operators to mature
Peak/PJM
SPP
CAISO
Maintains reliability
Best approach to retain and redeploy talent
Transparency and certainty for costs
A known level of performance and reliability
Continued use of Western tools and technology
Hand over to Pete

19. Today’s Discussion Status Updates Transitional RC
Services
Cost
Commitments
Optional/Shared Services Discussion
Q & A
Brett intro – Purpose of the discussion – inform what Peak is thinking about related to optional and shared services; we see tremendous value; think of the possibilities for efficiencies if Peak provides some of these challenging services. We are looking for feedback but our goal today is to explore the possibilities.

20. Optional/Shared Services Details
Continued Services:
Hosted Advanced Applications
EHV ICCP Node
SynchroPhasor Technologies
Full West GIS Visualization
Enhanced Curtailment Calculator
WECC Interchange Tool
Reliability Messaging Tool

21. Hosted Advanced Applications
Service Update
Peak continues to work on enhancements to the tools to make the service more valuable.
Peak is actively engaged with more interested parties to utilize the service.
HAA User Group is meeting regularly and encourage continued participation.
If asked what enhancements are being made. Working towards real-time alarms and alerts. Reviewing TOP-010 needs with group.
Sounds like Fortis BA has an RFI, PGE is signing up for trial, and LADWP is trying to secure funding.

22. Hosted Advanced Applications
Transitional RC Impacts to HAA
Continued offering as an Optional Reliability Service (Important service but not directly tied to RC function).
No change anticipated for the support of the service.
Peak treats HAA as a top level priority and is committed to a continued full west wide system model coverage.

23. EHV ICCP Service Update
This service continues to provide easy sharing of the entire interconnection ICCP data. It is locally and geographically redundant.
Hardware already budgeted under RC for replacement in Quarter 3 of 2018.
Explain new networks and propose where to go.

24. EHV ICCP Transitional RC Impacts to EHV
Continued offering as an Optional Reliability Service (Important service but not directly tied to RC function).
Little anticipated change in functioning or support of the service.
Peak treats EHV as a top level priority and is committed to a continued full West wide system model coverage.
Service still being designed as RC’s and Members work on a collaborative solution.
This is the primary real-time data sharing mechanism between Peak and member BAs, TOPs and adjacent RCs.

25. SynchroPhasor Technologies
Service Update
Peak is envisioning this to become a centralized development hub where the interconnection can work collaboratively on capitalizing from the past grant investments to produce value for all.
Harris Network ending June 2019, so replacement talks have begun at WECC, and at RC to RC coordination meetings. Peak’s intention is to combine C and ICCP on one network.
Peak is proposing to deploy Phasor Gateways.
Peak will continue to store critical interconnection data for Member access.
Continue validating Modal Analysis and Oscillation Detection tools.
Validate LSE as a new back up situational awareness tool.
All entities that utilized Synchrophasors are still working toward that value proposition from the investments they have made. Peak proposes we use a common lab environment with all the latest tools and jointly test and validate their functionality. This would allow all entities to show their continued forward movement of the technology, but keep their over all costs low. Once the large value items emerge from the lab, each entity can choose to take technology and implement at their facilities or look for joint solutions for delivery.

26. SynchroPhasor Technologies
Transitional RC Impacts to SynchroPhasors
Continued offering as an Optional Reliability Service (Important service but currently not directly required for Peak to perform its RC function).
Peak transitions the SynchroPhasor tools into a hosted environment structure to allow collaboration with interested parties.
Peak continues to receive all available data to feed applications for testing and verification.
Peak continues to be the point of contact for the data, and working groups remain in place.
The team would need to evaluate how to make the environment and tools available to the group in a hosted environment. This will take some initial upfront costs to transition the tools for this type role. Ongoing costs are thought to be 520k. Collaboration could occur where all entities have access to the tools to validate and examine use of the technology and vendors.

27. SynchroPhasor Technologies
Proposed timelines:
Q Wide area view enhancements to incorporate “filtered” PMU data (linear state estimated)
Other proposed milestones:
Oscillation detection operational
Modal analysis operational
Includes forced oscillation detection

28. GIS Technologies (PVP)
Service Update
Peak is envisioning this to transition to a centralized data and portal delivery service for geospatial information for system wide visualization.
The PVP grant has created the starting point for delivery of items such as line routing, real time grid status, state estimation, SOL and IROL exceedances, weather, GMD, fires, and the list goes on.
Peak is proposing to finish these items while working with the group to add in their visualization needs and additional data.
Pulling together all this data and transforming it into the formats needed to visualize the data in common GIS formats is a very time consuming process. Peak is proposing that this be done as a service for the wide area view. This allows all entities to have the entire interconnection available to add into their systems with very little overhead.

29. GIS Technologies (PVP)
Transitional RC Impacts to PVP
Continued offering as an Optional Reliability Service (Important service but not directly tied to RC function).
Peak transitions the PVP tools into a hosted environment structure to allow collaboration with interested parties.
Peak continues to receive all available data to feed applications for testing and verification.
Continued support dependent on member interest post PJM/Peak Connext operations.
The team would need to evaluate how to make the environment and tools available to the group in a hosted environment. This will take some initial upfront costs to transition the tools for this type role. Ongoing costs are thought to be 520k.

30. GIS Technologies (PVP)
Proposed milestones:
Line routing for 100kv and above
Real Time grid status and topology
State estimation results
Weather and environmental data
Note: 31 Use Cases defined for prioritization by Members for additional overlays

31. Enhanced Curtailment Calculator (ECC)
Transitional RC issues to address:
Multiple RC configuration within the ECC
Tool/contract “ownership” and funding
Project priorities

32. Enhanced Curtailment Calculator (ECC)
Proposed milestones:
Finalize requirements for expanded functionality to manage facilities beyond Qualified Paths
Delivery of expanded functionality software
Expanded functionality operational
Necessary to support seams coordination between RCs in the West
Determine future ECC governance

33. WECC Interchange Tool (WIT)
Transitional RC issues to address:
Tool/contract “ownership” and funding
WIT priorities
WIT user group direction
Peak believes nothing has to change with WIT
Peak is not suggesting that WIT should be split by RC

34. Reliability Messaging Tool (RMT)
Transitional RC issues to address:
Is the West better served with one messaging tool?
Does it make sense for each RC to have their own messaging tool?
Tool/contract “ownership” and funding
RMT configuration changes to address multi-RC configuration

35. Q & A