1. Behind the Fence and Contract Change Stakeholder Update September 18, 2012

2. Agenda AESO projects in 2012 Behind the Fence Process Contract Changes Process Information on AESO Website Questions 2 Proprietary

3. Behind the Fence What is a Behind the Fence project? –Previously connected to the AIES –Equipment changes or modifications to an existing site –Industrial Service Designation (ISD) –No changes to transmission –Need Identification Document is not required –The Market Participant (MP) is the Transmission Facility Owner (TFO) –Connection queue business practices do not apply 3 Proprietary

4. Behind the Fence Projects Behind the Fence Guidelines and Project Types: –Standard –Abbreviated –Emergency 4 Proprietary

5. Behind the Fence Process Stage 0 Key Activities: –MP submits SASR to AESO OR –MP notifies the AESO of required equipment changes for emergency/abbreviated BTF projects –AESO evaluates project type –MP resolves any data deficiencies if required Stage 0 Gate Requirements: –SASR is complete 5 Proprietary

6. Behind the Fence Process Stage 1 Key Activities: –Project kick-off and project expectations discussed –BTF study scope/plan completed –Identify AESO/MP/consultant –Submit Stage 1 Project Data Update Package (PDUP) Stage 1 Gate Requirements: –BTF study scope/plan signed by all parties as required –Stage 1 Project Data Update Package is accepted –Non-disclosure agreement in place if consultant will perform studies 6 Proprietary

7. Behind the Fence Process Stage 2 Key Activities: –MP completes BTF/connection proposal –Functional specification initiated –GUOC letter issued to MP –Confirm contract changes can proceed, as required –Submit Stage 2 PDUP –AESO issues letter of project endorsement to AUC Stage 2 Gate Requirements: –AESO accepts BTF/connection proposal –Stage 2 PDUP is accepted 7 Proprietary

8. Behind the Fence Process Stage 3/4 Key Activities: –Generators file generator application with AUC –Loss factors provided for generators Stage 3/4 Gate Requirements: –Functional specification executed and stamped –AUC generator facility application confirmed (If not previously filed by MP) 8 Proprietary

9. Behind the Fence Process Stage 5 Key Activities: –Equipment change/maintenance –AESO/MP initiates and completes energization checklist –Submit Stage 5 PDUP –GUOC paid 30 days prior Stage 5 Gate Requirements: –Energization checklist issued –AESO operating procedures created, amended and approved –System Access Service (SAS) –Stage 5 PDUP –GUOC contribution paid 9 Proprietary

10. Behind the Fence Process Stage 6 Key Activities: –Generator commissioning period –Generators submit validation report to WECC –Commissioning certificate issued –AESO closes project Stage 6 Gate Requirements: –Energization checklist issued and approved –Commissioning certificate issued to generators –No deficiencies outstanding –AESO project closure checklist completed 10 Energizeand Close-out Proprietary

11. Contract Changes What is a Contract Change? –Market Participants seeking changes to existing contracts Increase Reduction Termination –No changes to transmission –No equipment changes or modifications 11 Proprietary

12. Contract Changes Stage 0 Key Activities: –MP submits SASR to AESO –AESO reviews SASR for completeness –MP resolves any data deficiencies if required –Project is created Stage 0 Gate Requirements: –SASR is complete 12 Increase and Reduction Proprietary

13. Contract Changes Stage 1 Key Activities: –Project kick-off and project expectations discussed –Contract study scope identify AESO/MP/consultant Stage 1 Gate Requirements: –Non-disclosure agreement in place if consultant will perform studies –Study scope signed by all parties 13 Increase Only Proprietary

14. Contract Changes Stage 2 Key Activities: –Complete capacity studies, as required –Confirm contract request can proceed –Contract Acceptance Letter issued and accepted –Project CCD updated –GUOC recalculated (STS only) Stage 2 Gate Requirements: –AESO accepts study results, if completed by consultant –Contract capacity confirmed –Contract Acceptance Letter signed, as required 14 Increase Proprietary

15. Contract Changes Stage 2 Key Activities and Stage 2 Gate Requirements: –Project CCD updated –Contract Acceptance Letter signed 15 Reduction Proprietary

16. Contract Changes Stage 3/4/5 Contract Increase Review: –When capacity requests cant be accommodated, contracts will not proceed until updated capacity studies confirm the contract can proceed –Requested capacity will be reviewed every six (6) months –When requested capacity can be accommodated, the AESO will issue an updated Contract Acceptance Letter to confirm the request should proceed –CCD and GUOC to be updated 16 Proprietary

17. Contract Changes Stage 3/4/5 Key Activities: –MP invoiced for contract increase/reduction calculation –SAS agreement signed no later than five weeks prior to new effective date of operation Stage 3/4/5 Gate Requirements: –SAS contract signed 17 Increase and Reduction Proprietary

18. Contract Changes Stage 6 Key Activities: –AESO closes project Stage 6 Gate Requirements: –AESO Project Closeout Checklist completed 18 Increase and Reduction Proprietary

19. Information on the AESO Website Project List Connection Queue Updated Behind the Fence process Updated contract process overview 19

20. Questions?