1. CRITF Update ISAS Vegas January 11, 2006

2. Action Items -Work on items that need tag identification under both existing MORC and ORSTF proposal -Define a calculation for Contingency Reserve Obligation under ORSTF -Wait for ORST proposal to work through process -Take next steps if not adopted or STOP

3. Old CR calc Operating CRR= ½(Max(MSSC,.05*hydro gen +.07*thermal gen)) + interruptible imports + on demand exports Where: –interruptible and On demand transactions are limited to those that can be activated in 10 minutes or less Spinning CRR = ½(Max(MSSC,.05*hydro gen +.07*thermal gen)) + spin exports

4. Under ORSTF CRR=Max(MSSC,.05*Control Area load) –½ of which must be spinning How a BA determines MSSC is not universally agreed upon at this time

5. What that really means No change as to what is counted as reserves Activated in 10 minutes or less counts as operating reserves

6. Operating Reserve Resources Load that can be interrupted within 10 minutes Reserve purchases where energy can be delivered within 10 minutes Exports that can be interrupted within 10 minutes Generation that can be ramped up within 10 minutes

7. Reliability Check When reserve commodities are exchanged within WECC between BAs it must not reduce the amount of reserves carried within WECC

8. Operating Reserve Reductions Interchange imports that are counted as a reserve resource by the source that can be decreased within 10 minutes by the source Reserve sales where you must deliver energy within 10 minutes

9. BA Calculation The amount of reserves available in a BA is the sum of Reserve Resources minus the sum of Reserve Resource Reductions

10. The Spin Spinning Reserve Resources are increased by a purchase of Spinning Reserve and decreased by a sale of Spinning Reserve

11. Obviously Nonspinning Reserve Resources are increased by a purchase of Nonspinning Reserves and decreased by a sale of Nonspinning Reserves

12. Operating Reserve Commodities That Can Be Exchanged Between BAs Interchange that can be increased by the source within 10 minutes on request of the sink Interchange that can be decreased by the sink within 10 minutes

13. Difference between Spin and Non Interchange that can be increased by the source within 10 minutes can be further divided into Spinning (unloaded generation that is synchronized and ready to serve additional demand) and Nonspinning reserve

14. G-F? Interchange that is Firm, non-firm, unit contingent, etc. are all treated exactly the same (i.e., no impact on reserve resources)

15. Trinity of Reserves Interchange that can be increased within 10 minutes at the request of the sink that is Spinning at the source (C-SP) (BP-15) Interchange that can be increased within 10 minutes at the request of the sink and need not be Spinning at the source (C-NS) (BP-15) Interchange that can be decreased within 10 minutes at the request of the source and is included in the sources reserve resources (C-RE) (BP-11)

16. CRITFs Objective These interchange transactions must be uniquely identified in the e-tag so that BAs may correctly calculate their reserve resource and reserve resource reductions

17. Identify by PC C-SP (spinning) C-NS (non-spinning reserve or supplemental reserve) C-RE (Reducible Export)

18. New Business Practices CRITF commented on the capacity BP and wrote a new BP Request… The new BP request was accompanied by a draft BP which has become BP-11

19. Additional Issues Need a standard for non-reserve capacity transactions (adjusted > 10 min) Need to expand scope of WSPP to include reserve transactions Need to expand scope of WSPP to include loss transactions MSSC needs further discussion and definition, including how interchange transactions may impact MSSC

20. Possible Survey WECC may request that bas provide e-tags for a specific day for all transactions that add directly to or subtract directly from contingency reserves WECC will then tally whether source and sink agree on the treatment The theory is that currently they frequently do not