2. Operating Transfer Capability Policy Committee Report Board of Directors Meeting April 21 & 23, 2004 Thomas A. Delawder OTCPC Chair Western Electricity Coordinating Council

3. Approved Summer Study Plans The 2004 study plans were approved, as modified, for all four subregions. PDCI Update Planned outages and curtailment of the Pacific DC Intertie for converter valve replacement. Path 15 construction may impact deliveries to southern California from time to time. Operating Transfer Capability Policy Committee

4. Criteria to use Shunt Capacitors with Local Voltage Control for Imports into Southern California Study assumptions being re-evaluated due to the August 14, 2003 Eastern Interconnection disturbance. Insertion of shunt capacitors with a local voltage control scheme in southern California. Approved SCIT study committees recommendation of 12,800 MW. Previous limit was 14,500 MW. Further studies are being conducted to evaluate the ability to insert the remaining shunt capacitors. Operating Transfer Capability Policy Committee

5. Approved Spring Study Results and Recommended Spring OTC Limits Arizona – New Mexico Subregion COI-PV under frequency load drop arming scheme has been implemented. Actions are underway to implement the direct load tripping scheme. Palo Verde owners thanked the California ISO and BPA for study efforts to support resolution of the COI-PV interaction. Operating Transfer Capability Policy Committee

6. Northwest Subregion The subregion studied the NW – Montana path due to the availability of a thermal limiter that was not available last year. Rocky Mountain Subregion No studies were conducted and last summers OTC limits will be used for spring OTC limits. California – Mexico Subregion Approved the spring study results which included the SCIT OTC change. Operating Transfer Capability Policy Committee

7. Operating Practices Review Group Report Spring operating procedures were accepted. Operating procedures for the winter 2003/2004 season were implemented. New OTCPC Members Board Approval Item Two members from the board/executive level terms are up (Maude Grantham-Richards and Tom Delawder). Vickie Van Zandt – BPA and Dick Ferreira – TANC recommended as replacements. Vickie Van Zandt recommended for chair of the OTCPC. Operating Transfer Capability Policy Committee

8. Other New Members Planning Coordination Committee replacement Operating Committee replacement Future OTCPC Meetings The remaining 2004 meetings are as follows: April 28 and 29 (San Diego) – Meeting to approve the summer 2004 OTC limits and the winter 2004/2005 study plans. September 14 (Colorado Springs) – Meeting to approve the winter 2004/2005 OTC limits and the spring 2006 study plans. Operating Transfer Capability Policy Committee

9. Thanks for the memories!