1. FRR Request for Approval BAL-012-WECC-2-CR W. Shannon Black Manager, Business Practices and Standards Processes June 2009 Operating Committee, SLC

2. FRRDT Criterion is Complete Solicited / Answered Comments Three times Final Drafting April 17, 2009 Communicated to the OC 30-days notice May 22, 2009 http://www.wecc.biz/documents/2009/Standards/FRR/OC/OC%20notification%20letter %20for%20FRR%20Regional%20Criterion%20Vote.pdf http://www.wecc.biz/documents/2009/Standards/FRR/OC/OC%20notification%20letter %20for%20FRR%20Regional%20Criterion%20Vote.pdf Presented for your approval 2

3. Majority Vote The Process requires a majority vote of the Team to move the criterion to the OC. 15 member team 9 = Yes 3 = No 1 = Abstain 2= No Response 3

4. Overview Proposed Criteria

5. What its not… Not a standard. It is a criteria. Not a replacement for spinning reserves Reserve standards and criteria stay intact BAL-002-WECC-1 BAL-STD-002-0 Not a mandate to change governor settings Outside the stated scope of the Request

6. What it is… A Measurement Criteria

7. How does it work? Resources Check the filing on the WECC Web Over 100 pages of studies to support the direction and conclusions drawn by the drafting team. http://www.wecc.biz/index.php?module=pnForum& func=viewtopic&topic=1005 http://www.wecc.biz/index.php?module=pnForum& func=viewtopic&topic=1005 Over 500 Web hits in the last few weeks

8. Where Did We Start? Keep the lights on Prevent triggering Under Frequency Load Shedding Some trigger as early 59.5 Hz Assuming the worst Two largest generators tripped at the same time at the same plant About 2800 MW of gen / NERC Category C event (AKA: Primary Frequency Response Amount) Load was at its lowest 80 GW 8

9. Where Did We Start? If two of the three generators at Palo Verde dropped off line at the same time… On the day with the lightest reasonable load… What would we have to do to keep the lights on? 9

10. Whats in it? Modeled the data Showed two basic responses Primary Response (AKA: Point C) Zero to 30 seconds Secondary Response (AKA: Point B) 31 seconds to 15 minutes 10

11. A Question of Magnitude What should we measure in the Primary Response? Plethora of minor deviations each year The benefit of measuring and responding was outweighed by the burden About 10 annually lower than 59.85 Hz Reasonable balance between benefit/burden Burden is light Significant enough to be a good indicator 11

12. A Question of Magnitude Frequency Response Measurement Event Trigger point Set at 59.85 Hz and below Measure response for two periods Primary 0 – 30 seconds Secondary 31 seconds through 15 minutes or 59.9 which ever comes first 12

13. What happens when an event occurs? RC Notes the excursion Within five business days Tells the BAs or RSGs Point A (When the event begins) Total WECC gen on-line The BAs/RSGs Allocation Ratio Needed so the BA/RSG can self score their response 13

14. Primary Frequency Response Percent (PFRP) Formula: A/B = CX100% Primary Frequency Response Percent = (PFR / PRO) * 100%. A = PFR is the max change in NIa during the PFRP (1 st 30 seconds) B = PRO is [PFRA * (0.5 BA Gen + 0.5 BA Load) + PFRT] * (AR) Total WECC Gen 14

15. Just The Primary Basics Step 1 - Find it! (A) BAs Max change in Net Actual Interchange during PFRP15 MW Assume 15 MW. (B) BAs total Gen plus Load divided in half1500 MW Assume 1500 MW. (C) WECC total on-line gen during the PFRP150,000 MW Assume 150,000 MW (D) N-2G2800 MW Assume 2800 MW. (E) Frequency delta.5 Hz Actual frequency minus schedule frequency. Assume.5 Hz drop. Step 2- Divide BAs total Gen plus Load divided in half (B) / WECC gen (C) = (F).1% Step 3 - Times ((F) X (D)) X (E) /.5 = (G)28 MW A/G = Score!!!53%

16. Primary Frequency Response (PFR) Shall average greater than or equal to 100% during the Primary Frequency Response Measurement Period. Why average 100%? Primary purpose Measure interconnection – not punish the BA/RSG Machines are not always dependable but on average they are The average mitigates the abnormal but serves as a solid indicator of available reserves Risky to game / hard to recover from zero 16

17. Secondary Response Formula If ACE is greater than or equal to zero: (For brevity the separate formula for less-than-zero is not covered in this PPT.) n BRR = { [(10BΔF j + ACE j ) / SRO j ] / n} * 100 j= 0 Bias Response Ratio = is the measure of a BAs frequency response relative to a BAs Bias – measured by BAs ACE or change in ACE 17

18. Just The Secondary Basics If Ace is greater than or equal to zero when event occurs Step 1 - Find it! (A) The Frequency Bias stated in MW/Hz. -750 MW For the specific BA. Assume -750 MW/Hz. (B) The frequency dip in HZ-0.126 HZ In a given scan rate. Assume -0.126. (C) The frequency dip response in MW94.5 MW A X B = C (D) ACE-35 MW In a given scan rate. Assume -35 MW. Step 2 - Add The frequency dip response in MW (C) + ACE (D) = (E)59.5 MW Step 3 - Divide ((E) / (C)) X 100 = The frequency dip response in MW63% Your Score!!!!!63%

19. Secondary Response Why a response average greater than or equal to 50% and less than or equal to 200%? Purpose Get enough response without violating SOLs Enough is 50% oWECC Bias is about 2088 or twice what it takes to restore frequency to normal for a 59.75 Hz dip once secondary period begins Too much to 200% 19

20. Averaging the Scan Rates For each frequency event during the secondary response all scans are averaged until 59.9 Hz regardless of the number of scans.

21. Request for Approval: Errata Section D.1.3 Data Retention Refers to M.1 through M7 Should be M1 through M6 Should replace / retire current measurement criteria BAL-00X-1 M5 has a typo where "during the" has been repeated. Delete one of them. R3.1.1 references M4.6, which doesnt exist anymore. Corrected. 21

22. Request for Approval: Motion 1 of 2 Suggested Motion Move that the Operating Committee approve BAL-012-WECC-2-CR known as the Frequency Responsive Reserves criteria and forward the criteria to the WECC Board of Directors for appropriate action.

23. Request for Approval: Motion 2 of 2 Suggested Motion if BAL-012-WECC-2- CR is approved Having approved BAL-012-WECC-2-CR as a replacement for the current Frequency Responsive Reserves criteria designated as BAL-00X-1 (also entitled Frequency Responsive Reserves), move to retire BAL- 00X-1.

24. Questions? Panel Mr. Baj Agrawal Mr. David Lemmons Mr. John Stout Mr. Ken Wilson