1. 1 ColumbiaGrid Activities Supporting Integration of Renewable Generation Presentation to the Market Interface Committee At the October 30, 2008 Meeting in Marina Del Rey By Paul F. Arnold Vice President, ColumbiaGrid

2. 2 ColumbiaGrid Activities Supporting Integration of Renewable Generation Background – ColumbiaGrid Efforts on Redispatch In 2007, ColumbiaGrid under contract with its members provided an independent evaluation of BPAs 2007 Redispatch Pilot Program –Redispatch is much more effective than curtailment to control line overloading. –Identified need for broader participation, including generators outside the BPA BA –But low utilization of generators and infrequent opportunity for redispatch is a problem to incent market participation –Added Load Following to increase generator participation and solve huge problem with wind integration

3. 3 ColumbiaGrid Activities Supporting Integration of Renewable Generation Background- Developing Intra-hour Load Following Intra-hour Load Following can be done using similar redispatch scheduling protocols Market participants can bid incs and decs to transfer energy to and from Balancing Areas to create regulating room for intermittent Wind Generation

4. Intra-Hour Regulating Relief Increasing-Need for Regulating Relief - Simplified Diagram A C B D Area B Requires 100 MW Increasing Regulating Reserve Technical Platform ColumbiaGrid Gen/IPP/D provides 50 MW INC Gen/BA/C provides 20 MW INC Gen/IPP/A provides 30 MW INC 30 MW 20 MW 50 MW 20 MW Bidding- Platform IPP GenD IPP GenA GenC GENSGENS BA/PO (transacting party) ICCP Data Link BAs Data Sharing Data Sharing Intra-hour Block Energy Sell Bids (INC) Intra-hour Block Energy Buy Bids (DEC) Data Sharing 4

5. Intra-Hour Regulating Relief Decreasing-Need for Regulating Relief - Simplified Diagram A C B D Area B requires 100 MW Decreasing Regulating Reserve Technical Platform ColumbiaGrid Gen/IPP/D takes 50 MW DECGen/BA/C takes 20 MW DEC Gen/IPP/A takes 30 MW DEC 30 MW 20 MW 50 MW 20 MW Bidding- Platform IPP GenD IPP GenA GenC GENSGENS BA/PO (transacting party) ICCP Data Link BAs Data Sharing Data Sharing Intra-hour Block Energy Sell Bids (INC) Intra-hour Block Energy Buy Bids (DEC) Data Sharing 5

6. 6 ColumbiaGrid Activities Supporting Integration of Renewable Generation BPA Wind Integration Projection

7. 7 ColumbiaGrid Activities Supporting Integration of Renewable Generation What is Needed? Ability to regulate for intermittent resources, mostly wind Ready Access to Generation Resources –Within the Balancing Area –Outside the Balancing Area Methodology –Dynamic Scheduling –Intra-hour Load Following –Other

8. 8 ColumbiaGrid Activities Supporting Integration of Renewable Generation What is Needed? Opportunity- for Generators to bid Intra-hour Load Following and Dynamic Scheduling over a wide area Visibility -Tools for balancing authorities/grid operators to access bidding generators across a wide area Cooperation- Active participation by BAs who can directly benefit and by BAs who can facilitate dynamic scheduling and intra-hour services

9. 9 ColumbiaGrid Activities Supporting Integration of Renewable Generation What is Needed? Standard Business Practices – Flexible to allow mid-hour scheduling and tagging (make the schedule change and tag after the fact like reserve sharing?) Automation--Ultimately need to support up to 10 minute changes (automate the scheduling and tagging process?) Manual-- Need to make mid-hour changes across multiple balancing authorities is urgent (one or several changes per hour?)

10. 10 ColumbiaGrid Activities Supporting Integration of Renewable Generation Getting Regional Interest ColumbiaGrid made a presentation at the WECC MIC meeting in March 2008 on its efforts to develop Redispatch and Energy Balancing markets which generated interest from WestConnect and NTTG parties. In May 2008, ColumbiaGrid approached NTTG to consider a Joint Initiative which we both agreed to explore.

11. 11 ColumbiaGrid Activities Supporting Integration of Renewable Generation Joint Initiative At a June 30 NTTG meeting in Boise, broad concepts were introduced and ColumbiaGrid, NTTG, and WestConnect representatives agreed to explore co- sponsoring a Joint Initiative. On July 8 in Portland, the first exploratory stakeholder meeting was held Joint Initiative meetings were held in Reno on August 26 and in Salt Lake on September 29

12. 12 ColumbiaGrid Activities Supporting Integration of Renewable Generation Joint Initiative Goals and Focus Goal: work jointly with other sub-regional groups, utilities and interested persons to find solutions to broader regional problems. Current problem focus: integration of rapidly growing amounts of variable-output generation (primarily wind generation) into existing balancing authority areas.

13. 13 ColumbiaGrid Activities Supporting Integration of Renewable Generation Joint Initiative--Two Strike Teams and One Think Tank The Infrastructure Strike Team is focused on delivering a common communications infrastructure and protocols for dynamic schedulingjointly staffed The Products and Services Strike Team is focused on delivering Intra-hour Load Following services -- jointly staffed The Think Tank is a broader stakeholder group that provides policy and direction and is jointly facilitated by ColumbiaGrid, NTTG, and WestConnect

14. 14 ColumbiaGrid Activities Supporting Integration of Renewable Generation Joint Initiative- Parties involved: BPA, Snohomish, Tacoma, SCL, Grant, CG staff PAC, PGE, Idaho, Northwestern, NTTG staff APS, Excel, WestConnect staff OATi, WECC staff, PPC, NIPPC, and others

15. 15 ColumbiaGrid Activities Supporting Integration of Renewable Generation Joint Initiative- Defining Success Get Intra-hour services and/or dynamic scheduling approaches to implementation within 10 to 18 months Get used to thinking in terms of regional problem solving and getting things done