1. Current Export Initiatives Jerry Mossing Exports Workshop February, 16,2006, Metropolitan Center, Calgary

2. AB to BC Transfer Capability Background 2004 –Focus on Genesee #3 interconnection impact on import capabilities New Single Largest Generation Contingency Operation under planned transmission outages in KEG Examine the system dynamic stability under the then current transfer limits Group of participants requested information on AESO plans to meet requirements of Transmission Regulation 8(1)(e)(g) ISO to make arrangements for the expansion or enhancement of the transmission system so that, under normal operating conditions, the transmission system interconnections with jurisdictions outside Alberta can import and export electricity on a continuous basis, at or near the transmission facility’s path rating; Participants expressed desire to increase export capability in both an operations context as well as a planning context

3. AB to BC Transfer Capability Background (2) Several revisions of AB to BC transfer capability (OPP 304 – Alberta-BC Interconnection Transfer Limits) Dec 2004 – updated based on winter capability studies May 2005 – updated on summer capability studies August 2005 – dynamic calculation using a Calgary Generation Adder (CAG) Nov 2005 – updated winter capabilities using CAG Dec 2005 – updated winter capabilities based on double Sheerness contingency mitigation, Sheerness (SHAG) and Joffre (JAG) adders Feb 2006 – updated winter capabilities based on addition of ~200 MVAR Janet cap banks, and Bighorn adder (BAG) It’s all about the south generation This is getting complex! Feasibility of using GRAS to enhance exports

4. AB to BC Transfer Capability Impacts System is being pushed to capacity during non-peak periods as export capability is increased. Looks and operates like peak load for more hours of each day Export capability is diminishing due to load growth even as we make incremental adjustments to increase capability System (240kv) minimum voltage limits approached, examined, and in some cases, revised Dynamic ATC calculation increases export capability but our market structure could result in more schedule curtailments Complex dynamic calculations and manual processes

6. AB to BC Transfer Capability Impacts (2) The Edmonton-Calgary 500Kv studies identified the South of KEG (SOK) and North of Calgary (NOC) ‘cutplanes’ that limit the flow on the Alberta 240kv backbone Should we operate to a cutplane? Which one should we use? What are transition requirements? operating studies, stakeholder consultation, OPPs, tools, training Are there impacts to the market? e.g. Constraints management

7. AB to BC Transfer Capability Impacts (3) The Calgary Area Reactive Power Supply Reinforcement Need application resulted in 520 MVars of capacitor banks to be installed in the Calgary area These were required for reliable service at peak loads, but can be used to support exports with some consideration to contingencies (e.g. loss of tie line under heavy export) Continued monitoring of Calgary area dynamic reactive reserve SOK - 240 is the recommended cutplane Voltage stability constraints largely gone due to cap banks and thermal constraints Simplify operations and calculations Maximize export capability due from contribution of south generation

8. SOK - 240 Cutplane

9. AB to BC Transfer Capability SOK - 240 Implementation Studies nearly complete Stakeholder consultation begins today Revisions to OPP 304 – AB BC Interconnection Transfer Limits OPP 510 – Calgary Area Operation New OPP 521 – SOK-240 Operation Timeframe – March 13 to May 1 Workshop in 3 rd week of March Forecast long term ATC based on historical south generation operation and southern load Forecast day ahead southern generation and load Real time tools to provide alarm and action conditions as limits are approached

10. AB to BC Transfer Capability SOK - 240 Implementation (2) Constraints management provided in 2 stages Current protocol – Opportunity Services – export, south DOS, Calgary area TMR Proposed constraints management rule when rule approved and tools ready

11. Generation and Load SOK - 240 Generation and Load BC AILSummerWinter < 80001640 MW1875 MW >= 80001600 MW1800 MW BC LimitAB Limit 700 – 800 MW0 – 800 MW AB to BC Transfer Proposed Limits

12. AB to BC Transfer Capability GRAS GRAS – Generation Remedial Action Scheme aka Generation shedding for defined contingencies Under various export conditions the effects of certain contingencies can be mitigated by tripping northern Alberta generation Risks Failure to trip the generator – expect criteria violations Hard trip to the generator - could cause generator equipment problems Contingencies requiring GRAS may be grouped into 3 areas Alberta contingencies AB BC Tie line BC contingencies The GRAS initiative is underway

13. AB to BC Transfer Capability 900L Thermal Upgrade 900L (Benalto to Red Deer) is the overloaded element under most contingencies when SOK 240 is at the limit Thermal upgrade would increase winter export capability AltaLink has been requested to estimate to cost of the upgrade

14. Questions ?