Discussion at TSS Peter Mackin, Chifong Thomas January 26, 2012

1. PCC/TEPPC Project Coordination and Path Rating Task ForceTests to determine if a New Project is Subset of an Existing Path Discussion at TSS Peter Mackin, Chifong Thomas January 26, 2012

2. Topics Tests to Determine if a Proposed Project is subset of an Existing Path – Informal Poll: PCC concurred in concept TSS Determination needed to be part of the new process

3. PCC-TEPPC Coordination Task Force Members: Scott Waples (Avista Corp.) Chifong Thomas (BSEI) Kyle Kohne (BPA) Grace Anderson (CEC) Tim Wu (LADWP) Dave Angell (IPC) Scott Cauchois (Non-Affiliated Director) Rich Bayless (Northern Tier Transmission Group) John Cupparo (PacifiCorp) Steve Mavis (SCE) Bill Pascoe (TransWest Express) Tom Green (Xcel Energy)

4. Progress Report: Procedure for Project Rating Review (Phases 1-3) Sub-Team Expanded membership: Kyle Kohne (BPA) Chifong Thomas (BSEI) Orlando Ciniglio (IPC) Craig Quist (PacifiCorp) Don Johnson (Portland General Electric) Joe Seabrook (PSE) Brian Keel (SRP) David Franklin (SCE) Steve Mavis (SCE) Bill Pascoe (TransWest Express) Peter Mackin (USE) Kent Bolton (WECC) Tom Green (Xcel Energy) Bob Easton (WAPA)

5. The Primary Issues to be resolved Tasks to address: Requirements for entering Phase 2 and providing modeling data to WECC “Similarly Situated” Projects in Phase 2 Requirements to remain in Phase 2 (and Phase 3) Consequences of Inactivity “Fictitious Devices” in Rating Studies A Proposed Project that is a Subset of an Existing Path Impact of changes of a project further along in the study process

6. Proposed Project that is a Subset of an Existing Path • Issue: when a project is added to an existing path • Typically, capability of combined path after proposed project < (proposed project + existing path) • If both proposed project and existing path scheduled to their max => May lead to scheduling power at a level that is above the combined path transfer capability => adversely impact system reliability. • Develop tests to determine if a proposed project is a subset

7. Application • Test should be part of the Comprehensive Progress Report. Test should be done early in Phase 1 of the Project Rating Process => no surprises in Phase 2 • If the sponsor of a project that is part of an existing path elects to rate the proposed project as part of an existing path, then this test is not required. • If the proposed project is part of an existing path, the project can still have a rating separate from the path rating: • The proposed project must re-rate the existing path w/ the proposed project in it as part of rating review studies • The proposed project non-simultaneous rating can be higher than the incremental path rating w/ and w/o the proposed project; BUT, the total power transfer over the path cannot be higher than the path rating with the proposed project in it. • The proposed project sponsor must include the limitations of the transfer capability of the total path in its publication of its project rating 7

8. Application If the criteria of either of the two tests described on the following slides are met, then a project is deemed to be part of an existing path. Regardless of whether a project is independent of a path, it can elect to be part of an existing path if all impacted parties agree.

9. New Projects with Flow Control Devices • If flow control devices are part of a new project, they may be used to control flow on the new path to the schedule on that path • BUT, the flow control devices cannot be used to artificially create "loop flow" on other paths. • If the flow control devices have enough control range, the new path will be independent of all other paths.

10. Test 1 Start with a pre-project WECC base case.  Add the proposed project to the case.  Schedule a fixed amount of power on the proposed project. If more than X% of the scheduled power flows on the existing path being tested, then the proposed project is deemed to be a subset of the existing path. For more information see draft test

11. Test 2 Start with a pre-project WECC base case.  Add the proposed project to the case to create a post-project base case.  Do not schedule any flow on the new project. If the new project picks up more than Y% of the power that was flowing on the existing path being tested, then the proposed project is deemed to be a subset of the existing path. For more information see draft test

12. Informal Poll – comments from PCC Clarification: The use of the 2 tests is to take in account situations with strong existing path and weak new path or vice versa. PCC members present support this recommendation.

13. Next Steps TSS needs to determine the X% and Y% in the tests

14. Possible Methodology To determine X% and Y%: Examine the Path Rating Catalog and look for Paths that clearly are part of an existing Path. For example: Path 14 and Path 75 COTP and PACI (Path 66) Path 29 and Path 32 Others?

15. Possible Methodology To determine X% and Y%: Examine the Path Rating Catalog and look for Paths that clearly are NOT part of an existing Path. For example: TOT 3 and TOT 4A Bridger West and TOT 5, Others?

16. Possible Methodology Perform the two tests on the proposed path combinations determined above. From the results, determine appropriate values for X% and Y% Other methodologies can be used, the above is only a suggestion.

17. Questions? ?