Gary Stephenson President and CEO

1. CEO Report December 4, 2013 Peak Reliability IBC – Salt Lake City Gary StephensonPresident and CEO

2. Agenda • Bifurcation update • Compliance Enforcement Authority (CEA) transition • International • Alberta Electric System Operator (AESO) and British Columbia (BC) Hydro • Comisión Federal de Electricidad (CFE) • GridExII

3. Agenda • Internal metrics • Value add services • New grant from U.S. Department of Energy (DOE) • Funding

4. Bifurcation Update • Peak Human Resource and Finance Directors hired and in place • Transfer and division of key business contracts is underway and on schedule • Peak staff transition from WECC and benefit enrollment complete • FERC approval of 2014 Peak Business Plan and Budget • Significant outreach informing development of value proposition

5. CEA Transition • Peak RC Certification • Scheduled March 2014 • Self Assessment • 43 Reliability Standards applicable to the RC • 34 Reliability Standards have been assessed • The 9 remaining will be completed within the next two weeks • Self Reports will be submitted to NPCC for any possible violations found

6. International Agreements - Canada • AESO: Continue to negotiate reliability coordination agreement • Start date – January 1, 2014 • Goal is no degradation of wide area view • Fee structure is unresolved • BC Hydro: Parties seek to restructure relationship • BCH continues within Peak RC area • Reduced fees in exchange for reduced services • Maintain or enhance current level of reliability

7. International Agreements - Mexico • CFE: Peak expected to provide RC services to CFE after bifurcation • Parties have exchanged draft agreement • Fee structure is expected to carry over from WECC contract with CFE • Maintain or enhance current level of reliability

8. GridEx II • Recent continent-wide table-top exercise focused on cyber and physical attacks on bulk electric system • RC partnered with CAISO and WAPA • Positive feedback from NERC on RC’s role as central communications hub in the west • Written report by NERC due next month

9. Internal Metrics • Visits with MISO, PJM, and NYISO to benchmark best practices for RC specific metrics • 2014 - focus on developing and implementing internal metrics • Relevance and value of selected internal metrics will be assessed before embedding into performance and/or incentive targets.

10. Value Added Services • Hosted Advanced Applications • External metrics • EMS-centric services for northwest Energy Imbalance Market (EIM) project • Southwest Reserve Sharing Group

11. Potential DOE Grant • Submitted a new grant proposal to DOE ─ “Realizing the WISP Potential” • Two-year “Research and Demonstration” grant • Proposed grant has four primary objectives: • Data Quality Management; • Correlation of Measurements with Interconnection Behavior and Performance; • Integrating Application Results with Operation Procedures; and • Data Delivery Efficiency Improvements.

12. Potential DOE Grant • Partnering with: • BPA, SCE, IPC and CAISO, SDG&E • Software vendors: Alstom Grid, V&R Energy and Grid Protection Alliance • Research Organizations: T&E Consulting and University of Wisconsin • Peak cost-share commitment $200k (out of a total cost-share of all participants of $7.6 million) • Proposed total program $13.8 million

13. Funding {later in the agenda}