Operating Committee Report

WECC Board Meeting

December 7, 2006

Topics OC Goals Public Service of Colorado Disturbance Reliability Coordination

– LeRoy Patterson WECC Mandatory Standards

– Don Watkins

2003 Blackout Recommendations Status: Complete

Westwide System Model Status: Project Will Meet Completion Date WECC-AREVA Contract Executed

November 13, 2006 Significant Effort on the Parts of LeRoy

Patterson and Sarah Dennison-Leonard Project Kickoff Meeting December 1, 2006 First Step – Merge 3 Reliability

Coordination System Models

WSM – Milestones Nov 2006 - Contract signed July 2007 - Start Stages 2 & 3 Sept 2007 - Stage 1 Complete

Model Delivered May 2008 - Stages 2 & 3 Complete

State Estimator and Network Applications Delivered

WSM Challenges Finding a Host Site for WSM Member Participation and Cooperation

WECC Interchange Tool Status: Project Will Meet Completion Date WECC-OATI Contract Executed July 2006 Stage 1 Pre-Factory Acceptance Testing

November 1-2, 2006 Stage 2 Factory Acceptance Testing

December 6-7, 2006 WECC Staff – Eric Langhorst Coordinating

Project Development

WIT – Milestones July 2006 - Contract signed Jan 2007 - Module 1 In Production Jan-Dec 2007 – WECC Member Testing

& Process Integration July 2007 - Module 3 Complete July 2008 - Module 2 Completion

WIT Challenges Member Participation and Cooperation Companion Business Practices Approved

Operating Reserve Standard Status: Multiple Standards In Different

Phases of Consideration BAL-STD-002-1

Operating Reserve Standards Task Force (ORSTF) Proposal

MIC Will Request Board Approval Consideration

Frequency Response Standard BAL-00X-1 Second 60 Day Posting Began Nov 2006 Extensive Changes to First Version

Static Distribution of FRR Replaced with Dynamic Distribution (System Droop)

Controversial FRR Marketing Restrictions Simplified Still Controversial

FRS Timeline Recommendation Jan 2007 - Comment Period Ends

If Comments are Extensive, Another 60 (or 30) Day Posting Will Be Required

Mar 2007 - Joint Meeting/OC Meeting Discussion

Apr 2007 - Board Meeting/Technical Session?

Jun 2007 – OC/MIC Approval Jul 2007 – Board Approval FPA

Section 215 Standard

CRITF Proposal Contingency Reserve Identification Task

Force (CRITF) Utilize Current E-Tagging Platform and

Methodology to Track Movement of Contingency Reserve Transactions Between BAs

Two Business Practices Currently Being Developed

CRITF Proposal Timeline Business Practices are Currently Drafted Nov 2006 - Response to Comments Mar 2007 - OC Consideration Apr 2007 - BOD Consideration Dec 2007 - Implementation

Reliability Coordination Strategy Status: Project Will Meet Completion

Date (July 2007) OC Reliability Coordination Strategy Task

Force Formed 2 OC Representative from Each of the 4

WECC Sub-regions No Representatives from Current RC Hosts

RC Strategy Current Steps Hire Consultant

Objective 3rd Party for Specifications, Request for Proposals, and Recommendation

Resolve Controversial Member Issues

RC Strategy Primary Objectives Infrastructure Host and RC Center Host

Specifications, Request for Proposals, and Recommendation Consultant

Resolve Controversial Member Issues and Consultant Oversight RC Strategy Task Force

Tool Integration, Training, Staffing OC Subcommittees, WECC Staff

RCSTF Members Tom Botello – SCE Terry Baker – PRPA Steve Cobb – SRP Tom Glock – APS Doug Hincks – AESO

Mike McAvoy – CSU

LeRoy Patterson –WECC

Jerry Rust – NWPP Jan Sharpless - BOD Ken Silver – LDWP John Stout - BOD

RC Strategy Timeline Dec 2006 - Select Consultant Feb 2007 - Define RC Configuration May 2007 - Consultant Recommends

Host Sites Jun 2007 - OC Approval of

Recommendations Jul 2007 - Board Approval of

Recommendations

OC – Other Issues LDWP Completed its Control Area

Certification Signed Reliability Coordination

Empowerment Agreement with CMRC Renewable Resource Task Force

Creation of Whitepaper Is Behind Schedule WECC Members Slow to Return Surveys Future Workshop is Still Planned WECC Staff Coordinating PCC-OC Activities

PSCO CONTROLLED LOAD SHEDDING

2/18/2006

SUMMARY Saturday, Feb 18, 2006 Public Service Company of Colorado

(PSCO) Conducted Controlled Outages 0848 to 1018 MST 300,000 Total Customers Impacted 3 Groups Shed for 30 Minute Intervals with

100,000 Customers in Each Group 428MW Firm Load

Report Team Fred LeBlanc, WASN, Chair 17 Members

NERC Included Colorado Public Utilities Commission

Heavily Involved

SUMMARY contd. February 17 – 18 Presidents Day Weekend Actual Temperature in Denver was

-13F Temperature Forecast Error Was

-14 F Resulting in Gas LDC Over Burning Due to

Forecast Error Low Gas System Pressure Interruption of Gas Supply to Electric

Generators to Ensure Residential Supply Remained Viable

SUMMARY contd. 3,132 MW of Generation Capacity Was

Forced Off Line 2,277 MW Due to Freezing/Mechanical Trouble 855 MW Due to Lack of Natural Gas Fuel

Existing Gas Trading Cycle is not Dynamic Enough to Meet Changing System Conditions

Gas Traders Left Early for Holiday Weekend

SUMMARY contd. Communication Between Internal PSCO

Units Was Not Adequate to Identify Scope of the Problem Early On

Communication with Reliability Coordination Occurred but Follow-up Was Lacking

PSCO Interruptible Procedures Were Out of Date

SUMMARY contd. PSCO Shed Load for the Loss of the

Front Range Power Plant at 454 MW. The Rocky Mountain Reserve Group Was

Reporting 1,000 + MW When Load Shedding Was Initiated

System Operators Acted Appropriately To Initiate Controlled Load Shedding

Recommendation Summary The Report Includes 22 Conclusions

Resulting in 28 Recommendations.

Significant Recommendations: WECC to Request NERC & NAESB to

make Gas Trading Cycle More Responsive

WECC Members to Review their Emergency Operating Plans Relative to a Gas Supply Emergency

Recommendation Summary contd. RDRC Will Review Their Procedures for

Actively Soliciting System Information During Unusual Operating Events.

PSCO Shall Improve Their Internal Communication Between Gas Supply, Gas Control, Real-time Dispatch, and Transmission Operations During Fuel and Electric Energy Emergencies

Recommendation Summary contd. RMRG to Review their Reserve

Procedures PSCO to Review their Weather

Forecasting Tools and Processes Generator Owners Shall Correct Identified

Freezing Problems