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Market Performance and Planning Forum December 9, 2015 Objective: - PowerPoint PPT Presentation

Market Performance and Planning Forum December 9, 2015 Objective: Enable dialogue on implementation planning and market performance issues Review key market performance topics Share updates to 2015 release plans, resulting from


  1. Flexible ramping constraint relaxations have increased most notably in PacifiCorp East. 15% 13.7% Flexible ramping constraint 12% Percent of Intervals 8.8% 9% 7.5% 7.1% 6% 5.5% 5.2% 3.8% 3.2% 2.8% 3% 1.6% .9% 1.0% 0% Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 15-Minute Market (RTPD) Page 52

  2. Flexible ramping constraint relaxations have increased prices in PacifiCorp East above the bilateral trading hub benchmark in September and October. $100 Bilateral trading hub average price $90 PACE price Average weekly price ($/MW) $80 PACE price without price discovery $70 $60 $50 $40 $30 $20 $10 $0 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 2014 2015 Page 53

  3. Next steps • In the short run, the ISO is working on enhancements to the balancing area ramp requirement tool. – Grouping intervals and hours together. This will reduce the interval to interval variability and reduce the need for a longer sample period. – Remove load bias from the net load calculation. – Review and adjust thresholds. • In the medium term, the flexible ramping constraint will be replaced with implementation of the flexible ramping product. When this occurs, the requirement calculations will change. Page 54

  4. Policy Update Brad Cooper Manager, Market Design and Regulatory Policy Page 55

  5. Ongoing policy stakeholder initiatives • Contingency modeling enhancements – Conducting prototype analysis – Third revised straw proposal posted Nov 20 – Stakeholder meeting on Dec 10 – March 2016 Board, Fall 2016 implementation • Flexible ramping product – Posting requirement and allocation data – Stakeholder meeting on revised draft final proposal on Nov 8 – Revised draft final proposal posted on Dec 17 – Stakeholder call on Jan 5 – Feb 2016 Board, Fall 2016 implementation Page 56

  6. Ongoing policy stakeholder initiatives (continued) • Bidding rules – Revised straw proposal posted on Nov 23 – Stakeholder meeting on Dec 3 – Feb, March Boards • Commitment Cost Enhancements – Phase 3 – Draft final proposal to be posted late January/early February – Stakeholder call early February – March Board Page 57

  7. Ongoing policy stakeholder initiatives (continued) • Reactive power and financial compensation – Draft final proposal posted on Nov 12 – Stakeholder call on Nov 19 – Draft tariff language posted on Dec 1 – Stakeholder call on tariff language on Dec 18 – February Board • Frequency response – Stakeholder call on Dec 14 – Revised straw proposal posted in January – March Board Page 58

  8. Ongoing policy stakeholder initiatives (continued) • Flexible resource adequacy criteria and must-offer obligation – phase 2 – Straw proposal to be posted by Dec 14 – June 2016 Board • Reliability services – phase 2 – Second revised straw proposal posted on Nov 13 – Stakeholder call on Nov 20 – Draft final proposal to be posted on Jan 7 – March 2016 Board Page 59

  9. Ongoing policy stakeholder initiatives (continued) • Competitive solicitation process enhancements – Draft final proposal posted on Oct 12 – Stakeholder call on Oct 19 – Draft tariff language posted on Nov 23 – December board • Stakeholder initiative catalog – Final catalog to be posted by Dec 14 • Two-tier allocation of real-time bid cost recovery uplift – Issue paper posted on Nov 24 – Stakeholder call on Dec 21 Page 60

  10. Ongoing policy stakeholder initiatives (continued) • Regional resource adequacy – Issue paper to be posted on Dec 9 – Stakeholder meeting on Dec 16 (Salt Lake City) • Regional transmission access charge structure – Stakeholder call on issue paper on Oct 30 – Stakeholder workshops on Dec 15 (Salt Lake City) and Jan 6 (Folsom) – Straw proposal to be posted on Feb 8 – Stakeholder meeting on Feb 26 – June 2016 Board meeting Page 61

  11. Policy stakeholder initiatives coming soon • Planned to start 2016 Q1 – CRR clawback rule modifications – Stepped transmission constraints – Regional integration CA greenhouse gas compliance – Metering rules updates – Transitional implementation items Page 62

  12. Stakeholder initiatives going to the Board for approval Initiative Board Presentation Competitive solicitation process December enhancements Energy storage and distributed energy Deferred from December resources Flexible ramping product February Reactive power and financial compensation February Bidding rules February, March Reliability services – phase 2 March Frequency response March Contingency modeling enhancements March Regional TAC structure June FRACMOO – phase 2 June Page 63

  13. Market System Changes – Spring 2016 Release Greg Ford Power Systems Engineer - Development Lead Page 64

  14. Agenda  Market changes in support of Capacity Procurement Mechanism (CPM)  Market changes in support of Must Offer Obligation (MOO) Page 65

  15. Market Changes in Support of CPM Page 66

  16. CSP Process Page 67

  17. CIRA process and annual and monthly optimization • Part of market simulation session 1 (in progress). • Currently improving the system in response to initial simulation results. Page 68

  18. Intra-Monthly • Part of session 2 market simulation (Jan 19) • The purpose of intramonthly CSP merit order dispatch is to evaluate exceptional dispatch and significant event capacity MW that could lead to a CPM • If a reliability need is determined, selection of resources is based on economics, performed by a merit order engine Page 69

  19. Intra-Monthly (continued) • Merit order engine is part of the same system used to run the markets • Same three part bids (start-up, minimum load, energy) are used, with modifications – Capacity curve is added to the incremental energy bid curve – Capacity cost for the capacity below Pmin is added to the minimum load cost Page 70

  20. Intra-Monthly (continued) • If the reliability need is considered after the day-ahead run, but before the real-time: – Run merit order using results from day-ahead (RUC), but run with the modified bids. • Otherwise in real-time: – Run with the most recent RTUC run as a base – Re-run with the modified bids • Output: – Resources selected through the process will be dispatched in the same manner as EDs are today Page 71

  21. Intra-Monthly (continued) • Current status: – SIBR business rules have been developed • New workflow for ODCP • New rules for using bids in the ODCP process – BRS has been developed – Vendor coding is complete – Functional testing has begun Page 72

  22. Market Changes in Support of MOO Page 73

  23. MOO Changes • Part of session 2 market simulation (Jan 19) • The following changes are made as part of the Reliability Services Initiative, Phase 1A, and administered as part of Commitment Cost Enhancements Phase 2. – Clarified IFM bidding requirements for non-generator, variable energy, use-limited, or regulatory must-take resources. These resources will not be subject to bid generation requirements. Requirements will be set via existing Master File ‘flags’. – Clarified distributed generation will be treated same as like technology types that are connected to the grid, for purposes of must offer. Requirements will be set as applicable in the Master File. Page 74

  24. MOO Changes (continued) – Generated bids for non resource-specific system resources that provide resource adequacy will only be submitted during RAAIM assessment hours. This requires some changes to the SIBR system. – RAAIM assessment hours are: • HE 14-18 April-October • HE 17-21 November-March – Example • NRS-RA resource provides RA for hours 8-16. • For the month of April, bids will be generated for hours 14-18, regardless of the RA contract. Page 75

  25. MOO Changes (continued) • Current status: – SIBR business rules have been developed • New/revised rules for generating bids for NRS-RA resources – Vendor coding is in progress Page 76

  26. Schedule Page 77

  27. Schedule • Market simulation session 1: – now through 12/17 • Market simulation session 2: – 1/19 through 2/12 • Go live: – 3/1 Page 78

  28. Questions Page 79

  29. Release Plan Update Janet Morris Director, Program Management Office Page 80

  30. Release Plan 2015 - 2016 2015 • Application Identity Management (AIM) 2015 Enhancements Early 2016 • Capacity Procurement Mechanism Replacement • Reliability Services Initiative • Commitment Cost Enhancements Phase 2 (remainder) • Post Implementation OMS Enhancements • Acceptable Use Policy – CMRI 2016 • Expanding Metering and Telemetry Options Phase 2 • Demand Response Registration Enhancements • RIMS Functional Enhancements • Reactive Power Requirements and Financial Compensation Fall 2016 • BAL-003 Compliance • Reliability Services Initiative Phase 1B • Flexible Ramping Product • Contingency Modeling Enhancements • OMAR Replacement • BCR modifications and VER settlement (DA Metered Energy Adjustment Factor and Residual Imbalance Energy changes) • Energy Imbalance Market (EIM) 2016 – implementation of PSE and APS as EIM Entities • EIM Year 1 Enhancements Phase 2 • PIRP System Application Decommissioning • Bidding Rules • Enhancing market participation of storage and aggregated distributed energy resources (ESDER) • Commitment Cost Enhancement Phase 3 • Post Implementation OMS Enhancements Subject to further release planning : • ADS User Interface Replacement • Available Balancing Capacity • Stepped Constraints Page 81

  31. 2015-2016 Release Schedule http://www.caiso.com/Documents/ReleaseSchedule.pdf Page 82

  32. Application Identity Management (AIM) 2015 Enhancements [Independent Release] Milestone Details/Date Status Application Software Changes AIM: Adding endorsed user functionality BPM Changes None Business Process Changes Manage Operations Support & Settlements Board Approval N/A External Business Requirements N/A Technical Specifications N/A Draft Configuration Guides N/A External Training 12/1/2015 Tariff N/A Production Activation 12/21/2015 Page 83

  33. Early 2016 Release Market Simulation Market Simulation Dates – RSI, CPM, CC Phase 2, AUP CMRI and OMS Enhancements November 9 – December 17, 2015: Session 1 (Structured and Unstructured ) January 19 – February 12, 2016: Session 2 (Structured E2E) Twice weekly calls taking place now through December 17 th for Session 1 Simulation, dial in information - http://www.caiso.com/Documents/Early2016ReleaseMarketSimulationCallsSch eduled.htm Link to Early 2016 Release Market Simulation Plan - http://www.caiso.com/Documents/MarketSimulationPlanEarly2016Release.pdf Page 84

  34. Early 2016 – Capacity Procurement Mechanism Replacement (CPM) Milestone Details/Date Competitive Solicitation Process (CSP): CSP replaces the existing administrative price process for annual, monthly and intra-monthly CPM events for flexible and generic RA capacity. CSP will cover all events that allow the ISO to procure additional capacity. CIRA: − Bid Submittal system for SCs to submit capacity bids (not an existing bid type) − Capacity bids to implement new validation rules (not an existing bid type) − Capacity Bid submittal to be on a yearly, monthly, and intra-monthly level − LSE/LRA deficiency calculation to be performed for CSP for Generic and Flexible RA data − Existing CPM calculation to be deprecated for trade dates after the effective date of implementation. − Manage import allocation and bilateral trades of import allocation Application Software Changes Settlements: Settlements will need new CPM formulas that will result in the following charge code impacts: - 0 New charge codes - 22 Modified charge codes - 0 Terminated charge codes Reporting: If an annual or monthly CPM occurs greater than two times (over a rolling 24 month period) or more than 50% of the LSE’s RA requirement is CPMed, a report must be given to Market Participants. OASIS: − Publish all finalized offers into the competitive solicitation process on a rolling five-quarter delay. (Deferred) Page 85

  35. Early 2016 – Capacity Procurement Mechanism Replacement (cont.) Milestone Details/Date Status Reliability Requirements – issue PRR 11/4/15 BPM Changes Market Instruments – issue PRR 1/8/16 Billing & Settlements – 1/8/16 − Solicitation for soft offer cap. Timeline for submittal needs to be defined. − Submittal process for annual/monthly CPM bid submittal Business Process Changes − New business process for amount of capacity being relied on (non-RA from partial RA) − New process for Competitive Solicitation Process (annual/month/intra-monthly) Board Approval February 5, 2015 External Business Reqmnts March 31, 2015 Tariff Filed: May 26, 2015 FERC Approved: October 1, 2015 CIRA Session 1  Fall 2016, MPs will use UIs Technical Specifications OASIS Session 2  Fall 2016 Draft Configuration Guides November 23, 2015 Session 2 (Updated) October 21, 2015: Session 1 – Onsite w/Webinar, Full Day (combined with CPG Call) • Training Materials – posted SP & RP page on 10/19 External Training January 6, 2016: Session 2 - Onsite w/ Webinar option, Full Day (Updated) • Training Materials – post 1/4 (Updated) November 9 – December 17, 2015: Session 1 , Structured • Scenarios –posted on Release Planning Page on 7/30/15 • Scenarios w/timeline – posted on RP page on 10/19 • CIRA User Guide – posted on RP page on 11/24 (Updated) Market Simulation January 19 – February 17, 2016: Session 2 (E2E), Structured (Updated) • Scenarios – posted on Release Planning page on 8/21/15 • CIRA User Guide – TBD • 3-Day Onsite Market Simulation (Attendance Optional) 2/2 – 2/4 1/12/2016: Session 1 Production Activation 2/23/2016: Session 2 3/1/2016: Effective Date Page 86

  36. Early 2016 – Reliability Services Initiative (RSI) – 1A Milestone Details/Date CIRA: − Manage new NQC/EFC process request for resource types. This will impact both internal users and Market Participants − Manage Import Allocation (CPM Replacement initiative is covering this scope but is needed for this initiative) − Manage RA obligation (taking into consideration substitution capacity and replacement capacity as RA capacity) will impact RA, Settlements, market, and outage. The output of CSP will be needed − Publish RA Obligations externally − Display Comparative snapshot of DA/RT obligation (outages, energy bids, RA obligation). Display input of RAAIM calculations − Display SCP and CPM availability calculation output for historic trade dates − Creation of substitution rules for flexible resource adequacy resources − Modify existing DA/RT generic substitution rules − DA substitution timeframe shall change from 6 AM to 8 AM − Enable the release of substitute capacity for generic and flexible resources Application Software Changes − Allow imports to substitute for other imports and CAISO system resources. The RA obligation will be at a daily level − Use result of Pre-qualification analysis (the pre-qualification analysis is a manual process) for real time substitution validation − API for substitution and release functionality − Enable Generic CPM substitutions − Enable Flexible CPM substitutions − Build Submit & Retrieve APIs to support Substitutions (4 types) and release of sub capacity − Substitution will now be in CIRA − Addition of RAAIM exempt and planned outage exemption flag − Allow the outage correction process to exempt outage from RAAIM calculations up to 5 business days OMS: − Add 5 nature of work attributes and various validations − Remove SCP Exempt flag from display Page 87

  37. Early 2016– Reliability Services Initiative (cont.) – 1A Milestone Details/Date Status Masterfile: − Will store Use Limit Plan. There will be a new template (ULPDT – Use Limit Plan Data Template) RAAM: − Decommission RAAM Settlements: - RAAIM (RA Availability Incentive Mechanism) NEW – replaces SCP for backstop. Current SCP will retire with implementation of RAAIM. Will assess whether generic and flexible RA resources comply with MOO and better captures use limited resource availability. - The following charge code changes are needed for implementation of the RA Application Software Changes Availability Incentive Mechanism (RAAIM) - 4 New charge codes - 0 Modified charge codes - 7 Terminated charge codes Reporting: - Report on the effectiveness of the RAAIM results (1 year after implementation) (Deferred) Other: - Modification of Use Plan with new validation rules - LSE cost allocation methodology needs to automated. - Publish list of all available prequalification combinations Page 88

  38. Early 2016 – Reliability Services Initiative (cont.) – 1A Milestone Details/Date Status Reliability Requirements - issue PRR 1/8/16 BPM Changes Outage Management - issue PRR 1/8/16 Billing & Settlements - issue PRR 1/8/16 − Process to assign NQC values to NGR/PDR/DG resources − Process for PDR/NGR/DG testing Business Process − Process for RA Availability Incentive Mechanism (RAAIM). Must retire SCP business process flows. Changes − Modify DA/Real Time Substitution Process − Process for allocating year end unallocated RA Availability Incentive Mechanism (RAAIM) funds Board Approval March 26, 2015 External Business March 31, 2015 Reqmts Tariff Filed: May 28, 2015 FERC Approved: October 1, 2015 CIRA Session 2  Fall 2016, MPs will use UIs Masterfile Session 2 • posted tech spec 9/24 on Release Planning Page Technical Specifications • posted ULDT 9/11 to RP page • posted ULR documentation/ sample templates to RP page on 12/4 (Updated) OMS Session 2 • posted tech spec 12/2 (Updated) Draft Configuration November 23, 2015 Session 2 (Updated) Guides Page 89

  39. Early 2016 – Reliability Services Initiative (cont.) – 1A Milestone Details/Date Status October 21, 2015: Session 1- Onsite w/Webinar, Full Day (combined with CPG Call) • Training Materials – post 10/19 External Training • NQC Template – posted RP page on 10/19 January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day (Updated) • Training Materials – post 1/4 (Updated) November 9 – December 17, 2015: Session 1 • Scenarios – posted on Release Planning page on 7/30/15 • Scenarios w/timeline – posted on RP page on 10/19 • CIRA User Guide – posted 11/24 (Updated) Market Simulation January 19 – February 12, 2016: Session 2 (E2E) • Scenarios – posted 8/21/15 on RP page • CIRA User Guide – 1/4 (Updated) • MF UI User Guide – 12/11 (Updated) • OMS User Guide – TBD • 3-Day Onsite Market Simulation (Attendance Optional) 2/2 – 2/4 1/12/2016: Session 1 Production Activation 2/23/2016: Session 2 3/1/2016: Effective Date Page 90

  40. Early 2016 – CPM & RSI Announcements Important Announcements: – Use Limited Plan templates • Use the current template, not the new template, for 10/31/15 submissions. • Note Emergency PRR 868 was issued as an interim solution, and ask that you submit template via CIDI instead of email. Once RSI goes live, all templates will be submitted via Masterfile UI. • ULR Process with sample template posted on 12/4/15 – RA and Supply Plan: use the new plans starting 1/12/16 – Contact you POCs to request two new external CIRA roles in preparation for Market Simulation on 11/9. On of these roles will be needed for Offer submission and viewing. Market Notice issued on 10/19 contains more details. • External READ – ONLY • External READ – WRITE – Market Sim Session 1 extended from 12/4 to 12/17 to give MPs time to test fixed CIDI tickets. This is unstructured, so if you need support, please contact Market Sim or Reliability Mailbox. – Market Sim Session 2: Please be sure to submit outage information ahead of time. Page 91

  41. Early 2016 – CPM & RSI Onsite Market Simulation February 2 – 4, 2016: 3-Day Onsite Market Simulation, Session 2 The ISO will hold an OPTIONAL onsite market simulation for market participants in addition to the already scheduled 4-week market simulation session from 1/19 – 2/12/16. Information : – Onsite market simulation for Session 2 will be 2/2 – 2/4/16 – 2/2 – 2/3 will be structured, and 2/4 will be unstructured – Mini-monthly Settlements statements are not available during the onsite market simulation, but are available for the 4-week offsite session (Re- evaluating this) Page 92

  42. Early 2016 – Commitment Costs Phase 2 Milestone Details/Date Status For the Early Jan 2016 release , the project will • Clarify definition, qualifications, and requirements for use-limited resources • Implementation of the use limited definition (No longer applicable) • Implement revised must-offer rules Application Software Changes • Impacted Systems: • MF • SIBR CCE2 Early 2016 release implementation will be coordinated as part of the Reliability Services Initiative (RSI) project Board Approval Yes. March 26-27, 2015 ISO will file the change for transition costs for MSG (Fall 2015), some clarifications to the definition of “use-limited resource” that are needed that would be included along with the MSG changes. Tariff Filed: May 28, 2015 Approved in Part: September 9, 2015 (FERC rejected the proposed revisions to the definition of “use limited resources”, but approved all other tariff revisions.) Market Instrument – 1/8/16 BPM Changes Reliability Requirements – 1/8/16 Market Operations – 1/8/16 Business Process Changes No External Business Requirements November 24, 2016 (Updated) Technical Specifications No; SIBR business rules to be posted during week of 12/14/15 January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day (Updated) External Training • Training Materials – post 1/4 (Updated) Draft Configuration Guides No Market Simulation January 19 – February 12, 2016: Session 2 (E2E) Deployment Target - 2/23/2016 Production Activation Page 93 Effective Date – 3/1/2016

  43. Early 2016 – Post Implementation OMS Enhancements Milestone Details/Date Status OMS Enhancements project will implement the following functionalities: • Transmission Outage Report Enhancements • Manage Broadcast Status Update (deferred until later in the year) • Manage retrieveResoruceOutage API - add Invalid and Inconsistent flags • System change to validate the "ChangeThreshold" only at time of submission of a change request, and allow change request to be accepted or rejected at any time. The project is also addressing the backlog of known issues. Application Software Changes Other roadmap items (Substitutions, Additional Natures of Work, and Removal of SCP exempt flag/Inclusion of RAAIM exempt flag) will be part of the Reliability Services Initiative (RSI) project. The implementation will impact the following systems: • Outage Management System (OMS) • Market Systems (IFM/RTN) • EMS • CIRA • Settlements Page 94

  44. Early 2016 – OMS Enhancements (Continued) Milestone Details/Date Status Board Approval N/A No tariff changes are anticipated for this initiative Tariff No business process changes are anticipated for this initiative Business Process Changes BRS Target Posting Date: Sep 18, 2015 External Business Requirements Technical Specifications Tech Specs Target Posting Date: Sep 30, 2015 Outage Management, and Market Operations BPMs will be updated. BPM Changes Dec 31, 2015 External Training Slides will be added to the Market Simulation Call: Jan 7, 2016 Draft Configuration Guides N/A Market Simulation Unstructured. Jan 19 – Feb 12, 2016 Deployment - 2/23/2016 Production Activation Activation Date - 3/1/2016 SLIC Decommissioning Disabling external SLIC API and UI access by 12/31/2015 Page 95

  45. Early 2016 - Acceptable Use Policy – CMRI Milestone Details/Date Status Scope includes enforcement of Acceptable Use Policy for CMRI services to support Application Software Changes the full implementation of 1 call per service per identity (as designated by certificate) every 5 seconds. BPM Changes N/A Business Process Changes N/A Board Approval N/A External Business Requirements N/A Updated BPMs N/A Reviewing the implementation approach to minimize changes required System Access Document for Market Participants Draft Configuration Guides N/A Market Simulation January 19, 2016 – February 12, 2016 Tariff N/A Production Activation February 23, 2016 Page 96

  46. 2016 – Expanding Metering and Telemetry Options Phase 2 Milestone Details/Date Status Distributed Energy Resource Provider (DERP) Agreement: 1. General functions of the DERP, • Offer Energy and AS: aggregated resources in Sub-Lap • Provide ISO with accurate Information • Responsible for operating and maintain DER 2. Specify data concentrator functionality for real time monitoring, control and after the fact metering data • disaggregate ISO signals to sub-resources; obtain a resource response Application Software Changes • aggregate sub-resource operational and settlement meter data within a sub-Lap 3. Define the provision of technical and operational information to the ISO , • metering and communications requirements, • submission of economic bids and self-schedules and • provision of ancillary services 4. Identify responsibility for fulfilling the terms of the agreement • penalties and sanctions, cost responsibility, dispute resolution, representations and warranties, liability, uncontrollable forces and other miscellaneous terms BPM Changes Metering, Direct Telemetry Revised straw proposal May 12, 2015 Draft final proposal June 10, 2015 Board Approval July 16, 2015 External Business Requirements N/A Updated BPMs February 1, 2016 Technical Specifications N/A Draft Configuration Guides N/A Tariff filing Draft language posted, Stakeholder discussions began October 1, 2015 Production Activation April 1, 2016 Page 97

  47. 2016 – Demand Response Registration Enhancements Milestone Details/Date Status Enhance Demand Response Registration functionality and processes Develop new registration user interface for DRRS Develop new APIs for support of enhanced registration processes Application Software Changes • Reissued final BRS with clarifications on July 8 as a result of second CPG meeting held on June 11. • Tech Specs CPG meeting held on November 3, 2015 BPM Changes Metering; Settlements & Billing Business Process Changes Automation of internal registration-related processes Board Approval TBD June 4, 2015 External Business Requirements Clarified, July 3, 2015 Technical Specifications September 18, 2016 Draft Configuration Guides N/A User Training; Market Simulation March 21 – 23; March 23 – April 13, 2016 Tariff TBD Production Activation April 28, 2016 Page 98

  48. 2016 – RIMS Functional Enhancements Milestone Details/Date Status Functional enhancements resulting from the Customer Partnership Group CPG. Application Software Changes More details to be provided in the future. Generator Interconnection and Deliverability Allocation Procedures Generator Interconnection Procedures Managing Full Network Model BPM Changes Metering Generator Management Transmission Planning Process Business Process Changes N/A Board Approval N/A External Business Requirements N/A Updated BPMs N/A Technical Specifications N/A Draft Configuration Guides N/A Customer Partnership Group 10/16/15 Tariff N/A App & Study – March 8, 2016 Production Activation Generation, Transmission and Queue Management - July 29, 2016 Page 99

  49. 2016– Reactive Power Requirements and Financial Compensation Milestone Details/Date Status 1. Replace the current system impact study approach applied in assessment of reactive requirement for asynchronous resources with a uniform requirement for Application Software Changes asynchronous resources. 2. Set up rules for reactive power financial compensation for all resources. BPM Changes TBD Revised Straw Proposal posted October 8 th , 2015 Final proposal scheduled on Nov 12 th , 2015 Proposal Board Approval February 2016 External Business Requirements TBD Updated BPMs TBD Technical Specifications TBD Draft Configuration Guides TBD Market Simulation Yes Tariff Yes Production Activation Propose applying the new policy in 2016 for Cluster 9 Page 100

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