ISO Reliability Coordinator Informational Meetings

1 ISO Reliability Coordinator Informational Meetings Folsom, CA: January 17, 2018, 10 12 (Pacific Time). Phoenix, AZ: January 18, 2018, 1 3 (Mountain Time). Portland, OR: January 19, 2018, 10 12 (Pacific Time). ISO Confidential Agenda Time: Topic: Presenter: 10:00 10:05 Welcome Kristina Osborne 10:05 10:10 Introduction Eric Schmitt 10:10 10:25 Scope of Service Dede Subakti 10:25 10:45 Resource and Facilities Plan Phil Pettingill 10:45 11:05 Customer Coordination Working Groups Phil Pettingill 11:05 11:20 Project Schedule Phil Pettingill 11:20 11:35 Rate Design Stakeholder Process Ryan Seghesio 11:35 12:00 Q/A.

2 ISO Confidential Slide 2. Introduction Eric Schmitt, VP, Operations ISO Confidential Slide 3. The ISO is offering to deliver the same Reliability coordination services that you receive today Providing Reliability coordination services Performing due diligence Committed to Reliability and coordination Providing cost-effective services ISO Confidential Scope of Service Dede Subakti, Director, Operations Engineering Services ISO Confidential Slide 5. A Reliability Coordinator is the entity with the highest level of responsibility for reliable operations Wide area view of the bulk electric system Operating tools, processes and procedures to prevent or mitigate emergency operating situations Broad purview that enables the calculation of interconnection Reliability operating limits that may be beyond other operators' vision ISO Confidential Slide 6.

3 Every Reliability Coordinator must be certified by NERC/WECC to perform the necessary functions There are currently 16 entities certified by NERC/WECC. as Reliability coordinators All other ISO/RTOs are certified Reliability coordinators The ISO will work with NERC/WECC to be certified as a Reliability Coordinator within its balancing authority area including other balancing authority areas and transmission operators ISO Confidential Slide 7. Every Reliability Coordinator provides the same core services to its customers Outage coordination Day-ahead operational planning analysis Real-time assessment Real-time monitoring and analysis system restoration coordination ISO Confidential Slide 8.

4 The ISO will provide all of these services, which are required to meet NERC standards Current PTOs Future RC customers Core Services Outage Coordination Existing service New service - non ISO BA. Next Day Operations Planning Analysis Existing service New service - non ISO BA. Real-time Situational Awareness Existing service New service - non ISO BA. Real-time Analysis and Assessment Existing service New service - non ISO BA. SOL Methodology New service for RC area RC wide system restoration plan review, coordination, and training New service for RC area Stakeholder/ Working Group Processes New service for RC area Secure centralized site: Operating Plans, Procedures, Studies, and Reports New service for RC area Centralized Messaging for RC Area New service for RC area ISO Confidential Page 9.

5 The ISO will also offer non-RC services as needed Hosted advanced applications State Estimator RTCA. Study Power Flow and Contingency Analysis CIP-014 Physical Security Verify the risk assessment performed by a transmission owner ISO will develop separate charges for these services ISO Confidential Slide 10. Resource and Facilities Plan Phil Pettingill, Director, Regional Integration ISO Confidential Slide 11. ISO Control Room Functions BA TOP Market RC 2019. RC Manager X. RC Operators X. Shift Manager X X. BA Operators X. TOP Operators X. DA/ RT OEs X X X.

6 Market Operators X. Additional personnel will be added to support RC functions: Customer Service, NERC/WECC Compliance, Technology All current ISO Control Center personnel are NERC RC certified ISO Confidential Slide 12. ISO Operates Two Control Centers Folsom, CA. Lincoln, CA. ISO Confidential Slide 13. Customer Coordination Working Groups Phil Pettingill, Director, Regional Integration ISO Confidential Slide 14. Operations Reliability Committee Structure - Conceptual ISO. VP Operations Working Group Oversight Committee (BAs and their TOPs). Operations Real Time Seams Working Operations Data Sharing Training Planning group Working group Working group Working group Working group ISO Confidential Slide 15.

7 Project Timeline Phil Pettingill, Director, Regional Integration ISO Confidential Slide 16. Projected Timeline ISO Confidential Slide 17. RC Rate Design Stakeholder Process Ryan Seghesio, VP, CFO and Treasurer ISO Confidential Slide 18. Projected rate structure No Cost for Entry Flexibility for Exit Cost of service rate consistent with ISO billing practice for Grid Management Charge 50% or less of current RC rates based on total users 2018 Peak Funding Allocation ISO Confidential Slide 19. ISO RC customers projected rate will decrease as participation increases 75%.

8 Notes: Cost projections do not include Hosted Advanced Applications. ISO Confidential Slide 20. Rate Design Stakeholder Process Tentative Schedule Timeline: Milestone: March Post straw proposal; conduct stakeholder meeting Late March Comments due on straw proposal April Post draft final proposal; conduct stakeholder meeting Mid-May Comments due on draft final proposal Late June Present RC Rate proposal to ISO Board August Complete tariff stakeholder process; file with FERC. October Expected FERC ruling ISO Confidential Slide 21. Request customers sign a non-binding letter of intent by March 1, 2018.

9 Customers will be included in the initial scope of the implementation Customers will be participants in the implementation process participation will require non-disclosure arrangements Customers are free to determine their timeframe for other notifications Will need to commit to a Reliability services agreement Final implementation scope established through NERC. certification process Subsequent opportunities for implementation of RC. services: timing and scope to be determined ISO Confidential Slide 22. Questions ISO Confidential Slide 23. Stay Connected ISO Daily Briefing (daily email summarizing the day's market notices).

10 Market notices (choose system Operations category). ISO Today app Twitter Facebook To request a letter of intent, please email For more information, visit the Reliability Coordinator webpage under the Stay Informed tab on ISO Confidential Slide 24. Commonly Used Acronyms BAA Balancing Authority Area CIP Critical Infrastructure Protection DA Day Ahead FERC Federal Energy Regulatory Commission ISO independent system operator NERC North American Electric Reliability Corporation OE Operations Engineer PTO Participating Transmission Owner RC Reliability Coordinator RT Real-Time RTCA Real-Time Contingency Analysis RTO Regional Transmission Organizations SOL system Operating Limits TOP Transmission operator WECC Western Electricity Coordinating Council ISO Confidential Slide 25.