Market Performance and Planning Forum September 20, 2016 - PowerPoint PPT Presentation

How will the August 21,2017 affect California BA? 100% Eclipse @10:30 a.m. 100% Eclipse @10:19 a.m. N. San Joaquin Las Vegas S. San Joaquin Mojave Colorado River LA Basin Coachella and Imperial Valley Slide 49

What will be the potential MW impact on CAISO? Start of eclipse: 9:02 Total production drop: 5050 MWs @10:22 Up ramp estimated @ 56MWs/min End of Eclipse: 11:56 Slide 50

The effects of rooftop solar and solar in EIM regions. Behind The Meter Growth 3000 2525 2500 1967 Installed MWs 1768 2000 1500 1204 885 1000 488 500 0 SCE PGE SDGE Growth Projection from CEC Distribution Commercial EIM Entity MWs MWs Arizona 187 956 Nevada 75 374 PacifiCorp 871 PSE 0.5 Total 262 2201.5 Slide 51

Lesson learned from Europe. • Transmission System Operators – Higher reserves – Committed to zero Area Control Error – Strategic use of pump storage – Limited generation planned outages – Reduced high voltage direct current line capacities between the Nordic, United Kingdom and Continental Europe. – Activated emergency telecommunications, with back up – Specialized training for operators. – Raised awareness with market players and distribution system operators. • Germany – Procured 2 times normal regulations – Germany established special operational concepts for reserves • Italy – Reduce northern net transfer capability – Reduced day ahead PV production from 7 a.m. to 2 p.m. Slide 52

Potential mitigations to be studied: • Scheduling Coordinator engagement • Reserve procurement • Gas supply coordination • Flexi-Ramp usage • Special Operating Procedures • EIM transfer capability • WECC/Peak RC coordination • Hydro reserves Slide 53

What is the Mitigation Measure timeline? • A preliminary timeline has been developed to allow sufficient time to address any issues arising from the eclipse: – September – December 2016 • Announce eclipse study at Market Performance and Planning Forum Sept 20. • Request MP input. – January – March 2017 • Develop Solar Eclipse Mitigation Procedure. • Circulate with SCs for comment. • Publish Procedure. Slide 54

Load Forecast Adjustments Kyle Westendorf Associate Market Monitoring Analyst, Department of Market Monitoring Page 55

Frequency of positive and negative load adjustments by BAA (5-minute market) Page 56 Last updated: September 16, 2016

Average absolute size of load adjustments as a percent of total area load (April – June) Page 57 Last updated: September 16, 2016

Frequency of load forecast adjustment by reason (5-minute market) Page 58 Last updated: September 16, 2016

Sample #1 – Wind deviation from forecast in PacifiCorp East (April 13, 2016) Page 59 Last updated: September 16, 2016

Sample #2 – Load deviation from forecast in PacifiCorp East (July 8, 2016) Page 60 Last updated: September 16, 2016

Mitigation of power balance relaxation by load bias limiter (5-minute market) Page 61 Last updated: September 16, 2016

Policy Update Brad Cooper Manager, Market Design and Regulatory Policy Page 62

Ongoing policy stakeholder initiatives • Contingency modeling enhancements – On hold • Generator contingency and remedial action scheme modeling – Straw proposal targeted late Sept – 2017 Q1 Board meeting, projected Fall 2018 implementation • Stepped transmission constraints – Conducting analysis, straw proposal targeted for Q4 – 2017 Q2 Board meeting, projected Fall 2018 implementation Page 63

Ongoing policy stakeholder initiatives (continued) • Reliability services – phase 2 – Revised draft final proposal - Sept 16 – Stakeholder call - Sept 23 – Oct 2016 Board • Flexible resource adequacy criteria and must-offer obligation – phase 2 – Schedule TBD based on findings of flexible capacity assessment – Board TBD • Bid cost recovery enhancements – Revised straw proposal targeted for Sept – 2017 Q1 Board meeting – Projected Fall 2018 implementation Page 64

Ongoing policy stakeholder initiatives (continued) • Commitment Cost and DEB Enhancements – Issue paper - Sept 20 – Stakeholder call - Sept 27 – Q3 2017 Board – Potential Fall 2017 partial implementation • Metering rules enhancements – Stakeholder comments on second supplement to draft final proposal due - Sept 19 – Board TBD • Energy storage and distributed energy resources (ESDER) Phase 2 – Multi-topic initiative with policy development in progress on all topics. – Board TBD Page 65

Ongoing policy stakeholder initiatives (continued) • Aliso Canyon - Phase 2 – Straw proposal summary - Sept 6 – Draft final proposal - Sept 21 – Oct 3 BOG • Self schedules BCR allocation and bid floor – Draft final proposal addendum - Sept 16 – Oct 2016 BOG • Stakeholder initiatives catalog – Draft initiatives catalog - Sept 15 – Final policy initiatives roadmap - Nov 30 – Feb 2017 EIM Governing Body and Board Page 66

Ongoing policy stakeholder initiatives (continued) • Regional integration California greenhouse gas compliance – Straw proposal - Oct 6 – Feb 2017 Board • Transmission access charge options – 2 nd revised straw proposal - Sept 28 – Stakeholder meeting - Oct 7 – Board TBD • Regional resource adequacy – Revised straw proposal - Sept 29 – Stakeholder meeting - Oct 6 – Draft final proposal and stakeholder meeting Dec 2016 – Board TBD Page 67

Ongoing policy stakeholder initiatives (continued) • ISO tariff load serving entity – Draft final proposal Sept 14 – Oct 2016 Board Page 68

Policy stakeholder initiatives coming soon • Planned to start in Q4 – Frequency response – phase 2 Page 69

Release Plan Update Adrian Chiosea Manager, Strategic Initiative Management Page 70

Release Plan 2016 Independent 2016 • Demand Response Registration Enhancements • Capacity Procurement Mechanism Replacement • Reliability Services Initiative • Commitment Cost Enhancements Phase 2 (remainder) • RIMS Functional Enhancements • ADS Client Replacement (Mandatory) Fall 2016 • Energy Imbalance Market (EIM) 2016 Arizona Public Service (APS) • Energy Imbalance Market (EIM) 2016 Puget Sound Energy (PSE) • OMAR Replacement • BAL-003 Compliance • Flexible Ramping Product • BCR modifications and VER settlement • Acceptable Use Policy - CMRI • PIRP System Decommissioning • Energy Imbalance Market (EIM) Year 1 Enhancements Phase 2 • Energy Storage and Distributed Energy Resources (ESDER) Page 71

Release Plan 2017 Independent 2017 • RTD Local Market Power Mitigation (LMPM) Enhancements • CRR Clawback Modifications Fall 2017 (tentative, to be confirmed) • Bidding Rules Enhancements – Part B • Reliability Services Initiative Phase 1B • Reliability Services Initiative Part 2 – partial implementation (policy to define) • Commitment Cost Enhancement Phase 3 • EIM 2017 Portland General Electric (PGE) • ADS User Interface Replacement • Metering Rules Enhancements Page 72

Release Plan – 2018 and subject to further planning Spring 2018 • EIM 2018 Idaho Power Company Fall 2018 – tentative, subject to impact assessment • Reliability Services Initiative Part 2 – reminder • Stepped Transmission Constraints • Bid Cost Recovery Enhancements • Generation Contingency and Remedial Action Scheme • Flexible Resource Adequacy Criteria and Must-offer Obligation Phase 2 • ESDER Phase 2 • Regional Resource Adequacy • Transmission Access Charge Options Subject to further release planning: • Reactive Power Requirements and Financial Compensation – no system changes are anticipated • Additional Data Transparency Enhancements (OASIS API changes) – work starting after Fall 2016 release; ISO will make it available for market participants to adopt as they need. • Contingency Modeling Enhancements Page 73

Release Schedule 2016 - 2017 Please do not delete slide. http://www.caiso.com/Documents/ReleaseSchedule.pdf Page 74

2016 – Demand Response Registration Enhancements Project Info Details/Date Enhance Demand Response Registration functionality and processes Application Software Changes Develop new registration user interface for DRRS Develop new APIs for support of enhanced registration processes BPM Changes Metering Business Process Changes Automation of internal registration-related processes Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A  BPMs Publish Final Business Practice Manuals (Metering) Aug 29, 2016  Post Draft BPM changes (Metering) Aug 04, 2016 External BRS - Enabling Demand Response Phase 2 -  External BRS Jun 04, 2015 Registration Tariff Tariff N/A Config Guides Config Guide N/A  Tech Spec Tech Specs - DRRS Phase 2 - Registration Sep 17, 2015 Market Sim Market Sim Window Sep 19, 2016 - Oct 14, 2016 Production Activation Post-Mrkt Consol - DRRS Phase 2 - Reg Oct 24, 2016 Page 75

2016 – Capacity Procurement Mechanism Replacement (CPM) Project Info 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 charge code impacts. 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) − 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) Page 76

2016 – Capacity Procurement Mechanism Replacement (cont.) Milestone Details/Date Status Reliability Requirements – PRR issued 11/4/15 BPM Changes Market Instruments – issue PRR 1/8/16 - Billing & Settlements – PRR issued 1/11/16 − 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 BRS 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 October 21, 2015: Session 1 – Onsite w/Webinar, Full Day (combined w/ CPG Call) • Training Materials – posted SP & RP page on 10/19 External Training January 6, 2016: Session 2 - Onsite w/ Webinar option, Full Day • Training Materials – post 1/5 Page 77

2016 – Capacity Procurement Mechanism Replacement (cont.) Milestone Details/Date Status April 11 – May 6, 2016: Session 2 • 4/11-4/15: Unstructured • 4/18-4/22: Structured Week 1& 2 • 4/25-4/29: Structured Week 3 - On-Site 4/26-4/29 • 5/2-5/27: Unstructured Market • 7/18-7/22: Re-run Structured Week 1 & 2 Simulation • 7/25-7/29: Re-run Structured Week 3 (Monthly) • 8/22-8/26: Re-run Structured Week 3 (Intra-Monthly Scenarios 7B an 8B) Post Structured Scenarios • SIBR Rules, Release Notes, Specs posted – 12/11 • CIRA User Guide – 1/18 • 9/12-9/16: Re-run Structured Week 3 for 2 Entities Production 11/1/2016: Session 2 Effective Date - FERC Approved Activation Page 78

2016 – Reliability Services Initiative (RSI) – 1A Project Info 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 79

2016 – Reliability Services Initiative (cont.) -1A Project Info 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 Application Software Changes availability. - New charge code changes are needed for implementation of the RA 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 80

2016 – Reliability Services Initiative (cont.) – 1A Milestone Details/Date Status Reliability Requirements - issued PRR #888 on 1/12/16 BPM Changes Outage Management - issued PRR #889 on 1/12/16 Billing & Settlements - issued PRR on 1/11/16 − 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 BRS March 31, 2015 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 OMS Session 2 • posted tech spec 12/2 Draft Configuration November 23, 2015 Session 2 Guides Page 81

2016 – Reliability Services Initiative (cont.) – 1A Milestone Details/Date Status January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day External Training • Training Materials – post 1/5 April 11 – May 6, 2016: Session 2 • 4/11-4/15: Unstructured • 4/18-4/22: Structured Week 1& 2 • 4/25-4/29: Structured Week 3 - On-Site 4/26-4/29 • 5/2-5/27: Unstructured • 7/18-7/22: Re-run Structured Week 1 & 2 • 7/25-7/29: Re-run Structured Week 3 • 8/22-8/26: Re-run Structured Week 3 (Intra-Monthly Scenarios 7B an 8B) Market Simulation • 8/22- 9/23: MOO Flag API in MAP Stage for Unstructured Testing • Post Structured Scenarios • SIBR Rules, Release Notes, Specs posted – 12/11/15 • CIRA User Guide – 1/18/16 • MF UI User Guide – 1/6/16 • OMS User Guide – embedded in application • CIRA User Guide – 1/18/16 • 9/12-9/16: Re-run Structured Week 3 for 2 Entities Production Activation 11/1/2016: Session 2 Effective Date - FERC Approved Page 82

2016 – Commitment Costs Phase 2 Project Info Details/Date 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 Milestone Type Milestone Name Status Board Approval Yes. March 26-27, 2015 Filed: May 28, 2015 Approved in Part: September 9, 2015 Tariff (FERC rejected the proposed revisions to the definition of “use limited resources”, but approved all other tariff revisions.) Market Operations (Use Plan) – issued PRR #887 on 1/11/16 BPM Changes Business Process Changes No External Business Requirements November 24, 2015 Technical Specifications No January 6, 2016: Session 2 – Onsite w/ optional Webinar, Full Day External Training • Training Materials – post 1/5 Draft Configuration Guides No February 8 th , 2016 – July 29 th , 2016 (Unstructured) Market Simulation 8/22-8/26:: Re-run Structured Week 3 (Intra-Monthly Scenarios 7B an 8B) Production Activation 11/1/2016: Session 2 Effective Date - FERC Approved Page 83

2016 – RIMS Functional Enhancements Project Info 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 Customer Partnership Group 10/16/15 Application and Study Webinar 3/31/16 Milestone Type Milestone Name Dates Status Board Approval Board approval not required N/A  BPMs Generator Interconnection and Delivery Allocation Apr 29, 2016 External BRS External BRS not Required N/A Tariff No Tariff Required N/A Tech Spec No Tech Specifications Required N/A  Production Activation RIMS5 App & Study Mar 21, 2016 RIMS5 Queue Management, Transmission and Generation Oct 31, 2016 Page 84

ADS Client Update - Mandatory Project Info Details/Date ADS client software is being impacted by an underlying mandatory infrastructure Application Software Changes software upgrade, necessitating adoption of a newer version of the ADS client. The ISO will provide an updated ADS client version 6.0.x, that is required for an infrastructure upgrade planned before year-end. Market participants must adopt this new client before the ISO executes an internal infrastructure upgrade in Q4 2016. Participants will be given a two-month window to install the new client prior to the decommissioning of all client versions less than 6.0.x (5.2.8.0; 5.2.4.0, etc.). Without the newer version, market participants will not be able to connect to the ADS system. There are no functional changes in client version 6.0.x. Page 85

Fall 2016 GRDT Changes The following changes will be made to the Master File Generator RDT: Resource Worksheet Remove Green House Gas Cost (EIMY1P2) Add O&M Adder Type ( non- modifiable; ECIC) Remove MOO Flag (RSI) Remove Stranded Load (not applicable to Gens/TGs) Configuration Worksheet Startup Heat Input Transition Worksheet Remove Max Transition Cost Remove Transition Fuel Remove Transition Energy Add Transition Midpoint MW (modifiable; new for EIMY1P2) Add Transition Midpoint Time (modifiable; new for EIMY1P2) * Note: GRDT v9.0 will no longer be supported. Page 86

Fall 2016 CMRI/OASIS/ADS High-Level Summary API changes • New Fall 2016 APIs available in MAP-Stage as of Phase 2 market simulation. Project CMRI OASIS ADS Update (add FCU Forecast marketServiceType): ExpectedEnergyAllocationDetails v3 BCR/VER N/A N/A Decom: ExpectedEnergyAllocationDetails v1 New: EIRForecast v1 Forecasting (PIRP Decom) N/A N/A Data Transparency New: ElectricityPriceIndex v1 -PRC_RTM_SCH_CNSTR (Scheduling Constraint Shadow Prices) -ENE_HRLY_BASE_NSI (EIM BAA Hourly Base NSI) - ENE_HRLY_BASE_LOSS (EIM BAA Hourly Base Loss) - ENE_EIM_TRANSFER_TIE (EIM Transfer by Tie) - GreenHouseGasCapData v1 N/A EIM Year 1 Phase 2 -EIMInterchangeScheduleData A dd Energy,Loss,GHG components: v1 - PRC_SPTIE_LMP - PRC_CD_SPTIE_LMP - DAM_SPTIE_LMP_GRP - RTPD_SPTIE_LMP_GRP - RTD_SPTIE_LMP_GRP Add 'GHG' product: - PUB_BID Page 87

Fall 2016 CMRI/OASIS/ADS High-Level Summary API changes (cont’d) Project CMRI OASIS ADS New: - ResourceMovementPoint v1 New: - ResourceLevelMovement v1 - SLD_ADV_FCST (Advisory CAISO Demand Forecast) - ENE_UNCERTAINTY_MV (Uncertainty Movement by Update: - MarketAwards v4 Category) Existing versions 6 - SchedulePrices v4 - ENE_FLEX_RAMP_REQT (Flexible Ramp & 7 remain PROD - MarketSchedules v3 Requirements) versions Flex Ramp - EIMTestResults v2 minor - ENE_AGGR_FLEX_RAMP (Flex Ramp Aggr Awards) version v20161001 - ENE_FLEX_RAMP_DC (Flex Ramp Surplus Demand Curves) - SLD_SF_EVAL_DMD_FCST (Sufficiency Evaluation Decom: - MarketAwards v2 Demand Forecast) - SchedulePrices v2 - MarketSchedules v1 Page 88

Independent and Fall 2016 Release Market Simulation Fall and Independent Release 2016 Initiative Start Date (Trade End Date (Trade Structured Simulation Expected Participation Date) Date Start (Trade Date) Fall 2016 Release Market Simulation Phase 1 Energy Imbalance Market – APS and PSE Arizona Public Service and Puget 7/6/2016 7/29/2016 7/6/2016 Sound Energy OMAR Replacement 7/7/2016 7/29/2016 EIM Entities and ISO MPs RSI/CPM Structured Scenario Testing (Independent) 7/19/2016 9/16/2016 7/19/2016 ISO MPs Fall 2016 Release Market Simulation Phase 2 RSI/CPM Unstructured Testing (Independent) ISO MPs 8/23/2016 9/23/2016 DRRS Enhancements Phase 2 (Independent) EIM Entities and ISO MPs 9/19/2016 10/14/2016 Energy Imbalance Market - One Year Enhancements Arizona Public Service, NV Phase 2 Energy, PacifiCorp and Puget 8/23/2016 9/23/2016 Sound Energy BCR/VER EIM Entities and ISO MPs 8/23/2016 9/23/2016 Frequency Response (BAL-003) 8/23/2016 9/23/2016 ISO MPs CMRI AUP EIM Entities and ISO MPs 8/23/2016 9/23/2016 ESDER EIM Entities and ISO MPs 8/23/2016 9/23/2016 Flexible Ramping Product EIM Entities and ISO MPs 8/23/2016 9/23/2016 8/31/2016 Forecasting and Data Transparency/PIRP Application EIM Entities and ISO MPs 8/23/2016 9/23/2016 Decommissioning Link to Fall 2016 Release Market Simulation Plan - http://www.caiso.com/Documents/MarketSimulationPlan_Fall2016Release.pdf Page 89

Fall 2016 – EIM Arizona Public Service Project Info Details/Date Application Software Changes Implementation of Arizona Public Service as an EIM Entity. EIM BPM will be updated to reflect new modeling scenarios identified BPM Changes during APS implementation and feedback from APS. ISO promoted market network model including APS area to non- production system and allow APS exchange data in advance of Market Simulation on 3/7/16. Market Simulation Integration/Day in the Life Testing March 7 – May 30, 2016 Market Simulation July 5 – July 29, 2016 August 1 – September 30, 2016 Parallel Operations Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A External BRS External BRS N/A  Tariff APS files tariff revisions with FERC Feb 12, 2016 Config Guides Config Guide N/A Tech Spec Tech Specs N/A  Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation EIM - Arizona Public Service Oct 01, 2016 Page 90

Fall 2016 – EIM Puget Sound Energy Project Info Details/Date Implementation of Puget Sound Energy as an EIM Entity. WebOMS - Provide Balancing Authorities with the ability to submit outages to Application Software Changes WebOMS and the ability to submit PeakRC through their Coordinated Outage Scheduling System (COS). BPM Changes EIM BPM will be updated based on feedback from PSE. ISO promoted market network model including PSE area to non-production system and allow PSE exchange data in advance of Market Simulation on 3/7/16. Market Simulation Integration/Day in the Life Testing March 7 – May 30, 2016 Market Simulation July 5 – July 29, 2016 August 1 – September 30, 2016 Parallel Operations Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A BPMs BPMs N/A  External BRS OMS - BRS External Design Jul 24, 2015  Tariff Tariff filing at FERC Feb 12, 2016 Config Guides Settlements N/A Tech Spec Tech Specs N/A  Market Sim Market Sim Window Jul 05, 2016 - Jul 29, 2016 Production Activation EIM - Puget Sound Energy Oct 01, 2016 Page 91

Fall 2016 – OMAR Replacement Project Info Details/Date The scope of the project is to replace the current OMAR Online application with a new CUI framework based interface and provide standard B2B web services integration. B2B Application Software Changes services will be modified to align with CIM standard and to convert to GMT, and the existing FTP solution will be replaced. The new solution will also remove the custom OMAR certificates by leveraging the CAISO Multiple Application (CMA) certificates. BPM Changes Metering and Definitions & Acronyms (references to systems may need to change) Potential Level-II business process changes under – • Business Process Changes Manage Market & Reliability Data & Modeling • Manage Operations Support & Settlements Milestone Type Milestone Name Dates Status Board Approval Board Approval N/A  BPMs Business Practice Manuals Aug 10, 2016  External BRS Publish External BRS Oct 02, 2015 Tariff Tariff N/A Config Guides Configuration Guide N/A  Tech Spec Publish Tech Specs Dec 21, 2015 Market Sim Market Sim Window Jul 07, 2016 - Sep 23, 2016 Production Activation Post-Mrkt Consol - OMAR Replacement Oct 01, 2016 Page 92

OMAR Online Replacement Simulation The OMAR Online Replacement Market Simulation timeline: • July 7, 2016 - September 23, 2016 Unstructured • MRI-S for metering API - available July 7, 2016 • MRI-S for metering GUI - available August 11, 2016 No historical data will be migrated in MAP Stage, all data must be uploaded to be retrieved. • OMAR Online Replacement initiative Tech Spec – http://www.caiso.com/Documents/OMAROnlineReplacementTechnicalSpeci ficationClean_v16.pdf Page 93

ACL Groups for OMAR (MRI-S) and PIRP (CMRI) Replacement ACL (Access Control List) functionality – ACLs define a subset of resources belonging to an SCID • Ability to use ACL groups for the read-only role for both the Metering Replacement (MRI-S) and PIRP (CMRI) is currently unavailable o Work around is to continue to use existing OMAR and PIRP applications for read only roles filtered at the resource level • SCID-level read-only access for Metering Replacement (MRI-S) is also currently not available o Work around is to continue to use existing OMAR application for read only access • Target is to have this functionality available in the Fall Release • Adequate time for testing the new read only roles in the Map-Stage environment will be made available, including post 10/1 Page 94

OMAR Use Cases ISO Polled Meter data • MRI-S supports ability to submit and view meter data for users with SCID- level access • MRI-S does NOT support ability to view (read-only) meter data for user with ACL-level access • If ACL-level access is required for ISO polled meter data, continue to use OMAR until this functionality is available in MRI-S SC Submitted Meter data • MRI-S supports ability to submit (read-write) meter data for users with SCID- level access • MRI-S does NOT support ability to view (read-only) for SCID and ACL-level access • Meter data submitted via MRI-S WILL NOT BE VIEWABLE USING THE EXISTING OMAR APPLICATION • If ACL-level or SCID-level read-only access is required for SC submitted meter data, continue to use OMAR until this is available in MRI-S Page 95

PIRP Use Cases • CMRI supports ability to view data for users with SCID-level access • CMRI does NOT support ability to view data for ACL-level access • Work around is to continue to use PIRP until the ACL CMRI role is available Page 96

Fall 2016 – BAL-003 Compliance Project Info Details/Date • To procure transferred frequency response from external BAs through a competitive solicitation process • Allocate the cost of TFR to metered demand: new charge code • Require generators to manage their plants consistent with NERC published reliability guidelines for primary frequency control • Require generators to provide governor control and plant level control system data to the ISO, including Droop Setting, Deadband, frequency Application Software Changes responsive maximum output level, Plant-level distributed control systems(DCS) with frequency bias term (Y/N), level temperature loop controls(@what output and/or temperature; Y/N) • Increase market transparency of the ISO’s frequency response performance through its Monthly Market Performances Reports • Clarify the authority of ISO to designate any reserve as contingency only reserve regardless of resource’s election Milestone Type Milestone Name Dates Status  Board Approval BOG Approval Mar 25, 2016 BPMs BPMs N/A  External BRS Post External BRS May 03, 2016  Tariff File Tariff Apr 21, 2016 Receive FERC order TBD  Config Guides Draft Configuration Guides Jun 10, 2016 Tech Spec Tech Spec N/A Production Activation BAL- 003 Frequency Response Oct 01, 2016 Page 97

Fall 2016 – Flexible Ramping Product System Description • FMM and RTD markets (no DA) will procure two new market products (each with award and price), Flex Ramp Up (FRU) and Flex Ramp Down (FRD), based on upper and lower uncertainty histogram FRP requirements and the Flex Ramping Capacity surplus demand curves. • FRP award-eligible resources are 5-minute dispatchable and have economic energy bids in RTM. • Forecasted Movement shall apply to all resources that have movement from binding to the first advisory interval of a given RTPD or RTD market run. • Uncertainty Movement for resources classified under the Supply Category shall only apply to VER resources with DOT Instructions that meet (within tolerance) their VER Forecast. This is a simplification such that uncertainty movement only applies to supply resources with schedules based on a forecast. Intertie and Load category resources shall still have uncertainty movement calculated. All uncertainty movement is in RTD only. Real-Time Market • No FRU/FRD bids or self-schedules allowed in RTM, rather FRP prices are set by the opportunity cost based on the submitted economic energy bid. • FRP awards are not reserved between markets and re-procured each new market run. Market Optimization Constraint Additions/Changes: • RTM enforces BAA-level and EIM Area FRU and FRD minimum requirements. • FRP Surplus Cost Function procures Flexible Ramping Product uncertainty awards up to the point where the LMP is less than the expected cost of not serving FRP • FRU price cap ($247/MWh); FRD price cap (-$152/MWh) • FRU/FRD awards prohibited for resources operating in Forbidden Region or undergoing MSG Configuration Transition • Resource Upper/Lower Operating Limits modified to consider FRP Awards; • Resource Up/Down Ramping Capability Constraint modified to include FRU and FRD awards, respectively • ISL/ITC import/export constraints will include FRU/FRD in addition to AS awards. Page 98

Fall 2016 – Flexible Ramping Product System Description • (existing field, read only) MasterFile shall define resource eligibility for FRU and FRD awards. Resource eligibility parameters are maintained by CAISO (no MasterFile additional certification required). Although FRP eligible, resources must also have a RTM energy economic bids to receive FRP awards. • BSAP UI will provide uncertainty requirement and ramping capacity surplus demand curve information • Existing EIM Flexible Ramping Sufficiency Test will now also perform for downward flexible ramp capability over the next trading hour on a BAA-basis • Introduction of new BAA upward/downward Capacity Constraints, regarding Available Balancing Capacity (ABC) • EIM Flexible Ramp Up (FRU) and Down (FRD) will be procured in RTUC • Net Demand Movement shall no longer be considered in the EIM Ramping Sufficiency Test (instead, Net Forecast Movement will be used) • BAAs shall only pass sufficiency tests (both upward and downward) if all intervals of trade hour have sufficient ramping capability in the respective direction. • As transfers may be retracted, partial fulfillment of FRU and FRD is provided for BAAs with net EIM transfers in the direction relevant to the FRP type [6/7 Update]: Due to prohibitive cost and resource allocation constraints, CAISO shall implement FRP-related functional improvements during the ADS Replacement release in Fall 2017. Therefore for Fall 2016 Release: ADS • ADS UI features and APIs shall revert back to their current Production features and technical specifications, respectively. • No deprecation of existing ADS API versions shall be scheduled for Fall 2016 Release Page 99

Fall 2016 – Flexible Ramping Product System Description CMRI The following shall be provided by CMRI reports and APIs (movement amounts publish T+1):  Movement Calculation Points (FMM and RTD binding and first advisory MW schedules used for both forecasted movement and uncertainty movement calculations)  Forecasted Movement by Resource (FMM and RTD)  Uncertainty Movement by Resource (RTD only)  FRU and FRD Uncertainty Awards by Resource (FMM and RTD)  FRU and FRD Price by Resource, including the following FRU and FRD price sub- components (that sum to the total FRU and FRD prices):  BAA Constraint Shadow Price  EIM Area Constraint Shadow Price  EIM Balancing, Capacity, and Upward/Downward Flexible Ramping Sufficiency Test results by BAA (provided whether pass or fail) Note: Forecasted and Uncertainty Movements are calculated for MSG resources at the plant level. OASIS The following shall be provided by OASIS reports and APIs (movement amounts publish T+1):  Demand Forecast by Forecast Zone (ex post) now includes first advisory interval  Hourly and 15-Minute Sufficiency Evaluation Demand Forecasts (ex ante)  Uncertainty Movement by Category Type (Supply, Intertie, Load) (RTD Only)  Histogram and Final Uncertainty Requirements by BAA and by EIM Area (FMM and RTD)  Histogram Surplus Demand Curves by BAA and by EIM Area (FMM and RTD)  FRU and FRD Aggregate Awards by BAA and by EIM Area (FMM and RTD)  FRU and FRD Shadow Price by BAA Group constraint (FMM and RTD; by individual BAA and by EIM Area) Page 100