Behind the Fence and Contract Change Stakeholder Update

1. Behind the Fence and Contract Change Stakeholder Update September 18, 2012

2. Agenda • AESO projects in 2012 • Behind the Fence Process • Contract Changes Process • Information on AESO Website • Questions Proprietary

3. Behind the Fence • What is a Behind the Fence project? • Previously connected to the AIES • Equipment changes or modifications to an existing site • Industrial Service Designation (ISD) • No changes to transmission • Need Identification Document is not required • The Market Participant (MP) is the Transmission Facility Owner (TFO) • Connection queue business practices do not apply Proprietary

4. Behind the Fence Projects • Behind the Fence Guidelines and Project Types: • Standard • Abbreviated • Emergency Proprietary

5. Behind the Fence Process • Stage 0 Key Activities: • MP submits SASR to AESO OR • MP notifies the AESO of required equipment changes for emergency/abbreviated BTF projects • AESO evaluates project type • MP resolves any data deficiencies if required • Stage 0 Gate Requirements: • SASR is complete Proprietary

6. Behind the Fence Process • Stage 1 Key Activities: • Project kick-off and project expectations discussed • BTF study scope/plan completed • Identify AESO/MP/consultant • Submit Stage 1 Project Data Update Package (PDUP) • Stage 1Gate Requirements: • BTF study scope/plan signed by all parties as required • Stage 1 Project Data Update Package is accepted • Non-disclosure agreement in place if consultant will perform studies Proprietary

7. Behind the Fence Process • Stage 2 Key Activities: • MP completes BTF/connection proposal • Functional specification initiated • GUOC letter issued to MP • Confirm contract changes can proceed, as required • Submit Stage 2 PDUP • AESO issues letter of project endorsement to AUC • Stage 2Gate Requirements: • AESO accepts BTF/connection proposal • Stage 2 PDUP is accepted Proprietary

8. Behind the Fence Process • Stage 3/4 Key Activities: • Generators file generator application with AUC • Loss factors provided for generators • Stage 3/4 Gate Requirements: • Functional specification executed and stamped • AUC generator facility application confirmed (If not previously filed by MP) Proprietary

9. Behind the Fence Process • Stage 5 Key Activities: • Equipment change/maintenance • AESO/MP initiates and completes energizationchecklist • Submit Stage 5 PDUP • GUOC paid 30 days prior • Stage 5Gate Requirements: • Energizationchecklist issued • AESO operating procedures created, amended and approved • System Access Service (SAS) • Stage 5 PDUP • GUOC contribution paid Proprietary

10. Behind the Fence Process Energize and Close - out • Stage6 Key Activities: • Generator commissioning period • Generators submit validation report to WECC • Commissioning certificate issued • AESO closes project • Stage 6Gate Requirements: • Energization checklist issued and approved • Commissioning certificate issued to generators • No deficiencies outstanding • AESO project closure checklist completed Proprietary

11. Contract Changes • What is a Contract Change? • Market Participants seeking changes to existing contracts • Increase • Reduction • Termination • No changes to transmission • No equipment changes or modifications Proprietary

12. Contract Changes • Stage 0 Key Activities: • MP submits SASR to AESO • AESO reviews SASR for completeness • MP resolves any data deficiencies if required • Project is created • Stage 0 Gate Requirements: • SASR is complete Increase and Reduction Proprietary

13. Contract Changes • Stage 1 Key Activities: • Project kick-off and project expectations discussed • Contract study scope identify AESO/MP/consultant • Stage 1Gate Requirements: • Non-disclosure agreement in place if consultant will perform studies • Study scope signed by all parties Increase Only Proprietary

14. Contract Changes • Stage 2 Key Activities: • Complete capacity studies, as required • Confirm contract request can proceed • Contract Acceptance Letter issued and accepted • Project CCD updated • GUOC recalculated (STS only) • Stage 2 Gate Requirements: • AESO accepts study results, if completed by consultant • Contract capacity confirmed • Contract Acceptance Letter signed, as required Increase Proprietary

15. Contract Changes • Stage 2 Key Activities and Stage 2 Gate Requirements: • Project CCD updated • Contract Acceptance Letter signed Reduction Proprietary

16. Contract Changes • Stage 3/4/5 Contract Increase Review: • When capacity requests can’t be accommodated, contracts will not proceed until updated capacity studies confirm the contract can proceed • Requested capacity will be reviewed every six (6) months • When requested capacity can be accommodated, the AESO will issue an updated Contract Acceptance Letter to confirm the request should proceed • CCD and GUOC to be updated Proprietary

17. Contract Changes • Stage 3/4/5 Key Activities: • MP invoiced for contract increase/reduction calculation • SAS agreement signed no later than five weeks prior to new effective date of operation • Stage 3/4/5 Gate Requirements: • SAS contract signed Increase and Reduction Proprietary

18. Contract Changes • Stage 6 Key Activities: • AESO closes project • Stage 6 Gate Requirements: • AESO Project Closeout Checklist completed Increase and Reduction Proprietary

19. Information on the AESO Website • Project List • Connection Queue • Updated Behind the Fence process • Updated contract process overview

20. Questions?