WSPP - Definition of Firm Energy

Last week, the WSPP drafing group met in sunny California to continue the
slow and steady march towards a standardized, "national" agreement. Schedule
C , the service schedule for firm transactions, was the primary topic and the
following is a summary of where the group is headed.

After much discussion, we proposed that the group consider the definition of
firm energy that Tim, Christian and others have been considering. The
following is proposed language (the base was EPMI's version) that the WSPP
group is currently reviewing:

Firm Power is power that is sold and scheduled in accordance with applicable
reserve requirements for which the only excuse for the failure to deliver or
recieve are those set forth in Schedule 3.9 of the WSPP Agreement. Seller
shall take steps necessary for the power to be considered Firm Power under
this definition.

Schedule 3.9 only allows interruption if (i) within agreed recall time, (ii)
due to an Uncontrollable Force or (iii) power is need for native load;
provided, however it was agreed that a party would neverless be liable for
LDs if it interrupts due to native load requirements (this last point is a
major accomplishment that apppears to have uniform agreement and will be
implemented in the next draft - the group claimed that the "optics" are
necessary to help traditional utilities). As a further note, the group
agreed to do away with all references to C1 and C2 and have just one
Schedule.

Changes from EPMI's proposed definition where the result of the following
discussions:

1. Generated vs. Sold - "Sold" was elected over "generated" because the
group thinks that it is the receiving control area that determines the
generator's reserve requirements.

2. "Schedule" was added to bolster the scheduling requirements.

3. "Reserves" instead of "Operating Reserves" was used because the group
thought the word operating may be too restrictive.

4. "WSCC reserve requirements" was replaced with "applicable" reserve
requirements because the group thinks that the WSPP Agreement is national in
scope and should not be limited to WSPP.

5. References to Non-firm supply as being excluded from Firm Power was
excluded because the group thought it was redundent - no control area would
accept a non-firm supply as being firm.

6. Power rather than energy is being used only bacause that is the decision
that has already been made.

This defintion will be further discussed at the next meeting on Aug 20th in
Denver. Prior to that time, I would like to get your thoughts on how this is
shaping up and what additions/deletions are appropriate. I look forward to
hearing your thoughts.

Thanks.
Elizabeth
713 853 6349