Western Area Power Western Area Power Administration – SNRAdministration – SNRBrief overview of WASN Sub-

Control Area Operations

Overview

• Introduction to the new WASN Sub-Control Area.

• Review Western’s current business model and post 2004 marketing plan.

• WASN Sub-Control Area Operations.

HistoryHistory

• Contracts between Western and PG&E end December 31, 2004 (2947A & 2948A).– Western provides PG&E

with CVP Generation, the output of the Bureau of Reclamation (BOR) units, in return for 1152 MW around the clock from PG&E (24/7/365).

– Western’s Customers received Contract Rate of Delivery - CRD energy.

Old World

– Western’s Customers Energy needs were tracked by the ACES scheduling system.

• Prescheduled by Western’s Merchant

• Adjusted real-time by the TSS (Transmission Scheduling and Security) Dispatcher

DecisionsDecisions

• Western was faced with the following choices.– Become a Federal

Control Area– Operate a

contractually based Sub-Control Area in one of the following Host Control Areas:

• CAISO• SMUD

Outcome

• Western initially worked to become a Federal Control Area.

– Political and Operational concerns turned Western’s efforts toward becoming a Hosted Sub-CA.

– SMUD was eventually chosen as Western’s Host Control Area.

• WECC Compliance Monitoring and Operating Practices Subcommittee (CMOPS) peer review team had a positive recommendation for the SMUD Control area that includes the WASN footprint

Approval

The New Footprint

New World

On November 1, Western – SNR changed its Transmission Provider name from WAP to WASN– The name change is in keeping with the other Western Regions – Beginning January 1, 2005, Western will allocate Base

Resource energy (formerly CRD energy) to its Customers.

New Provider Name

• Western’s Transmission Provider change notice has been on SNR’s OASIS node located @ www.oatioasis.com since late September. The Transmission Provider name change is the most visible step toward WASN Sub-CA Operations.

• WAUE – Western’s Upper Great Plains Region• WALC – Western’s Desert Southwest Region• WAPA – Western’s Upper Great Plains Region• WACM – Western’s Rocky Mountain Region

• WASN – Western’s Sierra Nevada Region

New Systems

• Western will implement a number of new systems for its post 2004 Marketing Plan

• Merchant System - webTrader

• WebTrans – Western’s Reliability - will be the primary tool for Transmission scheduling beginning January 1, 2005– OATi product– Integrates webOASIS, ETS

(webTag), and transmission scheduling features

2005 WASN Operations

• WASN will operate the BOR units via AGC

• WebTrans will develop the WASN Sub-CA NSI via E-tags

– All Sub-Control Area Transmission Schedules will be E-tagged

– WASN E-tags will create a schedule in webTrans

Regulation & Reserves

• The WASN Sub-CA will have a 25% portion on the SMUD CA regulation signal.

• Also, WASN will be responsible for 44% of contingency reserves for the SMUD Host CA.

Scheduling

• PSEs Using CVP transmission will electronically tag their schedules.

• Western’s Merchant will E-tag the Base Resource Deliveries.

• Internal Entities will E-tag the remainder of their transmission schedules.

• PSEs are responsible for adjustments to E-tags for market reasons.

• Western’s TSS Dispatcher will curtail E-tags for reliability concerns. – The TSS Dispatcher will reload the E-tags when

appropriate.

Closing

• Thank you for your time and attention, Please visit– Western’s Home Page @ www.wapa.gov for

more information on Western’s post 2004 marketing plan

– SNR’s OASIS node @ www.oatioasis.com and click on the SNR logo for the latest information