WestConnect Regional Transmission Service. Presentation to ISAS September 26, 2017

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1 WestConnect Regional Transmission Service Presentation to ISAS September 26, 2017

2 WestConnect Regional Transmission Service FERC Tariff based Accepted July 1, 2013 Based on a Participation Agreement with Tariff as an attachment Additional TOs can execute an Addendum to the Agreement and file or adopt the Regional Tariff 115 kv or higher facilities in Western Interconnection Connect with the Regional Transmission System (can consist of separate bubbles) Operate an OASIS on westtrans or compatible system Execute Billing Agent Agreement with OATI

3 WestConnect Regional Transmission Service Providers Arizona Public Service Black Hills Colorado BH/BE Common Use System - Basin Electric Power Coop. - Black Hills Power, Inc. - Powder River Energy Deseret Power Electric Cooperative El Paso Electric Platte River Power Authority Public Service New Mexico Southwest Transmission Cooperative Tri-State G & T Association Tucson Electric Power Western Area Power Administration - Rocky Mountain Region - Desert Southwest Region -CRSP Management Office Xcel Energy/Public Service Colorado

4

5 WestConnect Regional Transmission Service - Background Hourly, Non-Firm Service Implemented through westtrans platform Offerings based on posted rates Does not require FERC filing for nonjurisdictional TPs No state approvals required Fail-safe clause for non-jurisdictional TPs

6 WestConnect Regional Transmission Service TP Costs & Revenues TPs incur internal costs for regulatory requirements and to configure OASIS No external cost to offer service Billing Agent costs recovered through customer usage fees transaction based Transmission service revenue distributed pro rata among TPs based on posted rates

7 Regional Transmission Service Price Components The Regional Rate is the highest posted OATT rate in the path No price risk to customers Ancillary Service 1 (scheduling) remains pancaked Ancillary Service 2 (reactive) assessed only at sink Losses remain pancaked Monetized at Palo Verde Index price for date of transaction Administrative charge of $ 1.26 per MWh

8 TRANSMISSION CUSTOMERS QUICK OVERVIEW Customers must have a separate WestConnect agreement with each desired TP. No price risk to customers! CAN T PAY HIGHER!! WestConnect Deal Wizard software will procure the required single TSR for the customer. If the WestConnect Deal Wizard shows that it is cheaper to purchase each TP s transmission individually, the software will go to each TP s OASIS and procure those TSR s. Again, either way the Customer can t pay more for the transmission. 8

9 Regional Transmission Service westtrans OASIS Deal Wizard Location POR/POD Selection Transmission Path Options and Pricing Confirm the deal Tagging

10 How to find and use the WestConnect Deal Wizard

11 HOW TO FIND AND USE THE WESTCONNECT DEAL WIZARD

12 HOW TO FIND AND USE THE WESTCONNECT DEAL WIZARD

13 HOW TO FIND AND USE THE WESTCONNECT DEAL WIZARD

14 HOW TO FIND AND USE THE WESTCONNECT DEAL WIZARD ** Tariff Pancaked Rates are better, this time

15 TRANSMISSION CUSTOMERS QUICK OVERVIEW- SAVINGS Customer savings continue to be substantial!! Transmission Revenue (July only) Total Revenue and Savings $168, $341, $263, $1,124, $68, $1,965, # of Deals , Transmission Customer Savings Average Customer Savings / Deal $77, $154, $216, $726, $47, $1,223, $ $ $ $ $ $ * Years run from July June 15

16 Transmission Service Customers Arizona Electric Power Company Arizona Public Service Basin Electric B.C. Power Exchange Corporation Black Hills Power - Cheyenne Light Fuel & Power - Black Hills Generation - Black Hills Colorado CP Energy Marketing Eagle Energy Partners EDF Trading North America El Paso Electric Marketing Exelon Generation Company FPL Energy Power Marketing Guzman Power Markets Iberdrola Renewables JP Morgan Ventures Energy Municipal Energy Agency Nebraska Nevada Power Company Nextera Energy Power Marketing Northpoint Energy Solutions PacifiCorp Panda Gila River Platte River Power Authority PNM Marketing PowerEx SRP Marketing Tenaska Power Services TransAlta Energy Marketing Tri-State Generation & Transmission Tucson Electric Power Western Area Power Administration - CRSP - DSW Xcel Energy - Public Service Colorado - Southwest Public Service Company

17 Contacts and Information WestConnect ( Doug Reese WestConnect Regional Pricing Management Chair Jonathan Stewart WestConnect Regional Pricing Vice Chair Charles Reinhold WestConnect Project Manager

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