Load RSG Exemptions Emergency Procedures. October 29, 2013

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1 Load RSG Exemptions Emergency Procedures October 29, 2013

2 Presentation Summary Purpose Summarize the outcome of discussions in the RSC regarding exemption of Load during Emergencies Key Takeaways The RSC voted in support of a Motion for MISO to file a 205 filing to exempt Load from RSG Deviation Charges during Emergencies MISO requests feedback from Market Participants on its proposed amendments to the Tariff and proposed approach for identifying what Load to exempt

3 Current Exemption Provisions in Tariff Grandfathered Carved Out Load is exempt from paying RSG Distribution Charges Real Time Revenue Sufficiency Guarantee Charges are not included in the possible charges outlined in Section of the Tariff Manual Re-dispatch exemption is provided under Section of the Tariff, along with section EDRs are provided exemption per Schedule 30, Section IV If an EDR Participant reduces Demand by more than the EDR Dispatch Instruction during an Emergency event, the EDR Participant will not be allocated Real Time Revenue Sufficiency Guarantee Charges for deviations in Load, pursuant a.iv. No exemptions are listed in the Tariff for LMRs

4 Current Exemption Provisions in Tariff RSG Exemptions are listed in section a.xi of the Tariff 1. Deviations caused or occurring during Hour(s) when a Resource is deployed for Contingency Reserves 2. Resource deviations caused by or occurring as a result of Transmission Provider directives during an Emergency 3. Resource deviations caused or occurring during abnormal operating conditions caused directly and exclusively by the failures or malfunctions of the Transmission Provider software or hardware systems 4. Intermittent Resource deviations caused by or occurring as a result of Transmission Provider manual curtailment instructions 5. Deviations resulting from compliance with MISO directives (particularly those relating to Transmission Loading Relief Procedures or TLR ) in the case of Interchange Schedules supported by firm Transmission Service.

5 Proposed Tariff Changes MISO proposes adding the phrase and Load Zone to exemption #2, to allow for Load to be eligible for RSG Exemption during an Emergency a.xi. A Market Participant shall not be allocated Real Time Revenue Sufficiency Guarantee Constraint Management Charges, Real-Time Revenue Sufficiency Guarantee Day-Ahead Schedule Deviation Charges, or Real-Time Revenue Sufficiency Guarantee Headroom Charges for deviations occurring as the result of the following exceptions: (1) deviations caused or occurring during Hour(s) when a Resource is deployed for Contingency Reserves; (2) Resource and Load Zone deviations caused by or occurring as a result of Transmission Provider directives during an Emergency; (3) Resource deviations caused or occurring during abnormal operating conditions caused directly and exclusively by the failures or malfunctions of the Transmission Provider software or hardware systems; (4) Intermittent Resource deviations caused by or occurring as a result of Transmission Provider manual curtailment instructions; or (5) Deviations resulting from compliance with MISO directives (particularly those relating to Transmission Loading Relief Procedures or TLR ) in the case of Interchange Schedules supported by firm Transmission Service.

6 Proposed Approach for Exemption RSG is based on deviations from Day-Ahead Positions During an Emergency MISO may request a reduction in Load Therefore, MISO proposes to exempt any Load Zone deviation during an Emergency in the event that such deviation is reflective of a reduction in the amount of Load Any Load Zone deviation that represents an increase in Load would continue to receive any applicable RT RSG Charges

7 Next Steps How would the MSC like to proceed? Do we want/need to run this through any other stakeholder forum(s)? Draft Tariff Modifications (easy/complete) and make a filing (a little more time) Implement the necessary processes/procedures and/or system changes to reflect this change (~Q2 2014)

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