BC HYDRO REAL TIME OPERATIONS OPERATING ORDER 1T 61

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1 BC HYDRO REAL TIME OPERATIONS OPERATING ORDER 1T 61 BC HYDRO OPERATING RESERVE AND NWPP RESERVE SHARING PROCEDURES Supersedes 1T-61 issued 26 September 2011 Review Year: 2018 Original signed by Brett Hallborg for: APPROVED BY: Paul Choudhury, General Manager, Real Time Operations Denotes Revision

2 Page 2 of PURPOSE This Operating Order (OO) defines the BC Hydro Balancing Authority (BA) Contingency and Spinning Reserves Obligations, a method for estimating them, the continuous monitoring process of available reserves and the actions to be taken when resources available to BC Hydro Real Time Operations are not adequate to meet the reserve obligations. The OO also introduces: The Northwest Power Pool (NWPP) Pro Rata Reserve Sharing Program (PRRS) and the procedures for sharing Contingency Reserve under the NWPP Reserve Sharing Agreement, and The method for forecasting Contingency Reserve in a future hour. BC Hydro Real Time Operations (RTO) is responsible for the calculation and delivery of the BA Contingency Reserve Obligation (CRO), and settlement for any energy involved. This operating order meets British Columbia Utility Commission (BCUC) compliance requirements for BAL-002 standards. Reference documents related to this Operating Order: Operating Order 6T-25 Capacity and Energy Emergencies Operating Order 1T-63 Delivery of SRO on behalf of AESO Operating Order 1T-59 Delivery of Dynamic Energy to CAISO Operating Order 1T-60 Wholesale Transmission Service NWPP PRSS Manual NWPP Reserve Sharing Operating Procedure Program-Documentation WECC Standard BAL-002-WECC-2 Contingency Reserves s/bal-002-wecc-2.pdf NERC Standard EOP b Emergency Operations Planning NERC Standard EOP Capacity and Energy Emergencies

3 Page 3 of GENERAL The reliable operation of the Interconnected System requires that adequate generating capacity be available at all times to: Maintain scheduled frequency. Supply load and interchange schedules, including margin for errors in forecasting. Meet Disturbance Control Standards (DCS) for capacity lost due to forced outages of generation or transmission equipment. Maintain CRO to the NWPP Reserve Sharing Group (RSG). BC Hydro is a member of the NWPP RSG. As a member BA, BC Hydro is responsible to maintain; Contingency Reserve Obligation (CRO) which is normally equal to 5% of the load responsibility served by hydro and wind generation and 7% of the load responsibility served by thermal generation. Spinning Reserve Obligation (SRO) which is calculated as 50% of CRO. Whenever access to Reserve Sharing cannot provide sufficient reserves to cover either the BC Hydro or the NWPP Most Severe Single Contingency (MSSC), the BC Hydro BA is required to carry additional reserves to make up for the deficit as calculated by the NWPP Reserve Sharing Program. BC Hydro RTO is responsible for the BA obligation to deliver Contingency Reserve to the NWPP RSG to the maximum of the BA CRO less any portion of the CRO that is already deployed. The maximum delivery time of CRO is 60 minutes for any single contingency. Contingency Reserve can be supplied from: Unloaded generating capacity which can be made available within 10 minutes. Interruptible export schedules that can be cut within 10 minutes. Firm capacity schedules obtainable from others within 10 minutes. The NWPP PRRS procedure was introduced to ensure equity among NWPP members, accuracy in the monitoring of the NWPP reserves and a faster response to reserve sharing requests. Details of the NWPP Contingency Reserve Sharing Procedure are provided in the Northwest Power Pool Operating Manual. For procedures on delivery of Contract SRO to the NWPP on behalf of the Alberta Electric System Operator Balancing Authority, see OO 1T-63. The BC Hydro BA can also act as the Host Balancing Authority (HBA) for resources within BA boundaries that wish to supply on-demand reserve contracts to other BA s. Generation capacity required to supply such contracts, either by static or dynamic delivery, must be proven or added into BC Hydro applicable types of reserve requirement (Contingency, Spinning, and Regulating). See applicable OOs (1T-59 Dynamic Scheduling with CAISO and 1T-60 Wholesale Transmission Services) for details.

4 Page 4 of DEFINITIONS AND RESPONSIBILITIES 3.1 Definitions Contingency Reserve In accordance with the NERC definition, Contingency Reserve is the provision of capacity deployed by a Balancing Authority to meet BAL and other NERC and WECC contingency requirements. Contingency Reserve Obligation (CRO) Assuming that the BC Hydro BA and the NWPP are able to meet their MSSC by sharing reserves, the BA CRO is 5% of its load responsibility served by hydro or wind generation and 7% of its load responsibility served by thermal generation. For calculation of CRO, BC Hydro determines load responsibility to includes all generation for export purposes and excludes all load served by imported energy. In essence: BCH s CRO = 5% of on-line hydro/wind generation + 7% of on-line thermal generation. This is calculated in EMS at every 2 seconds and sent to NWPP via ICCP data link. Spinning Reserve Obligation (SRO) 50% of the Contingency Reserve Obligation must be spinning, i.e. unloaded generating capacity responsive to frequency (i.e. not on S/C or gate limited). This does not need to be on AGC. Regulating Margin Regulating Margin is the unloaded generating capacity on AGC which is in excess of CRO or SRO. While RTO tracks its high and low Regulating Margins, it does not reserve any generating capacity specifically for Regulating Margin, excepting the amount being carried for Regulating Reserve contracts. 3.2 Treatment of FortisBC (FBC) in Reserve Calculations As FortisBC is located within the BC Hydro BA, its load and generation are included in the BC Hydro CRO and SRO calculations. With the exception of BRD, BRX and WAN, FBC units are not included in the available Contingency or Spinning Reserve calculations since there is insufficient real time generator telemetry. FBC is a participating member of the NWPP RSG, but is not set up to participate in PRRS. FBC can only make reserve sharing request to BC Hydro by phone. FBC and BC Hydro have an agreement in place where BC Hydro assumes all of FBC s CRO and SRO. When FBC suffers a loss in generation, their CR is considered taken back from BC Hydro automatically. FBC only need make request for CR which is in excess of its own CRO. BC Hydro RTO will keep records of any CRO which FBC requests and will verify the integrated energy value of these requests against an etag submitted by FBC. FBC may submit these after the fact etags up to seven days after the CR request is made and will notify RTO and Market Operations via when an etag has been submitted.

5 Page 5 of Treatment of Independent Power Producers (IPPs) in Reserve Calculations IPP generation is included in the calculation of BC Hydro s load and therefore is included in the calculation of the BA CRO. However, the status of most IPPs is not communicated to BC Hydro, hence their generation is not included in the calculation of available Spinning or Contingency Reserve. 3.4 Treatment of Rio-Tinto Alcan and other Self-Generators in Reserve Calculations The BC Hydro-Alcan agreement requires that Rio-Tinto Alcan maintain its Operating Reserves "in accordance with established criteria", however it does not require that Rio-Tinto Alcan make these reserves available to others under any given conditions. BC Hydro does not carry Operating Reserve for the Rio-Tinto Alcan generation. The actual status of Rio- Tinto Alcan s on-line generation and load are not factored into the load or reserve calculations. For the purpose of calculating BC Hydro BA reserve requirements, the Alcan-BCH transfer is considered as a positive BC Hydro load responsibility when BC Hydro is importing from Alcan or a negative BC Hydro load responsibility when BC Hydro is exporting to Alcan. Several large industrial customers within the BC Hydro BA own and operate their own generation to serve their own load. Normally, the load served by these self-generators is not considered as part of the BC Hydro BA s load responsibility. BC Hydro does however agree to provide these customers with emergency power for any planned or unplanned outages to their generators, and therefore carries additional CRO. The amount of potentially added load responsibility is estimated to be 200 MW and is factored into the BC Hydro CRO calculation under the heading NON-TELEM. To account for self-generation SELF-GEN is shown in EMS SYSTEM TOTAL screen, 5% of which (10 MW) is added to the BC Hydro CRO. As BC Hydro does not receive telemetry on the status of these industrial self-generators, they are not included in CRA or SRA calculations. When excess generation from self-generation sources is exported to BC Hydro, additional BC Hydro CRO is covered by the same provision above (10 MW CRO for up to 200 MW transfer). 3.5 Treatment of Generation Delivered as Dynamic Scheduled Energy to CAISO Dynamic Scheduled Energy to CAISO is deemed as Unit Contingent generation by the CAISO and reserve required for it will be carried by CAISO. BC Hydro does not consider it in the BA CRO calculation. 3.6 Load Forecasting Responsibility BC Hydro s Planning, Scheduling and Operations Shift Engineer (PSOSE) is responsible for forecasting the BC Hydro BA load each hour and planning how the load will be supplied. A method for forecasting Contingency Reserve requirements in future hours is provided in Appendix 1. Since most generation within BC Hydro BA is hydro based, the CRO can be estimated for forecasting purpose as: Estimated CRO = 5% x [BCH System Load + FortisBC load + Net Scheduled Interchange]

6 Page 6 of Responsibility for Meeting CR and SR Requirements BCUC approved WECC Reliability Standards define Reserve Obligation each hour for the BC Hydro BA. Failure to do so results in penalties that increase with the severity of the violation. The RTO Generation Coordinator (GC) is responsible and authorized to take actions necessary to maintain BC Hydro s CRO and SRO as established by the NWPP RSG. The GC is also responsible to ensure that BC Hydro s CRA and SRA meet or exceed the Contingency Reserve requirement (CRR) and Spinning Reserve Requirement (SRR) which are usually equal or larger than CRO and SRO. The only exception is when BC Hydro is using their 10 minute reserve to meet a Capacity or Energy Emergency under OO 6T Prior To The Hour Preparation Prior to the hour, the GC will forecast the BA S ability to meet the next hour s CRR and SRR. Should the GC determine that the system may not meet these requirements, the GC shall discuss the concerns with the on shift SCM and will refer to Operating Order 6T-25 to implement a strategy to mitigate the shortfall Recovery of CRO BC Hydro s CRO to the NWPP must be recovered within 60 minutes of the initiation of an internal disturbance. Any reserves received from other NWPP members must also end within 60 minutes. Cuts to next hour export schedules or increasing imports may be required. The GC, Interchange Operator and SCM shall coordinate with PSOSE and Powerex to meet the CRR and SRR for BC Hydro. 3.8 Distribution of Available Reserves Available reserves shall be distributed as widely as possible throughout the system. 4.0 EMS IMPLEMENTATION OF RESERVE MONITORING AND SHARING The BC Hydro BA is responsible to ensure compliance with WECC and NWPP reserve requirements. This is done in the Alstom Energy Management System (EMS) by comparing CRR and SRR continuously (every 2 seconds) to CRA and SRA. The EMS is also configured to allow BC Hydro participation in the NWPP PRRS program. The EMS will perform the following functions; 1. Calculation of CRR; 2. Calculation of SRR; 3. Tracking of the location and breakdown of available reserves, and 4. Management of NWPP Pro Rata Reserve Sharing request and delivery.

7 Page 7 of Calculation of Contingency Reserve Requirement (CRR) CRR = (BCH s CRO to NWPP) - (deployed CR) + (100% of Interruptible Import schedules) + (the undelivered portion of Contingency Reserve contracts, Spinning Reserve contracts, Regulating Reserve contracts, including Dynamic schedules). Where: CRO = {greater of (the reserves required to meet its MSSC) and (5% of on-line hydro and wind generation + 7% of on-line thermal generation)} + any CRO adjustment the NWPP has required to ensure the NWPP has sufficient reserves to meet the pool s MSSC. Used CR: include all of: Internal used CR = lost generation + manual entered used CR. Lost generation amount is automatically recorded when it exceeds 120 MW and simultaneously causes the frequency to drop by more than 0.02 Hz. The absolute value of ACE right after the disturbance is considered as the lost generation instead of the actual amount of lost generation. Manual entered used CR should be used to record any lost gen that was not automatically recorded, any failure to start of generator if desired, and any CR deliveries not made under PRRS program, if desired (i.e. deliveries made to FortisBC, other bilateral deliveries by phone) External used CR = amount of CR delivered under PRRS program. This is recorded automatically whenever there is a delivery from BC Hydro. Each used CR amount expires 60 minutes after being initiated. 4.2 Calculation of Spinning Reserve Requirement The SRO is one-half of the Contingency Reserve Obligation. The total SRR is the SRO plus any Spinning Reserve and Regulating Reserve contracts. If the Spinning Reserve Margin (SRA in excess of the SRR) falls below 25 MW, an alarm will be sent to the AG AOR. This alarm will reset when the Spinning Reserve Margin recovers to 50 MW. The same alarm parameter is provided to ensure the SRO is sufficiently covered (SRA vs SRO). 5.0 NWPP PRO RATA RESERVE SHARING In effect since May 01, 2002 the NWPP PRRS is an automated system for implementing Reserve Sharing among NWPP members. All 20 (as of January 2012) BA members of the NWPP are able to electronically communicate, via ICCP data link, with the Reserve Sharing Program. When a NWPP member has suffered a loss of resource which is a Qualifying Event greater than its own CRO or has declared an Energy Emergency Alert 2, it is permitted to submit a Reserve Sharing request equal to the deficient amount. The computer request would be processed by the NWPP and members allocated a CRO contribution on a pro rata basis. First to the members within the same zone, then to members in adjacent zones and beyond if necessary. For complete details of the program, refer to the NWPP Reserve Sharing Program Documentation.

8 Page 8 of 18 MSSC: 900 RESERVES: 500 OBLIGATION: 200 ACTUAL MARGIN: LIMIT 500 MSSC: ROOM 100 RESERVES: RESERVE 100 OBLIGATION: 150 MARGIN: 0 ACTUAL LIMIT ROOM RESERVE 500 MSSC: 1040 MSSC: 700 RESERVES: 200 RESERVES: 350 OBLIGATION: 350 OBLIGATION: 200 ACTUAL ACTUAL 400 MARGIN: MARGIN: LIMIT LIMIT ROOM ROOM RESERVE RESERVE 400 ACTUAL MSSC: RESERVES: 1000 OBLIGATION: LIMIT ROOM 500 MARGIN: RESERVE 150 MSSC: 300 RESERVES: 100 OBLIGATION: 150 MARGIN: 100 NWPP Reserve Sharing Zones

9 Page 9 of BC Hydro Requesting Reserve Sharing Before BC Hydro can request Reserve Sharing, it must have committed all of its available CRO to respond to loss of generation or have an Energy Emergency Alert (EEA) 2 declared by the WECC RC for the BC Hydro BA. Following loss of generation resources, Reserve Sharing shall only be requested by the BA for contingencies that are greater than its CRO. These include any loss of generation (i.e. BC Hydro, FortisBC, Rio-Tinto Alcan, or IPP) that cause ACE to deviate from zero. Following declaration of an Energy Emergency Alert 2, Reserve Sharing shall only be requested by BC Hydro when the MW required to alleviate the EEA Level 2 is greater than the CRO Recovering from a Small Contingency: Lost Gen < CRO To satisfy the NERC DCS, BC Hydro is required to recover using its own reserves within 15 minutes of the initial event. If lost generation <CRO then a CR sharing request made in PRRS program may be denied Recovering from a Large Contingency: Lost Gen > CRO For contingencies that are greater than the CRO, a BA may request Reserve Sharing from the NWPP. If there is a value in the MINIMUM REQUIRED field 1 then Reserve Sharing must be requested. The GC should request Reserve Sharing within four (4) minutes of the initiating event and strive to return ACE to its pre-disturbance level or zero within fifteen (15) minutes to avoid possible penalties for non-compliance under the NERC DCS. To initiate a PRRS Reserve request: 1) Confirm that the LOST GEN field captured the disturbance, if not, manually enter a value to ensure that the Total Internal Used CR is greater than the CRO (if Used CR is not greater than CRO, any request for Reserve Sharing will either be reduced or denied). 2) Enter the amount of Contingency Reserve required from the NWPP. Set the amount at least equal to the amount of the MINIMUM REQUIRED. The common practice is setting the initial requested amount close to the difference between the LOST GEN amount and CRO, and then reducing it gradually as BC Hydro reserve recovered. 1 The MINIMUM REQUIRED value is the CR deficit calculated as Absolute Value of [ACE + BCH RESERVE AVAILABLE], hence whenever BCH RESERVE AVAILABLE is less than the absolute value of ACE, there will be a deficit and reserve sharing request will have to be made. Note that the deficit will recalculate during the disturbance recovery so that after BCH has fully committed its reserves the deficit is expected to be less than immediately after the disturbance because of the frequency component of ACE would have decreased. Example: If BCH lost 1200 MW the ACE will be larger than the amount of generation lost, likely 1400 MW, because of the frequency component in the ACE equation. If BCH s Reserve Status at the time of the contingency was 1000 MW then the deficit would be 400 MW. Note that by using ACE in our calculation of deficit we automatically incorporate some margin into our reserve sharing request (in this case 200 MW immediately after the contingency).

10 Page 10 of 18 3) Set the Confirm Request toggle button to ON. Then: 4) Dispatch all available generation; 5) Have the Interchange Operator cut all interruptible export schedules. 6) Direct Grid Operators to drop all interruptible loads. After approximately 45 seconds, an import schedule and confirmation flag 2 should come back from the NWPP, which should cause an immediate improvement in ACE. Normally the amount of the import schedule is greater than the original request because all sending parties round their contributions up to the nearest MW Reserve Request during Energy Emergency Alert (EEA) Level 2 In an Energy Emergency where the WECC RC has declared BC Hydro an Energy Deficient Entity under Energy Emergency Alert Level 2, BC Hydro may request Reserve sharing from NWPP. Operating Order 6T-25 details BA response while operating in an Energy Emergency Rules for BC Hydro Requesting (receiving) CR After a major contingency, BC Hydro should recover CRA to exceed CRO as promptly as practicable, but in no event longer than 60 minutes from the initiating event. The same request can be increased or decreased at any time during the 60- minute duration. Increases are subject to NWPP approval. To make a change: enter the new desired value, not the net change. DO NOT toggle the ON/OFF request switch as it will end the original request. The original request is auto-ramped down to zero from 55 to 65 minutes (net 60 minutes) if not ended prior to 55 minutes. If an increase is required due to another major contingency within 60 minutes of the first one, NWPP shall be informed as they will reset the timer to allow a new 60-minute period. Important note: If you toggle the ON/OFF request switch to OFF it will effectively cancel the current request immediately. It is only acceptable to initiate another request (for another 60 minutes duration) if there is a real second contingency that would cause ACE > the CRO at that time. See Section 10.0 for reporting requirement Extending Reserve Sharing requests: To make BCH s second request (or extension of the first request): Subsequent internal gen loss contingencies during a RS delivery to BCH may require additional RS or an extension of the current RS delivery to be requested from the pool. If that is desired, the GC shall (see the attached drawing for the steps): 2 ON means reserve sharing is active; OFF means reserve sharing is NOT active or CANCELLED.

11 Page 11 of 18 Step 1: Enter a new Request Target value which can be higher than the current value or keep the target unchanged, then Step 2: Check the Request Extension flag. The NWPP PRRS Computer shall automatically accept the extension request, and: Step 3: Both timers will be reset to 65 minutes and the Telemetered Target value will change Step 4: BCH AGC will uncheck the Request Extension flag, making it available for subsequent extension as needed. This request extension feature essentially allows restarting a current request with a higher or unchanged request target. The process for reducing the request target or stopping a request remains unchanged.

12 Page 12 of BC Hydro Delivering Reserve Sharing When BC Hydro receives from the NWPP an assigned contribution to PRRS request, several things will happen simultaneously: ACE will decrease by an amount close to the amount of reserve automatically being sent; Priority 1 Alarms will be received on AG and T1 AOR. MW amount will show up in the CON RES DELIVERY field and the CONFIRMATION OF CON RES DELIVERY flag will show ON. The amount of Contingency Reserve that BC Hydro sends will be the lesser of the NWPP request or the CR DELIVERY LIMIT which is the BCH CRO less any internal / external Used CR. The ACTUAL CR DELIVERY is the amount of reserve that is actually being sent and this value is sent to the NWPP as our confirmation that we received their request. The amount of reserve being sent can change in real time if our CRO changes or the available transmission between BC Hydro and the requesting NWPP member decreases in real-time. Other rules for BC Hydro Delivering CR: Multiple requests will be accepted, subject to BC Hydro s CR DELIVERY LIMIT. All requests are limited at 60 minutes in duration. The remaining time displayed is always associated with the last request executed. Individual request is auto-ramped down to zero from 55 to 65 minutes (net 60 minutes) if not done so prior to 55 minutes by the requesting entity. 5.3 Monthly Testing of the NWPP PRRS Program To ensure all components of the program work properly when needed, the NWPP will conduct a monthly test involving each member Balancing Authority area. A WECC message will be sent during the hour prior to the test as a warning. 6.0 ENERGY SETTLEMENT A PRRS Participant that receives Contingency Reserve must compensate all Participants that deliver the Reserve, either financially or by return of energy. Each Participant must declare in advance whether it elects to be compensated for delivery of Contingency Reserve by return of energy or financially. All Participants that request Reserve will settle with responding Participants according to the responding Participants declaration of either financial or return of energy settlement. Each Participant must declare its choice of settlement method to the NWPP Operating Committee. Each Participant s declaration will be its default method of settlement until the declaring Participant notifies the Operating Committee of a change. A Participant may change its declaration of settlement method up to twice each year, on or about February 1 and July 1. Currently, BC Hydro s default method is financial settlement for any Reserve it delivers to other Participants. Financial Method of Settlement: Transactions are recorded automatically in MODS from e-tag data generated from the NWPP. Market Operations is responsible for arranging settlement among all parties involved.

13 Page 13 of 18 Return of Energy (Physical) Method of Settlement: BC Hydro is responsible for arranging for all physical settlements for the delivery and receipt of CR. Energy must be returned in-kind (on-peak / off-peak) within 168 hours of the reserve being delivered. Settlements and Billings Department (Market Operations is responsible for informing BC Hydro (Powerex) of transactions that require physical settlement and their details. The following sections describe settlement principles and actions taken by Grid Operations for all reserve related energy transactions involving BC Hydro BA. 6.1 Settlement Principles NWPP members have agreed to the following: Settlement for the delivered reserve is based on the delivering party s choice of settlement method. When there is a discrepancy in the amount of energy delivered between the two members, the amount calculated, rounded and provided by the NWPP and shall be considered accurate and final. It shall be used as settlement data. The cost of energy used for financial settlement shall be based on the daily Dow-Jones Mid-Columbia Index for On-peak or Off-peak Firm Energy, as applicable for the hours of delivery. For physical settlement, the returning energy must be arranged using standard scheduling practices. All associated transmission and losses cost are not exempt and must be borne by the responding participant (the party receiving the returning energy). 6.2 Recording Operating Reserve Transactions The RTO GC is responsible for executing all reserve delivery requests and assisting in retaining transaction information. Transactions are recorded automatically in MODS from e- tag data generated from the NWPP. After the end of an hour, an EMS alarm will be sent to AG and EN AOR alerting the availability of settlement data for reserve transactions in the hour, if so occurred Recording Transmission Schedules The delivery of contingency reserve is exempted from any cost associated with transmission wheeling or losses, as agreed upon by all NWPP members. Place markers for the transmission reservations used to support PRRS etags are stored in MODS and verified against the e-tag transmission allocation generated by the NWPP Recording Energy Schedules Depending on the NWPP assignment, BC Hydro may have transactions with several NWPP members. Energy schedules are recorded automatically in MODS from e-tag data generated from the NWPP.

14 Page 14 of Recording CR delivered to FortisBC Since FortisBC is internal to the BC Hydro BA, CR delivery to FortisBC occurs automatically (no ramping is required). The FBC System Dispatcher will communicate by phone to the RTO GC, the duration (maximum 60 minutes) and CR amount needed by FBC. Following delivery of CR, FBC will confirmation of the delivery to the Interchange Operator mailbox at the Control Centre. confirmation will be verified as correct and retained by the Interchange Operator for future verification against an etag for the transaction submitted by FBC. Note: the amount of reserve FBC requests from BC Hydro is for the portion of reserve in excess of their own CRO which is automatically taken back from BC Hydro No further reporting is required. Fortis must submit an e-tag for the transaction within 7 days of the delivery. 7.0 OFF-NORMAL CONDITIONS BILATERAL RESERVE REQUEST BY PHONE Request for reserve to be shared bilaterally between two BA s shall be used only as a back up measure when the NWPP PRRS program is not working in the BC Hydro EMS. 7.1 ICCP Datalink Not Working If ICCP data links are not working, the details of the PRRS will not be communicated between the NWPP members and the NWPP. Under these circumstances, BC Hydro may be contacted by the NWPP and directed to manually enter a Reserve Sharing delivery schedule which would be done using the procedures outlined in Section 7.5. Similarly, BC Hydro would need to call the NWPP with any Reserve Sharing requests and then follow the procedures outlined in Section NWPP PRRS Software Not Working When a failure of the PRRS software is suspected, it is imperative that the RTO GC phone the BPA and AESO Generation Dispatchers and confirm that they are actively participating in Reserve Sharing. Under the PRRS program, BC Hydro expects that BPA will provide 40% of our reserve requests whereas AESO would provide 20%. If there is any question about being able to recover ACE within the allowable 15 minute window, then commit all available BC Hydro reserves (i.e., any reserves available in excess of the BC Hydro CRO) to restoring ACE. The RTO GC must be aware that during a failure of the NWPP PRRS system, the BC Hydro CRO will rise to be equal to the BC Hydro MSSC. 7.3 Other Off-normal Conditions: Auto PRRS program failure during an ongoing CR transaction: CR transactions in all BA s involved will immediately go to zero, ACE will immediately jump by same but opposite amount of the ongoing transaction, Make phone request if further CR is still needed.

15 Page 15 of OTC Event During a CR Transaction: The amount of CR being delivered during the first 5 minutes of a delivery is based on the transmission room available captured at 5 minutes before the request was made. After that, if the PRRS program detects an OTC being exceeded it will adjust the amount to maintain the path flow equal the OTC. 7.4 Bilateral Delivery of CR (phone procedure) by BC Hydro The BC Hydro GC shall: 1. Check for transmission availability on the applicable path, this should be reflected in the RS delivery limit. No need to make extra transmission available. 2. Record the time of the initiating event from the requestor. 3. Agree to deliver only up to the RS delivery limit and duration of the ramp. 4. Ramp the RS energy schedule in AGC using the EMS back up schedule feature. Note: delivery to FortisBC takes place naturally, a ramp is not required. 5. Terminate the delivery of CR with a 10 minute ramp starting 55 minutes after the initiating event, unless otherwise agreed prior to that. 6. Pass on related information to the BC Hydro Interchange Operator for recording. 7.5 Bilateral Requesting of CR (phone procedure) by BC Hydro An automatic request shall be made to the NWPP first if their PRRS program is still running then to BPA and AESO when PRRS program not available. The BC Hydro Generation Coordinator shall: 1. Agree on the amount requested and duration of the ramp. 2. Ramp the RS energy schedule in AGC. 3. Make arrangements to recover/replace lost generation within the BC Hydro control area within 60 minutes of initiating event. 4. Reduce / terminate the request as reserves become available. 5. Pass on related information to the BC Hydro Interchange Operator for recording. 8.0 ALARMS Shown below is a list of the alarms associated with the NWPP PRRS program: RESERVE SHARING DELIVERY TO NWPP ACTIVE RESERVE SHARING DELIVERY TO BCH ACTIVE NWPP CRO ADJUST RECEIVED RS DEL TO BCH CHANGED TO RS DEL TO NWPP RS DEL TO NWPP CHANGED TO RS DEL TO BCH RESERVE SHARING DELIVERY IS CANCELLED RESERVE SHARING DELIVERY TIMED OUT AFTER 60 MIN RESERVE SHARING REQUEST TIMED OUT AFTER 60 MIN

16 Page 16 of 18 RESERVE SHARING REQUEST IS CANCELLED CHECK RESERVE STATUS: AVAILABLE RESERVES < 100 MW RESERVE SHARING REQUEST SENT TO NWPP 9.0 TRACKING AND REPORTING REQUIREMENT 9.1 Insufficient CRO or CRR Reports The NWPP, using PRRS real time software, monitors and compares each member BA s available Operating Reserve against its CRO. A CRO violation report will be sent to BC Hydro s representative whenever CRA drops below CRO for longer than 10 minutes, or if the CRO has not been fully restored 60 minutes after the initiation of a disturbance. BC Hydro, using Dispatch Compliance Monitoring (DCM) software, monitors and compares its own available Operating Reserve against its CRR. An OR violation report will be generated if RTO has not maintained sufficient hourly average CRR. BC Hydro is responsible for sending this report to rms@wecc.biz using normal WECC RMS reporting procedure. 9.2 DCS Reportable Disturbance Reports The NWPP is responsible for providing to WECC any DCS related reports on behalf of all member BA s. BC Hydro RTO is responsible for sending DCS reports to NWPP within two working days of the triggering event. For CR Delivery from BC Hydro to another entity, including FortisBC: No report to NWPP is required. For any internal forced outage that is greater than the NWPP reportable disturbance threshold (currently set at 35% of the NWPP MSSC at the time of the disturbance or ACE > 170 MW). The GC is responsible for notifying the SCM of the lost generation. The SCM is responsible for sending to the NWPP a NWPP Reportable Disturbance Form via the DCM application. The form is auto-generated by DCM application at xx:15 and xx:45 if a reportable disturbance has been detected and completed during the prior half-hour. It can also be manually generated if missed by DCM auto-capturing feature. Note that the ACE used for DCS monitoring and reporting should be without the ATEC component for automatic time error correction (NERC ACE). Additional reports may be required by NWPP as specified in the NWPP Operating Manual s Contingency Reserve Sharing Procedure, Section J REVISION HISTORY Revised By Revision Date Summary of Revision T. Nguyen 12 August 2005 Major revision to incorporate PRRS and SSOR. T. Nguyen 27 January 2006 Clarified procedures for energy and capacity cutting to maintain reserves. Updated tracking and reporting requirement. Other minor changes. T. Nguyen 27 April 2006 Clarified the use of interruptible export schedules and interruptible loads that have been designated as part of

17 Page 17 of 18 the available operating reserve. Updated SSOR procedure. Other minor changes. T. Nguyen 19 February 2007 Converted to SOO. Section 3.2 modified and Appendix 3 added to include WAN and BRD in BCTC s pool of available reserve. Section 9.0 removed (converted to SOO 1T-62 SSOR) Gord Rawlings 8 November 2007 Section 3.7 modified to meet the requirements of SOO 6T-25 DSG 26 September 2011 Updated after BCTC/BCH merger. DSP 28 March 2014 Updated and aligned with 30 July 2013 issuance of 6T- 25. Major Revision so no Change Bars included.

18 Page 18 of 18 Appendix 1 FORECASTING PROCEDURE FOR CRO BASED ON LOAD SERVING RESPONSIBILITY To ensure Regulating Margin and full availability of required reserves during future hours, the effect of all predictable loading variations during each hour, and uncertainty in load forecast, must be considered. A1.1 Minute Peak - During non-peak hours, 1% of the forecast hourly average load is to be allowed for normal fluctuations in system load within the hour. During peak hours, 2% shall be allowed for the peak minute within the peak hour. A1.2 Load and Schedule Ramps - during hours in which load and/or schedules are ramping, 50% of the hour-to-hour change in average hourly load and schedule is to be allowed at the start or end of the appropriate hours to ensure margins are maintained throughout each hour. A1.3 Forecast Errors - To allow for error in load forecasts, 2% of the forecast hourly average load is to be allowed to ensure Regulating Margin during the hour. An alternative may be to provide for short notice (i.e. 1 hour or less) interruptible schedules, loads, or generator outages. A1.4 EXAMPLE - for Hour Ending 10 HE 9 HE 10 HE 11 Forecast BCH hourly load Forecast FBC hourly load Forecast Total Hourly Load BCH + FBC schedules % of total load for minute peak 64 (2% if peak hour) 2% of total load for forecast error % of end of hour load ramp* % of end of hour schedule ramp* 200 Reasonable Minute Peak Load and Sched C.R.O. (5% of peak load and schedule) 381 Total Generation required for HE * If Forecast Hourly Loads plus Schedules is decreasing, use start of hour ramps.

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