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December 1, 2005 Dear Market Participants and Interested Parties: Re: Proposed ISO Rules –OPPs The Alberta Electric System Operator (AESO) is seeking feedback on ISO Rule changes that are being considered for recommendation to the Executive Rules Committee in January 2006. For your consideration, attached are a number of proposed ISO Rule changes. If you are interested in particular topics, the following grid is hyperlinked to provide assistance in directing you to your topic(s) of interest. Rule Number Brief Change Description Alberta-BC Interconnection Transfer Limits Level Most relevant stakeholder interest I Energy Market Suspension Empress Area Operation II OPP 515 Southwest Area Operation II OPP 520 Marlboro Motor Start and Load Limitation II OPP 702 Voltage Control II GFOs, TFOs, PPA Buyers, Wire Owners, load customers and Market Participants on the Alberta-BC Interconnection AESO internal procedure change only GFOs, TFOs, PPA Buyers, Wire Owners, Retailers and load customers GFOs, TFOs, PPA Buyers, Wire Owners, Retailers and load customers GFOs, TFOs, PPA Buyers, Wire Owners, Retailers and load customers GFOs, TFOs, PPA Buyers, Wire Owners, Retailers, load customers affected by voltage control OPP 304 OPP 201 OPP 503 II Please see the attached summaries for more information on these proposed ISO Rule changes. Each identified change provides a brief explanation of the reason for the change. Comments and suggestions on the ISO Rule changes being proposed are encouraged. Please provide feedback or questions by Thursday, December 15, 2005 to the individual specified in the attached ISO Rule change summary. Yours sincerely, Original Signed By Paul Glatthor Senior Coordinator, Rules Ph : (403) 539-2464 E-mail: [email protected] Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 Proposed LEVEL I ISO Rule Changes Level I changes are changes that have a significant operational or financial impact on the industry or the ISO. These changes typically require working group input and/or extensive stakeholder consultation to implement an effective solution. OPP 304 Alberta-BC Interconnection Transfer Limits Rule Section/Number Part 3, OPP 304 Alberta-BC Interconnection Transfer Limits Reason for Change This OPP is revised to incorporate the recent recommendations of the Alberta- BC export capability study report on winter export TTC limits. This proposed version contains additional changes from the version of OPP 304 that was approved for interim implementation on November 1. Subject to the resolution of stakeholder comments from this consultation, this OPP may be submitted for approval for interim implementation. Please refer to our letter dated December 1, 2005 for further information. Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP304DRAFT2 - blacklined AESO Contact From (Current Rule) See attached – clean version. OPP304DRAFT2 - clean 3 Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 Proposed LEVEL II ISO Rule Changes Level II changes are changes that are expected to have a moderate or low impact on the industry or the ISO, and generally require little or no effort by stakeholders for implementing a solution. They are provided to stakeholders to review to ensure that the expected impact is reasonable, to identify unrealized impacts and/or to provide notice of the potential change in administrative processes. OPP 201 Energy Market Suspension Rule Section/Number Reason for Change Part 3, OPP 201 Energy Market Suspension The revisions to this OPP are required to reflect the changes in the System Controller tool used in this OPP. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP201DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP201DRAFT2 - clean 4 Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 OPP 503 Empress Area Operation Rule Section/Number Part 3, OPP 503 Empress Area Operation Reason for Change The revisions to this OPP are required to capture the addition of Wardlow substation in the Empress area. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP503DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP503DRAFT2 - clean 5 Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 OPP 515 Southwest Area Operation Rule Section/Number Part 3, OPP 515 Southwest Area Operation Reason for Change The revisions to this OPP are required to incorporate the addition of Kettles Hill wind farm at Southwest area. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP515DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP515DRAFT2 - clean 6 Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 OPP 520 Marlboro Motor Start and Load Limitation Rule Section/Number Part 3, OPP 520 Marlboro Motor Start and Load Limitation Reason for Change An OPP is required to manage the motor start and load limitation at the Marlboro substation under abnormal system operating conditions. Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP520DRAFT2 - blacklined AESO Contact From (Current Rule) See attached – clean version. OPP520DRAFT2 - clean 7 Summary of Proposed ISO Rule Changes Target Effective Date: February 6, 2006 OPP 702 Voltage Control Rule Section/Number Part 3, OPP 502 Voltage Control Reason for Change The revisions to this OPP are required to capture the addition of capacitor banks at Amoco Empress substation. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP702DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP702DRAFT2 - clean 8