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June 2, 2006 Dear Market Participants and Interested Parties: Re: Final Proposed ISO Rules – OPPs Please find attached the OPP Rule changes being proposed for approval by the AESO Executive Rules Committee (ERC) on June 9, 2006. The proposed OPP Rule changes were initially distributed for consultation on April 27, 2006. The target implementation date for the OPP Rules is June 20, 2006. The following grid is hyperlinked to provide assistance in directing you to the final proposed OPP Rule changes. Rule Number Brief Change Description Level OPP 517 Keephills/Ellerslie/Genesee (KEG) Area Operation I OPP 103 Dispatching Multiple $0 Offers II OPP 501 Northwest Area Operation II OPP 502 Joffre Area Operation II OPP 505 Fort McMurray Area Operation II OPP 702 Voltage Control II Most relevant stakeholder interest GFOs, TFOs, PPA Buyers, Wire Owners and Retailers, load customers, reserve services providers and Market Participants on the Interconnections GFOs, PPA Buyers, reserve services providers and Market Participants on the Interconnections GFOs, TFOs, PPA Buyers, Wire Owners and Retailers, load customers and reserve services providers GFOs, TFOs, PPA Buyers, Wire Owners, 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 You will be provided with prompt notification of the ERC’s decision with respect to the final proposed OPP Rule changes once their decision has been made. Please note that proposed changes to OPP 802 previously provided have been reclassified as Level III administrative changes and are not intended to impact the meaning and/or implementation of the OPP Rule. Level III changes do not require approval of the ERC. As previously advised, stakeholder comments received along with AESO responses would be published with the final proposed OPP Rule changes submitted to the ERC. Please click here to access the comment matrix for the proposed OPP Rule changes. The next ISO/OPP Rule change process is expected to begin public consultation in July 2006, with a September 2006 effective date. 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: June 20, 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 517 Keephills/Ellerslie/Genesee (KEG) Area Operation Rule Section/Number Part 3, OPP 517 Keephills/Ellerslie/Genesee (KEG) Area Operation Reason for Change This OPP is being revised to add the generation curtailment steps to the identified stability limits within 20 minutes, followed by the curtailment to the thermal limits within 30 minutes of the contingency. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP517DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP517DRAFT2 - clean 3 Summary of Proposed ISO Rule Changes Target Effective Date: June 20, 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 103 Dispatching Multiple $0 Offers Rule Section/Number Part 3, OPP 103 Dispatching Multiple $0 Offers Reason for Change This OPP is being revised to enhance the procedures and to provide an update to the appendix. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP103DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP103DRAFT2 - clean 4 Summary of Proposed ISO Rule Changes Target Effective Date: June 20, 2006 OPP 501 Northwest Area Operation Rule Section/Number Part 3, OPP 501 Northwest Area Operation Reason for Change This OPP is being revised to add the policy and procedures on the loss of one of the major 240 kV lines (9L11, 9L02 or 9L05) into the Grande Prairie area. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP501DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP501DRAFT2 - clean 5 Summary of Proposed ISO Rule Changes Target Effective Date: June 20, 2006 OPP 502 Joffre Area Operation Rule Section/Number Part 3, OPP 502 Joffre Area Operation Reason for Change This OPP is being revised to update the operating policies and procedures for the Joffre area with the latest study results. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP502DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP502DRAFT2 - clean 6 Summary of Proposed ISO Rule Changes Target Effective Date: June 20, 2006 OPP 505 Fort McMurray Area Operation Rule Section/Number Part 3, OPP 505 Fort McMurray Area Operation Reason for Change This OPP is being revised to update the operating policies and procedures with the latest system changes and customer load and generation changes. AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 To (Proposal) See attached – blacklined version. OPP505DRAFT2 - blacklined From (Current Rule) See attached – clean version. OPP505DRAFT2 - clean 7 Summary of Proposed ISO Rule Changes Target Effective Date: June 20, 2006 OPP 702 Voltage Control Rule Section/Number Reason for Change Part 3, OPP 702 Voltage Control This OPP is revised to update voltage limits, add switching guidelines for the 240 kV capacitor banks in the Calgary area, modify voltage control guidelines for the southeast area, and change the desired operating range for the SVC. 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