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November 20, 2008 Dear Market Participants and Interested Parties: Re: Letter of Notice – Proposed Level I Changes to Existing OPP 501 Please be advised that the Alberta Electric System Operator (AESO) is providing this Letter of Notice and seeking feedback on proposed changes to OPP 501 pursuant to Section 2(1) of the Alberta Utilities Commission (“Commission”) Rule 017. The proposed changes to OPP 501 are being considered for recommendation to the AESO Executive Rules Committee (“ERC”) in January 2009. For your consideration, attached are the proposed OPP Rule amendments. The following grid is hyperlinked to provide assistance in directing you to the proposed OPP Rule changes. Rule Number OPP 501 Description Northwest Area Operation Level I Most relevant stakeholder interest GFOs, TFOs, PPA Buyers, Wire Owners, load customers and market participants Please see the attached summaries for more information on the proposed OPP Rule changes, including a brief explanation of the reason for the change. Comments and suggestions on the OPP Rule changes being proposed are encouraged. Please use the comment matrix provided when submitting comments to the AESO on the proposed OPP Rule changes. Click here to access the comment matrix for the proposed OPP Rule changes. Only written comments will be considered in finalizing the OPP Rule changes. Please provide feedback or questions by Friday, December 19, 2008 to the individual specified within the OPP Rule change description below. The AESO will be publishing all stakeholder comments received for industry review shortly after the comment deadline. Stakeholder comments received along with AESO responses will be published with the final proposed OPP Rule changes being submitted to the ERC for approval in January 2009. Yours sincerely, Original Signed By Paul Glatthor Senior Coordinator, Rules Ph: (403) 539-2464 E-mail: [email protected] Proposed LEVEL I ISO Rule Changes Level I changes are changes that have a significant operational or financial impact on the industry or the AESO. These changes typically require working group input and/or extensive stakeholder consultation to implement an effective solution. OPP 501 Northwest Area Operation Rule Section/Number Summary of ISO Rule Part 3, OPP 501 Northwest Area Operation OPP 501 describes the policies and procedures required to operate the northwestern area of the Alberta Interconnected Electric System (“AIES”), including transmission must-run (“TMR”) generation and voltage management. Summary of Amendment Proposed amendments to OPP 501 are required to add a new northwest area generator, Grande Prairie Generation, Inc (NPP1). These amendments are required to define the generation limits for Poplar Hill and NPP1 to address stability and voltage concerns and support the reliable operation of the Northwest area. Level I Explanation of Confidentiality OPP 501 has a confidential Appendix A that contains the TMR dispatch and directive order and commercially sensitive customer information. Changes are also made to this confidential appendix to align with the amendments to this OPP Rule referenced above. The AESO has previously requested the Commission confirm that disclosure of confidential appendix to the OPP Rule would not be 3 in the public interest. Proposed Effective Date February 12, 2009 AESO Contact Operating Policy and Procedures, Anita Lee, [email protected], (403) 539-2497 See attached – blacklined version. OPP501DRAFT2 - blacklined Attachments See attached – clean version. OPP501DRAFT2 - clean 4