Western Resource Adequacy Program Overview

Western Resource Adequacy Program (WRAP) is a vital initiative in the Western Power Pool, providing valuable grid integration and coordination services to its customer-members across the entire Western Interconnection. As the Program Administrator, Western Power Pool undertakes all necessary actions for program implementation. Southwestern Power Pool acts as the Program Operator, offering technical and analytical support to the Program Administrator. WRAP's value proposition includes binding forward showing and operational obligations to ensure regional capacity needs are met collaboratively through bilateral trading mechanisms. The program's design focuses on determining resource and program capacity contributions.

• Resource Adequacy Program
• Western Power Pool
• Grid Integration
• Capacity Accreditation
• Regional Collaboration

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1. WESTERN RESOURCE ADEQUACY PROGRAM December 6, 2023 Michael O Brien Senior Engagement Manager, Western Resource Adequacy Program Western Power Pool 1

2. 01 Western Power Pool Setting the Stage Western Resource Adequacy Program 02 Western Transmission Expansion Coalition 03 2

3. WPP PROVIDESA RANGEOF VALUABLE GRID INTEGRATIONAND COORDINATION SERVICESTOITS CUSTOMER-MEMBERS THROUGHOUTTHEENTIRE WESTERN INTERCONNECTION Frequency Response Sharing Group Reserve Sharing Group Training Hydro Modeling Resource Adequacy* Transmission Services *Under WPP independent governance (others governed by participants or agreements) 3

4. CURRENT WRAP PARTICIPANTS Arizona Public Service Avista Bonneville Power Administration Calpine Chelan County PUD Clatskanie PUD Eugene Water & Electric Board Grant PUD Idaho Power Northwestern Energy NV Energy PacifiCorp Portland General Electric Powerex Public Service Company of New Mexico Puget Sound Energy Salt River Project Seattle City Light Shell Energy Snohomish PUD Tacoma Power The Energy Authority 4

5. ROLESOFTHE PA AND PO Western Power Pool (WPP) serves as the Program Administrator (PA) of the WRAP Undertakes all actions necessary to implement and administer program Southwest Power Pool (SPP) serves as the Program Operator (PO) of the WRAP Provides technical, analytical, and implementation support to the Program Administrator 5

6. WRAP VALUE PROPOSITION Binding forward showing requires Participants to show they have secured their share of the regional capacity need for the upcoming season using common planning and capacity accreditation metrics Binding operational program obligates Participants with surplus to assist Participants with a deficit in the hours of highest need using bilateral trading mechanisms 6

7. PROGRAM DESIGN OVERVIEW FORWARD SHOWING PROGRAM Determine Resource Capacity Contribution Determine Program Capacity Requirement Compliance Review of Portfolio Establishes a regional reliability metric (1 event-day in 10 years LOLE) Transition away from utility-by-utility RA programs and assumptions Registered resources receive a Qualifying Capacity Contribution (QCC) in advance of forward showing deadlines (seven months ahead of winter and summer seasons) Resource-agnostic, consistent methodology for assessing capacity contribution Non-compliance with forward showing requirements (capacity or transmission) results in a Forward Showing Deficiency Charge 7

8. PROGRAM DESIGN OVERVIEW OPERATIONS PROGRAM FS Operational Reality Sharing Requirement Expectations Evaluates participants operational situation relative to Forward Showing assumptions Obligates participants with calculated surplus to assist participants with a calculated deficit on the hours of highest need Surplus Participant that fails to provide assigned Energy Deployment must pay Energy Delivery Failure Charge 8

9. IMPLEMENTATION AHEAD Transition Seasons (Ops and FS) Summer 25 through Winter 27-28 Non-Binding Forward Showings Winter 22-23* through Winter 24-25 *W22-23 and Summer 23 completed in 2022 Summer (binding) Summer (transition) Summer (NB FS / Ops Trial) Summer (transition) Summer (NB) Summer (NB) 2026 2027 2023 2028 2024 2025 Winter (transition) Winter Winter (NB) Winter (transition) Winter (transition) (NB first NB Ops) March 31 Non-Binding Forward Showing: Winter 23-24 October 31 Non-Binding Forward Showing Summer 2024 Binding Program Without Transition Provisions Summer 28 and all seasons following Non-Binding Operations Program Winter 23-24 through Winter 24-25 2023 Focuses: Standing up tariff-approved governance (new board, stakeholder process) Business Practice development, review, and approval Implementation of the Non-Binding Operations Program Work with WRAP participants and market operators about market interoperability

10. WESTERN TRANSMISSION EXPANSION COALITION (WTEC) Resource Adequacy / Reserves engaging with the region to explore a new approach for West-wide transmission planning that will result in an actionable transmission plan to address regional and inter- regional needs RTO or ISO (Regional Transmission Operator or Integrated System Operator) Transmission Planning and Cost Allocation Market Optimization 10

11. QUESTIONS? Michael O Brien- Senior Engagement Manager Michael.OBrien@WesternPowerPool.org 11