Purpose:
    Provide information on the availability assessment hours as defined 
    by the CAISO tariff and its application to current operations
    Agenda:
    1. Current Issue & Impact
    2. Background on Availability Assessment Hours
    3. Frequency of Availability Assessment Hours (2014-Current)
        •   CAISO System Load
        •   DA Market Prices
                                                                          2
     Issue:
     An analysis performed by Portfolio Management confirms that the 
     current generic RA RAAIM assessment hours are NOT reflective of 
     current system conditions based on system load and DA market 
     prices.
                                                                              3
     Purpose of Availability Assessment Hours (Section 40.9.3):
          •  The CAISO shall establish availability assessment hours to assess the extent to which 
             each Resource Adequacy resource has met the availability standards of Section 
             40.9.
          •  The availability assessment hours shall correspond to the operating periods when 
             high demand conditions typically occur and when the availability of Resource 
             Adequacy capacity is most critical to maintaining system reliability.
                   Required Bidding Hours            Required Bidding Days
                                       November – March
                          HE 17-21                   Non-Holiday Weekdays*
                                         April – October
                          HE 14-18                   Non-Holiday Weekdays*
          •  The CAISO shall annually determine the five hour range for the availability 
             assessment hours for each month and shall specify them in the Business Practice 
             Manual.
                                                                                            4
                                                        Top 5 Highest CAISO System Load
        100.00%
                                                                  92.20%                                                                            90.00%
         90.00%                                                                                                                 88.10%
         80.00%                                                                       79.37%
                         74.29%
         70.00%                              67.28%
         60.00%                                                                                            54.83%
         50.00%
         40.00%
         30.00%
         20.00%
         10.00%
          0.00%
                     Jan - Mar 2014       Apr - Oct 2014      Nov - Dec 2014       Jan - Mar 2015       Apr - Oct 2015      Nov - Dec 2015       Jan - Feb 2016
    Data Source: CAISO OASIS
                                                                                                                                                                  5
                                            Top 5 Highest DA Prices for DLAP_PGAE-APND
        100.00%
         90.00%                                                           89.30%
         80.00%
                          70.63%                                                                  72.50%                                         71.36%
         70.00%
         60.00%
         50.00%
         40.00%                                   39.22%
                                                                                                                         30.33%
         30.00%
         20.00%
         10.00%
          0.00%
                       Jan - Mar 2014          Apr - Oct 2014         Nov - Dec 2014          Jan - Mar 2015          Apr - Oct 2015          Nov - Dec 2015
         Notes:
                  •    Comparable results for DLAP-SCE, DLAP-SDGE, TH-NP15, TH-SP15 and TH-ZP26 price nodes.
    Data Source: CAISO OASIS                                                                                                                                      6