LOAD RESPONSE PROGRAM

Robert B. BurkePresented to: Markets Committee

January 23-24, 2001

OP & MRP CHANGES

Operating Procedure 4Operating Procedure 14Market Rules & Procedures 5Market Rules & Procedures 9Market Rules & Procedures 14

Appendix HMarket Rules & Procedures 20

TIMELINE

Interruptions Available for June 1Commence Signing Up Participants

May 1Receive FERC Approval May 1File at FERC by March 1NPC Approval Prior to February 15MRP and OP Changes Recommended

to NPC by January 31

WHAT KIND OF LOAD RESPONSE

Price Responsive Interruptible Load - Curtail Consumption Based Upon ECP

Click and Respond to ISO Request for Interruption within < 30 minutes Meet Second Contingency Loss OP 4 After Voltage Reduction & Prior to

Shedding Firm Load

BASIS FOR PAYMENTS

Performance Based - (Actual Interruption)

Reserve Payment at TMOR Clearing Price Capable & Willing to Respond to ISO

Order to Interrupt < 30 MinutesInterruption Paid at ECP

NEW TYPE 6 INTERRUPTIBLE LOAD

Uses Internet Based CommunicationTelemetering Not RequiredGrouped in Settlement by Participant and

AreaReceives ECP For Interrupted EnergyCLASS 1 - ISO Controlled For 2nd

Contingency CoverageCLASS 2 - Purely Price Responsive

Interruptible Load

TYPE 6 INTERRUPTIBLE LOAD - CLASS 1

Willing And Capable Of Interruption Within 30 Minutes

Interrupted For Second Contingency Coverage

Receives ICAP Credit

TYPE 6 - CLASS 1 (Cont.)

Interruption Could Last Up To 2 Hours (2nd Contingency Coverage)

Interrupted In OP-4 After Voltage Reduction & Before Firm Load

Receives TMOR Clearing Price When Available To Provide Reserves

TYPE 6 INTERRUPTIBLE LOAD - CLASS 2

Willing To Curtail Load Based Upon ECP

Response Is Purely Voluntary

VERIFICATION / AUDITING

Type 6 - Class 1 Compare actual interruption with

contract amount ICAP Credit = Response If response of 0 would forfeit TMOR

payments back to beginning of monthType 6 - Class 2

None

ELIGIBILITY

No Unit Presently Modeled In The EMS

Type 4 Dispatchable Loads (only 2 in system)

Must Have Interval MeteringMust Use ISO Certified Internet

Based Communication Supplier

ELIBIGIBILITY (Cont.)

For Class 1 - Must Be Capable of Interruption Within 30 Minutes of Request

Can Be Generation Brought On-Line or Load Reduction

Eligibility Very Similar To Summer 2000 Load Response Program

Any Customer in New England Capable of at Least 100 Kw/hour Interruption

Asset Id # 1701

Standard Offer Load

Proposed Changes - Step 1

Participant A

Participant B

Participant C

50 % 20%

30 %

Before Interruption:Hour 1400ECP = $80Load for Asset 1701 1000 Mwh

Part. B signs upLoad for interruption 100 Mw @ ECP > $75

Part. C signs upLoad for interruption 100 Mw@ ECP > $100

-450 Mwh-270 Mwh

-180 Mwh

-900 Mwh

Asset # 1705

Interrupt Load B

Asset # 1706

Interrupt Load C

+100 Mwh

+0 Mwh

Asset Id # 1701

Standard Offer Load

Proposed Changes - Step 2

Participant A

Participant B

Participant C

50 % 20%

30 %

-500 Mwh-300 Mwh

-200 Mwh

-900 Mwh

Asset # 1705

Interrupt Load B

Asset # 1706

Interrupt Load C

+100 Mwh

+0 Mwh

Meter Reader involvement in data incorporation of 1705 & 1706

Participant B -300 Mwh (1701)

+100 Mwh (1705)

-200 Mwh

-100 Mwh

1705& 1706Before Interruption:Hour 1400ECP = $80Load for Asset 1701 1000 Mwh

Part. B signs upLoad for interruption 100 Mw @ ECP > $75

Part. C signs upLoad for interruption 100 Mw@ ECP > $100

SETTLEMENT TREATMENT

Meter Readers Would Provide Information on Load Asset Association

Interrupted Load Would Act As an Energy Resource

ISO Would Read Interrupt Data For Settlement

Interrupted Load Calculated By Internet Based Software

Retx Load Management Dispatcher

Retx.com Network Price

Usage

Dispatch

Reconcile

Enabler

Usage

Dispatch

Prices

Usage

Dispatch

Market Price Agent

• Retx develops price interface to market price source(s)for monitoring by the Load Serving Entity and System Operator

Prices are

updated based on

the market

Retx LMD

Threshold prices defined and monitored by the LSE

Based upon contract with customer

Settlements completed daily by Retx based upon

price,contract and amount curtailed

Threshold and Reconciliation Calculations

Retx LMD

Data Gathering

Usage information is gathered

from the facility and hosted on the

LMD site for monitoring by the

facility, the LSE and the

System Operator