M A T L FAQ Document No. Version No. N/A 1.2 Effective Date MATL COD Distribution Restriction: MATL OASIS Frequently Asked Questions 1. What are the energy loss zones and line loss factor of Path 83 MATL line? The Alberta portion of the MATL System is in the Balancing Authority Area of Alberta Electric System Operator (AESO) and the Montana portion of the MATL System is in the Balancing Authority Area of Northwestern Energy (NWE). The Canada/US border is the boundary between the two aforementioned Balancing Authorities. As depicted in Figure 1 below, losses on the Montana portion of Path 83 MATL line are assigned a fixed percentage of 0.5% for the section from Canada/US border to Hay Lake switching station and 4.5% for the section between Hay Lake and Great Falls substation. Line losses for monetary settlement on the Alberta portion of the Path 83 MATL line are determined in accordance with AESO’s Rules and Tariff. MATL 120S AESO’s Procedure POR/POD: AB.MT.MATL Canada/US Border 0.5% POR/POD: WWA POD: MATL.WWA Hay Lake RimRock 4.5% Legend AESO BA NWE BA POR/POD: MATL.NWMT Great Falls Figure 1: Energy loss zones and line loss factor of Path 83 MATL line Page 1 of 4 M A T L FAQ Document No. Version No. N/A 1.2 Effective Date MATL COD Frequently Asked Questions Distribution Restriction: MATL OASIS 2. How are line losses calculated for schedules with a source of Wind Watch Balancing Authority (WWA BA) to flow energy into Alberta? Montana energy loss factor payment will be calculated at 0.5% of the parent e-tag energy schedule rounded up to the nearest whole MW value; whereas energy losses over the Alberta portion of the MATL system will be determined by the AESO for monetary settlement in accordance with the AESO’s Rules and Tariff. This is further illustrated in Table 1 for a scenario where WWA BA schedules 150 MW of energy into the Alberta market. Table 1: WWA to AB.MT.MATL Scenario Scheduled Energy 150 MW POR WWA POD AB.MT.MATL Energy Loss - MT 1 MW Energy Loss - AB AESO’s Rules and Tariff 3. How are line losses calculated for schedules with a source of Wind Watch Balancing Authority (WWA BA) to flow energy into or across NorthWestern Energy’s (NWE) system? Montana energy loss factor payment will be calculated at 4.5% of the parent e-tag energy schedule rounded up to the nearest whole MW value. This is further illustrated in Table 2 for a scenario where WWA BA schedules 150 MW of energy into NWE’s system. Table 2: WWA to MATL.NWMT Scenario Scheduled Energy 150 MW POR WWA POD MATL.NWMT Energy Loss - MT 7 MW Energy Loss - AB N/A Page 2 of 4 M A T L FAQ Frequently Asked Questions Document No. Version No. N/A 1.2 Effective Date MATL COD Distribution Restriction: MATL OASIS A transmission customer will also be responsible for additional loss payments to NWE in accordance with their tariff if the energy is further scheduled to flow into or across NWE’s system. 4. How are line losses calculated for schedules to flow energy northbound from NWE’s system into Alberta by utilizing the entire Path 83 MATL line? Montana energy loss factor payment will be calculated at 5% of the parent e-tag energy schedule rounded up to the nearest whole MW value; whereas energy losses over the Alberta portion of the MATL system will be determined by the AESO for monetary settlement in accordance with the AESO’s Rules and Tariff. This is further illustrated in Table 3 for a scenario where 250 MW of energy is scheduled to flow northbound by utilizing the entire Path 83 MATL line. Table 3: MATL.NWMT to AB.MT.MATL Scenario Scheduled Energy 250 MW POR MATL.NWMT POD AB.MT.MATL Energy Loss - MT 13 MW Energy Loss – AB AESO’s Rules and Tariff A transmission customer will also be responsible for additional loss payments to NWE in accordance with their tariff if the energy is scheduled to flow across or from a source within NWE’s system. 5. How are line losses calculated for schedules to flow energy southbound from the Alberta market across or into NWE’s system by utilizing the entire Path 83 MATL line? Montana energy loss factor payment will be calculated at 5% of the parent e-tag energy schedule rounded up to the nearest whole MW value; whereas energy losses over the Alberta portion of the MATL system will be determined by the AESO for monetary settlement in accordance with the AESO’s Rules and Tariff. This is further illustrated in Table 4 for a scenario where 250 MW of energy is scheduled to flow southbound by utilizing the entire Path 83 MATL line. Page 3 of 4 M A T L FAQ Document No. Version No. N/A 1.2 Effective Date MATL COD Frequently Asked Questions Distribution Restriction: MATL OASIS Table 4: AB.MT.MATL to MATL.NWMT Scenario Scheduled Energy 250 MW POR AB.MT.MATL POD MATL.NWMT Energy Loss - MT 13 MW Energy Loss - AB AESO’s Rules and Tariff A transmission customer will also be responsible for additional loss payments to NWE in accordance with their tariff if the energy is further scheduled to flow across or into NWE’s system. 6. Does MATL have a business practice for implementing 15-minute scheduling per FERC Order 764? Hour-to-hour and intra-hour (four intervals consisting of fifteen minute schedules) schedules will be accepted provided that the Delivering Party and Receiving Party also agree to the schedule modification. Scheduling changes will be permitted up to twenty (20) minutes before the start of the next scheduling interval. MATL as the Transmission Service Provider only validates a schedule based on the transmission parameters of: 1) Valid confirmed transmission, 2) tagging party has rights to schedule the TSR, 3) schedule POR/POD match the TSR and 4) there is sufficient transmission left for the energy schedule. All other validations are BA validations that MATL has no control of. 7. Identify the list of MATL’s current PORs and PODs? The valid list of PORs and PODs on the MATL Transmission System is as follows: Provider: Point Name: POR: POD: Allowed Uses MATL AB.MT.MATL Yes Yes Transmission service requests, tagging and scheduling MATL WWA Yes Yes For tagging and scheduling only MATL MATL.WWA No Yes For scheduling loss deliveries only MATL MATL.NWMT Yes Yes Transmission service requests, tagging and scheduling Page 4 of 4