SUE OUR NEXT PRESENTER IS NIVAD NAVID FROM MISO. HE WILL BE TALKING ABOUT MULTIFACETED SOLUTION FOR MANAGING FLEXIBILITY WITH HIGH PENETRATION OF RENEWABLE RESOURCES.

GOOD MORNING. THANK YOU VERY MUCH. ONE THING THAT I HAVE IS -- .

ALL RIGHT, THANK YOU VERY MUCH. [APPLAUSE]

JUST A COUPLE OF ANNOUNCEMENTS I NEGLECTED TO MEET BEFORE WE STARTED. IN CASE ANNUITY STARTED, WE HAVE A THREE AND THREE, WHICH, IF ANYONE HAS ANY UPDATES TO THEIR PRESENTATION, TAKE IT TO THE PERSON IN THAT ROOM AND THEY CAN DO THAT HERE AND IF YOU HAVE ANY DISCUSSIONS, PLEASE BRING IT IN THEIR. SO OUR NEXT PRESENTER IS NIVAD NAVID FROM MISO. HE WILL BE TALKING ABOUT MULTIFACETED SOLUTIONS FOR MANAGING FOLKS ABILITY WITH HIGH PENETRATION OF RENEWABLE RESOURCES -- MANAGING FLEXIBILITY WITH HIGH PENETRATION OF RENEWABLE RESOURCES.

GOOD MORNING. THANK YOU. ONE THING THAT I HAVE IS I BELIEVE THAT MY COLLEAGUES -- BUT WE ARE TRYING TO ADAPT. [LAUGHTER] I KNOW THAT THE FOCUS OF THIS DISCUSSION IS [INDISCERNIBLE] BUT I WILL TALK ABOUT SOMETHING HERE AT MY SO -- AT MISO. MY FOCUS WILL NOT BE CORRELATIONS. ONE IS FROM THE OPERATIONAL ASPECT AND THE OTHER IS FROM THE TOP. I HOPE IT SATISFIES MARKS QUESTION. WE WILL GO OVER PRODUCTION COSTS . SO LET'S TALK ABOUT WHERE WE ARE AT THIS TIME. I GIVE YOU THESE NUMBERS [INDISCERNIBLE] LAST YEAR, THIS YEAR, 10,000, AROUND THERE -- 40% -- WITHIN THIS CONTEXT, FIRST OF ALL, WOULD IMPACT DOES THIS HAVE [INDISCERNIBLE] LET'S TALK ABOUT REVOLUTION. YOU'RE TELLING ME ABOUT THE LOWEST -- OPERATED UNDER, WITHIN THE 300-500 MEGAWATTS. THE VARIABILITY OF THE WIND, EVEN WITH EACH GENERATION -- YOU HAVE 2000 MEGAWATTS -- IF YOU HAVE OVER 2000 MEGAWATTS, YOU WILL -- OTHERWISE, --[INDISCERNIBLE] AND NO IMPACT ON THE [INDISCERNIBLE] IF YOU WANT TO SEE SOME OF THE ITEMS, YOU HAVE TO HAVE 6000 TO 7000 MEGAWATT IN ABOUT AN EIGHT- HOUR TIMESLOT. AT THE SAME TIME, WE HAVE FORUR 2000 MEGAWATTS AND WE WANT TO -- THERE IS NO NEED TO INCREASE THE RESERVES, THE CONVENTIONAL RESERVES AS WELL. THIS IS NOT THE GENERALLY ACCEPTED IDEA OF HOW IT OPERATES. WHAT HAPPENED TO THE COST OF IT? OUR PROBLEM -- YOU CANNOT PREDICT -- INSIDE THE MARKET, OUTSIDE THE MARKET, PICKING UP CAPACITY, IT IS ALREADY THERE. BUT IT IS WORTH GUARANTEEING --BUT WHAT WE ARE GOING TO TALK ABOUT IS HOW TO MONETIZE AND BRING THIS UNDER THE UMBRELLA OF MARKET TRANSPARENCE AND KEEP COSTS LOW. BEFORE THEY HAPPEN. YOUR TREATING -- AS THE 99% -- THAT HAS THE SAME OBLIGATION. ANY OPPORTUNITIES THAT WE HAVE -- WE TAKE AT THIS IDEA THAT WE NEED TO KEEP THESE RENEWABLES AS A WIND RESOURCE. NATURALLY, WE WILL PICK THEM UP BECAUSE THEY ARE THE WORST ITERATION -- 95% OF THE TIME, WE ARE -- -- THE TRANSMISSION IS NOT THERE. THE REST IS A LIMITED DIR. OTHER PROBLEMS, BUT WE HAVE TO -- RESOURCES. THIS IS ONE OF THE EARLY VERSIONS OF THE DIR. IN THESE FIVE MINUTES -- WE SELL PART OF THE PROBLEM -- EXACTLY WHAT WE HAVE, BUT ALL THE SIGNALS THROUGH THE MARKETPLACE RATHER THAN MANUALLY -- SO WHAT HAS HAPPENED? IF WE DON'T DO ANYTHING -- COMPARED TO THE CONDITIONS, TO THE PRICING -- WHEN IT IS A SHORTENED ITERATION [INDISCERNIBLE] IT COMES AND GOES AND NO ONE CAN REACT. THE AND WE CHOSE [INDISCERNIBLE] THE PRODUCT WE ARE TALKING ABOUT HERE, WE WANT TO PRESERVE [INDISCERNIBLE] HOW WE WANT TO PAY FOR IT? -- BASED ON THE OPPORTUNITY CLAUSE OR BASED ON THE [INDISCERNIBLE] THIS IS THE CHAIN OF COMMAND. WE ARE STILL UPDATING ALL OF THESE. IT IS NOT A BINDING MARKET CAN IS JUST ADJUSTING COMMITMENTS GROWTH. WHAT WE HAVE RIGHT NOW [INDISCERNIBLE] WHAT HE WANTS TO DO IS MAKE SURE THAT, WHEN I AM MOVING FROM HERE TO HERE, DOWN THE ROAD, 10 MINUTES DOWN THE ROAD, WE ARE MAKING THE NEXT 10 MINUTES MOVE WITH THE UNCERTAINTY. HERE, WE ARE SAYING THAT WE MOVE FROM HERE TO HERE. YOU ARE MAKING THE NEXT MOVE HERE. YOU WILL UPDATE EVERY FIVE MINUTES OR SO. CRISIS [INDISCERNIBLE] -- PRICES [INDISCERNIBLE] ANYONE WHO HAS -- THIS PART OF THE RATE. THERE'S NO AVAILABILITY TO OFFER AND NO [INDISCERNIBLE] NEXT WE HAVE THE SIMULATION RESULTS WITH THE REQUIREMENTS AND DATA. WE WANTED TO LOOK AT WHAT IS THE COST OF THIS [INDISCERNIBLE] DO WE WANT TO MAXIMIZE THE PRODUCTION? THE COST OF THE -- 80% OF THE TIME, YOU CAN REDUCE THOSE PRICE STEPS. WE HAVE DONE SOME -- HOW DO YOU CALL IT -- [INDISCERNIBLE] SOME NUMBERS HERE -- THERE ARE TWO DIFFERENT PERIODS. DURING THE SPIKE PERIOD AND A NON-SPIKE PERIOD. WE LOOK AT THESE AND LOOK AT THE NUMBER AND THEN TRY TO AGGREGATE THIS NUMBER AND COME UP WITH THE CRUCIAL NUMBER OF WHAT IS THE ACTUAL -- NINEAND HAVE A DIFFERENT COMMITMENT THAT PROVIDES YOU MORE FOLKS ABILITY WITH THE REAL-TIME VIEW AND ALMOST ANOTHER MILLION DOLLARS. 4 MILLION TO 5 MILLION ANNUALLY, YOU CAN HAVE [INDISCERNIBLE] 90% OF THE TIME, WE HAD -- CAPACITY. PRACTICALLY, WHAT WE ARE SEEING HERE IS WE COULD OPERATE THE SYSTEM [INDISCERNIBLE] BUT BY ADDING THIS -- ANYTHING THAT BREAKS EVEN WAS FAIR ENOUGH FOR US. BECAUSE WE'RE GETTING REDUCTION [INDISCERNIBLE] IF YOU WANT TO LOOK AT THESE NUMBERS, IT IS OVER 5% ANNUALLY. WE ARE PAYING FOR EVERYTHING AND REDUCING THE [INDISCERNIBLE] WE TRIED TO MONETIZE MANY OF THE ACTIONS THAT ARE OPERATED AND UP. AND THEN WE DID IT CONVENTIONALLY. WE HAVE OTHER STUDIES TRYING TO SOLVE THE PROBLEM -- PRACTICALLY, IT WAS MUCH MORE EXPENSIVE COMPARED TO THE OTHER [INDISCERNIBLE] AND ONE GOOD REASON FOR IT, THE AVAILABILITY OF THE -- THAT IS ONE VERY GOOD REASON FOR THAT. I DON'T WANT TO TALK ABOUT THIS RIGHT NOW. HE WAS TALKING ABOUT THE SMART GRID AND IT IS A GOOD IDEA. IT IS A COMBINATION OF THE SMART OPERATIONS, SMART MARKET REMOVAL AND ADDING THE MAIN CRITERIA. AT THE SAME TIME [INDISCERNIBLE] THANK YOU. [APPLAUSE] [APPLAUSE]

I HAVE A QUESTION REGARDING THE ANCHOR. WHAT CONSIDERATIONS WHEN INTO FINDING OUT?

GRADE-POINT. THE FIRST THING I FOUND OUT WAS IT IT SHOULD BE CHEAPER. IF YOU LOOK AT THE BACK OF THE PRODUCT, IT CONTINUES TO GO TO THE LOWEST. DEFINE THE [INDISCERNIBLE]

THE REQUIREMENT OF THE FLEXIBILITY, HOW MUCH RENT IS NEEDED -- HOW MUCH RAMP IS NEEDED? [INDISCERNIBLE]

I WOULD LIKE TO DEFER. EVERY FIVE MINUTES, YOU'RE UPDATING. YOU ARE INCLUDING THE LOAD [INDISCERNIBLE] AS FOR VIABILITY, YOU HAVE ALL OF THESE FORECASTS. IT IS DRIVEN BY THREE ELEMENTS. I THINK THOSE TOGETHER ARE -- EVERY PART WILL UPDATE. THE AVERAGE OF THIS OVER THE OUR, PROJECTION WILL BE [INDISCERNIBLE] ANYTHING THAT SEEMS ACTIVE -- THIS IS THE SAME PART. IT PRACTICALLY --

[INDISCERNIBLE]

THE ONLY VALUE OF THOSE --

WHEN YOU'RE TRYING TO [INDISCERNIBLE]

OK. YES. YOU ARE --

AND WHEN YOU TRY TO COMMIT THE UNIT [INDISCERNIBLE]

IF YOU LOOK AT THE CHAIN OF COMMAND HERE, YOU'RE TAKING THE PRESCRIPTION OF THE REQUIREMENTS . YOU MAKE SURE AS MUCH AS POSSIBLE -- NINE BASED ON THE INTERVALS THAT THEY HAVE.

WE HAD JUST A COUPLE OF MINUTES TO TAKE A FEW MORE QUESTIONS.

I THINK THAT THIS WORK IS CRITICAL. I WOULD ADD TO YOUR LIST OF BENEFITS BETTER PRICING. THERE IS AN UNDERAPPRECIATED VALUE. I HAVE TWO QUESTIONS ABOUT MARKET DESIGN. I THINK YOU MAY HAVE ADDRESSED TO THE FIRST ONE IN YOUR LATTER SLIDE. WHEN YOU PAY THE FLIP HEADER -- ARE YOU PAYING THEM A MARGINAL PRICE?

IF YOU ARE NOT MARGINAL, WITH THESE PRODUCTS, YOU ARE ACTUALLY GOING TO RECEIVE HIGHER THAN YOUR OPPORTUNITY COST. AVOID NOT NEEDING THE RAMP.

THE SECOND QUESTION I HAD WAS DID YOU STUDY THE IMPACT ON HOW THE GENERATOR REVENUE HAS CHANGED?

ON THE GENERATION SIDE, ACTUALLY, YES. THE IMPACT IS THERE. IT IS HAPPENING RANDOMLY AND SHORT PERIODS AND NOT REACTING. THIS IS NOT A GOOD MARKET SIGNAL. YOU WANTED TO REDUCE THAT SOURCE AND HAVE MORE TO ADD TO THE SYSTEM, TO THE MARKET AS WELL, HAVING PRICE SIGNALS. PART OF THE RISK FACTOR FOR IS THE COST.

ONE MORE.

IT LOOKS LIKE, WHEN YOU PUMP IN THE TUNNEL, IT IS VERY SIMILAR TO THE INJECTOR CAPACITY.

IT IS THE RAMP THAT HAS TO BE --

I WANT TO MAKE SURE -- WHEN PEOPLE ARE PROVIDING THE CAPACITY, EVERYBODY GETS PAID THE HIGHEST OPPORTUNITY COST?

THE CLEAR PRICE, YES.

OK.

I HAVE TO ADD ONE THING. -- I HAVE TO MAKE ONE THING CLEAR. THIS IS THE FLEXIBILITY SYSTEM.

ALL RIGHT. WE ARE OUT OF TIME. THANK YOU VERY MUCH. [APPLAUSE]