ENERGY IN FOCUS. Insight.Insight.YOUR SOURCE FOR THE LATEST NEWS AND MORE FROM PCI SUMMER 2016

When it comes to generation supply management solutions, PCI keeps your energy in focus.

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301 David L. Boren Boulevard | Suite 2000 | Norman, OK 73072 | 405.447.6933ENERGY IN FOCUS.

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PCI WebinarsPCI actively conducts webinars throughout the year that address specific topics and product capabilities that are important to both ISO and non-ISO market participants. Our webinar schedule so far this year has been busy with more sessions coming in 2016.

Upcoming Webinars:July 14 @ 1:00 p.m. CT: The Impact of 5-Minute Settlement on Profit & Loss AnalysisJuly 28 @ 1:00 p.m. CT: PCI Real Time Pricing Application Overview, Date TBD: PCI GenTrader Pumped Storage Hydro Model OverviewDate TBD: PCI ETRM Overview

Recently Completed Webinars:March 17, 2016: PCI “Straight-Through-Scheduling” Overview May 26, 2016: PCI Energy Accounting & 5-minute Settlements Contact us to sign-up for upcoming webinars, to obtain presentation materials from past webinars or to submit ideas for webinars that would benefit your team.

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January 26, 2016 – Norman, OK Power Costs Inc. (PCI) announced that Instituto de Investigaciones Eléctricas (IIE) has selected PCI’s state-of-the-art platform for implementing the new wholesale energy market solution for Comisión Federal de Electricidad – Subdirección De Generación (CFE-SDG), the largest power generation company in Mexico. PCI is implementing its comprehensive GenManager solution to assist CFE with market readiness and is getting ready to go-live with commencement of Day-Ahead and Real-Time Market Settlements to be run by Centro Nacional de Control de Energía (CENACE).

PCI selected by Comisión Federal de Electricidad (CFE), the largest power generation company in Mexico’s new Mercado Electrico Mayorista (MEM).

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January 07, 2016 – Norman, OK Power Costs, Inc. (PCI) announced its engagement with several entities in Mexico to help optimize their participation in the upcoming Wholesale Electricity Market. PCI is implementing its state-of-the-art ‘GenManager-MEM’ platform for clients to participate in the market simulation and testing currently underway with the CENACE.

December 15, 2015 – Norman, OK NV Energy is now participating in the California ISO (CAISO) Energy Imbalance Market (EIM) using the complete bid-to-bill platform from Power Costs, Inc. (PCI). NV Energy is using PCI software for all marketing and trading related functions associated with CAISO EIM communications, outage management, GHG tracking, analytics and settlement.

PCI on the Move in Mexico: Optimizing Participation for Several Companies in the New Wholesale Electricity Market, Mercado Eléctrico Mayorista (MEM).

NV Energy Entered California ISO Energy Imbalance Market with Bid-to-Bill Solution from PCI.

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The second annual PCI “Code-a-thon” has been another rousing success! PCI introduced this internal event in 2015 and, though this is only our second competition, it has again produced fantastic ideas and really creative work. Unlike last year, which was focused on the GSMS GUI, the sky was the limit for 2016 and PCI employees took full advantage.

This year’s Code-a-thon spanned 48-hours with more than 50 people participating. There was a big kick-off event Wednesday, March 30th at noon and the entire event ended with project presentations on Friday, April 1st at noon. The nine teams worked tirelessly over the two days, eating and sleeping when and where they could in multiple PCI offices from Norman, Oklahoma to Raleigh, North Carolina as well as several other remote office locations. Teams chose names and also designed a flag that would be displayed in their work area.

Chief among the many goals of the 2016 Code-a-thon was to:

A. Bring employees together and stimulate new interactions – not just among software developers. People with different skillsets, interests and from other disciplines within PCI drove the productivity of each teams to the limit.

B. Move some of the best team ideas and concepts into production. An emphasis was put on creating well-crafted, pre-event plans to help ensure the best project outcomes and that many of them could be implemented as part of PCI’s everyday work. Teams filled out planning forms, project charters and discussed follow-up before and after the explosion of creativity over the two days.

The three judges for the 2016 Code-a-thon followed a rubric measuring the impact, innovation and technical achievement of each project. The panel included:

Dr. JR Cruz Director of Electrical and Computer Engineering (University of Oklahoma)

Dr. Dean Hougen Professor, Computer Science (University of Oklahoma)

Jeff Bowman Sr. Mule ESB Developer at Appnovation

Final presentations were quite remarkable and inspiring with each team showing tremendous problem-solving ability. The scope of the various projects ranged greatly from creating a DevTool platform for automating developer processes to integrating material design concepts into PCI’s GenPortal dashboard.

The top three teams of the competition included:

THE WINNER!

“Team Killer Dashboard” which created material designs for the main dashboard screens.

Members included: Luigi Polvani, Prachi Chaudari, Ali Valero, Yu Fu, Suiyi and Julie Rogers.

RUNNERS-UP

“Team Gradilizationification” and their use of integrating Gradle into PCI’s build process.

Members included: Mitch Mattek, James Haddock, Justin Thomas and Zhaowen Xing.

“Team Lambda Lambda Lambda, Adams College Chapter” and their incorporation of Lambda functions within

Amazon Web Services (AWS).Members included: Lee Rackley, Jacques, Krishna Reddy Gade,

Mike McTee, Daniel Hein and Nate Finucane.

HONORABLE MENTION

“Your GOTU Solution” for creating functionality for archiving, auditing and project delivery.

Members included: David Matejka, Peng Tang, James Coker and Vinay Singh.

Overall, PCI’s 2016 Code-a-thon was a smash and created significant buzz around new tools, integrations and processes that invigorated not only the participants, but all employees at PCI. And, as is the case with every Code-a-thon, we anticipate that several project outcomes will end up benefiting our valued clients.

PCI’s 2016 “Code-a-thon” a Great Success. And the winner is…

PCI Market Education Workshops.Since 2007, PCI has conducted a variety of ISO/RTO market workshops in conjunction with our partner EUCI. PCI also develops custom workshops and agendas for individual companies that want to train and better enable staff members to expand their knowledge and positively impact operations and profitability. Today, PCI is recognized as one of the most authoritative, credible and qualified educators on a diverse array of topics associated with participation in energy markets.

PCI conducts various seminars focused on multiple ISO/RTO markets:

• Preparing for market go-live• Developing energy and ancillary services bidding strategies to maximize

the asset values in LMP markets• Managing bid-to-bill workflows• Understanding and validating settlement charges• Using settlement results to improve bidding strategy effectiveness• Advanced bidding and settlement• Portfolio optimization and risk management

Workshops Currently Scheduled

EUCI Workshop: “Lessons Learned for Operating Genco Assets in CAISO EIM Market” Date: August 24-25, 2016Location: Anaheim, California

PJM Market Settlements

Date: Q4, 2016Location: TBD

VIEW 2016 TRAINING CALENDAR

Product TrainingPCI conducts basic and advanced, hands-on product training at a state-of-the-art facility in our Norman, OK headquarters.

Upcoming training sessions include:

June 20 – 23 PCI Data Warehouse Training Class

August 8-11 PCI GSMS Training Class – Administration

September 13-15 PCI GenTrader Standard Training

The full 2016 training calendar is now available on the PCI website.

PCI Contract Settlements Solution.

PCI’s Contract Settlements allows buyers and sellers to automate the settlement and billing process for complex bilateral contracts, such us Power Purchase Agreements (PPA) or Tolling agreements. Some of the key features of PCI Contract Settlements are:

• Multiple charge code calculations on a single contract. Calculations may include:

- Varying commodities (energy, capacity, ancillary services, natural gas, RECs, fuels)

- Debits and credits- Contract specific or common calculations- Time varying parameters or tariffs

• Use any data source as inputs to the calculations; e.g., meters, deals, prices, unit characteristics, tags, schedules, fuel burn, transmission and transportation data, etc.

• Calculation engine combines the data with the calculations to determine the contract totals and details

• Support for invoice workflows that can produce and send invoices of varying formats (PDF, CSV, XML), as well as keeping track of payments

• Automatic calculation of incremental values between different settlement runs

• Compatibility with PCI’s standard product invoicing, credit, risk, and reporting modules

PCI’s Contract Settlements offers several key benefits to users:• Reduces the amount of time and manual work

necessary to complete billing, invoicing and shadow settlement of bilateral contracts

• Compliance with auditing needs, including role-based permissions, locking of data and version control for resettlements

• Flexibility and scalability to configure new contracts and modify business rules

The following is a typical workflow that can be automated using PCI’s Contract Settlements module:

What you need to know.

Reporting

Static Contract Data

Dynamic Contract Data

Meter Data

Prices

Price Period Adjustments

External System Data

Invoices (PDF, SML, CSV)

Invoices (PDF, SML, CSV)

CONTRACT TYPE CONFIGURATION

Counterparty A

Counterparty B

PCI Supports Faster Gas-Electric Coordination.

Industry ConferencesPCI staff will be present at the following industry conferences:

JUNE 21-23

MISO Annual Stakeholders Meeting

MGM Grand Hotel Detroit, Michigan

JULY 26-27

Mid-C Conference Wenatchee Coast Hotel Wenatchee, Washington

SEPTEMBER 7-8

CAISO Stakeholder Symposium - Technology Showcase

MGM Grand Hotel Detroit, Michigan

SEPTEMBER 11-14

2016 EMMOS Conference Hilton Resort & Villas Scottsdale, Arizona

OCTOBER 5-7

NAEMA 2016 Fall Conference Hyatt Regency Hotel Bloomington, Minnesota

FERC issued a Final Rule in Order No. 809 on April 16, 2015, concerning the Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities. April 1, 2016 was the implementation deadline to support the X12 based EDI standard from NAESB’s Wholesale Gas Quadrant; the standard commonly referred to as NAESB 3.0.

“PCI supported the upgrade from 1.9/2.0 to NAESB 3.0 and was successful in transitioning all customers over to the new standard by the implementation deadline,” says David Nilsson, VP of Solutions.

NAESB 3.0 includes standards for nomination, confirmation, flowing gas, storage, capacity release, metering, and allocation of gas between Interstate Pipelines and their customers; shippers, operators, agents, marketers and other entities.

Highlights of FERC Order No. 809/NAESB 3.0 included:

• No change to the start of the gas day, retaining the 9 a.m. Central Clock Time (CCT) start time

• Moving the nomination deadline for the Timely (TIM) cycle from 11:30 a.m. to 1 p.m. CCT to better align with ISO bidding timelines (that also have moved)

• Addition of an Intraday 3 (ID3) nomination cycle

PCI’s implementation of NAESB 3.0 for generators allows participants to better coordinate the tight electric and gas timelines using a consistent workflow that provides faster and better insights to the gas-electric harmonization process. The increase of Intermittent Renewables (solar and wind) is a major driver of faster scheduling with the need to use gas resources to support and compliment them. Using PCI’s integrated approach, it is possible to accomplish superior gas-electric coordination from both sides. The gas side can use various types of storage, deals, nominations and schedules to adjust the gas position, while the electric side can use ISO bidding strategies and analytics together with unit commitment/economic dispatch decisions to adjust energy and ancillary services bidding and self-scheduling to optimize the coordination.

PCI not only supports the current environment, but is already prepared to support the proposed changes to more granular (hourly) as well as daily scheduling of gas.

PCI NAESB 3.0 also supports retail gas entities - the shippers, marketers, and city gate operators - to better track the end-to-end process starting from a marketer to a shipper, to the city gate, all the way down to the customer meter. This increased visibility is accomplished by using the NAESB standard together with innovative methods for combining data to provide more in-depth analysis and billing.

PCI Gas Management Solutions not only include the NAESB connectivity, but complete end-to-end functionality including:

• Gas deal capture with interfaces to ICE and NYMEX• Bilateral confirmation and settlement• Analytics and data warehousing

FERC 809/NAESB 3.0 Highlights.

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Meet PCI’s Transmission Systems Group!PCI has a large and growing commitment to developing and delivering software solutions for Energy Accounting, Transmission Settlements and the evolving back office requirements in CAISO’s Energy Imbalance Market. This team of dedicated professionals oversees all product and release management, project deployments and support for PCI’s customers.

We are committed to providing you timely information and always welcome your feedback. If there is a topic of interest you have in mind, please contact us.

Power Costs, Inc. (PCI) is the leading provider of generation supply management and optimization software to energy focused companies.

Energy in Focus.

Julie Rogers James Coker Sabrina Jiang Mike Taylor

Yang Lu Suiyi Su Lei Tian Luigi Polvani

Praveen Allaka Prachi Chaudhari Yu Fu Justin Thomas

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2016 PCI In Focus Conference is in the Books!

Sunny Scottsdale, Arizona was the venue for the annual 2016 PCI In Focus Customer Conference that was held over April 17-21. Driven by continued customer commitment and a super-charged level of enthusiasm, this year’s event attained new highs, not only smashing the previous attendance record, but also setting new standards for content quality and the educational value provided to PCI’s clients.

With a wide range of topics being covered, conference participants were able to learn about different facets of PCI’s entire solutions platform and share their experiences using specific solutions that optimize their companies’ participation in all North American energy markets. Some major highlights of In Focus 2016 included:

• Extended duration of the conference to four full days to accommodate PCI’s expanding software solutions in existing and new markets

• Participation from several new PCI clients that have come aboard since In Focus 2015

• Participation by senior staff from all U.S. ISOs, as well as Mexico’s Department of Energy

• The popular “Drinks & Demos” event that is always such an incredible conclave for sharing ideas and feedback – this year poolside in perfect Scottsdale weather!

• Expanded & in-depth training sessions for both IT and business users

As always, the success of In Focus 2016 was made possible by PCI’s customers like you who, along with PCI’s staff, keep raising the bar each year. We sincerely thank you for your attendance and passionate participation! Next year, we hope to see the same group that assembled in the desert this year, as well as other valued clients who were not able to make the trip. Planning for In Focus 2017 has already begun so stay tuned for updates on dates and conference location.

Until next time, we would like to leave you with a few of the memorable quotes from our 2016 client attendees:

This year was incredibly AWESOME! I loved having the extra half day added because it allowed me to attend some sessions I previously would miss because I can’t be in more than one place at a time. I feel that the “theme” idea each year is so well thought out and does an incredible job at breaking the ice and getting people relaxed and talking to each other. The food choices this year were absolutely wonderful and the venue was astounding. Very, very cool!

– Ed Bemis, OUC

My favorite thing about PCI In Focus? The attendees and their willingness to talk about their experiences in the industry and their interaction with PCI. That includes the presentations, and the time provided in the conference to meet other attendees. I also really enjoyed meeting the PCI staff.

– Curt Wenke, Grant County PUD

I was impressed with the high caliber of all the PCI employees as well as the presenters during the conference. I really appreciate all the hard work, high energy and dedication by PCI staff in making it a successful conference. You selected a good hotel and a good location and made sure we were all comfortable throughout the conference. You were very creative in selecting excellent topics to cover during the conference. I gained valuable knowledge and insights attending your conference. I give your conference a very high rating. Thank you.

– Sachi Bengur, Puget Sound Energy