1. Duke Energy Carolinas Quarterly Stakeholder Meeting Independent Entity Services Thursday, September 15, 2011 2:00 to 3:00 p.m. EDT 3 rd Quarter 2011 1

2. Agenda  Follow-up to Action Items  OASIS Training  NAESB Update - Wholesale Electric Quadrant  Wrap-up 2

3. Follow-up to Action Items Items from May 19, 2011 meeting to date  Duke was asked: 1.Provide the limiting element of each posted ATC value on OASIS 2.Consider changing the time that Duke releases unscheduled firm capacity to the non-firm ATC from 10:00 to 09:00 3.Model some fraction (less than100%) of total Firm reservations for DA model 4.Discuss ATC Values for monthly firm ATCs on import paths Requests spurred internal meetings, research & evaluation Our findings will be presented today. 3

4. Action Item Posting Limiting Elements of ATC Duke was asked to provide the limiting element of each posted ATC value on OASIS  Goal of the request is to provide additional information on ATC limits  At this time, current process will continue  We have created/posted a Flowgate Ownership Table Lists each flowgate #, owner, & name in the AFC process 4

5. Action Item Release of Unscheduled Firm Duke was asked to consider changing the time that unscheduled firm capacity is released to the non-firm ATC  Goal of the request is to increase the next-day non-firm ATC sooner  Current time is 10:00 EPT  Proposing changing time to 08:00 EPT One year trial period o early termination if reliability problems arise Does not change the firm scheduling deadline (10:00 EPT or as accommodated) Does not change the hourly non-firm timing lead time (12:00 EPT) 5

6. Action Items Model of Firm reservations for day ahead model Duke was asked to model some fraction (less than 100%) of total firm reservations for day ahead model  Goal of the request is to increase the next-day non-firm ATC sooner  At this time, current modeling will continue Creates reliability concerns Decreases market transparency Goal of creating more non-firm ATC can be accomplished by releasing unscheduled firm capacity to the non-firm market earlier (see previous slide) 6

7. Action Items Monthly Firm ATCs on Import Paths Duke was asked to investigate why ATC values “jumped around”  There were three months in question September 2011 – Outage related October 2011 – Outage related January 2012 – Limit has been historically seen in operations with the load forecast/gen dispatch in case Also seen in last years area interchange methodology Next-Day Studies 7

8. OASIS Training Rebid Rebid of Partial Service NAESB WEQ 001-4.10 FERC Order 676E requires the Transmission Provider to allow the Transmission Customer to negotiate Price and/or Capacity  Upon TP action to Accept or Counteroffer the Customer is allowed to Rebid Price and/or Capacity  Rebid of Price functionality was on OASIS soon after the Order was issued Duke does not enter into Price negotiations at this time Rebid Price will result an INVALID status  Rebid MW functionality was placed on OASIS just before April 1, 2011 Capacity can be rebid in a lesser amount than the COUNTEROFFER Status changes from COUNTEROFFER to REBID to ACCEPT to CONFIRMED or WITHDRAW follow the time limit as stated in Duke OASIS Business Practice 3.D. 8

9. OASIS Training Creating Rebid MW Customer Created TSR 70164013 for 250MW Counteroffer(MW Grant) is 102/200MW  Open TSR Click 9

10. OASIS Training Creating Rebid MW  Click on  Change the Value in the MW Req  Under New Status Choose REBID Customer Created TSR 70164017 for 250MW / Counteroffer (MW Grant) is 102/200MW 10

11. OASIS Training Rebid MW After submitting the REBID MW, the request will be returned with a status of REBID to the Transmission Provider The Transmission Provider will respond by moving the request to DECLINED, SUPERSEDED, ACCEPTED or COUNTEROFFER The Transmission Customer must acknowledge the Providers offer by moving the request to either CONFIRMED or WITHDRAWN (or if need be REBID again) All status changes must be done within the time limits as specified in Duke OASIS Business Practice 3.D. 11

12. OASIS Training webOASIS – Sys Data Summary ATC Postings The System Data Posting Summary display lists the System Elements that are to be posted to OASIS per the Standards & Communication Protocol version 1.5 (S&CP v1.5) System Data includes:Load ForecastActual Load TTCATC Narratives ATC related information Note: FATC or NFATC as shown on OASIS is updated anytime webTrans calculates a change in the Effective ATC for Firm or Non-Firm. On the OASIS Menu click to view FATC or NFATC System Data Summary UI screen will open Choose the Filter Criteria of interest such as: TP Attribute Element and Time click Enter 12

13. OASIS Training webOASIS – Sys Data Summary ATC Postings Based on filters from the query: 24hrs of Data is returned The lowest Value is what is available Daily Information found here should match what is posted for Offerings ATC Posting returned through SysData is a good point of reference Transmission Requests can be created from the SysData Summary 13

14. OASIS Training Create a TSR from SysData Summary ATC Postings Transmission Requests can be created from the SysData Summary 1.Click on Posting Ref 2.Click on 14

15. OASIS Training webOASIS – Sys Data ATC Portfolio As an alternative Users may access ATC info through Sys Data by use of the ATC Portfolio From the OASIS menu click on to view FATC or NFATC System Data Summary UI screen will pop up Click on the grey button Choose the Filter Criteria of interest such as: TP Increment Element Date click Enter Clicking will reveal a Calendar, for a specific date. 15

16. OASIS Training webOASIS – Sys Data ATC Portfolio Increment Hourly will return the 24hr period for the day chosen. Daily will return the entire Month, whether the Date is Today, Tomorrow or any Calendar Date. Weekly will return the weekly posting for 5 weeks, beginning with the first full week of the month. Monthly returns the values for the current Month through the next 11 months. Yearly returns the current year and next year. In this case we are viewing Daily for the month of August 2011 16

17. NAESB Update Wholesale Electric Quadrant Service Across Multiple Transmission Systems (SAMTS) ( OASIS Subcommittee) OASIS Subcommittee  Recommendation approved by WEQ EC on 7/8/2011 Link to SAMTS Recommendation Link  Recommendation ratified by NAESB WEQ membership on 8/11/2011  Recommendation will be filed with FERC 17

18. NAESB Update Wholesale Electric Quadrant Network Service on OASIS (NITS) (OASIS Subcommittee)OASIS Subcommittee  Significant changes New templates – Network reservations will need to move to the new system New Network Customers will need to fill out an on-line application on OASIS Existing Network Customers will not have to make a new application on OASIS  Subcommittee completion in 4 th quarter 2011 Informal comments under review by the subcommittee Very few substantive issues identified submitted in informal comments  EC review likely in 1 st quarter 2012 with FERC filing in 2 nd quarter 2012 Formal comment period will be 60 days instead of normal 30 days 18

19. NAESB Update Wholesale Electric Quadrant Parallel Flow Visualization for Eastern Interconnect (Business Practices Subcommittee)Business Practices Subcommittee  The WEQ Executive Committee approved the recommendation for the interim solution on 10/26/2010 (approved recommendation)approved recommendation  The BPS is working on a permanent solution: Hybrid Option Tag all Non-Firm transactions within a BA Require upload of firmness of transmission service for each running generator every 15 minutes (Generator Prioritization)  BPS is considering a two-tiered firm curtailment process (first-to-cut / last-to-cut) Policy Change issue has been addressed Will require coordination agreements between BAs for loop flows to be granted first-to- cut priority 19

20. NAESB Update Wholesale Electric Quadrant Electric Industry Registry (EIR)  Transfers TSIN Registry from NERC to NAESB  OATI will administer for NAESB  Functional Specs are completed  Should be in production 1 st qtr 2012 (with training and parallel operations 4 th quarter 2011)  Data will need to be registered again – not moving TSIN data to EIR  Annual registration fee will be required 20

21. NAESB Update Wholesale Electric Quadrant FERC Order 1000  Task Force established to review Order 1000 to determine what, if any, actions should be undertaken by NAESB WEQ  Open meeting – October 3-4, 2011  Link to Announcement and Agenda Link  Link to FERC Order 1000 Link PKI (Public Key Infrastructure) Subcommittee  New Subcommittee – link to subcommittee’s web pagelink  Responsible for Proposing Modifications to or New WEQ- 012 PKI Standards  First meeting Sept 12, 2011 Link to Announcement and Agenda Link 21

22. Wrap-up Proposed Next Quarterly Stakeholder Meeting Thursday, December 15, 2011 – 2 p.m. to 3 p.m. ET Customer Suggested Topics? This is the forum for discussing emergent topics (Upcoming changes, stakeholder input) Questions and Comments 22