1. Prepared by the North American Energy Standards Board 1 North American Energy Standards Board NAESB Review & Smart Grid Update The North American Energy Standards Board CIM Users Group Meeting Hosted by EPRI - Charlotte, North Carolina November 11, 2009

2. Prepared by the North American Energy Standards Board 2 North American Energy Standards Board NAESB Review History and Creation of NAESB

3. Prepared by the North American Energy Standards Board 3 North American Energy Standards Board NAESB Review  In 1992, the Natural Gas Council agreed that the wholesale gas market needed a standards organization and fostered the needed efforts to start one.  During the formation from 1992 to 1994, the Department of Energy hosted monthly meetings where the gas industry in open meetings determined the best structure for the organization.  In 1994, the Gas Industry Standards Board was incorporated to develop business practice standards and communications and e-commerce protocols for the interstate natural gas industry.  NAESB expanded effective January 1, 2002 to include wholesale gas and electricity and retail gas and electricity

4. Prepared by the North American Energy Standards Board 4 North American Energy Standards Board NAESB Review Organizational Structure

5. Prepared by the North American Energy Standards Board 5 North American Energy Standards Board NAESB Review Organization by Quadrant and Segment Wholesale Gas – 5 Segments Wholesale Electric – 6 Segments Retail Electric – 3 Segments 1.End Users 2.Local Distribution 3.Pipelines 4.Producers 5.Services 1.Service Providers/Suppliers 2.Utilities 3.End Users/Public Agencies Retail Gas – 3 Segments 1.Service Providers/Suppliers 2.Distributors 3.End Users/Public Agencies 1.End Users 2.Distribution/LSE 3.Transmission 4.Generation 5.Marketers/Brokers 6.Independent Grid Operators/Planners

6. Prepared by the North American Energy Standards Board 6 North American Energy Standards Board NAESB Review Two Governing Bodies with identical structures – Board of Directors – strategic direction, financial well being, annual planning for standards development, coordination of activities with other groups Executive Committee – Carries out the annual plan, develops and maintains the standards and business practices through its subcommittees and task forces

7. Prepared by the North American Energy Standards Board 7 North American Energy Standards Board NAESB Review Board of Directors Executive Committee Strategy & Issue Definition Membership Organizational Structure & Support Legal & Operational Procedures Business Practices Technical Mapping Coding & Data Interpretations Financial Authority Strategic Plans Direction of the Organization & Setting the Annual Plans Standards Development Tactical Implementation of the Annual Plan Liaisons AnnualAnnualPlanPlanssAnnualAnnualPlanPlansss Communication Protocols

8. Prepared by the North American Energy Standards Board 8 North American Energy Standards Board NAESB Review Board of Directors Managing Committee Executive Committee(s) Standards Development Subcommittees Parliamentary Committee Advisory Council Interpretations Subcommittee Triage Subcommittee Advises the Board of Directors on the general direction of the organization and the annual plans of each quadrant

9. Prepared by the North American Energy Standards Board 9 North American Energy Standards Board NAESB Review Standards Development Process

10. Prepared by the North American Energy Standards Board 10 North American Energy Standards Board NAESB Review  Focused on Common Business Practices and Technical Guidelines  Broadly Endorsed by the Industry  That Provide Conformity  Which Yield More Efficient and Effective Transactional Processes

11. Prepared by the North American Energy Standards Board 11 North American Energy Standards Board NAESB Review  Standards Development Process  The process begins with a request – which can come from a member, an interested industry participant, a government agency or commission, an ISO or RTO, or a NAESB subcommittee or it can be an annual plan item approved by the Board of Directors.  The process followed is ANSI accredited -- ANSI accredits organizations as Standards Development Organizations (“SDO”) based on their adherence to ANSI’s cardinal principles of standards-setting.  The process is open and any interested party can participate and contribute to the standards development regardless of membership in NAESB.

12. Prepared by the North American Energy Standards Board 12 North American Energy Standards Board NAESB Review  Voluntary Standards  From the organization’s perspective, all standards are voluntary and may be provided to regulatory agencies as status reports as they are published.  The standards and model business practices may incorporate regional or operational differences  Regulatory agencies may choose to adopt standards or model business practices, but NAESB will not advocate such action.  The organization will not monitor for compliance, provide performance measures for compliance, nor will it define sanctions for non-compliance.  The organization will not advocate before any regulatory body.

13. Prepared by the North American Energy Standards Board 13 North American Energy Standards Board NAESB Review  Relationship of NAESB Standards and Model Business Practices to Policy  NAESB does not set policy.  We defer to state and federal agencies in determining policy.  Our work products are intended to focus on the implementation of policy decisions by providing a road map for the interactions between the various parties.  Our standards and model business practices recommend practices for alternative regulatory models but leave the decision as to the appropriate policy or model to the regulators.

14. Prepared by the North American Energy Standards Board 14 North American Energy Standards Board NAESB Review How do the members create the standards?  We average 30-35 meetings or calls per month  We average more than 800 participants by phone per month  We offer web casting to assist in the conference calls  All participants, regardless of NAESB membership status, are welcomed to the meetings and subcommittee efforts

15. Prepared by the North American Energy Standards Board 15 North American Energy Standards Board NAESB Review How fast can standards be developed?  Typically standards development takes 12 months  It can take longer when the underlying policy is not well understood or the industry has significant opposition  It can be accelerated (down to 4 months) if the policy is well understood, executives are willing to champion it, regulators are clear that it should have priority

16. Prepared by the North American Energy Standards Board 16 North American Energy Standards Board NAESB Review Request For Standard/Annual Plan Item Triage Subcommittee Executive Committee(s) Standards Development Subcommittee(s) Executive Committee(s) Recommendation Formal Industry Comment Membership Ratification Balanced Vote Final Actions Published Standards

17. Prepared by the North American Energy Standards Board 17 North American Energy Standards Board NAESB Review NAESB Work Products

18. Prepared by the North American Energy Standards Board 18 North American Energy Standards Board NAESB Review Version 2.1 WEQ Standards: OASISTransmission Loading Relief OASIS S&CPContracts OASIS Data DictionariesStandards of Conduct Coordinate InterchangeGas/Electric Coordination ACE Equation Special CasesPublic Key Infrastructure Manual Time Error CorrectioneTariff Inadvertent Interchange PaybackDemand Response Last Published: March 2009, Version 2.1 Next Publication: First Quarter 2010, Version 2.2

19. Prepared by the North American Energy Standards Board 19 North American Energy Standards Board NAESB Review Version 1.1 Retail Standards: Defined TermsCreditworthiness Defined Terms Creditworthiness Market Participant InteractionsBilling and Payments Electronic Delivery MechanismContracts Internet Electronic TransportElectronic Invoicing Texas Registration AgentCustomer Information Distribution Company-Supplier Disputes Customer Enrollments, Drops and Account Information Change Last Published: June 30, 2009, Third Version Next Publication: December 31, 2009, Version 1.2 – Fourth Version

20. Prepared by the North American Energy Standards Board 20 North American Energy Standards Board Smart Grid Update NAESB Smart Grid Update

21. Prepared by the North American Energy Standards Board 21 North American Energy Standards Board Smart Grid Update  NAESB’s Involvement in the Smart Grid Initiative  NAESB Advisory Council Meeting  Contact with Government Agencies, Trade Organizations and other SDO’s  Participation in the April, May and August NIST Workshops

22. Prepared by the North American Energy Standards Board 22 North American Energy Standards Board Smart Grid Update  NAESB Assignments Resulting from August NIST Workshop  Priority Action Plan 3 – Common Price Communication Model  Priority Action Plan 4 – Common Scheduling Mechanism  Priority Action Plan 9 – Standard DR Signals

23. Prepared by the North American Energy Standards Board 23 North American Energy Standards Board Smart Grid Update  NAESB Smart Grid Standards Task Force and Subgroup  Co-Chairs  Robert Burke, ISO New England  Brent Hodges, Reliant  Wayne Longcore, Consumers Energy  First Meeting September 1, 2009  16 Conference Calls  1 Face to Face Meeting  Over 250 participants  Coordinating with NIST, FERC, NARUC, FIX Protocol, UCAiug, CalConnect, etc…

24. Prepared by the North American Energy Standards Board 24 North American Energy Standards Board Smart Grid Update  NAESB Smart Grid Standards Task Force and Subgroup  Phase One Work Products  Framework for Integrated DR &DER Models (PAP 9)  Wholesale Market Use Cases (PAP9)  Retail Market Use Cases (PAP 9)  Common Glossary / Actors (PAPs 3 & 9)  Use Cases for a Common Price Communication Model (PAPs 3 & PAP 9)  Requirements for a Common Scheduling Mechanism (PAP 4)

25. Prepared by the North American Energy Standards Board 25 North American Energy Standards Board Smart Grid Update  NAESB Smart Grid Standards Task Force and Subgroup  Timeline  November 13, 2009 – The Task Force votes to approve the documents described above for an informal comment period ending on November 30, 2009.  November 18, 2009 – The documents described above are presented at Grid-Interop Week  Early January, 2010 – The Task Force votes to approve the documents as modified in response to the comments for a 30 day formal comment period ending early February 2010.  Early February, 2010 – The Task Force reviews the formal comments and prepares a report to the NAESB Wholesale Electric (WEQ) and Retail Electric Quadrant (REQ) Executive Committees (EC) with any additional suggested changes as late task force comments  Early February, 2010 – The Task Force reviews the formal comments and prepares a report to the NAESB Wholesale Electric (WEQ) and Retail Electric Quadrant (REQ) Executive Committees (EC) with any additional suggested changes as late task force comments  Mid to Late February, 2010 – The NAESB WEQ and REQ EC hold a single topic review session on the recommendations to prepare the EC members for a single topic EC meeting  Early March, 2010 – The NAESB WEQ and REQ EC hold a single topic EC meeting to vote on the recommendations

26. Prepared by the North American Energy Standards Board 26 North American Energy Standards Board NAESB Review How to Contact NAESB

27. Prepared by the North American Energy Standards Board 27 North American Energy Standards Board NAESB Review How to Participate  Join the distribution lists on the NAESB Web Site : www.naesb.org  All meetings are open and accessible via telephone  All materials are posted on the NAESB web site  Your comments are welcome and will be posted on any NAESB standards issues  If you are not a member, but are interested in membership, please call the NAESB Office: 713-356-0060

28. Prepared by the North American Energy Standards Board 28 North American Energy Standards Board NAESB Review Web Site Information and Contacts  Web Site : www.naesb.org  Quadrant Procedures, Bylaws, Certificate for NAESB  Calendar of Meetings, Agendas, Work Papers, Comments  Board minutes, EC Minutes, How to order Transcripts  Standards and Related Work Products  Membership Information  Contact Information  Phone – 713-356-0060  Fax – 713-356-0067  Email – naesb@naesb.orgnaesb@naesb.org  For further information on the organization, please contact Veronica Thomason (713-356-0060, naesb@naesb.org)

29. Prepared by the North American Energy Standards Board 29 North American Energy Standards Board NAESB Review How To Monitor Activities Monthly Update Calls: http://www.naesb.org/monthly_update.asp Monthly Update Calls: http://www.naesb.org/monthly_update.asp http://www.naesb.org/monthly_update.asp Review updated annual plans quarterly: http://www.naesb.org/materials/gov.asp Review updated annual plans quarterly: http://www.naesb.org/materials/gov.asp http://www.naesb.org/materials/gov.asp Review Board minutes quarterly: http://www.naesb.org/weq/weq_bod.asp Review Board minutes quarterly: http://www.naesb.org/weq/weq_bod.aspwww.naesb.org/weq/weq_bod.asp Sign up for email distribution notices on subcommittees of interest: http://www.naesb.org/listserv/mail/mail_register.cfm Sign up for email distribution notices on subcommittees of interest: http://www.naesb.org/listserv/mail/mail_register.cfm http://www.naesb.org/listserv/mail/mail_register.cfm Call NAESB office (713-356-0060, naesb@naesb.org) Call NAESB office (713-356-0060, naesb@naesb.org)naesb@naesb.org