1. Transmission Reliability Performance Metrics November 5, 2009 © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

2. Transmission reliability metrics are more complex due to many factors Factors Response © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

3. Grid configuration, flows, and robust structural design sets transmission apart Distribution Radial Flow Transmission Bi-Directional Flow © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

4. Multiple functions of transmission vs. Load Serving distribution function Generation Interconnection Load Circuit Switching Substation Critical Path DistributionTransmission © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

5. Transmission is subject to significant market interaction Factors Interactions Response © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

6. The transmission industry is undergoing significant change Factors Response (Metric) New Modified © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

7. The physical attributes of the transmission grid are changing © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

8. The ownership and organization of utilities in the industry is changing © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

9. How we envision transmission grid use and its functionality is changing © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

10. Transmission reliability performance metrics development takes time © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

11. History 101: Two blackouts prior to the formation of NERC © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

12. 2003 Blackout initiates change. FERC gains authority of grid reliability 2006 © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

13. NERC RMWG working group formed in May 2009 19651977 20032009 © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

14. Complexity & Change with Time Ticking Complexity Change Clock © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved

15. Blue Arc Energy Solutions, Inc. your advantage in performance intelligence © 2009 Blue Arc Energy Solutions, Inc. All Rights Reserved