1. Duke Energy Carolinas Quarterly Stakeholder Meeting Independent Entity Services Tuesday, April 21, 2009 2:00 to 3:00 p.m. EDT

2. 22 Agenda Action Items for follow-up from January 28, 2009 –Consistency of OATI webOASIS and OATI webSweep ATC Offerings –Review Transition to Daylight Savings Time –Attestation Requirement for Designated Network Resources New Look of Duke Energy Carolinas OASIS Site Business Practice 3.J - Rollover Rights NAESB Wholesale Electric Quadrant Update FERC NOPR / NERC Standards & NAESB Practices Accessing NAESB Standards Wrap-up

3. 3 Consistency Of OATI webOASIS and OATI webSweep ATC Offerings Vendor Response –Would require full system base change webOASIS & webSweep –Consensus among all users of webOASIS Vendor has indicated that this topic will be discussed at OATI’s Customer Meeting (Fall 2009)

4. 4 Review Transition to Daylight Savings Time Sunday, March 8, 2009 Non-event for Duke Tariff Administration and Tagging

5. 5 When is the Attestation Required? Sections 29.2 and 30.2 of the Duke OATT that an attestation must accompany an Application for a new DNR. FERC Order 890-B –P182 “In Order No. 890, the Commission adopted the attestation requirement as the means by which the network customer can make this demonstration” “We affirm this requirement, consistent with the network customer’s obligations under section 30.7” –P183 “… may attest that execution of a contract is contingent upon availability of transmission service under Part III of the pro forma OATT.”

6. 6 New Look of Duke Energy Carolinas OATI webOASIS Site Incorporated most of the layout from the FERC NOPR on NAESB Business Practices (Docket RM05-5-013) Functional organization –Better flow Please provide your comments on layout –E-mail: DukNCIE-TA@midwestiso.org

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8. 8 Business Practice 3.J Rollover Rights Duke Energy Carolinas modified the conditions for granting Rollover Rights –Effective date for change is 4-1-2009 –PTP Reservations with a duration of 5 yrs or more RENEWAL must be queued 1 yr prior to end of the existing reservation –Network Reservations (NITSA must be for 5 years) RENEWAL must be queued 1 yr prior to end of the existing reservation Transmission Service Requests queued prior to 4-1-2009 –Subject to the current 1yr/60day requirement until the first rollover date on or after 4-1-2009, then subject to new requirements

9. 99 NAESB Update: Wholesale Electric Quadrant NAESB Request & Standards Development Activity Applicable to WEQ (link to web page) (link to web page) –Rollover Rights on Redirect on a Firm Basis (Comments Due May 13)Rollover Rights on Redirect on a Firm Basis –WEQ-011 Consistency Changes to include: Introduction and Applicability sections (Comments Due May 13)WEQ-011 Consistency Changes to include: Introduction and Applicability sections –Order 717, Standards of Conduct (Comments Duke April 27)Order 717, Standards of Conduct WEQ Executive Committee (EC) (link WEQ EC page)link WEQ EC page –Approves Business Practices and sends them for membership ratification –Next meeting May 12 (check 1 wk before meeting for agenda and meeting materials)

10. 10 NAESB Update: Wholesale Electric Quadrant NAESB Subcommittees –Draft business practices for approval by the EC –Open to any industry participant (including non-members) –Each subcommittee has a web page and an exploder –Multiple subcommittees (see this page for listing and access to the subcommittee web pages)this page Electronic Scheduling Subcommittee (ESS) and Information Technology Subcommittee (ITS) –These two subcommittees meet jointly and will soon be combined and named the OASIS Subcommittee. –Drafting business practices for Network Service on OASIS – next meeting is April 22 (link to ESS web page)link to ESS web page

11. 11 NAESB Update: Wholesale Electric Quadrant Joint Interchange Scheduling Working Group (JISWG) –Addresses interdependency of commercial and reliability activities between NAESB and NERC (e.g., etagging, coordination of interchange, TSIN registry enhancements) –Next meeting is May 13-15 (link to JISWG web page)link to JISWG web page Business Practices Subcommittee (BPS) –This subcommittee handles work not assigned to others –Drafted Standards of Conduct business practice changes –Next meeting is a joint meeting with the NERC TLR drafting team on April 28 & 29 (link to the BPS web page)link to the BPS web page

12. 12 FERC NOPR NERC Reliability Standards NERC Reliability Standards (Docket Nos. RM08-19-000, RM08-19-001, RM09-5-000, RM06-16-005) http://www.ferc.gov/whats-new/comm-meet/2009/031909/E-5.pdf (FERC filed Document) Official Version NERC NOPR in the Federal Register –Proposal to approve 6 Modeling, Data and Analysis Reliability Standards submitted by NERC Available Transmission System Capability http://www.nerc.com/files/MOD-001-1.pdfAvailable Transmission System Capability http://www.nerc.com/files/MOD-001-1.pdf Capacity Benefit Margin http://www.nerc.com/files/MOD-004-1.pdf Transmission Reliability Margin Calculation Methodology http://www.nerc.com/files/MOD-008-1.pdf Area Interchange Methodology http://www.nerc.com/files/MOD-028-1.pdf Rated System Path Methodology http://www.nerc.com/files/MOD-029-1.pdf Flowgate Methodology http://www.nerc.com/files/MOD-030-2.pdf –Consistency and Transparency of ATC and AFC Calculations –Issued March 19, 2009 –Comment period will end 60 days after publication in the Federal Register (May 26, 2009)

13. 13 FERC NOPR NAESB Business Practice Standards NAESB Business Practice Standards (Docket RM05-5-013) http://elibrary.ferc.gov/idmws/common/OpenNat.asp?fileID=11969248 (FERC filed Document) Official Version NAESB NOPR in the Federal Register –Proposal to incorporate the latest version (Version 002.1) of certain business practice standards adopted by NAESB Wholesale Electric Quadrant This version includes Standards in response to Order 890, 890-A & 890-B NAESB booklet version 2.1 NAESB link (requires login to view booklet) NAESB link (requires login to view booklet) –ATC related reforms –New business practices include rules for treatment of requests with no value for bid price, treatment of pre-confirmed STF & NF requests, customer rebid of capacity, treatment of competing bids when insufficient ATC is available, treatment of rollover rights, conditional firm reservations, and other items –Issued March 19, 2009 –Comment period has been extended from April 24 th to May 26th

14. 14 Accessing NAESB Standards NAESB Business Practices Standards (BP) are incorporated in the Code of Federal Regulations –NAESB BP Standards are under copyright –Full text is not viewable in the CFR’s NAESB Contact for User Login –http://www.naesb.org/pdf/homepage.pdf

15. 15 Wrap-up Proposed Next Quarterly Stakeholder Meeting –Tuesday, July 21, 2009 – 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

16. 16 Attachments Table of Contents Slide 17 & 18 – Creating a Request from OATI WebOASIS ATC Offerings Slide 19 & 20 – Creating a Request from WebSweep ATC Offerings

17. 17 Creating a Request from OATI WebOASIS ATC Offerings On WebOASIS Query Offerings in the Transmission Offerings Summary TP Pull down = DUK Query = Incr / Class / Type / POR / POD Double click the Posting Ref of interest

18. 18 Creating a Request from the OATI webOASIS ATC Offerings Using OATI webOASIS to create a TSR from ATC Offerings MW Amount will default to the full Capacity Available for that Increment (in this case the daily amount of firm available is 232MW). This field can be changed to a different value.

19. 19 Creating a Request from OATI webSweep ATC Offerings Clicking on the PostingRef brings the user to the Offering for the specified Service, Path & Term. The offering is for the full Capacity Available for that Increment. User access to webSweep is through OATI ETS

20. 20 Creating a Request from WebSweep ATC Offerings Creating a TSR from WebSweep the Offering Detail returns to a TSR Entry Form with a Blank or Null MW field.