1. April 4 & April 11, 2007 1 Reliability Standards Compliance April, 2007 Steve Wallace

2. April 4 & April 11, 2007 2 About Seminole Electric Cooperative Generation & Transmission Cooperative – Wholesale All-Requirements Power Provider for 10 Member Rural Electric Distribution Cooperatives “Joint Registration Organization” Member Systems – Member-Consumer Owned – Independently Managed and Operated Central Florida Electric Cooperative Clay Electric Cooperative Glades Electric Cooperative Lee County Electric Cooperative Peace River Electric Cooperative Sumter County Electric Cooperative Suwannee Valley Electric Cooperative Talquin Electric Cooperative Tri-County Electric Cooperative Withlacoochee River Electric Cooperative

3. April 4 & April 11, 2007 3 Seminole Functions Planning Authority Balancing Auth. Resource Planner Trans. Operator Interchange Authority Trans. Planner Trans. Svc. Provider Trans. Owner Generator Operator Generator Owner Purchasing-Selling Entity LSE Distribution Provider

4. April 4 & April 11, 2007 4 ERO Reliability Standards Compliance Program Past / Present – Primarily System Operations – Transmission Services Currently Assessing Organization Needs – Seminole Individually As “JRO” Including Member Role

5. April 4 & April 11, 2007 5 Reliability Compliance Program Preliminary Assessment Seminole – Designated ERO Compliance Program Manager Required – ERO Compliance Management System / Software Needed Responsibility Assignment / Accountability Compliance Status Tracking Audit Trail (documentation, documentation, and more documentation) Audit Preparation – All ERO Standards, 3 Year(?) cycle – Member Agreements Needed For Auditable Seminole Compliance – Formal Compliance Plan Needed For Each Standard Membership Role – Uncertain Standards Applicability – Still Identifying Member Expectations / Scope – Comprehensive Delegation Agreement Required Scope (Exactly who does what) Responsibilities Mutually Acceptable Liability Accountability – Seminole Organization Impact

6. April 4 & April 11, 2007 6 Formal ERO Compliance Program Implementation May, 2007 - Detailed Implementation Plan July, 2007 - Membership Role / Agreement August, 2007 Resource / cost Identification 2008 – Organization – Resource / Tool Acquisition – Formal Program Operational

7. April 4 & April 11, 2007 7 Questions???