Missing Measures and Compliance Elements Standard Drafting Team (CESDT) Team Members: Maurice Casadaban (Chairman) Entergy Services John Blazekovich (Vice Chairman) Commonwealth Edison Robert Millard Mid-American Interconnected Network Norbert Mizwicki Mid-American Interconnected Network Narinder Saini Entergy Services Charles Waits Michigan Electric Transmission John Wolfmeyer Southeastern Electric Reliability Council Other Contributors: Benedict Deutsch (Former Chairman) NERC (Formerly with MRO) Joseph WilsonPJM Interconnection Dick WorthenSoutheastern Electric Reliability Council Ed DavisEntergy Services Ev LucentiPower Decisions Consulting Maureen LongNERC Ed RuckNERC Richard SchneiderNERC

2 SAR Development (SAR - Standard Authorization Request) ● Develop Compliance Elements for 22 Standards  Measures  Compliance Monitoring and Data Retention  Levels of Non-Compliance ● Industry comments said no changes to the Requirements ● NERC Standard Committee (SC) directive to compress the schedule from 4 years down to 1 year.

3 Standards Development - CESDT ● Develop a template for all 22 standards  On 2/17/06 the CESDT posted one standard (COM-001) ● Modify all 20 standards based on template (Note: INT-002 was retired and VAR-001 was picked up by another team and therefore these were removed from the CESDTs’ list)  On 4/21/06 CESDT posted 20 revised standards ● Incorporate changes based on industry comments  On 7/10/06 CESDT posted 20 revised standard  Included Implementation Plan with posting ● The CESDT recommended balloting with minor changes to the standards ● SC approved standards for balloting on 9/5/06

4 CESDT – Minority views ● To prove compliance an entity shall provide “evidence that could include, but is not limited to…or other equivalent evidence” ● Delay balloting until Requirements are improved ● Ballot standards individually ● Modify Levels of Compliance to match the Sanctions Guidelines filed with the ERO application