Business Practices Subcommittee Update Executive Committee Meeting October 22, 2013

WEQ BPS Update - Meetings Meetings Since Last Update September 25, 2013, Conference Call October 8, 2013 (Las Vegas, NV) October 9, 2013 (Meeting with IDCWG) Scheduled Meetings November 13 - 14, 2013, Houston December 4 - 5, 2013 Houston Additional Assignments made to work on Recommendation Recognize Existing Seams Agreements Treatment of Pseudo Ties 2 Free Template from www.brainybetty.com

Draft Standards - Status Recognize Seams Agreements – Concepts agreed upon Granularity - Outstanding Coordination Arrangements/Two-Tier Firm Curtailment - Removed Pseudo-Ties – Proposed standards being developed Generator Priority Schedules – Nearly complete Definitions – Nearly complete 3 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Additional Documents Whitepaper – nearly complete Big Picture View Calculations for Relief Obligations Updated to include details and examples IDC User’s Manual – Outside of BPS Scope How Calculations are Performed Treatment of Phase Angle Regulators (PARs) 4 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Additional Documents System Data eXchange (SDX) User’s Manual – Outside of BPS Scope New Entities Submitting Data Acknowledgements/Error Processing 5 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Testing Evaluation Criteria Data (Input/Output) Access to Data Quality of Data Sufficient Data Commitment to Testing NAESB NERC Association Industry Timeline to testing 6 Free Template from www.brainybetty.com

Road Map To Development September 2013 December 2013 February 2014 April 2014 July 2014 CO’s Development GTL CO’s Draft WEQ 008 Assessment CO 283 Report Data Submission Key Assumptions: WEQ 008 is approved by December 2013 Agreement for funding of the Change Order required is in place by June 2014 IDCWG SC support of the CO’s development by March 2014

Road Map To Trial Period 12-18 Month Test December 2014 (Software Testing) April 2015 June 2015 (Start 12-18 month test) Implement CO’s Start of Trial Period Testing Result Report Testing Key Assumptions: WEQ 008 is approved by December 2013 Agreement for funding of the Change Order required is in place by June 2014 IDCWG SC support of the CO’s development by March 2014

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Free Template from www.brainybetty.com Implementation 12-18 month test Best case 3rd quarter 2015 Delayed until 2nd quarter 2016 Funding IDC and SDX modifications Testing Phase Decision to move to production NAESB NERC/Operating Reliability Subcommittee (ORS) Committed to review and approve test plan IDC Association Fund and implement IDC changes to conduct field test 10 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Coordination – NERC Commitment to Testing Responsibility to Improve Accuracy of the IDC Tool ORS Role Moving Forward (Monitor Reliability Impact) – Approve test criteria Standard Drafting Teams Coordinate Interchange Tagging Intra-BA Point-to-Point (INT-011) Treatment of Pseudo Ties Tag Secondary Network Service/Generator Priority Schedules IRO 5-Year Review Team Curtailment of Intra-BA Point-to-Point Tags 11 Free Template from www.brainybetty.com

Coordination – IDC Association Commitment to Testing Responsibility to Improve Accuracy of the IDC Tool Funding of Testing/Implementing Standards Access to Data During Testing IDC Working Group Updates to User’s Manuals Response to comments related during informal comments Review and input into Whitepaper 12 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Next Steps Subcommittee May post for another round of Informal Comment Open Issues (proposals being documented/reviewed) Recognize Existing Seams Agreements Treatment of Pseudo-ties Update Recommendation Based on Subcommittee Decision – Ongoing Update User’s Manuals in Coordination with IDC Working Group – Ongoing Update Whitepaper – Draft Developed WEQ Leadership/NAESB Staff – Coordination Issues NERC - Ongoing IDC Association – Ongoing 13 Free Template from www.brainybetty.com

Free Template from www.brainybetty.com Next Steps Post Recommendation for Formal Comments 1st Quarter 2014 If not posted for informal comments 2nd Quarter – May even be 3rd Quarter 2014 If posted for informal comments 14 Free Template from www.brainybetty.com

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