NERC Reliability Standards Development Plan Name of Presenter Title of Presenter Location of Meeting Date of Meeting, 2008 Introductory statement …..

Overview Three-year plan for NERC reliability standard development program Communicates vision Guides and coordinates reliability standards development Prioritizes project development Original 2007-2009 plan created in late-2006 Current 2008-2010 plan was finalized in October 2007 Revision for 2009-2011 plan underway Overview The NERC Reliability Standards Development Plan is a three-year plan used by NERC to identify and prioritize the reliability standard development projects in the immediate three-year horizon. It is a Dynamic (non-static/ever changing) tool used to: Communicate the vision of NERC standards group Guide and coordinate reliability standards development Prioritize project development The original 2007-2009 plan was created in late-2006 by NERC staff. The current 2008-2010 plan built from the 2007-2009 by NERC staff with input from the industry and NERC standing committees (PC/OC/CIPC/SC) and was completed in October 2007. NERC staff is seeking wide-industry input to develop the 2009-2011 version of the work plan. The work plan is moving from a plan that was designed to "clean up" Version 0 standards in Order to meet the directives in FERC Order 693, to a plan that is looking forward to fill reliability-related gaps identified by NERC and its stakeholders.

Content Contributions Blackout report Comments Version 0 standards Other standards and standards-related projects Missing compliance elements and risk factor teams Regulatory orders and assessments Ongoing industry comments/suggestions Content Contributions The work plan was developed to address issues raised in or by: U.S.-Canada Power System Outage Task Force Final Report on the August 14, 2003 Blackout in the United States and Canada: Causes and Recommendations - April 2004 FERC FERC Staff Preliminary Assessment of the North American Electric Reliability Council’s Proposed Mandatory Reliability Standards – May 2006 FERC NOPR – October 2006 FERC Order 693 – March 2007 Comments received by NERC from Version 0 standards Other standards and standards-related projects Missing compliance elements and risk factor teams Industry input outside of standards development comment periods NERC continues to collect suggestions and comments form industry participants and captures such suggestions and comments in a “Standards Issues Database”. These comments and suggestions are shared with the appropriate drafting teams during the standards development process.

Work Plan Objectives Perform a top-to-bottom review and improvement of entire standard Revise reliability objective, title, and purpose statement to be concise and clear Revise applicability sections Add specifications for entities, facilities, and responsibilities Integrate functional model changes Remove regional reliability organization term Improve requirements and measures "What functional entity shall do what, under what conditions, for what outcome“ Eliminate duplication of requirements Refine compliance elements (violation severity levels, risk factors, time horizons, etc.) Work Plan Objectives When a project is initiated, it is expected that the standard drafting team assigned to the project will perform a top-to-bottom review and improvement of the standards associated with the project, including, but not limited to: Revise reliability objective, title, and purpose statement to be concise and clear Revise applicability sections Add specifications for entities, facilities, and responsibilities Integrate functional model changes Remove regional reliability organization term Improve requirements and measures "What functional entity shall do what, under what conditions, for what outcome“ Each revised requirements will have a specific reliability-related objective and describe "what" rather than "how" to the extent practical Eliminate duplication of requirements Refine compliance elements (violation severity levels, risk factors, time horizons, etc.) The revised standards will not look like the Version 0 standards. The revised standards will have more concise, clear, objective requirements.

Organization – Three Volumes Volume I provides program overview Volume II outlines plans for continent-wide standards 35 total continent-wide projects involving over 120 standards 8 projects initiated in 2006 14 projects initiated in 2007 3 projects proposed in 2008 9 projects proposed for 2009 1 project proposed for 2010 Volume III outlines plans for regional standards 52 total regional standards in regional projects 19 regional standards Plus 32 regional standards to support 4 continent-wide standards Organization of the current 2008-2010 Work Plan The current work plan is organized into three Volumes: Volume I provides program overview including all the issues identified on the previous slide. For anyone interested in the standards development program I highly recommend the reading of this volume. It is only slightly more then 20 pages long and provides the basis for the focus and priorities for the program for the immediate three-year horizon. Volume II outlines the currently known plans for development of continent-wide standards The current plan contains 35 total continent-wide projects involving over 120 standards 8 projects initiated in 2006 14 projects initiated in 2007 3 projects proposed in 2008 9 projects proposed for 2009 1 project proposed for 2010 Volume III outlines plans for regional standards development 52 total regional standards in regional projects 19 regional standards Plus 32 regional standards to support 4 continent-wide standards

2008-2010 Plan 6 Individual Project Schedules This slide just provides a quick reference to the volume of work facing the NERC standards development effort. It is basically a picture in time of what the then priorities of group were. As was stated early on in the presentation, this plan is an ever changing plan and evolves based on the work known at the time. Changes will be made to priorities as new SARs and requests for interpretations are received. Someone may propose a new project that is of higher reliability-related importance, and that means another project may be delayed. Also, requests for interpretations take require resources from the standards group to reply too. While these requests on an individual basis do not consume as many resources as a regular standard revision, they still require forming a team, discussing, drafting, editing, balloting, responding to comments, etc.    6

Updates for 2009-2011 Plan Revision of current plan to create 2009-2011 plan Seeking input on: Gaps Priorities Opportunities for Further Improvement New Initiatives Seeking input from: NERC Technical Committees Industry Organizations Regulatory Authorities NERC Programs and SMEs Stakeholders Updates for 2009-2011 Version of the Work Plan As stated earlier, NERC has initiated the revision to the 2009-2011 NERC is seeking input primarily on: Gaps Priorities Opportunities for Further Improvement New Initiatives NERC is seeking input from: NERC Committees – via direct meeting with staff liaisons and then the committees themselves Industry Organizations – by sending e-mail requests to use input form (and will hold a meeting with an individual organization if requested) Regulatory Authorities – via direct meetings and by sending e-mail requests to use input form NERC Programs / SMEs – via direct outreach Stakeholders – via standards workshops and by sending general announcement request and to use input form

Timeline for 2009-2011 Plan Presented to NERC SC/PC/OC/CIPC at June 2008 meetings Solicit industry input thru mid-July 2008 Presented at NERC Standards Workshop in April 2008 Issue e-mail in June to NERC Roster seeking input Establish webpage for accepting comments/suggestions Complete draft Work Plan: 2009-2011 in late-July 2008 Hold webcast in early August 2008 Discuss draft revisions to plan Seek additional input Finalize plan early September 2008 Request Standards Committee approval September 22, 2008 Request BOT approval October 28, 2008 File with regulatory authorities by year-end Work Plan Revision Timeline This same presentation was provided to the NERC standing committees at their June 2008 meetings: Planning Committee Operating Committee Critical Infrastructure and Protection Committee Standards Committee NERC is soliciting industry input thru mid-July 2008 Presented at NERC Standards Workshop in April 2008 Issue e-mail in June to NERC Roster seeking input Will establish webpage for accepting comments/suggestions Complete draft Work Plan: 2009-2011 in late-July 2008 Hold webcast in early August 2008 Discuss draft revisions to plan Seek additional input Finalize plan early September 2008 Request Standards Committee approval September 22, 2008 Request BOT approval October 28, 2008 File with regulatory authorities by year-end

Closing comments and request for questions. Name of Presenter Title of Presenter Presenter contact info (e-mail and/or phone) Closing comments and request for questions.