Business Practices Subcommittee Update August 17, 2010

2 Free Template from 2 WEQ BPS Update - Meetings Full subcommittee –June 24-25, 2010 –June 28, 2010 –July 15-16, 2010 –July 23, 2010 –August 6, 2010 Tagging Option Work Group –May 21, 2010 –May 24-25, 2010 –June 11, 2010 Generator Prioritization Option Work Group –May 13, 2010 –May 24-25, 2010 –June 14, 2010 –June 17, 2010 Flowgate Allocation Option Work Group –May 10-11, 2010 –May 24, 2010 –June 14, 2010 –June 17, 2010

3 Free Template from 3 Parallel Flow Visualization WEQ AP Item 1.a Parallel Flow Visualization/Mitigation for Reliability Coordinators in the Eastern Interconnection was split into two annual plan items: –1.a.i Interim solution for Parallel Flow Visualization –1.a.ii Permanent solution for Parallel Flow Visualization Interim solution was developed to support November 1, 2010, NERC implementation of IDC Change Order 283 into the IDC staging environment Interim solution recommendation was posted for 30- day formal comment period on July 29, 2010 Supplemental Interim Solution Work Paper was approved by the WEQ BPS on August 6, 2010

4 Free Template from 4 Parallel Flow Visualization – Interim Solution The BPS submitted the recommendation with the understanding that the standards will be held in abeyance and not filed with the Commission It is not expected that the interim solution changes to the NAESB Business Practices by themselves will require changes to how current FERC-approved OATTs are administered The assignment of firm and non-firm transmission service priorities for generators within a BA shall follow that Transmission Service Providers transmission tariff under which that generator operates The BPS expects to complete its work on the permanent solution prior to November 1, 2011 The permanent solution for Parallel Flow Visualization will be filed with FERC and will replace these interim solution Business Practice Standards

5 Free Template from 5 Parallel Flow Visualization – Interim Solution Requirements have a sunset date of November 1, 2011 (provides time to develop the long-term solution) Assignment of transmission service priorities can be done via a generator priority assignment or a market flow assignment –Generator priority assignment The BA shall identify the transmission service priority for all generators located in their BA and modeled in the IDC Firm and non-firm transmission service priorities associated with generators shall be submitted via the SDX and/or Intra-BA Transactions The default IDC treatment of generator transmission service priority level is firm –Market flow priority assignment For those entities that have a regulatory-approved market-based congestion management process using flowgate allocations to assign firm and non-firm market flow priorities (which are comparable to the generator assignment priorities for those entities not using flowgate allocations) a default of firm will be used by the IDC

6 Free Template from 6 Parallel Flow Visualization – Interim Solution Generator Priority Assignment –Submittal via the SDX The transmission priority for the generator will be submitted as either a percentage or MW value according to the timing requirements of the SDX data updates –Submittal via Intra BA Transactions BAs may use Intra-BA Transactions to represent non-firm PTP and network service A generator MW output provided via the SDX will be subtracted by the scheduled MW of the tags mapped to the generator, whether these are Intra-BA Transactions or e- Tags Intra-BA Transactions will follow the same update requirements as NERC Interchange Transactions

7 Free Template from 7 Parallel Flow Visualization – Permanent Solution Three options being considered: –Tagging All Non-firm Service –Generator Prioritization –Flowgate Allocation Eliminated the option for tagging all firm and non-firm service Meeting September15-16, 2010, to review comments and provide input to the Executive Committee on the interim solution and then return focus to the permanent solution

8 Free Template from 8 Joint NERC TLR SDT/ NAESB BPS Update Initial ballot for TLR standards IRO and IRO-006- EAST.1 ended July 6, 2010 Voting Statistics –Quorum: % –Approval: % Because at least one negative vote included a comment the standards will go out for a recirculation ballot The Joint NERC TLR SDT/NAESB BPS had a conference call on July 8, 2010, to review comments and draft responses The team is proposing minor changes to the standards that will be included in the recirculation ballot

9 Free Template from 9 Joint NERC BACSDT/ NAESB TIMTF Update Balancing Authority Controls Standards Drafting Team meetings: –May 19, 2010 –June 22-23, 2010 –July 12-13, 2010 July 28, 2010, the NERC Balancing Authority Controls (Project ) was merged with the NERC Reliability Based Controls (Project ). The new project is Balancing Authority Reliability-based Control (Project ) Still foresee some coordination required with NERC Standards Draft Team and TIMTF TIMTF chair will monitor activity of Balancing Authority Reliability- based Control Project to determine when the TIMTF should schedule its next meeting NERC is considering a Time Error Correction Field Test which may have an impact on the NAESB Business Practices

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