Business Practices Subcommittee Update October 26, 2010

2 Free Template from 2 WEQ BPS Update - Meetings Recent meetings –September 15-16, 2010 –October 14-15, 2010 Scheduled meetings –November 10-11, 2010, hosted by OATI in St. Paul, MN –December 1-2, 2010, hosted by NAESB in Houston, TX –January , 2010, hosted by PJM in Baltimore, MD Monthly meetings scheduled through 2011 (looking for host locations)

3 Free Template from 3 Parallel Flow Visualization WEQ AP Item 1.a.i Interim Solution for Parallel Flow Visualization –Reviewed all comments submitted during the formal comment period –Developed late comments in response to the review as late comments for Executive Committee consideration WEQ AP Item 1.a.ii Permanent Solution for Parallel Flow Visualization –Restarted discussions on three remaining options in September: Tag All Non-Firm Generator Prioritization Flowgate Allocation –Identified issues/concerns/questions to be addressed for each option in order to select a permanent solution option –Option Work Groups began addressing issues/concerns/ questions

4 Free Template from 4 Parallel Flow Visualization – (continued) WEQ AP Item 1.a.i Interim Solution for Parallel Flow Visualization –Tag All Non-Firm Option Work Group – suggested if markets cannot tag non-firm transactions, a hybrid method may be an option which uses a form of generator prioritization for the market areas and this method for the non-market areas –Generator Prioritization Option Work Group – is recommending that the work on the Generator Prioritization Option be stopped provided key components of this option are blended into the Tag All Non-Firm Option –November meeting objective is to get to two options for consideration –December meeting the objective is to select one of the two options to move forward

5 Free Template from 5 Joint NERC TLR SDT/ NAESB BPS Update Recirculation ballot for TLR standards IRO and IRO- 006-EAST.1 ended August 30, 2010 Voting Statistics –Quorum: % –Approval: % Standards will be submitted to the Board of Trustees for approval

6 Free Template from 6 Joint NERC BACSDT/ NAESB TIMTF Update Balancing Authority Reliability-based Control (Project ) - Status Coming Soon Still foresee some coordination required with NERC Standards Drafting Team and TIMTF NERC Standards Committee approved a Time Error Correction Field Test, contingent on NERC Operating Committee approval and appropriate waivers from NERC compliance and NAESB Business Practice Standards –Field test to last for a year, with possible extensions –Results of the field test may have an impact on the NAESB Business Practices –Field test start date has not been finalized TIMTF chair will monitor activity of Balancing Authority Reliability-based Control Project to determine when the TIMTF should schedule its next meeting

7 Free Template from 7 Questions/Feedback ?