Business Practices Subcommittee Update February 2, 2010

2 Free Template from 2 WEQ BPS Update Meetings –November 16, 2009 –December 8, 2009 –December 15 & 18, 2009 (Joint WEQ/WGQ BPS) –December 17, 2009 (Joint NERC TLR SDT) –January 20, 2010 Accomplishments –Developed comments in response to formal comments submitted by Consumers Energy for Gas/Electric Coordination recommendation Ongoing work –TLR – Standards –Parallel Flow Visualization –Time and Inadvertent Management (monitor only)

3 Free Template from 3 Joint NERC TLRSDT/ NAESB BPS Update Meetings –December 17, 2009 (reviewed fourth round of comments submitted on IRO and IRO-006-EAST.1) Ongoing Coordination –Team is currently reviewing responses to comments and changes to IRO and IRO-006-EAST.1 Upcoming Activities –Decision on whether to post for another round of comments or post for pre-ballot. Posting is targeted for around March 5, Note: –The Commission issued Order 713-B denying EPSA, NRG, and Constellation request for rehearing and clarification on NERC TLR Standards –The Commission issued RM Notice of Inquiry on the interplay between Reliability Standard IRO (Reliability Coordination – Transmission Loading Relief) and the curtailment priorities set forth in the Commissions pro-forma open access transmission tariff; particularly sections 13.6 and 14.7.

4 Free Template from 4 Parallel Flow Visualization WEQ AP Item 1.b.i Parallel Flow Visualization/Mitigation for Reliability Coordinators in the Eastern Interconnection –Reliability Coordinators (RCs) will report their Generation-to-Load (GTL) impacts to the Interchange Distribution Calculator (IDC) on a real-time basis or make arrangements. –The IDC would indicate the source of all flows on a flowgate and the priority of these flows (tag impacts, GTL impacts and market flow impacts). –An RC experiencing congestion would have visualization of the magnitude and source of all flows affecting their flowgate using information from the IDC. –An RC experiencing congestion would request an amount of flow reduction that would be processed by the IDC. A relief obligation would be issued to all parties contributing to the loading.

5 Free Template from 5 Parallel Flow Visualization (continued) NERC is responsible for making the changes to the IDC. NERC is targeting changes to the IDC by November 1, (Functional Specification is expected to be approved by the IDCWG by February 5, 2010.) WEQ BPS will establish methodology for assigning the GTL flows into the appropriate priority buckets (e.g., firm or non-firm) that will be uploaded to the IDC. The NERC ORS is looking at a month parallel test to analyze the results of the IDC changes. The WEQ BPS is currently identifying the general categories of data that would be uploaded to the IDC. Upcoming BPS Meetings: –February 23-24, 2010 –March 17-18, 2010 –April 1, 2010 Unknown what impact RM may have on this Annual Plan item.

6 Free Template from 6 Joint NERC BACSDT/ NAESB TIMTF Update NERC/NAESB Conference Call October 5, 2009 –Agreed to NAESB monitoring position until NERC is further along in their standards development process. Balancing Authority Controls Standards Drafting Team has held meetings: –November 5, 2009 –December 1-2, 2009 –January 18, 2009 Upcoming Meetings –February –March 16 –April 29-30

7 Free Template from 7 Questions/Feedback ?