Joint BPS and ESS/ITS ATC/AFC Subcommittee Update November 2007 – January 2008 February 5, 2008

2 Free Template from 2 November Exec. Comm. Direction Directed BPS/ESS/ITS to complete and post recommendations for formal comments so that the Executive Committee could approve at February 5, 2008, meeting: –ATC/TTC Narratives –Actual Peak Load Provide response summary to formal comments received for recommendation WEQ 2007 AP Item 2(C) Modifications to WEQ 001 to Comply with Modifications to 18 C.F.R and 37.7 within Order 890 Review list of ATC information which could be made publicly available

3 Free Template from 3 Meetings held since November Meeting –November 7, 2007 Face-to-Face –November 19, 2007 Web Conference –November 26, 2007 Web Conference –December 3, 2007 Web Conference –December 10, 2007 Face-to-Face –December 17, 2007 Web Conference –January 3-4, 2008 Web Conference –January 11, 2008 Web Conference –January 16-17, 2008 Face-to-Face –January 18, 2008 Web Conference –January 28, 2008 Web Conference

4 Free Template from 4 Accomplishments Since November Developed draft summary response to formal comments received for recommendation WEQ 2007 AP Item 2(C) Modifications to WEQ 001 to Comply with Modifications to 18 C.F.R and 37.7 within Order 890 Posted list of ATC information for informal comments Updated 890 Work Plan to align numbering with 2008 Annual Plan Updated 890 Work Plan to include additional cites from FERC Order 890-A based on listing provided by NAESB Tracking tools to monitor progress –Action item list –Motions list –Parking lot –Project plan

5 Free Template from 5 Status of Recommendations ATC/TTC Narratives –WEQ-001 OASIS requirements 95% complete –Remaining work: WEQ-002 OASIS Standards and Communication Protocols WEQ-003 OASIS Data Dictionary WEQ-013 OASIS Implementation Guide Finalize WEQ-001 OASIS Requirements Load Forecast –Work papers were submitted in October – December –Draft recommendation posted January 11, 2008 –Work papers were submitted on recommendation (recommendation was not posted for formal comments) –Co-chairs proposed alternative approach to shorten recommendation development process

6 Free Template from 6 ESS/ITS/BPS Future Meetings Scheduled February 13 Face-to-Face February Web Conference March Face-to-Face March 28 Web Conference March 31 Web Conference April Face-to-Face April 30 Web Conference May 1 Web Conference May Face-to-Face May Web Conference May Web Conference June 12 Face-to-Face July 8-9 Web Conference July 17 Face-to-Face

7 Free Template from 7 WEQ - Meeting Comparison

8 Free Template from 8 WEQ - Meeting Comparison BPS/ESS/ITS and ESS/ITS Combined Approximately 75% of people participating in the BPS/ESS/ITS meetings/activities also participate in the ESS/ITS meetings/activities.

9 Free Template from 9 Joint BPS and ESS/ITS Dynamics Common terms with different meanings Significant regional operational difference result in multiple interpretations of the requirements Team wants to dive into details (we’re behind schedule so let’s roll-up our sleeves and get busy) Best document possible (considerable time spent on editing the document) Re-thinking previously agreed to changes in language (new motions to revise approved language) New participants joining in the middle of the recommendation development process (education process/readdress issues) Lack of documentation on previous decisions (different perceptions on what the subcommittee agreed to include/not include in the revised business practices/recommendation)

10 Free Template from 10 Future Approach for Recommendation Structured Development Approach: –Agree to recommendation concepts (1 day) Review 890, 890-A General consensus of scope Conceptual documents, work papers –Draft recommendation (done outside of meeting – requires 1 week) –Subcommittee reviews/revises draft recommendation (1 day) –Informal comment period (done outside of meeting requires 2 week window) –Subcommittee responds to informal comments/revises recommendation (2 days) –Second round informal comments – discretion of subcommittee based on the extent of changes to recommendation (done outside of meeting requires 2 week window) –Subcommittee responds to informal comments/revises recommendation (1 day) –Final review – vote out of subcommittee (0.5 day) Schedule WEQ Annual Plan items for specific meetings –Meetings will be extended if meeting objectives are not met Approach is aggressive and iteration of early activities may impact schedule Optional

11 Free Template from 11 Future Approach for Recommendation Benefits –Identifies interim activities and milestones required to complete a recommendation –Provides a framework for improved status reporting on 890 activities –Sets expectations for subcommittee members Structured approach may require modifications/adjustments as the process is being implemented

12 Free Template from 12 Proposed BPS & ESS/ITS Schedule

13 Free Template from 13 BPS & ESS/ITS 890 Annual Plan Items Summary AP Items completed By June 1, 2008 –(2.b.v.1) ATC components –(2.b.v.3) ATC/TTC narratives –(2.b.v.4) Underlying load forecast assumptions –(2.b.v.5) Actual daily peak load AP Items under development by June 1, 2008 –(2.b.iii.1-3) Capacity benefit margin (CBM) –(2.b.iv.1-3) Transmission reliability margins (TRM) AP Items to be scheduled with direction/accountability from WEQ Executive Committee and Board –(2.b.ii.1) Accounting for counterflows –(2.b.ii.2) ETC complementary business practices –(2.b.v.2) Data exchange for ATC modeling –(2.b.vi) Complement to NERC transfer capability standard –(2.b.vii) TTC and ATC methodologies and values –(2.c) Transparency reporting and related functions –Postbacks (required for NERC)

14 Free Template from 14 Next Steps BPS & ESS/ITS will implement structure approach for completing Annual Plan Items Direction from the Executive Committee and Board –How to proceed Maintain status quo recognizing the issue will need to be addressed in the future. Continue conversations with FERC about steps required to meet deadlines. Reassignment of priorities: –Reprioritization of BPS/ESS/ITS annual plan items. –Defer ESS/ITS work since this work is not on a FERC deadline. –No additional assignments until WEQ Annual Plan items with FERC deadlines are complete. Additional options from the Executive Committee. –Identification of additional resources to meet deadlines –Support of structured approach being implemented May result in greater number of formal comments being submitted to Executive Committee.