1. 1 Free Template from www.brainybetty.com Some Industry Updates ISAS Meeting August 20 & 21, 2014 1

2. 2 Free Template from www.brainybetty.com Today’s Update Contains….  NAESB  MOD A Scoping Task Force  Joint Electric Scheduling Subcommittee  OASIS Subcommittee  Business Practice Subcommittee  Random  NERC  INT Reliability Standards 2

3. 3 Free Template from www.brainybetty.com MOD A Scoping Task Force Reported to WEQ Executive Committee Response to standards request submitted NERC MOD A drafting team Reviewed 200+ requirements/sub- requirements Developed recommendation for “1 must have” and “41 please consider” requirements Business Practice Subcommittee has the assignment Desired completion by 2Q2015 3

4. 4 Free Template from www.brainybetty.com Joint Electric Scheduling Subcommittee (JESS) Meetings e-Tag 1.8.2 WEQ-004 Coordinate Interchange Business Practice Standards Electric Industry Registry Update 4

5. JESS Meetings Meetings Since Last Update February 25-26, 2014 ( Houston, TX) March 24, 2014 (conference call) April 8-9, 2014 (Houston, TX) May 20-21, 2014 (Little Rock, AR) June 16, 2014 (conference call) July 15-16, 2014 (Redwood City, CA) August 5, 2014 (conference call) 5

6. JESS Meetings Upcoming Meetings in 2014 August 27, 2014 (conference call) Sept 23-24, 2014 (Pensacola, FL) October 15, 2014 (conference call) November 11-12, 2014 (Houston, TX?) November 24, 2014 (conference call) December 17, 2014 (conference call) 6 Hosting Opportunity Available

7. 7 Free Template from www.brainybetty.com e-Tag 1.8.2 Test plan posted for comment Initial testing schedule starts Oct 28 th Two additional test weeks scheduled in Nov. Implementation goal of March 31, 2015 Subcommittee and vendors have developed an implementation/rollover plan which are posted 7

8. 8 Free Template from www.brainybetty.com WEQ-004 Coordinate Interchange Business Practice Standards Annual Plan Item 3.a.ii Review and correct WEQ-004 Coordinate Interchange Business Practice Standard as needed based on activities in NERC Project 2008-12, Coordinate Interchange Standards Revisions and supporting EOP-002-2 R4 and R6. Status: Voted out of subcommittee for 30-day formal comment. Comments were due by Aug. 15, 2014. Two sets of comments received Modified and approved by WEQ EC on Aug. 19, 2014 To be sent out for membership ratification. 8

9. 9 Electric Industry Registry Business Practice Standards (to do’s) Determine if Business Practices are needed for registration of pseudo-ties Investigate the need for more transparent object revision and publication schedules.

10. 10 EIR Update JESS Approved Enhancements ER14001 – TVA requested new energy product code 7-CB (for tagging CBM) ER13002 – NWMT requested mechanism to notify when objects will be removed from EIR publication ER13001 – NERC requested EIR include schema and GUI for registration and approval of pseudo-ties

11. 11 JESS Mission Statement Update JESS Changing Mission Statement Potential new name – NCISS? CESS or CISS – Coordinate Electronic Scheduling Subcommittee or Coordinate Interchange Scheduling Subcommittee No NERC oversight Will be posted for comments

12. OASIS Subcommittee J.T. Wood, Alan Pritchard, and Paul Sorenson co- chairs Preemption and Competition is still on track to be completed by 4th Q 2014 and considered at the February EC meeting. This will impact the publication cycle as publication of WEQ Version 003.1 is contingent upon completion of these standards. Publication is set for 2 nd Q 2015.

13.  Working on all phases of Preemption and Competition o Short-Term Firm Preemption and Competition o Non-Firm Preemption and Competition o Competition for Rollover Rights (Long-Term Competition)  Main Outstanding Scope Issues o Resales (including aggregation of resales and redirect of resales) o Competition for Rollover Rights  Make revisions to Business Practice Standards o WEQ-000 o WEQ-001 o WEQ-002 o WEQ-003 o WEQ-013  Out for formal comments 4Q 2014 OASIS Subcommittee Preemption and Competition

14. OASIS Calendar  Aug 20-21 Dallas, TX (Oncor) FTF  Aug 28 conf call  Sept 16-18 Seattle, WA (SCL) FTF  Oct 2 conf call  Oct 22-23 Richmond, VA (Dominion) FTF  Nov 4 conf call  Nov 18-20 New Orleans, LA (Entergy)  Dec 2 conf call

15. Business Practices Subcommittee Calendar  Recent Meetings  May 28-29, 2014 – Carmel/MISO  June 24-25, 2014 – Louisville/LG&E/KU  July 18, 2004 – Conference Call  August 6-7, 2014 – Valley Forge/PJM  Upcoming Meetings  Sept 3-4, 2014 – TBD  Oct 7-8, 2014 – TBD  Oct 28-29, 2014 – TBD  Dec 3-4, 2014 - TBD

16. Business Practices Subcommittee  Reviewing/addressing second round of informal comments on Parallel Flow Visualization (PFV)  The PFV business practice standards are still on track to be completed by 3rd Q 2014 and considered at the October WEQ EC meeting.

17. Business Practices Subcommittee Timeline:

18. Random NAESB Stuff  Next WEQ EC meeting October 21, 2014 in Richmond, VA  Board considering structure changes:  Retail Quadrant (formally Retail Gas and Retail Electric Quadrants) might become Retail Market Quadrant  Removal of the sub-segments  Moving structure descriptions from Quadrant procedures to Bylaws level (common alignment of Quadrant representation)

19. NERC INT Reliability Standards  Retirement of old standards and effective date of new standards is October 1, 2014, with the exception of one requirement, INT-004-3, R3.  NERC: “Requirement R3 will become effective on the first calendar day two calendar quarters after the NAESB Electric Industry Registry is able to accept Pseudo-Tie registrations. All existing and future Pseudo-Ties are to be registered in the NAESB Electric Industry Registry.”

20. NERC INT Reliability Standards  Are you looking at compliance?  For each requirement, what are using to collect information/data to demonstrate compliance?  Do the tools you relied-on up until now sufficiently capture the information need in the new standards?  Composite Confirmed Interchange - The energy profile (including non-default ramp) throughout a given time period, based on the aggregate of all Confirmed Interchange occurring in that time period.

21. NERC INT Reliability Standards  INT-004-3 Dynamic Transfers  To ensure Dynamic Schedules and Pseudo-Ties are communicated and accounted for appropriately in congestion management procedures.  R1 – tag or use alternate means  R2 – if tagged, keep it up-to-date  R3 – register Pseudo-Ties in the EIR

22. NERC INT Reliability Standards  INT-006-4 Evaluation of Interchange Transactions  To ensure that responsible entities conduct a reliability assessment of each Arranged Interchange before it is implemented  R1 - BAs must actively approve or deny the transition to Confirmed Interchange and it lists criteria when a BA must deny.  R2 - TSPs must actively approve or deny the transition to Confirmed Interchange and it lists criteria when a TSP must deny.  R3 - BAs must actively approve or deny the transition of a curtailment or reload request to Confirmed Interchange.  R4 - Sink BAs shall deny the transition an Arranged Interchange to Confirmed Interchange based on certain criteria.  R5 - Sink BAs must distribute notifications to listed entities indicating whether an Arranged Interchange has transitioned to Confirmed Interchange.

23. NERC INT Reliability Standards  INT-009-2 Implementation of Interchange  To ensure that Balancing Authorities implement the Interchange as agreed upon in the Interchange confirmation process.  R1 - BA must agree with their each of its Adjacent BAs to a Composite Confirmed Interchange value.  R2 - Adjacent BAs incorporating a Pseudo-Tie must agree to a common source for the dynamic signal used in their Actual Net Interchange term for their ACE equation.  R3 - BA that controls a high-voltage DC tie coordinates the Confirmed Interchange.

24. NERC INT Reliability Standards  INT-010-2 Interchange Initiation and Modification for Reliability  To provide guidance for required actions on Confirmed Interchange or Implemented Interchange to address reliability.  R1, R2, and R3 are revisions to existing requirements that provide clarity and shift compliance responsibility.

25. NERC INT Reliability Standards  INT-011-1 Intra-Balancing Authority Transaction Identification  To ensure that transfers within a Balancing Authority Area using Point to Point Transmission Service are communicated and accounted for in congestion management procedures.  An old FERC directive  Requirements similar to dynamics – tag or some other means  Includes grand-fathered service  No special processing within e-Tag

26. Questions/Feedback 26