1. State of Reliability Standards Valerie Agnew, Sr. Director of Standards, NERC Steve Rueckert, Director Standards, WECC

2. RELIABILITY | ACCOUNTABILITY2 Overview of Standards  Progress to date  Achieving “Steady-state” 2015 Going Forward  Integrating Risk  Outlook for standards development projects Topics

3. RELIABILITY | ACCOUNTABILITY3 Evolution of Standards Development

4. RELIABILITY | ACCOUNTABILITY4 Evolution of Standards Development

5. RELIABILITY | ACCOUNTABILITY5 Evolution of Standards Development

6. RELIABILITY | ACCOUNTABILITY6 Evolution of Standards Development

7. RELIABILITY | ACCOUNTABILITY7 Evolution of Standards Development

8. RELIABILITY | ACCOUNTABILITY8 Evolution of Standards Development

9. RELIABILITY | ACCOUNTABILITY9 Evolution of Standards Development

10. RELIABILITY | ACCOUNTABILITY10 BALResource and Demand Balancing CIPCritical Infrastructure Protection COMCommunications EOPEmergency Preparedness and Operations FACFacilities Design, Connections and Maintenance INTInterchange Scheduling and Coordination IROInterconnection Reliability Operations and Operations MODModeling, Data and Analysis NUCNuclear PERPersonnel Performance, Training, and Qualifications PRCProtection and Control TOPTransmission Operations TPLTransmission Planning VARVoltage and Reactive Standard Families

11. RELIABILITY | ACCOUNTABILITY11 Completing necessary work  FERC directives  Paragraph 81 and Independent Experts Review Panel (IERP) recommendations for retirement  Gaps Implementing Results-based standards  Performance-based  Risk-based  Competency-based Focusing on targeted applicability Standards – Steady-State

12. RELIABILITY | ACCOUNTABILITY12 Progress on FERC Directives

13. RELIABILITY | ACCOUNTABILITY13 Paragraph 81  FERC Order issued March 15, 2012  Revise or remove requirements with little effect on reliability Independent Experts  Reviewed all non-CIP requirements  Focused on 404 Future Enforceable requirements  Recommended retirements  Identified gaps Paragraph 81 and Independent Experts

14. RELIABILITY | ACCOUNTABILITY14 Key Findings – Status Total Future Enforceable requirements – 404 Retirement -147 Retain - 257  Improve -176  Steady-State - 81  Consolidate retained 257 requirements (232)

15. RELIABILITY | ACCOUNTABILITY15 Progress on Paragraph 81 and Independent Experts Review Panel (IERP)

16. RELIABILITY | ACCOUNTABILITY16 Progress on Paragraph 81 and Independent Experts Review Panel (IERP)

17. RELIABILITY | ACCOUNTABILITY17 Requirements

18. RELIABILITY | ACCOUNTABILITY18 Eastern Interconnection1 Standard, 4 Requirements NPCC2 Standards, 40 Requirements* ReliabilityFirst1 Standard, 2 Requirements SERC1 Standard, 2 Requirements Texas RE2 Standard, 12 Requirements WECC8 Standards, 24 Requirements** *1 Standard becomes enforceable July 1,2015 **Reduced from 26 as of April 1, 2015 Regional Standards with Requirements

19. RELIABILITY | ACCOUNTABILITY19 2014  RSDP identified 26 projects to be completed in 2014  Four projects were added after plan was developed 2015  Twelve projects, or portions of projects, were extended into 2015  Four new projects are identified in the RSDP Reliability Standards Development Plans (RSDP)

20. RELIABILITY | ACCOUNTABILITY20 Outlook for standards development projects  Enhanced Periodic Reviews  FERC Directives  Newly identified risks Concurrent development of compliance expectations Transition to implementation Post enforcement activities Standards – Next Steps

21. RELIABILITY | ACCOUNTABILITY21 Measured, in-depth review to improve quality and content of standards Look for opportunities to make standards more concise Verify content is appropriate to be included in a standard Incorporate Regional Standards into Continent-wide Standards Builds on Independent Experts’ work with industry input Plan to be developed in first half of 2015 No mandated timeline Enhanced Periodic Reviews

22. RELIABILITY | ACCOUNTABILITY22 Risk Mitigation

23. RELIABILITY | ACCOUNTABILITY23 Solutions Package Evaluate

24. WECC Coordinates with NERC 24 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

25. Efforts to Coordinate Transition Existing WECC Regional Reliability Standards (RRS) to NERC Variances Retire Unnecessary or Outdated WECC RRS Retire Unnecessary or Outdated WECC Variances Participate in Enhanced Periodic Reviews Review and comment/vote on NERC Projects 25 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

26. Current WECC Standards Projects 26 W ESTERN E LECTRICITY C OORDINATING C OUNCIL Project Number Title WECC-0101Generator Validation Conversion WECC-0105P81 VAR Redraft WECC-0107PSS Design and Performance WECC-0111TOP-007-WECC-1a Retirement or Modification WECC-0113Retire WECC Variance in FAC-010-2.1 and FAC-011-2

27. RELIABILITY | ACCOUNTABILITY27