1. Standards Review Subcommittee Update August 17, 2010

2. 2 Free Template from www.brainybetty.com 2 Meetings Recent Meetings: –May 18, 2010 –July 13, 2010 –August 10, 2010 Upcoming Meetings –August 25, 2010 –September 21, 2010 –October 19, 2010 –November 16, 2010

3. 3 Free Template from www.brainybetty.com 3 Recent Activities Ongoing Activities –Monthly Review of NERC Activities Requested JESS review NERC activity with regards to EOP- 002-3 Requirement 6 (NAESB WEQ Annual Plan 3.a.vi) –Review of recommendations posted for formal comments Parallel Flow Visualization Interim Solution Specific Activities –Started Review of Annual Plan Item 1.d “Monitor and develop NAESB business practices as needed to complement NERC reliability standards for FAC-012 and FAC-013.” –Compare NERC glossary dated April 20, 2010 Glossary and NAESB glossary ratified March 24, 2010 –Revised Scope of Work –Implemented tracking process to monitor SRS review of recommendations, minor corrections, and standards request

4. 4 Free Template from www.brainybetty.com 4 Annual Plan Item 1.d Annual Plan Item 1.d “Monitor and develop NAESB business practices as needed to complement NERC reliability standards for FAC-012 and FAC-013.” –The subcommittee reviewed a draft of FAC 013-2 which was posted for comments from 3/15/2010 to 4/29/2010. –The subcommittee agreed that, as written, the standard does not have any impact on NAESB Business Practice Standards. –The NERC Standards Drafting team has modified this standard based on comments received, but their new draft has not yet been posted for comments. –The subcommittee will continue to monitor this standard for any impact on NAESB Business Practice Standards.

5. 5 Free Template from www.brainybetty.com 5 NERC/NAESB Glossary The subcommittee reviewed the NERC and NAESB glossaries and identified inconsistencies. NAESB made conscious decisions to have differences in definitions from NERC. Next steps (what needs to be communicated) –NERC –FERC

6. 6 Free Template from www.brainybetty.com 6 NERC/NAESB Glossary Business Practice –NAESB Definition - Refers collectively to any practices adopted by the Transmission Provider as defined in their OATT, or Transmission Provider specific practices or requirements. –NERC Definition - Those business rules contained in the Transmission Service Provider’s applicable tariff, rules, or procedures; associated Regional Reliability Organization or regional entity business practices; or NAESB Business Practices. –Status - NAESB made a distinction between an entity’s business practices and NAESB Business Practice Standards. NERC has included NAESB Business Practice Standards as a subset of Business Practices.

7. 7 Free Template from www.brainybetty.com 7 NERC/NAESB Glossary Native Load –NAESB Definition - The demand imposed on an electric utility or an entity by the requirements of all customers located within a franchised service territory that the electric utility or entity has statutory or contractual obligation to serve. –NERC Definition - The end-use customers that the Load- Serving Entity is obligated to serve. –Status – Definition was found in WEQ-008 TLR Business Practice Standards. Definition was reviewed at Joint BPS NERC TLR Standards Drafting Team meeting on June 26-27, 2008, agreed that NAESB would not change its definition.

8. 8 Free Template from www.brainybetty.com 8 NERC/NAESB Glossary Postback –NAESB Definition - A variable component of the Transmission Provider’s selected ATC or AFC calculation methodology that positively impacts ATC or AFC based on a change in status of a Transmission Service reservation or use of reserved capacity, or other conditions as specified by the Transmission Provider. –NERC Definition - Positive adjustments to ATC or AFC as defined in Business Practices. Such Business Practices may include processing of redirects and unscheduled service. –Status – NAESB definition was shared with NERC during May 29, 2008 conference call. (No minutes available to indicate that NERC was in agreement or had no concerns with the definition.)

9. 9 Free Template from www.brainybetty.com 9 NERC/NAESB Glossary Reallocation –NAESB Definition - The process used to totally or partially curtail Transactions during TLR levels 3a, 3b or 5a events to allow Transactions using equal or higher priority to be implemented. –NERC Definition - The total or partial curtailment of Transactions during TLR Level 3a or 5a to allow Transactions using higher priority to be implemented. –Status – Understanding that NERC is working towards deleting its definition of Reallocation via Project 2006- 08 ― Transmission Loading Relief.

10. 10 Free Template from www.brainybetty.com 10 NERC/NAESB Glossary Request for Interchange –NAESB Definition - A collection of required data, as defined in Business Practice Standards WEQ-004-C, necessary for the purpose of submitting to the IA as an Arranged Interchange. –NERC Definition - A collection of data as defined in the NAESB RFI Datasheet, to be submitted to the Interchange Authority for the purpose of implementing bilateral Interchange between a Source and Sink Balancing Authority. –Status – Kept original NAESB definition. NAESB RFI Datasheet is an undefined term in NAESB or NERC Standards.

11. 11 Free Template from www.brainybetty.com 11 NERC/NAESB Glossary Bulk Electric System –NAESB Definition - The electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kV or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition. –NERC Definition - As defined by the Regional Reliability Organization, the electrical generation resources, transmission lines, interconnections with neighboring systems, and associated equipment, generally operated at voltages of 100 kV or higher. Radial transmission facilities serving only load with one transmission source are generally not included in this definition. –Status – NAESB made a decision not to include “As defined by the Regional Reliability Organization.” RRO is not included in the NERC Functional Model.

12. 12 Free Template from www.brainybetty.com 12 Scope of Work Subcommittee made minor corrections to its scope of work on May 13, 2010 http://www.naesb.org/pdf3/weq_srs_scope_of_work.pdf Lines 258-260 of the NAESB Operating Practices state: The subcommittee should prepare a mission statement that should be approved by the subcommittee by a balanced vote and then submitted to the EC or quadrant EC for approval Do the changes to the Standard Review Subcommittee Scope of Work Require EC Approval? If so, the SRS is seeking approval of the May 18, 2010 Scope of Work document

13. 13 Free Template from www.brainybetty.com 13 NERC Reliability Stds. Dev. Plan NERC Reliability Standards Development Plan –Did not provide additional comments on 2010 – 2012 Plan. –Draft 2011 – 2013 Plan is scheduled to be posted the week of August 16 th. –Special SRS meeting scheduled for August 25, 2010, to review and draft comments. –Do SRS comments need to be approved by the Board or Managing Committee before they are sent to NERC?

14. 14 Free Template from www.brainybetty.com 14 Questions/Feedback Requests others also to look at the NERC activities to assess whether they think NAESB should be developing complementary standards. Seeing participation dropping off, (PAP 10 Subcommittee calls were scheduled on top of SRS monthly calls). Could use more participation from the west. Seeks continued participation in monthly conference call meetings.