1. NAESB Update Kathy Anderson October 2015 MIC Meeting

2. August 18, 2015 WEQ EC Meeting Request was to develop, modify, or delete business practice standards to support Request R14002 (NERC Project 2012-05 ATC Revisions (MOD A)) NAESB WEQ preserving NERC rejected ATC standards

3. August 18, 2015 WEQ EC Meeting The Business Practice Subcommittee’s recommendation contained two controversial standards, as follows: XXX-1.4 Each Transmission Service Provider shall not grant a request for Firm Transmission Service on an ATC Path that serves as an interface with another BA if the net of the Firm Transmission Service transactions into and out of the Transmission Service Provider’s BA would exceed the sum of the Facility Ratings of Tie Facilities to which Transmission Service Providers mutually agree they have the right to use the Tie Facilities that comprise the ATC Path, between the two BAs.

4. August 18, 2015 WEQ EC Meeting XXX-1.4.1 Each Transmission Service Provider shall limit the Interchange Schedule (both Firm and non-Firm) of the reservations on an ATC path into and out of Transmission Service Provider’s BA on an interface with another BA such that the net Interchange Schedule does not exceed the sum of the Facility Ratings of Tie Facilities to which Transmission Service Providers mutually agree they have the right to use the Tie Facilities that comprise the ATC Path, between the two BAs.

5. August 18, 2015 WEQ EC Meeting The Independent Grid Operator (IGO) segment does not like these two standards and tried to get them removed. That attempt failed, so a compromise was crafted. Recommendation finally passed by the EC with agreement to form a new EC task force to address more fully these two standards.

6. August 18, 2015 WEQ EC Meeting EC also approved eliminating the masking of TSRs’ source and sink when requested status reaches any final state (a.k.a. denied, withdrawn refused, displaced, invalid, declined, annulled, retracted, or confirmed).

7. August 18, 2015 WEQ EC Meeting Approved a “No Action” recommendation regarding 2005 standard request asking for a standard that would eliminate the disparity of posting “sensitive” information. ( CIS and CSS worked on PKI standards which have resolved this, thus no actions)

8. August 18, 2015 WEQ EC Meeting Develop standards to support the Transmission Provider right to reassess the availability of “conditional firm” - the Transmission Provider may elect to waive or extend the right to perform a Biennial Reassessment.

9. August 18, 2015 WEQ EC Meeting To be consistent with ¶51 of FERC Order No. 890-A, added TFC, FAFC, and NFAFC values to the “System_Attribute” data element of the NAESB Standard WEQ-003: OASIS S&CP Data Dictionaries To be consistent with ¶51 of FERC Order No. 890-A, added TFC, FAFC, and NFAFC values to the “System_Attribute” data element of the NAESB Standard WEQ-003: OASIS S&CP Data Dictionaries.

10. Corrected WEQ 013-2.6.7.2 for Resale off OASIS by eliminating the “no later than 24 hours prior” to confirming requirement. – The Assignee must execute a service agreement with the Transmission Provider that will govern the provision of reassigned service no later than twenty-four hours prior to the Assignee confirming the Resale on OASIS. the scheduling deadline applicable for the commencement of the reassigned service. The Transmission Provider may establish a blanket service agreement to include Resale transactions. August 18, 2015 WEQ EC Meeting

11. Approved modifications to WEQ-004 Coordinate Interchange Business Practice Standards to require the tagging of Intra-Balancing Authority transactions. This was NERC INT-011-1.1 – LSE issue August 18, 2015 WEQ EC Meeting

12. Approved “no action” recommendation regarding the modification of WEQ standards to address XML vulnerability exploits. – CISS and CSS - no known vulnerabilities to fix August 18, 2015 WEQ EC Meeting

13. Approved Minor Correction to NAESB WEQ Business Practice Standards Version 003.1, WEQ-001, WEQ-002, and WEQ-013 OASIS, Version 2.0 - To change the wording of the phrases: – “shall have the right to”, – “shall be allowed to”, – “shall be permitted, but is not required, to”, – “shall be permitted to”, and – “shall have the ability to” to “may”, along with other consistency changes. August 18, 2015 WEQ EC Meeting

14. One conference call – Evident that non-consensus still exists Still waiting for FERC staff guidance Earlier this month, NAESB received word that internal to FERC, consensus on how to handle the conditional parent scenario has not been reached and was unlikely based on our informal request. As such, NAESB staff and WEQ leadership will proceed with preparing a filing of Version 3.1 of the WEQ standards. It is intended that the filing include a concise request for guidance regarding the conditional parent scenario. NAESB WEQ Firm Redirects from Conditional Parents Task Force Update

15. Continued work on Competition and Preemption (split into LTerm & STerm) Some rework expected once FERC accepts the Entergy/Dynergy modification in the 3.1 publication Working on standards to support a “merger” or “consolidation” function for firm TSRs NAESB OASIS Subcommittee Update

16. Market Operator as an unique Code-Roll Will require changes to: EIR WEQ-004 e-Tag Collecting next round of e-Tag changes NAESB CISS Update

17. Western Interconnection needs representation at NAESB NAESB standards find their way into your tariffs NAESB Standards Membership