1. SAR 001 DT Presentation 5.7.2008 Texas RE Presentation to SAR-001 Drafting Team Farzaneh Tafreshi Manager, Reliability Standards Texas Regional Entity Farzaneh.Tafreshi@texasre.org

2. 2 SAR 001 DT Presentation 5.7.2008 Electric Reliability Organization (ERO) ● Energy Policy Act of 2005, called for the creation of an international “Electricity Reliability Organization” ● In July 2006, FERC certified NERC as the ERO for the U.S.

3. 3 SAR 001 DT Presentation 5.7.2008 Regional Entity NERC works with eight Regional Entities (RE) to improve the reliability of the bulk power system

4. 4 SAR 001 DT Presentation 5.7.2008 Delegation Agreements Between NERC and REs Delegated functions:  Compliance enforcement  Development of Regional standards / Regional Variance

5. 5 SAR 001 DT Presentation 5.7.2008 Texas RE Standards Development Process (SDP) ●Exhibit C of the delegation agreement is the Texas RE Reliability Standards Development Process ●The Texas RE SDP is posted on the Texas RE website in the Reliability Standards section (Planning and Procedures): http://www.ercot.com/mktrules/compliance/tre/ standards/index.html

6. 6 SAR 001 DT Presentation 5.7.2008 What to use Texas RE SDP for ●Revise the SDP itself ●Develop Regional Standards ●Develop Variances to the NERC Standards

7. 7 SAR 001 DT Presentation 5.7.2008 Pro Forma Document ●All the Regional Standards Development Processes (SDP) required to follow NERC’s Pro Forma Document ●All SDPs must contain the 34 “Common Attributes”  ftp://www.nerc.com/pub/sys/all_updl/sac/rrswg/Pro_Forma _Regional_Entity_Standards_Development_Procedure_29 Nov06.pdf ftp://www.nerc.com/pub/sys/all_updl/sac/rrswg/Pro_Forma _Regional_Entity_Standards_Development_Procedure_29 Nov06.pdf

8. 8 SAR 001 DT Presentation 5.7.2008 Pro Forma Document

9. 9 SAR 001 DT Presentation 5.7.2008 SAR-001 ●SAR-001 was submitted by ERCOT ISO. ●SAR-001: “Revision to Texas RE Documents to Provide for the ERCOT ISO to Participate and have a Vote in the Processes” ●This action will revise the Texas Regional Entity Standards Development Process to include the ERCOT ISO as a voting member of the Reliability Standards Committee in addition to the other established market segment membership.

10. 10 SAR 001 DT Presentation 5.7.2008 WHY SAR-001? ●ERCOT ISO is another Registered NERC Entity ●ERCOT ISO is registered as:  Balancing Authority (BA),  Reliability Coordinator (RC),  Transmission Operator (TOP),  Interchange Authority (IA),  Planning Authority (PA),  Resource Planner (RP), and  Transmission Service Provider (TSP)

11. 11 SAR 001 DT Presentation 5.7.2008 WHY SAR-001? (Cont.)

12. 12 SAR 001 DT Presentation 5.7.2008 Impacted Documents ●ERCOT Bylaws ●SDP Supporting Procedures:  Reliability Standards Committee (RSC) Procedure  Standards Drafting Team (SDT) Procedure  Registered Ballot Body (RBB) Procedure

13. 13 SAR 001 DT Presentation 5.7.2008 Standard Drafting Team (SDT) Responsibility ●Develop a proposed Standard based upon an approved SAR ●Make recommendations to RSC after evaluation of its assigned task ●Prepare responses to comments ●Consider revisions based on the comments received

14. 14 SAR 001 DT Presentation 5.7.2008 Regional Standards Process Timeline

15. 15 SAR 001 DT Presentation 5.7.2008 Getting to the Reliability Standards Tracking Site

16. 16 SAR 001 DT Presentation 5.7.2008 Reliability Standards Tracking Site (Cont.) http://trackstandard.texasre.org/

17. 17 SAR 001 DT Presentation 5.7.2008 Farzaneh Tafreshi Texas Regional Entity Farzaneh.Tafreshi@texasre.org