Duke Energy Carolinas Quarterly Stakeholder Meeting Independent Entity Services Tuesday, October 21, :00 to 3:00 p.m. ET

22 Agenda Daylight Savings Time Change Designated Network Resources Transmission Service Annulments - Business Practice Recommendation Stakeholder Questions and Comments

3 Daylight Savings Time Change Duke Operates in Eastern Time (ET) Tutorials/Users Guides on OATI Sites –TSR / On OASIS, under Help see the Table of Contents DST Cutover Document –Tagging / On ETS, under HELP see Forms/Documentation "How-to" presentation for tagging across the Daylight Saving Time conversion"How-to" presentation for tagging across the Daylight Saving Time conversion

4 Daylight Savings Time Change To Create a TSR that Crosses the Fall Change (Two Options) –“Option A” Start your Reservation in EDT End Reservation on or after 0200 on (OASIS will default to in EST) –“Option B” Create your TSR with a 25hr Profile Start and end (OASIS will default with 2 HE 0200 one in ED & one in ES)

5 Example TSR “Option A”

6 Example TSR “Option B”

7 Daylight Savings Time Change To Create a Tag that Crosses the Fall Change –Fall Time Change creates a 25hr day –One Tag or Two Tags Suggest Create Two Tags –One in Eastern Daylight Time »Begin with the hours 0000 through 0200 ED –One in Eastern Standard Time –Change the default TZ to ES »Misc / Misc User Options –Or within the tag change the TZ at the top of your tag to ES »Continue For the Hours 0100 through 0000 (2400)ES –Verify your tags by re-checking them in both ED and ES time. Verify Profile Total Verify Hours with respect to Standard and Daylight Time

8 Daylight Savings Time Change Using Daylight Time Submitting One Tag –To use this option, user must set time to ED »Misc / Misc User Options 00:00 on through 01:00 on –Enter Tag Delayed –Change the default TZ to ES »Misc / Misc User Options –Reopen Tag »In Eastern Standard verify the end to be 00:00 on (Note: Start time will show 23: ES) –Revert your TZ back to ED –Re-open the Tag in Daylight time verify the hours and Profile are accurate. » In Eastern Daylight verify the end to be 01:00 on (Note: Start time will show 00: ED) –Submit your Tag –Verify your tags by re-checking them in both ED and ES time. Verify Profile Total Verify Hours with respect to Standard and Daylight Time

9 Designated/Undesignating Network Resources Revised On System and Off System DNR Forms –FERC Order 890B Requirements –CFR 37.6 (Total Installed Capacity, Electrical Location, and Geographical Location) –Information Required Consistent with OATT 29.2 and 30.3 –Improved “How to” Guide / Instruction –Ease of Use Forms Consolidated –On & Off System / One Form

10 Designated Network Resources –OASIS Business Practices/Section 2ii- Pending Changes/Item (c) on_of_Network_Resource_Request_Form.dochttp:// on_of_Network_Resource_Request_Form.doc October 27 th Implementing New Form

11 Designation Form

12 Undesignation of DNRs OASIS Business Practices/Section 2ii- Pending Changes/Item (c) – on_of_Network_Resource_Request_Form.dochttp:// on_of_Network_Resource_Request_Form.doc –October 27 th Implementing New Form

13 Undesignation Form

14 Transmission Service Annulments Planned Business Practice Change –Doesn't change current situations where Annulments are granted –Provides Audit Trail for both the Customer and Provider Documents actual TSR requested for Annulment –Recommended Business Practice – See Appendix A –Require an requesting the Annulment “ Please Annul PtP / Non-Designated Network [Select One] TSR [Enter TSR #], due to [Enter Reason]. This reservation has been replaced by TSR [Enter Replacement TSR #]. I confirm that this reservation is NOT scheduled or upon granting the annulment, the TAG will be Terminated, Withdrawn, Canceled, or adjusted to 0.”

15 IE Proposed Next Steps Proposed Next Quarterly Stakeholder Meeting –Tuesday, January 20, 2008 – 2 p.m. to 3 p.m. ET Known Topics –Resale –Transfers –More on Network Service Customer Suggested Topics? –This is the forum for discussing customer survey topics and emergent topics (Upcoming changes, stakeholder input)

16 Questions / Feedback?

17 Appendix A