North America Energy Standards Board Craig L. Williams, Specialist Ld./Sr. ISAS Meeting April 20, 2016 Salt Lake City, UT W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB Gas-Electric Harmonization Meeting held on March 7-8, 2016 in Houston, TX. We request that gas and electric industries, through NAESB, explore the potential for faster, computerized scheduling when shippers and confirming parties all submit electronic nominations and confirmations, including a streamlined confirmation process if necessary. Providing such an option would enable those entities that need greater scheduling flexibility to have their requests processed expeditiously.” 2 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB Gas-Electric Harmonization “In addition, while we recognize the time commitments in implementing the revised nomination timeline, the Commission requests that the natural gas and electric industries, through NAESB, begin considering the development of standards related to faster, computerized scheduling and file such standards or a report on the development of such standards with the Commission by October 17, 2016.” Post Order W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB Gas-Electric Harmonization Can e-Tags be applied to the gas industry to mimic the significant number of transactions processed on the power grid that use e-Tags in short processing windows, and if so, can it result in a streamlined scheduling process for natural gas? Are there “lessons learned” in the electric industry that can benefit the gas industry as it considers the feasibility of modifying the scheduling process to make it more efficient? 4 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB FERC Forms Subcommittee Last Meeting December 7, Finalized a list of preliminary issues. The April 16, 2015 Order Instituting Proceeding to Develop Electronic Filing Protocols for Commission Forms in Docket No. AD notified the industry of the FERC’s intent to replace the existing electronic filing format of FERC Forms 1, 1-F, 2, 2-A, 3-Q electric, 3-Q gas, 6, 6-Q, FERC-60 and FERC-714 with an Extensible Mark-Up Language (XML) file format. 5 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB – NERC – IDC Coordination NAESB maintains standing agenda items including: – Parallel Flow Visualization (PFV) – NAESB Electric Industry Registry (EIR) – Cybersecurity Another topic of interest is the NERC Functional Model which has recently been modified to retire the Load Serving Entity (LSE), Purchasing-Selling Entity (PSE) and Interchange Authority (IA) functions from the NERC Compliance Registry. 6 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

FERC Order 745 Demand Response On January 25, 2016, the Supreme Court of the United States ruled 6-2 in favor of the Federal Energy Regulatory Commission (FERC) in the case of FERC v. Electric Power Supply Association (EPSA). The decision upholds the demand response regulations issued in FERC Order No. 745 on March 15, 2011 in Docket No. RM and reverses and remands the United States Court of Appeals for the District of Columbia Circuit Court decision to vacate the order. 7 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

FERC Order 745 Demand Response In the majority opinion, the Supreme Court first undertook a three part analysis to hold that the Federal Power Act “provides FERC with the authority to regulate wholesale market operators’ compensation of demand response bids.” 8 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

FERC Order 745 Demand Response The NAESB DR and EE M&V Specification effort began in response to an August 6, 2013 request from Dominion Voltage Inc. to consider the development of the specification. The first part of the DR and EE specification effort - the EE M&V products and services specification has been completed and is now available to the industry. Given the Supreme Court ruling, the DSM-EE Specifications Task Force will be brought back into action and soon announce its first meeting of the year to continue to address the potential development of the DR M&V specification for the certification program. 9 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

NAESB – NERC – Time Error Removal On February 8, 2016, NERC filed a request for standards development (R16002) with NAESB proposing NAESB consider the removal of the WEQ-006 Manual Time Error Correction Business Practice Standards.R16002 The request relates to the proposed actions by NERC retire the NERC BAL-004 Time Error Correction Reliability Standard as part of Project Phase 2 of Balancing Authority Reliability-based Controls. The request has been assigned to the WEQ Business Practices Subcommittee (BPS). No opposition is expected.Project Phase 2 of Balancing Authority Reliability-based Controls 10 W ESTERN E LECTRICITY C OORDINATING C OUNCIL

Next Monthly Update Call The next Monthly Update conference call is scheduled for May 11, 2016 from 1:00 PM - 2:00 PM Central W ESTERN E LECTRICITY C OORDINATING C OUNCIL