Business Practices Subcommittee Update April 30, 2013

2 Free Template from 2 WEQ BPS Update - Meetings Meetings Since Last Update –March , 2013(Little Rock, AR) –April 23-25, 2013 (Carmel, IN) Scheduled Meetings –May 22-23, 2013 (Valley Forge, PA) –June 19-20, 2013 (Minneapolis, MN) –July 17-18, 2013 (Location TBD) –August 14-15, 2013 (Location TBD) Additional sub-team Meetings to be Scheduled –Recommendation Sub-team –Recognize Existing Seams Agreements Sub-Team

3 Free Template from 3 Informal Comments (02/18/13 – 03/18/13) Basin Electric Power Cooperative Duke Energy Entergy FRCC Reliability Coordinator ISO New England Kansas City Power and Light MISO New York ISO North Carolina Electric Membership Corporation Southern Company Southwest Power Pool TVA Westar Energy WE Energies

4 Free Template from 4 Categories of Comments Draft Standards Additional Documents Testing Implementation/Cost/Funding Coordination with NERC and the IDC Association

5 Free Template from 5 Draft Standards Recognize Seams Agreements/Granularity - New Coordination Arrangements/Two-Tier Firm Curtailment - Removed Pseudo-Ties - Hold Generator Priority Schedules - Ongoing Definitions - Ongoing

6 Free Template from 6 Additional Documents Whitepaper –Big Picture View –Calculations for Relief Obligations IDC Users Manual –How Calculations are Performed –Treatment of Phase Angle Regulators (PARs) System Data eXchange (SDX) Users Manual –New Entities Submitting Data –Acknowledgements/Error Processing

7 Free Template from 7 Testing Evaluation Criteria Data (Input/Output) –Access to Data –Quality of Data –Sufficient Data Testing Plan (12 to 18 Month Test) Dependencies to Begin Testing Commitment to Testing –NAESB –NERC –Association –Industry

8 Free Template from 8 Implementation/Cost/Funding Cost/Benefit Analysis Funding –IDC and SDX modifications –Testing Phase Decision to move to production –NAESB –NERC/Operating Reliability Subcommittee (ORS) –Association

9 Free Template from 9 Coordination – NERC Commitment to Testing Responsibility to Improve Accuracy of the IDC Tool ORS Role Moving Forward Standard Drafting Teams –Coordinate Interchange Tagging Intra-BA Point-to-Point Treatment of Pseudo Ties Tag Secondary Network Service/Generator Priority Schedules Liaison –IRO 5-Year Review Team Curtailment of Intra-BA Point-to-Point Tags –Project (BAL Standards)

10 Free Template from 10 Coordination – IDC Association Memorandum of Understanding (MOU) Commitment to Testing Responsibility to Improve Accuracy of the IDC Tool Funding of Testing/Implementing Standards Access to Data During Testing What Documentation is Needed to Move Forward IDC Working Group –Updates to Users Manuals –Changes to Draft Recommendation Standards –Review and input into Whitepaper

11 Free Template from 11 Next Steps Subcommittee –Continue Working Through Informal Comments - Ongoing Sub-teams –Proposal to Recognize Existing Seams Agreements - July –Update Recommendation Based on Subcommittee Decision – Ongoing –Update Users Manuals in Coordination with IDC Working Group – Ongoing –Update Whitepaper – Not Started WEQ Leadership/NAESB Staff – Coordination Issues –NERC - Ongoing –IDC Association – Begin in May Post Recommendation Formal Comments –4 th Quarter

12 Free Template from 12 Questions/Feedback ?