Business Practices Subcommittee Update April 30, 2012

2 Free Template from 2 WEQ BPS Update - Meetings Meetings since last update –March 6-7, 2012 (Little Rock, AR) –March 26, 2012 (Conf. Call) –April 3-4, 2012 (Carmel, IN) –Sub-team (Credit for Redispatch) – 2 meetings Scheduled meetings –May 16-17, 2012 (Atlanta, GA) Joint with NERC IDCWG –June 13-14, 2012 (Valley Forge, PA) –July 18-19, 2012 (Minneapolis, MN) –August 15-16, 2012 (Carmel, IN) –September 12-13, 2012 (Houston, TX) –October 17-18, 2012 (Las Vegas, NV) –November 14-15, 2012 (Houston, TX) –December 11-12, 2012 (Houston, TX)

3 Free Template from 3 Parallel Flow Visualization (Coordination) NAESB/NERC Management NAESB –Executive Committee –Standards Review Subcommittee –OASIS Subcommittee –JESS Subcommittee NERC –Operations Reliability Subcommittee –Interchange Distribution Calculator Working Group –Standards Committee –Standard Drafting Teams Interchange Standards Drafting Team TLR Standards Drafting Team Stakeholders –NAESB –NERC

4 Free Template from 4 Parallel Flow Visualization – Recent Activity Continued Finalizing Parallel Flow Visualization Permanent Solution White Paper (Latest Draft included in EC Meeting Materials) –Intra BA Network Service Tag Curtailment –Managing Pseudo Ties for generator prioritization and tag all non-firm on multiple systems –Submission of generator priorities for service over multiple TSPs. –Continued to finalize Credit for Redispatch issues. INC/DEC Units Identification Constrained Economic Dispatch or not Responsibility lies with Balancing Authorities for providing Relief IDC to determine if assigned relief was provided Matrix of TSPs having Coordination Agreements –IDC to publish the list Presented Status Reports to: –NERC IDCWG

5 Free Template from 5 Parallel Flow Visualization – Challenges What if scenarios - examples Outstanding concerns still remains –How can we move forward with a solution without knowing that it will be equitable –How do we define what is equitable –Who determines what is equitable –Working on industry consensus to resolve this issue BPS by default is the forum for understanding the big picture BPS has identified dependencies with NERC standards BPS has no control over establishing priority of NERC standards nor can it impact the outcome Level of detail in standards needed for full staffing Criteria for determining success of full staffing (parallel test) New consortium for managing IDC starting in 2013

6 Free Template from 6 Parallel Flow Visualization – Request BPS Working with EC Leadership for Coordination with NERC –For elevating the priority of Interchange Standard Development to tag intra-BA Point-to-Point so that NERC addresses this item within (FERC Order 693) –Modification to IRO-006-EAST to modify R.3 and R.4 to support curtailment for intra-BA Point-to-Point. –The timing for the changes to the INT and IRO standards will need to coincide with Parallel Flow Visualization moving into production. –The NERC intra-BA tagging requirements should be coordinated with the NAESB Business Practices Subcommittees work on Parallel Flow Visualization.

7 Free Template from 7 Parallel Flow Visualization – Next Steps May –Complete White Paper – Include final Credit for Redispatch resolution. (good enough to develop standards) June - September –Develop standards from Parallel Flow Visualization Permanent Solution White Paper (anticipate modifications to White Paper during standards development process) –Seek informal industry comments due to complexity of issue October –Vote to post standards/recommendation for 30-day formal comment period November/December –Develop late comments for standards/recommendation

8 Free Template from 8 Questions/Feedback ?