NAESB WEQ UPDATE Interchange Scheduling and Accounting Subcommittee Meeting Salt Lake, UT August 26, 2015 Bob Harshbarger Puget Sound Energy

IF I HAD ’ NT EXTORTED ALL THAT MONEY MAYBE I ’ D STILL HAVE FRIENDS LONE SHARK

THIS PRESENTATION COVERS THE LAST WEQ EXECUTIVE COMMITTEE MEETING IN DALLAS, TX AUGUST 18, 2015

 Request was to develop, modify, or delete business practice standards to support Request R14002 (NERC Project ATC Revisions (MOD A))  NAESB WEQ preserving NERC rejected ATC standards * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 The Business Practice Subcommittee’s recommendation contained two controversial standards, as follows: * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

XXX-1.4 Each Transmission Service Provider shall not grant a request for Firm Transmission Service on an ATC Path that serves as an interface with another BA if the net of the Firm Transmission Service transactions into and out of the Transmission Service Provider’s BA would exceed the sum of the Facility Ratings of Tie Facilities to which Transmission Service Providers mutually agree they have the right to use the Tie Facilities that comprise the ATC Path, between the two BAs. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

XXX Each Transmission Service Provider shall limit the Interchange Schedule (both Firm and non-Firm) of the reservations on an ATC path into and out of Transmission Service Provider’s BA on an interface with another BA such that the net Interchange Schedule does not exceed the sum of the Facility Ratings of Tie Facilities to which Transmission Service Providers mutually agree they have the right to use the Tie Facilities that comprise the ATC Path, between the two BAs. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 The Independent Grid Operator (IGO) segment does not like these two standards and tried to get them removed. That attempt failed, so a compromise was crafted.  Recommendation finally passed with agreement to form a new EC task force to address more fully these two standards. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 Approved eliminating the masking of TSRs’ source and sink when requested status reaches a final state (a.k.a. denied, withdrawn refused, displaced, invalid, declined, annulled, retracted, or confirmed). * As of 08/11/2015

AT THE AUGUST WEQ EC MEETING  Approved a “No Action” recommendation regarding 2005 standard request asking for a standard that would eliminate the disparity of posting “sensitive” information. * As of 08/11/2015

 Develop standards to support the Transmission Provider right to reassess the availability of “conditional firm” - the Transmission Provider may elect to waive or extend the right to perform a Biennial Reassessment. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 To be consistent with ¶51 of FERC Order No. 890-A, added TFC, FAFC, and NFAFC values to the “System_Attribute” data element of the NAESB Standard WEQ-003: OASIS S&CP Data Dictionaries * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 Corrected WEQ for Resale off OASIS by eliminating the “no later than 24 hours prior” to confirming requirement. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 Approved modifications to WEQ-004 Coordinate Interchange Business Practice Standards to require the tagging of Intra- Balancing Authority transactions.  This was NERC INT – LSE issue * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 Approved “no action” recommendation regarding the modification of WEQ standards to address XML vulnerability exploits. * As of 08/11/2015 AT THE AUGUST WEQ EC MEETING

 Approved Minor Correction to NAESB WEQ Business Practice Standards Version 003.1, WEQ-001, WEQ-002, and WEQ-013 OASIS, Version To change the wording of the phrases: “shall have the right to”, “shall be allowed to”, “shall be permitted, but is not required, to”, “shall be permitted to”, and “shall have the ability to”  to “may”, along with other consistency changes. AT THE AUGUST WEQ EC MEETING

NAESB WEQ FIRM REDIRECTS FROM CONDITIONAL PARENTS TASK FORCE UPDATE  One conference call Evident that non-consensus still exists  Waiting for FERC staff guidance  Some wondering value of task force

NAESB OASIS SUBCOMMITTEE UPDATE  Continued work on Competition and Preemption (split into LTerm & STerm) Some rework expected once FERC accepts the Entergy/Dynergy modification in the 3.1 publication  Working on standards to support a “merger” or “consolidation” function for firm TSRs

NAESB CISS UPDATE  Market Operator as an unique Code- Roll  Will require changes to: EIR WEQ-004 e-Tag  Collecting next round of e-Tag changes

NAESB STANDARDS MEMBERSHIP  Western Interconnection needs representation at NAESB  NAESB standards find their way into your tariffs