Standards Review Subcommittee Update November 2007 – January 2008 February 5, 2008

2 Free Template from 2 Accomplishments Created a tracking tool for monitoring NERC activity Developed of draft scope of work for the Standards Review Subcommittee Submitted standards request that complements NERC Urgent Action SAR BAL-004.1

3 Free Template from 3 Tracking Tool Issue: SRS continued to reviewed SARS/Standards after decisions were made in previous meetings that no further actions were required Solution: Provide tool to summarize decisions/status on NERC activity

4 Free Template from 4 Scope of Work – Draft Process Flow

5 Free Template from 5 Scope of Work - Included Review Standards under development by NERC (Regional Entities?) Review Annual plans created by NERC (Regional Entities?) Address WEQ – NAESB Annual Plan items assigned to the Standards Review Subcommittee Address standards requests assigned to the SRS by the Triage Subcommittee Review existing NAESB Business Practices Standards and recommendations for consistency

6 Free Template from 6 Scope of Work – Not Included Replacement for the JIC Scope arbitrator between NAESB and NERC/Regional Entities Division of scope: –New requirements - Subcommittees who have expertise –Existing requirements – Executive Committee who previously approved standards

7 Free Template from 7 Urgent Action SAR BAL Status – Urgent Action SAR has been approved by the stakeholders Issue – Interconnection Time Monitor responsibilities will be voluntary under NERC standards but are required under NAESB Business Practices SRS Activity –Identified inconsistencies between what NERC is changing in their Standards and what is currently in the NAESB approved Business Practice Standards –Created a standards request to get item in the pipeline so that a decision can be made to either modify the NAESB Business Practice or not change the Business Practice Standards Next Steps – Appropriate subcommittee resolves discrepancies between NERC standards and NAESB business practices No further action required by the Standards Review Subcommittee

8 Free Template from 8 Balancing Authority Controls Status – Standard Drafting Team has been identified by NERC Issue – There is potential impact on approved NAESB Business Practices: –WEQ-005 Area Control Error (ACE) Equation Special Cases –WEQ-006 Manual Time Error Correction –WEQ-007 Inadvertent Interchange Payback SRS Activity –Initial assessment indicates there is potential ownership of requirements re-alignment between NERC and NAESB Next Steps – Resolve scope issues between NERC and NAESB through executive leadership No further action required by the Standards Review Subcommittee

9 Free Template from 9 R05026 Incremental OASIS Changes October 11, 2005, request submitted for 13 incremental OASIS enhancements November 20, 2006, Standards Review Subcommittee developed scoping document for review at November 2006 EC Meeting May 8, 2007, three (3) items were identified as needing more detail before their scope could be defined: –C: Adapt OASIS systems to better interface directly with energy trading platforms –G: Use the same TSR tag number when status is changed to recall, do not create a new TSR tag number for this event. –I: Allow for multiple Redirect TSR numbers to be entered on the same Original reservation tag May 8, 2007 – Executive Committee directed NAESB to send letter to Calpine seeking further clarification August 16, 2007 – NAESB sends letter to Calpine requesting further clarification NAESB has not received a response from Calpine Next Steps – Executive Committee decision on three outstanding items in standards request No further action required by the Standards Review Subcommittee to define the scope of these enhancements