1. System Restoration & Blackstart Standards Drafting Team Presentation to Texas RE Reliability Standards Committee March 4, 2009 Rick Terrill Confidential & Proprietary – For Discussion Purposes Only

2. 1 SRBSDT Roster Dick Kafka, PEPCO (Chair) Francis Esselman, ATC (Vice Chair) Mike Adibi, IRD Ed Baznik, First Energy Rod Byrnell, BCTC Gary Campbell, RFC Steve Cooper, IESO Frank Cumpton, CAISO Will Houston, National Grid Mark Kuras, PJM David Mahlman, NYISO Al McMeekin, SCE&G Doug Rempel, Manitoba Hydro Mike Richardson, AEP George Rodriguez, FPL Paul Srogas, US Bureau of Reclamation Mo Tadayon, Georgia Power Rick Terrill, Luminant Power

3. 2 SRBSDT – Project Standards Original set:  EOP-005: System Restoration Plans  EOP-006: Reliability Coordination – System Restoration  EOP-007: Establish, Maintain, and Document a Regional Blackstart Capability Plan  EOP-009: Documentation of Blackstart Generating Unit Test Results Proposed set:  EOP-005: System Restoration from Blackstart Resources  EOP-006: System Restoration Coordination  EOP-007 & EOP-009 will be retired. Requirements have been incorporated into EOP-005 or EOP-006 or are no longer needed.

4. 3 SRBSDT Project Scope This project involves reviewing and revising the four current referenced standards including: Resolving the issue of associating compliance measures with Attachment 1-EOP-005 elements. EOP-005 only requires the TOP and the BA to have a system restoration plan. The role of these and other entities, especially the Reliability Coordinator, needs to be defined. Both EOP-005 and EOP-006 contain a mix of requirements that address advance planning and real-time operations. The Standards Drafting Team (SDT) should consider the need to clearly delineate the two processes within the standards requirements. The elimination of ‘fill-in-the-blank’ components in EOP-007 and EOP-009. Other improvements to the standards deemed appropriate by the drafting team, with the consensus of stakeholders, consistent with establishing high quality, enforceable standards and consistent with establishing technically sufficient bulk power system blackstart and restoration standards. Comments on the appropriate EOP standards in FERC Order #693, issued March 16, 2007 were addressed as well as any comments produced by CESDT, VRF, V0, etc. Throughout the process, the SDT should identify any conflicts that are found with other existing standards and bring them to the attention of the Standards Committee for resolution.

5. 4 Discussion of Key Items and Disclaimer Each NERC Registered Entity has the responsibility to review the draft NERC Standards EOP-005-2 and EOP-006-2 and determine the intent of the requirements and the application of those requirements to the Entity. The following discussion of requirements is for general informational purposes only, and is not intended to define specific activities each entity must complete for compliance.

6. 5 SRBSDT: EOP-005-2 Key requirements of the revised standard are: Most requirements are applicable to the TOP and GOP (ERCOT ISO is the only registered TOP in ERCOT. Some of the EOP-005-2 TOP requirements may be performed by TO’s in ERCOT). Aligning restoration for TOP with use of Blackstart Resources. Defining the start and end of restoration. Elements required in plan and distribution of plan (May require more specific items to be identified in the plans & may increase documentation of plan distribution). Review and update cycle. Analysis/simulation of plan (Requires TOP to verify validity of plan every 5 years). Blackstart Resource testing requirements (ERCOT addressed 5-year timing with OGRR). Training of System Operators & switching personnel ( 2 hours training of switching personnel on tasks unique to System Restoration). Mandated participation in RC drills (once every 2 years). Mandated Blackstart Resource Agreements. Inclusion of requirements for GOP.

7. 6 SRBSDT: EOP-006-2 Key requirements of the revised standard are: Defining the role of the RC as coordination (More documentation of activities). Defining the start and end of the RC role. Elements required in plan and distribution of plan (May require more specific details in the ERCOT Plan). Review and update cycle (Document review). Review and approval of TOP plan (Requires formal review, response, and documentation). Training of System Operators. Conducting 2 drills or simulations annually (Training simulation plus the annual drill should meet this requirement).

8. 7 SRBSDT – Draft 4 Standards  Significant Revisions to EOP-006-2 –Included restoration without Blackstart Resources  Both Standards –Added Compliance section –Added Violation Severity Levels  Included Transition Plan –24 Month Implementation Plan

9. 8 SRBSDT Schedule SAR approved on 4/10/07. First meeting of SDT on 6/6/07. First posting on 9/28/07. Second posting on 1/7/08. Third posting on 4/15/08. Fourth posting 10/21/08. Submit to NERC for review in February 2009. Balloting tentative late 1 st quarter 2009.

10. 9 SRBSDT – Draft 4 Standards – ERCOT Regional Variance?  First opinion is that a Regional Variance is not necessary. –Many proposed requirements are currently in place in ERCOT –May need more detail in plans –May need more documentation of items and communications –Some minor additions  Do need to address which entity actually performs specific requirements (TOP or TO).  These are still DRAFT Standards

11. 10 SRBSDT – Information Link http://www.nerc.com/~filez/standards/System_Restoration_Blackstart.html

12. 11 SRBSDT Questions?