1. NERC ATC Standards Update W. Shannon Black Manager, Business Practices and Standards Processes April 22, 2009

2. FERC ATC NOPR ● The Commission  Approved all of the ACT Suite  Subject to modification  Issues a NOPR  March 19, 2009  Created some “challenges”  To MOD-29-01  Others 2

3. FERC ATC NOPR ● Issue Spotting: MOD-29-01  “Remove” MOD-29-01 R2.7  Eliminate protection of Existing Path ratings  69 “Existing Rating” Paths in WECC oPath Rating Catalogue  Require re-rating  Changes all contracts and models upon which the Existing Path ratings are predicated  Compliance in “one year” questionable  Need to respond  WECC and multiple entities! 3

4. FERC ATC NOPR ● Issue Spotting: “Mission Creep”  Make Implementation Documents available to broader range of entities  “Mission Creep”  Using NAESB Business Practices oFERC has no jurisdiction over “non-jurisdictionals”  Using Standards oFERC can sweep in “non-jurisdictionals”  Slippery slope  Infusing non-reliability issues into reliability standards 4

5. FERC ATC NOPR ● Issue Spotting: Counterflows  Would require greater detail in describing counter flows  WECC uses “counter schedules” ● Issue Spotting: Treatment of Network Resource Designation  Would require greater detail  Ramifications to members are unclear 5

6. FERC ATC NOPR ● Issue Spotting: Transparency  FERC would require NERC  Quickly audit the documents  Replication of results is essential ● Issue Spotting: TRM  FERC says “to vague”  Lock down the ambiguities 6

7. FERC ATC NOPR ● Informational  VSL and VRF will be filed later  Process under review at NERC  Can’t be lower than before drafting  Must be consistently applied  Based on a single violation and not on a cumulative number of violations 7

8. FERC ATC NOPR ● Informational  Other MODs and FAC  NERC / FERC agree oRetire MODs 1-9; Changes top 10-25 oOutside scope of the NERC ATC Drafting Team oMore work to come  NERC / FERC disagree oFERC says polish FAC-12 oKeep FAC -13  MODs are “operational” (through 13 months)  FACs are “planning” (14 months and beyond) 8

9. Questions 9