1. Duke Energy Carolinas Quarterly Stakeholder Meeting Independent Entity Services Thursday, August 26, 2010 2:00 to 3:00 p.m. EDT

2. 2 22 Agenda  Follow-up Action Items from May 13, 2010  Daylight Saving Time Change – Fall Back  OASIS Transmission Outage Postings  Load Data  676-E & 729 Impacts  NAESB Update - Wholesale Electric Quadrant  Open Access Transmission Tariff Filing  Duke – Progress Energy Non-Firm ATC Agreement  Wrap-up

3. 3 Action Items Follow-up from May 13, 2010 Transmission Outages posted on OASIS  Will be discussed later in this presentation There were no other items that required a follow up.

4. 4 Daylight Saving Time Change 2010 Fall Back Prepare to Fall Back – November 7, 2010 –Back to Eastern Standard Time –At 1:59 ED time will fall back to 01:00 ES –Change Time Zones in Systems –Be aware of other TP’s practices for DST changes OASIS/TSRs (Appendix I) –OATI User Guide (MARCH 2010 | VERSION 2.0) –Time Change Creates an Additional HE0200 –Profile across time change / 25 Hour Reservation Profile ETS/Tagging (Appendix II) –OATI User Guide (For Spring 2010) –Only recognizes One Time Zone

5. OASIS Transmission Outage Postings  As requested, Duke is posting the same transmission outages on OASIS as they are posting on the NERC System Data Exchange (SDX) Use the Security Data Screen and select Security Type Outage Set other fields as desired 5

6. Load Data  Load is now on the OASIS To access, go to the Sys Data Menu and select Load Zone in the Type field Set the other filters as desired  On Sept 1st, this will be the only place to find Load Data 6

7. 7 77 FERC Order 676-E & 729 Impacts FERC 676-E & 729 Ordered on November 24, 2009, coordinated implementation for both orders require a completion date of April 1, 2011.  Re-bid of Partial Service WEQ 001-4.7 through 4.12 Rebid MW - Coming in the Fall OASIS Release Rebid Price - Complete  Priorities for Competing Requests WEQ 001-4.14 through 4.16 NAESB Table 4-3 revised - Duke Business Practices Revised to incorporate Firm Network is Tier 1  OASIS Home Page General Posting Standards WEQ-001-13 / MOD-001, 004 & 008 Links, Order and Naming Convention- Complete ATC Information Link - When ATCID, CBMID, TRMID are completed (no later than 4-1-11)  ATC Narratives and Questions WEQ 001-14, 15 & 16 Zero ATC Narratives - webOASIS release on 8-25-10 expected to complete Template Change Change Narrative (TTC/ATC changes are 10% or more ) – same as above ATC or AFC Methodology Questions – ATC Contact Person posted on OASIS

8. 8 88 FERC Order 676-E & 729 Impacts  Actual & Forecasted Load WEQ 001-17 Actual Daily Sys-wide (includes Native Load) and Daily Native Peak Load – Complete Forecasted Daily Sys-wide (includes Native Load) and Daily Native Peak Load – Compl ete  Postbacks WEQ 001-18 Requires a Postback Methodology document be posted on OASIS under the ATC Information Link – Posted when complete (on or before 4-1-11)  Grandfathered Agreements WEQ 001-19 GFA MW value is required to be queried on OASIS systemdata template – template complete Must be identified in the TP’s ATCID – Posted when complete (on or before 4-1-11) Duke does not have grandfathered agreements  Use of CBM WEQ 001-22 / MOD-004 Requires Posting and Tracking of CBM use Ability to query, view and audit on OASIS the use of CBM TRM/CBM page on OASIS http://www.oatioasis.com/DUK/DUKdocs/cbm.htmlhttp://www.oatioasis.com/DUK/DUKdocs/cbm.html Must be Identified in the TP’s CBMID – Posted when complete (on or before 4-1-11) Duke Energy Carolinas does not currently allocate Capacity Benefit Margins (CBM) on its ATC Paths

9. 9 99 FERC Order 676-E & 729 Impacts  Rollover Rights WEQ 001-20 Duke Business Practice 3.J has been modified to reference the 5yr/1yr requirement Service agreements with rollover rights queued prior to 4-01-09 will be subject to the 5yr/1yr requirement on the first rollover date after 04/01/09 webTrans Rollover functionality is in place webOASIS Rollover functionality is expected in a Fall 2010 release  Rollover on Redirects – WEQ 001-9.7 FERC did not incorporate 001-9.7 with reference to Renewal Rights on Redirects Once adopted by FERC webOASIS and webTrans will be upgraded to meet the requirement  Conditional Curtailment Option WEQ 001-21 CCO applies to requests for Long-term Firm Point-to-Point Transmission Service Upon request of the Transmission Customer Duke will accommodate CCO CCO service is treated as firm in calculation of ATC in the full amount reserved Tag NERC Priority 6 or Transmission Product code 6-CF during defined periods Required template changes and Management Tool are expected with a Fall 2010 release of webOASIS & webTrans Management, posting and notification processes done manually now

10. 10 FERC Order 676-E & 729 Impacts  NERC Standards for Duke Energy Carolinas Available Transmission System Capability - MOD-001-1 Capacity Benefit Margin Methodology - MOD-004-1 Transmission Reliability Margin Methodology - MOD-008-1 Area Interchange Methodology - MOD-028-1

11. 11 NAESB Update Wholesale Electric Quadrant Network Service on OASIS –The timeline for completion of the recommendation was extended – expect completion by OASIS subcommittee 4 th quarter 2010 Coordination of Transmission Requests Across Transmission Providers –Recommendation adopted by Executive Committee & sent to OASIS subcommitteeRecommendation Proposed 3 Step Process Customer flags the set of requests for service across multiple systems (“linked group”). Each Transmission Provider processes the request on its system the same as it would process any request on its system (“pre-true-up final state”). Upon confirmation, the Customer determines the final capacity amount of each request (“true-up”), which must be equal to or less than the capacity offered. The amount of capacity the Customer confirms may vary per transmission system.

12. 12 NAESB Update Wholesale Electric Quadrant Parallel Flow Visualization for Eastern Interconnect (Business Practices Subcommittee) –NAESB role is to provide a mechanism for determining transmission service priority used by on-line generation and also to determine curtailment methodology that is fair –NERC role is to develop IDC and associated tools to support Reliability Coordinator function –The Business Practices Subcommittee (BPS) is working on NAESB role Interim Solution - posted and formal comments due August 30Interim Solution formal comments Final Solution to be completed by November 1, 2011

13. 13 NAESB Update Wholesale Electric Quadrant Electric Industry Registry –Transfers TSIN Registry from NERC to NAESB –Contractor selection nearing completion –Should be finalized by end of 2010

14. 14 Open Access Transmission Tariff Filing In 2010 Duke Energy Carolinas will request FERC approval of a new rate for the Transmission Service under our Open Access Transmission Tariff (OATT). Current rate was approved in 1996 and was based on 1994 data Propose to move from a stated (fixed) rate to a formula rate to be updated annually Propose to have new rates in effect prior to the end of 2010 Holding discussions with our Network Customers prior to filing the new rate with FERC Some of rate impacts have been evaluated but because discussions are ongoing, nothing has been finalized

15. 15 Duke - Progress Energy Non-Firm ATC Agreement Duke Energy Carolinas and Progress Energy Carolinas have negotiated an agreement addressing Non-Firm parallel flows across the PJM interface Implementation details and timeline are to be determined Combined Non-Firm ATC with PJM will be calculated and posted on Duke and PEC OASIS sites Customers will still reserve transmission service with either PEC or Duke

16. 16 Wrap-up Proposed Next Quarterly Stakeholder Meeting –Thursday, December 2, 2010 – 2 p.m. to 3 p.m. ET Customer Suggested Topics? –This is the forum for discussing emergent topics (Upcoming changes, stakeholder input) Questions and Comments

17. 17 Appendix Appendix 1 TitlePage OASIS / TSRs 2010 Fall Back - OATI User Guide 18 OASIS / TSRs 2010 Fall Back - Create a TSR that Crosses the Fall Change19 OASIS TSRs / Starting in ED - Ending in ES Option 1 & Option 220 OASIS TSRs / Starting in ED - Ending in ES Option 321 Appendix 11 TitlePage ETS/Tagging 2010 Fall Back – OATI User Guide (4-6 weeks prior to 11/7/10)22 ETS/Tagging 2010 Fall Back - Creating a Tag that Crosses the Fall Change23 ETS/Tagging 2010 Fall Back - Using Daylight Time Submitting One Tag24 ETS/Tagging 2010 Fall Back – Tag View / Change Time Zone25

18. 18 OATI OASIS User Guide webOASIS - HELP – Table of Contents – DST Cutover Document OASIS / TSRs 2010 Fall Back Appendix I Opens to the WEBOASIS TIME ZONE USER GUIDE

19. 19 Create a TSR that Crosses the Fall Change “Option 1” –Start TSR in ED 11/07/10 00:00 & End on or after 02:00 in ES on 11/07/10 –OASIS defaults to the correct time zone (Based on Start and Stop Time) “Option 2” –Create a profiled TSR that crosses 02:00 –OASIS will populate 2 - HE 0200s (one in both ED & ES) “Option 3” –Create a 25 hour reservation profile TSR –OASIS will populate 2 - HE 0200s (one in both ED & ES) Appendix I OASIS / TSRs 2010 Fall Back

20. OASIS TSRs Starting in ED - Ending in ES 20 Appendix I Option 1 System knows to adjust time zone based on date and time. 2 - HE 02:00’s Option 2 System will add 2 HE 02:00’s when profiling over the time conversion Profiled

21. OASIS TSRs Starting in ED - Ending in ES 21 Appendix I To Create a 25 hour profile, Check the 25Hr box and select “Create”. 2 – Hour Ending 02:00 will be created, one ending in ED and the other ending in ES. Option 3 – 25 Hour Profile

22. E-Tagging - 2010 Fall Back 22 OATI User Guide To Be Posted 4-6 weeks prior 11/07/10 webTag – Help – Forms/Documentation – User Guides/Requirements: – OATI instructions for tagging across the Daylight Saving Time conversion Appendix II Guide for the 2010 Fall Time conversion to come (4-6 weeks prior to 11/7/10).

23. 23 Creating a Tag that Crosses the Fall Change –Fall Time Change creates a 25hr day –One Tag or Two Tags Suggest Create Two Tags –One in Eastern Daylight Time »Begin with the hours 0000 through 0200 ED –One in Eastern Standard Time »Begin with the hours 0100 through 0000 ES –Change the default TZ to ES »Misc / Misc User Options –Verify your tags by re-checking them in both ED and ES Verify Profile Total Verify Hours with respect to Standard and Daylight Saving Time ETS/Tagging 2010 Fall Back Appendix II

24. 24 Using Daylight Time Submitting One Tag –To use this option, user must set time to ED »Misc / Misc User Options –Begin @ 00:00 on 11/07/10 through 01:00 on11/08/10 –Enter as a Delayed Tag –Change the default TZ to ES »Misc / Misc User Options –Reopen Tag »In Eastern Standard verify the end to be 00:00 on 11/08/10 (Note: Start time will show 23:00 11/06/10 ES) –Revert your TZ back to ED –Re-open the Delayed Tag in Daylight Saving Time and verify the hours and Profile are accurate. » In Eastern Daylight Saving verify the end to be 01:00 on 11/08/10 (Note: Start time will show 00:00 11/07/10 ED) Verify your tags by re-checking them in both ED and ES time Verify Profile Total Verify Hours with respect to Standard and Daylight Time ETS/Tagging 2010 Fall Back Appendix II

25. ETS/Tagging 2010 Fall Back 25 Appendix II To change Time Zone Setting