1. Duke Energy Carolinas Quarterly Stakeholder Meeting Independent Entity Services Thursday, March 22, 2012 2:00 to 3:00 p.m. EDT 1 st Quarter 2012 1

2. Agenda  Follow-up from January 19, 2012  Face to Face Meeting May 24, 2012  Preemption and Competition Module Update  OASIS Offerings  EIR – Electric Industry Registry  NAESB Update - Wholesale Electric Quadrant  Formula Rate Annual True-up  Wrap-up 2

3. Follow-up Question: “Would it be possible to do a follow up presentation for the next stakeholder meeting taking an actual real example of a flowgate constraint and ATC interface calculation and show what happens in the model runs as it goes from several months out to current real time? I think that would be very illustrative and now that we understand the process much better this would give us a better picture of what the implementation looks like. “ Topic has been held to be addressed at the Face to Face meeting scheduled for May 24, 2012 3

4. Duke Energy Carolinas Face to Face Stakeholder Meeting May 24, 2012 from 0900 to 1500 EDT Location Duke Energy - Greensboro (Fairfax) Operations Center (Auditorium) 4508 Hilltop Road Greensboro, NC 27407 Directions from Charlotte: Take I-85 N to exit 119 (Groometown Rd). Turn left on Groometown and go 3.1 miles to operations center which is on the right after crossing Fairfax Rd. Google Map Google Map Agenda Q2 Stakeholder Meeting ATC & AFC Training Nearby Hotel Grandover Resort & Golf Greensboro, NC Website: http://www.grandover.com/http://www.grandover.com/ Phone: (336) 294-1800, Toll Free: (800) 472-6301 Meeting Registration Contact Gail Parker 651-632-8425 or gparker@misoenergy.orggparker@misoenergy.org email Subject: Q2 Duke EC Face to Face Stakeholder Meeting Registration Deadline May 14th 4

5. Preemption & Competition Module Update 5 Deployment of OATI’s Preemption & Competition Module (PCM) is delayed, until issues can be resolved. Duke will continue using the current manual process to facilitate Business Practice 3.F. for Preemption and Right of First Refusal (ROFR).  PCM will semi-automate Preemption and Right of First Refusal When the ATC Validation Criteria detects a deficiency in ATC/AFC, Preemption and Competition Module (PCM) will perform an assessment as to the feasibility of entering into a Preemption and/or Competition to grant service to the new request Upon Tariff Administrator initiation PCM Supersedes pending requests Creates RECALLs For ROFR PCM creates MATCHING requests Dependent on Customer action to the MATCH, PCM will balance existing TSRs Notification to Customers will be made by email and indicated on all associated TSRs in the Seller Comments  Business Practice 3.F will be modified to outline the PCM process of Preemption and Right of First Refusal when ATC/AFC is limited. Notification of the change will be given at least 2wks in advance  Appendix slides 15 through 17 are the slides from the Stakeholder Presentation held on 01/19/12 Slide 15 - Introduces the Business Practice change 3.F. Slides 16 & 17 - How the PCM tool works and customer notification

6. OASIS Offerings 6 ATC Offering postings on OASIS will be disabled and removed.  ATC Offering postings are not required by the OATT, NERC, or NAESB  Price Offering postings are required and will continue to be posted “Get Bid Price” when creating a TSR will continue to retrieve Duke Transmission Rates  ATC Offerings is a duplicate of Sys Data postings Firm and Non-Firm ATC is found by use of Sys Data on OASIS  This should reduce the lag between calculations and Sys Data ATC postings ATC Capacity through Offerings will be removed from OASIS  Appendix slides 18 through 22 show the use of Sys Data (from Stakeholder Presentation held on 09/15/11)

7. EIR – Electric Industry Registry TSIN is being replaced by the EIR  Transfers TSIN Registry from NERC to NAESB  OATI will administer EIR for NAESB  Training was given by OATI and completed on 3/16/2012 OATI EIR training material can be found on OATI’s website http://www.oati.com/webRegistrywebpage030512.pdf Job Aids can be found on the EIR WebsiteEIR Website http://www.naesb.org/WEQ/weq_eir.asp  Registration of Entity Codes/Roles begins March 28 th OATI is providing two (2) complimentary certificates  Entities must re-enter their data from TSIN into the new EIR  PSE (including LSR, GP) Source/Sink Registration is Scheduled 5/8/2012 to 5/14/2012. 7

8. EIR – Electric Industry Registry Sources and Sink Entries for Customers  During the transition to EIR, Duke will enter Sources and Sinks for Customers if: The customer has completed EIR registration The customer has submitted a list of Sources and Sinks to Duke Submit to David McRee david.mcree@duke-energy.comdavid.mcree@duke-energy.com  Duke will not upload data from TSIN into the EIR unless contacted by the customer  For technical questions about the EIR, contact OATI Support  For general EIR questions, contact NAESB  Appendix slides 23 and 24 show a list of Sources and Sinks found in tags over the past 45 days 8

9. NAESB Update Wholesale Electric Quadrant 2012 Annual Plans  Link to Wholesale Electric Quadrant Annual Plan Link  Link to Wholesale Gas Quadrant Annual Plan Link  Link to Retail Annual Plan Link Network Service on OASIS (NITS) (OASIS Subcommittee)OASIS Subcommittee  Recommendation Completed by Subcommittee on Dec 1, 2011 – linklink  Formal Industry Comment Period Ended Feb 27, 2012 - linklink  OASIS Subcommittee - Completed Review of Formal Comments  Executive Committee - Review to be Scheduled  File with FERC - 2 nd Quarter 2012 Preemption and Right of First Refusal (OASIS Subcommittee)OASIS Subcommittee  Review has Begun  Parking Lot Document Captures Issues (link to 2/9/12 document)link to 2/9/12 document 9

10. NAESB Update Wholesale Electric Quadrant Parallel Flow Visualization for Eastern Interconnect (Business Practices Subcommittee)Business Practices Subcommittee  The WEQ Executive Committee approved the recommendation for the interim solution on 10/26/2010 (approved recommendation)approved recommendation  The BPS is working on a permanent solution: Hybrid Option (Transmission Provider selects one of the following data input methods) Tag all Non-Firm transactions within a BA Require upload of firmness of transmission service for each running generator every 15 minutes (Generator Prioritization)  BPS is developing a two-tiered firm curtailment process (first-to-cut / last-to-cut)  White Paper outlines the planned process (link to 3/8/12 draft)link to 3/8/12 draft  Business Practices will be developed for adoption by the Executive Committee 10

11. NAESB Update Wholesale Electric Quadrant PKI (Public Key Infrastructure) Subcommittee  New Subcommittee – link to subcommittee’s web pagelink  Responsible for Proposing Modifications to or Developing New WEQ-012 PKI Standards 11

12. Formula Rate Annual True-up 12

13. Wrap-up Proposed Next Quarterly Stakeholder Meeting  Thursday, May 24, 2012 – 9:00 a.m. to 10:00 a.m. EDT  AFC/ATC Training 10:00 a.m. to 3:00 p.m. EDT Duke Energy Greensboro (Fairfax) Operations Center (Auditorium) - Greensboro, NC Customer Suggested Topics?  This is the forum for discussing emergent topics (Upcoming changes, stakeholder input) Questions and Comments 13

14. Appendix Slide 15 Business Practice - Pending Change to 3.F. Preempting Requests Slide 16 & 17Preemption and Right of First Refusal Customer Notification Slide 18 & 19webOASIS – Sys Data Summary ATC Postings Slide 20Create a TSR from SysData Summary ATC Postings Slide 21 & 22webOASIS – Sys Data ATC Portfolio Slide 23 & 24List of Recent Source & Sinks 14

15. Business Practice - Pending Change to 3.F. Preempting Requests 3.F includes the process of Preemption and Right of First Refusal Duke will deploy an OATI tool, Preemption & Competition Module or PCM. PCM will semi- automate Preemption and Right of First Refusal. Business Practice 3.F will be modified to outline the PCM process of Preemption and Right of First Refusal when ATC/AFC is limited.  Challenging Requests must be preconfirmed and not profiled  Pending Requests have no ROFR and will be superseded to accommodate the Challenging Request  Existing Reservations not eligible for ROFR will be recalled to accommodate a higher priority Challenger  Existing Request eligible for ROFR Capacity to accommodate the Challenger will be recalled from the reservation with ROFR A MATCHING request will be automatically generated with a status of COUNTEROFFER in place of the reservation with ROFR The MATCHING request must be confirmed within the response time to retain capacity Rebids of MATCHING requests will not be accepted If the MATCHING request is confirmed, the Challenger will be Counteroffered or Refused and the balance remaining will be recalled from the Existing request with ROFR Customers who opt not to challenge and do not want the remaining capacity may ask for full displacement of the original reservation 15

16. Preemption and Right of First Refusal Customer Notification When the ATC Validation Criteria detects a deficiency in ATC/AFC, Preemption and Competition Module (PCM) will perform an assessment as to the feasibility of entering into a Preemption and/or Competition scenario to grant service to the new request. Notifications for Preemption If PCM determines service requests or reservations should be Preempted a RECALL or SUPERSEDE of the existing service will be created by PCM.  OASIS Notification Existing reservation will be recalled by the amount need to accept the Challenging request The AREF of the Challenging request will be indicated in Seller Comments when a RECALL or SUPERSEDE is created E-mail notification of “transstatus” change will be sent to the person who created the existing request Subject: XXXXXXXX RECALL transstatus User must have Notification Method enabled and a Notification Address on their User Preferences 16

17. Preemption and Right of First Refusal Customer Notification Notifications for Competition If PCM determines service requests or reservations should be placed into Competition, a RECALL of the existing service and a MATCHING request will be created by PCM.  OASIS Notification New TSR will be created with a Status of COUNTEROFFER and request type MATCHING in the amount and time span calculated Match MW is determined by the MWs need to accommodate the Challenging request Seller Comments will indicate the AREF of the Challenging request Existing reservation will be recalled by the amount need to accept the Challenging request RECALL TSR text in Seller Comments will indicate the AREF of the Challenging request If the MATCHING TSR is Confirmed a RECALL will be issued for the balance of the Defender RECALL TSR text in Seller Comments will indicate the AREF of the MATCHING request for ROFR E-mail notification of “transstatus” change will be sent to the person who created the existing request Subject: XXXXXXXX RECALL transstatus User must have Notification Method enabled and a Notification Address on their User Preferences 17

18. OASIS Training webOASIS – Sys Data Summary ATC Postings The System Data Posting Summary display lists the System Elements that are to be posted to OASIS per the Standards & Communication Protocol version 1.5 (S&CP v1.5) System Data includes:Load ForecastActual Load TTCATC Narratives ATC related information Note: FATC or NFATC as shown on OASIS is updated anytime webTrans calculates a change in the Effective ATC for Firm or Non-Firm. On the OASIS Menu click to view FATC or NFATC System Data Summary UI screen will open Choose the Filter Criteria of interest such as: TP Attribute Element and Time click Enter 18

19. OASIS Training webOASIS – Sys Data Summary ATC Postings Based on filters from the query: 24hrs of Data is returned The lowest Value is what is available Daily Information found here should match what is posted for Offerings ATC Posting returned through SysData is a good point of reference Transmission Requests can be created from the SysData Summary 19

20. OASIS Training Create a TSR from SysData Summary ATC Postings Transmission Requests can be created from the SysData Summary 1.Click on Posting Ref 2.Click on 20

21. OASIS Training webOASIS – Sys Data ATC Portfolio As an alternative Users may access ATC info through Sys Data by use of the ATC Portfolio From the OASIS menu click on to view FATC or NFATC System Data Summary UI screen will pop up Click on the grey button Choose the Filter Criteria of interest such as: TP Increment Element Date click Enter Clicking will reveal a Calendar, for a specific date. 21

22. OASIS Training webOASIS – Sys Data ATC Portfolio Increment Hourly will return the 24hr period for the day chosen. Daily will return the entire Month, whether the Date is Today, Tomorrow or any Calendar Date. Weekly will return the weekly posting for 5 weeks, beginning with the first full week of the month. Monthly returns the values for the current Month through the next 11 months. Yearly returns the current year and next year. In this case we are viewing Daily for the month of August 2011 22

23. List of Recent Sources & Sinks 23 Point Name CA_Code PSE_Code Role Status ROWAN DUK CPLCSD Source Active BroadRiver DUK CPLE Source Active BroadRiver DUK CPLW Source Active LOCKHARTGEN DUK CRGL1A Source Active LOCKHARTLOAD DUK CRGL1A Sink Active DUKSYSGEN DUK DUKEBP Source Active DUKSYSGEN_BPM1 DUK DUKEBP Source Active DUKSYSLOAD DUK DUKEBP Sink Active RUTFRDLOAD DUK DUKEBP Sink Active SEHA.DUK DUK DUKEBP Sink Active SETH.DUK DUK DUKEBP Sink Active Cherokee DUK FPLPSE Source Active NCEMCGEN DUK NCEMC1 Source Active NCEMCLOAD DUK NCEMC1 Sink Active Note: These are the Sources and Sinks that have been found in tags over the past 45 days. Marketers may want to use this as the starting point for their review. Duke recommends visiting www.tsin.com for a more comprehensive review.www.tsin.com

24. List of Recent Sources & Sinks 24 Point Name CA_Code PSE_Code Role Status NCMPA1LOAD DUK NCMPA1 Sink Active NCMPA1TCE DUK NCMPA1 Source Active PMPAGEN DUK PMPA01 Source Active PMPALOAD DUK PMPA01 Sink Active SC_AndersonLFG DUK SCBP01 Source Active SC_BUZZROOST DUK SCBP01 Source Active DUKE.SEPA DUK SEPBS1 Sink Active PMPALOAD DUK SEPBS1 Sink Active SEHA.DUK DUK SEPBS1 Sink Active SETH.DUK DUK SEPBS1 Sink Active CLEVELAND DUK SWESP Source Active EULOAD DUK SWESP Sink Active EURES DUK SWESP Source/Sink Active ROWAN DUK SWESP Source Active SENECA DUK SWESP Sink Active Note: These are the Sources and Sinks that have been found in tags over the past 45 days. Marketers may want to use this as the starting point for their review. Duke recommends visiting www.tsin.com for a more comprehensive review.www.tsin.com