1. Business Practices Subcommittee Update February 1, 2011

2. 2 Free Template from www.brainybetty.com 2 WEQ BPS Update - Meetings Recent meetings –November 10-11, 2010 –December 1-2, 2010 (Joint Meeting with IDCWG) –January 11-12, 2011 Scheduled meetings –February 16-17, 2011, hosted by NAESB, in Houston, TX –March 8-9, 2011, Location TBD –March 29, Conference Call –April 12-13, 2011, Location TBD Monthly meetings scheduled through 2011 (looking for host locations)

3. 3 Free Template from www.brainybetty.com 3 Parallel Flow Visualization Looking at two options –Hybrid Option (merges Generator Prioritization and Tag All Non-Firm) –Flowgate Allocation Option Key Items to be resolved prior to selecting option –Two-tier firm curtailments/seams agreements – Policy (both options) –Credit for re-dispatch to meet relief obligations (Hybrid Option) –Can an entity use a combination of Generator Prioritization and Tag All Non-Firm components (Hybrid Option) –Maintaining historic allocations Whatever option is selected will require coordination with NERC –IDC Change Order 310 –INT-012 –Additional IDC Change Order(s) –Study results Developing metrics for Permanent Solution

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5. 5 Free Template from www.brainybetty.com 5 Joint NERC TLR SDT/ NAESB BPS Update TLR standards IRO-006.5 and IRO-006-EAST.1 were approved by the NERC Board of Trustees on November 4, 2010 TLR Standards were submitted by NERC to the Commission on January 13, 2011

6. 6 Free Template from www.brainybetty.com 6 Joint NERC BACSDT/ NAESB TIMTF Update Balancing Authority Reliability-based Control (Project 2010-14) - Status Coming Soon Still foresee some coordination required with NERC Standards Drafting Team and TIMTF NERC Standards Committee approved a Time Error Correction Field Test, contingent on NERC Operating Committee approval and appropriate waivers from NERC compliance and NAESB Business Practice Standards –Field test to last for a year, with possible extensions –Results of the field test may have an impact on the NAESB Business Practices –Field test start date has not been finalized NERC Operating Committee directed its Resources Subcommittee to draft a field trial for the elimination of manual time error corrections –Earliest likely date of a field trial is June –TIMTF chair will monitor activity

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