1. Business Practices Subcommittee Update May 4, 2010

2. 2 Free Template from www.brainybetty.com 2 WEQ BPS Update Meetings –February 23, 2010 –March 17-18, 2010 –April 1, 2010 –May 24-25, 2010 Ongoing work –Time and Inadvertent Management (monitor) –TLR – Standards –Parallel Flow Visualization

3. 3 Free Template from www.brainybetty.com 3 Joint NERC BACSDT/ NAESB TIMTF Update NERC/NAESB Conference Call October 5, 2009 –Agreed to NAESB monitoring position until NERC is further along in their standards development process. Balancing Authority Controls Standards Drafting Team meetings: –February 24-25 –March 16 –April 29-30 –May 19 Notice of Proposed Rulemaking RM09-13-000 (Time Error Correction) –Changes to NAESB version 2.1 Standards were not incorporated by reference under Order 676-E –Submitted comments to re-affirm with the Commission that NERC and NAESB are coordinated with the changes submitted for NERC Standard BAL-004 and NAESB Business Practice Standards WEQ-006

4. 4 Free Template from www.brainybetty.com 4 Joint NERC TLRSDT/ NAESB BPS Update At NERC Standards Committee Meeting April 14-15 the Standards Committee pre-authorized its Executive Committee to move the TLR standards IRO-006.5 and IRO- 006-EAST.1 forward to the ballot stage of the standards development process Expectation is that the standards will go to the ballot stage prior to the May 13, 2010 NERC Standards Committee meeting Notice of Inquiry RM10-9-000 Transmission Loading Relief standards and curtailment priorities –NERC and NAESB coordinated comments on the Notice of Inquiry –Both sets of comments reference the work NERC and NAESB are doing on the Parallel Flow Visualization projects

5. 5 Free Template from www.brainybetty.com 5 Parallel Flow Visualization – Current Activities WEQ AP Item 1.b.i “Parallel Flow Visualization/Mitigation for Reliability Coordinators in the Eastern Interconnection” –Notice of Inquiry RM10-9-000 filings NAESB’s ability to assign priorities is key to Parallel Flow Visualization project Parallel Flow Visualization project will address a number of concerns outlined in the Notice of Inquiry –Developing three options Tagging all non-firm (inter/intra Balancing Authority, point-to- point/network service) or all firm and non-firm Generator prioritization (percentage/megawatt output classified as firm/non-firm) Flowgate allocation (similar approach to what PJM, Midwest ISO, Southwest Power Pool use today) –Created 3 work groups to develop options

6. 6 Free Template from www.brainybetty.com 6 Parallel Flow Visualization – Work Group Activities Tagging Option(s) –Team is working on draft document to identify detailed description and implementation of Tagging Option(s) –Conference call tentatively scheduled for May 7 –Follow-up meeting tentatively scheduled during week of May 17 at OATI offices in Minneapolis Generator Prioritization Option –Meeting held April 19-20 at NERC office in Washington –Agreed to framework/requirements for solution –Identified issues to be addressed prior to presenting solution –Follow-up meeting scheduled for May 13 Flowgate Allocation Option –Meeting scheduled for May 10-11 at NERC office in Washington to develop option

7. 7 Free Template from www.brainybetty.com 7 Parallel Flow Visualization – Next Steps Meeting May 24-25 to reach agreement on which option to move forward Delays in reaching decision will have impact on NERC parallel test providing meaningful results (All data uploaded under the IDC change order 283 will be classified as firm if there are no NAESB priorities established) If unable to reach a decision at the May meeting, the BPS will seek guidance from the Executive Committee on how to proceed Unknown –Impact RM10-9-000 may have on this Annual Plan item

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