1. Draft 2016-2018 Reliability Standards Development Plan Ryan Stewart, NERC Manager of Standards Development Texas RE NSRS August 17, 2015

2. RELIABILITY | ACCOUNTABILITY2 Purpose it to set forth a plan for standards development Presented to the NERC Board and filed with applicable governmental authorities each year Inputs from Standards Committee, industry through a comment period, NERC Board and Member Representatives Committee Draft plan incorporates planning for enhanced periodic reviews Draft 2016-2018 Reliability Standards Development Plan

3. RELIABILITY | ACCOUNTABILITY3 Draft 2016–2018 RSDP sets forth a plan that involves conducting the enhanced periodic reviews as well as accomplishing other envisioned tasks by addressing:  emerging risks,  FERC directives, and  Standards Authorization Requests (SARs). This plan specifically includes the Integration of Variable Generation Task Force (IVGTF) recommendations, the Essential Reliability Services Task Force (ERSTF) recommendations, communication with the Reliability Issues Steering Committee (RISC) on other emerging risks, potential FERC directives, and input from industry on the feedback loops Draft 2016-2018 Reliability Standards Development Plan

4. RELIABILITY | ACCOUNTABILITY4 Provides update on regulatory directives Provides a 2015 progress report on all active projects Discusses projects planned to carry over into 2016 or to begin in 2016 Identifies what the criteria is for a standard or family of standards are eligible to be opened for an enhanced periodic review Draft 2016-2018 Reliability Standards Development Plan

5. RELIABILITY | ACCOUNTABILITY5 Allows for feedback loops, or factors for consideration of risk  Emerging Risks and Changing Technologies  Event Analysis and Compliance Violation Statistics  Lessons Learned and Frequently Asked Questions  Measures  RSAW Development and Compliance Input  Regional Variances  Construct of Standards Draft 2016-2018 Reliability Standards Development Plan

6. RELIABILITY | ACCOUNTABILITY6 Status  Solicited to the NERC Standards Committee for comment from  Currently posted for industry comment and closes on Monday, August 17, 8pm ET  Feedback will be incorporated into the draft plan and solicited for another round of review by the NERC Standards Committee  Plan is to present to the NERC Board in November and then file with the applicable governmental authorities by the end of the year Strongly encourage Texas RE membership review and comment! NERC Standards contact  Ryan Stewart, Manager of Standards Development  Ryan.Stewart@nerc.net or 404-466-9712 Ryan.Stewart@nerc.net Draft 2016-2018 Reliability Standards Development Plan

7. RELIABILITY | ACCOUNTABILITY7