1. NAESB Conference Call October 10, 2008 DSM EE RETAIL GROUP

2. Agenda Review RTO Standard –Does framework approach work for retail? How should we proceed –Continue work on developing the retail standard as planned –Review the RTO standard and modify it for use as retail standard –Have only one standard that covers retail and wholesale standards Decide on an approach Expected deliverable for the proposed face to face meeting

3. Summary of RTO Standard Introduction –M&V standards –Applicability of Measurement and Verification Standards –Overview of Standards Performance Evaluation Methodology Definition of Terms –Demand Response Event –General Terms Business Practice Requirements –Energy Products –Capacity Products –Reserve Products –Regulation Products

4. M&V Framework General Advance Notification Deployment Time Reduction Deadline Release/Recall Normal Operations Demand Resource Availability Measurement Aggregation Transparency of Requirements Telemetry Telemetry Requirement On-Site Generation Telemetry Telemetry Accuracy Telemetry Reporting Interval Other Telemetry Measurements Communication Protocol Governor Control Equivalent After-The –Fact Metering After-the-Fact Metering Requirement Meter Accuracy Details of Meter/Equipment Standards Meter Data Reporting Deadline Meter Data Reporting Interval Clock / Time Accuracy Validating, Editing & Estimating (VEE) Method On-Site Generation Meter Requirement Performance Evaluation Rules for Performance Evaluation

5. Performance Evaluation Methods Maximum Base Load Meter Before/Meter After Baseline Type-I (interval Meter) Baseline Type II (Non-Interval Meter) Metering Generator Output

6. Current Plan - Next Steps (Immediate) Face to Face meeting with small working group –Refine and finalize steps in flow diagram –Fill in model business practice guidelines for each step of the AC program –Use the AC model business practice as template to develop business practices for all DR program categories and programs –Discuss mass market versus individual customer M&V –Discuss baseline approaches

7. Categories and Types of Other Retail DR Programs CategorySub Category Program DispatchableCapacityDirect Load ControlAC load control Firm Service Level Guaranteed Load Drop Critical Peak Pricing Ancillary ServicesSpinning Reserve Non-Spinning Reserve Regulation NonDispatchableTime Sensitive PricingTime of Use Critical Peak Pricing Real Time Pricing

8. Remaining Steps Review and modify the standard template to incorporate other types of programs Revise the data collection matrix with lessons learned from efforts to date Conduct survey of representative utilities –Cover NERC and ISO/RTO footprints –Identify all types of DR programs –Collect data on each type of program –Identify any regional aspects that need to be preserved Develop model business practice for each type of DR program similar to the ISO/RTO effort Report findings to NAESB