1. Curtis Crews Director, Compliance Assessments Jim Albright VP and Chief Program Officer Texas RE Update NRWG Meeting November 22, 2013

2. 2 AUDIT SCHEDULE CHANGES NRWG Meeting November 22, 2013

3. 3 2014 Audit Schedule ●Announcement timing issue associated with approval and posting of 2014 Implementation Plan ●Updated approach:  Is fair for all Registered Entities  Provides consistent treatment for Audit notification  Allows some flexibility  Meets Rules of Procedure (ROP)  Reinforces the expectation of being prepared for a compliance engagement at any time. NRWG Meeting November 22, 2013

4. 4 Audit Process Changes ●Minimum 90 day notification per ROP with an additional pre-90 day notification courtesy phone call ●Summary Briefing with an extension, not to exceed 4 weeks, prior to Exit Briefing  Allows more time to determine disposition of Preliminary Findings  Allows more time for evidence to be provided  Allows for more management oversight  Eliminates rush to judgment and flagging of Preliminary Findings NRWG Meeting November 22, 2013

5. 5 Ideas and Near Future Changes ●Texas RE encourages SME interaction during the data retrieval and data review timeframe. ●Introduction of theme scoped audits  Appropriate scope determined  NERC AML oversight policy change ●2014 is a transition year NRWG Meeting November 22, 2013

6. 6 TEXAS RE ORGANIZATION NRWG Meeting November 22, 2013

7. 7 Texas RE Organization NRWG Meeting November 22, 2013 ●Org chart posted on Texas RE website on Contact Us page. Contact Us ●Direct Link to org chart:  http://www.texasre.org/CPDL/TexasRE_OrgChart.p df http://www.texasre.org/CPDL/TexasRE_OrgChart.p df