1. RFC Webinar April 24, 2009 and May 1, 2009 Presented By: Mark Kuras Chair, Generator Verification SDT

2. April 24, 2009 and May 1, 20092 ReliabilityFirst Webinar  Standards Committee approved SAR on March 17 th, 2006  RFC standard was created to meet the requirements of the present NERC MOD-024 standard  Proposed standard lists requirements for: ▪ Generator verification periodicity (R1) ▪ Generator verification length of time (R2) ▪ Reporting of generator auxiliary load Real Power (R3) ▪ Normalization of generator verification to median ambient conditions (R4) ▪ Providing generator verification data (R5)

3. April 24, 2009 and May 1, 20093 ReliabilityFirst Webinar  Posted for 4 comment periods ▪ 9/12/07 thru 10/11/07 – 18 commenters ▪ 12/21/07 thru 1/19/08 – 17 commenters ▪ 5/1/08 thru 5/30/08 – 20 commenters ▪ 8/12/08 thru 9/11/08 – 10 commenters

4. April 24, 2009 and May 1, 20094 ReliabilityFirst Webinar  Posted for Category Ballot (1/8/09 through 1/22/09) ▪ Quorum established (96.23% of ballot pool) ▪ PASSED – 3 out of 5 Categories had simple majority affirmative votes

5. April 24, 2009 and May 1, 20095 ReliabilityFirst Webinar The ReliabilityFirst Board was requested to Approve MOD-024-RFC-01 Verification and Data Reporting of Generator Gross and Net Real Power Capability  They did not approve the standard because the Category Ballot approval was close  Remanded to gather more industry consensus

6. April 24, 2009 and May 1, 20096 ReliabilityFirst Webinar  Next we’ll go over six general issues that came up during the ballot

7. April 24, 2009 and May 1, 20097 ReliabilityFirst Webinar Issue  Reiteration of the NERC Compliance Registry Criteria within the standard SDT View  This comment confuses us  No longer any differences within this standard related to normal compliance registration

8. April 24, 2009 and May 1, 20098 ReliabilityFirst Webinar Issue  Dissimilar requirements to PJM SDT View  This standard is not related to PJM’s requirements  Never intended to be a replacement for PJM requirements  Meets the NERC MOD-024 requirements  Verification is for 24/7 “normal operation”

9. April 24, 2009 and May 1, 20099 ReliabilityFirst Webinar Issue  Verification vs. Test SDT View  Standard does not require testing  SDT encourages operational tracking  Four hour verification (during normal 24/7 operation) is not a burden

10. April 24, 2009 and May 1, 200910 ReliabilityFirst Webinar Issue  PJM allows a winter test exemption SDT View  NERC MOD-024 requires a winter capability be reported  R2 of the current standard deals with winter R2... Verification of winter gross Real Power capability shall be accomplished by (1) operational tracking or test for the specified period of time or (2) adjusting the summer verification.

11. April 24, 2009 and May 1, 200911 ReliabilityFirst Webinar Issue  Stop RFC’s standard development and wait for NERC SDT View  This standard is to meet the requirements of the presently in place NERC standard  This standard will apply in the interim until NERC approves MOD-024  NERC standard is several years away

12. April 24, 2009 and May 1, 200912 ReliabilityFirst Webinar Issue  Effective Dates SDT View  Standard will apply to applicable RFC Members on RFC Board approval  Standard will apply to applicable RFC Registered Entities on FERC approval  The same for all regional standards

13. April 24, 2009 and May 1, 200913 ReliabilityFirst Webinar Questions? Our Goal RELIABILITY