Business Practices Subcommittee Update

1. Business Practices Subcommittee Update February 21, 2012

2. WEQ BPS Update - Meetings • Subcommittee Meetings since last update • October 31, 2011 (Conf. Call) • November 8-9, 2011 (Atlanta, GA) • December 14-15, 2011 (Houston, TX) • January 18-19, 2012 (Houston, TX) • February 15-16, 2012 (Redwood Shores, CA) • Sub-teams – Several Meetings • First-to-Curtail Requirements • Credit for Redispatch • Scheduled subcommittee meetings • March 6-7, 2012 (Little Rock, AR) • April 3-4, 2012 (Carmel, IN) • May 16-17, 2012 (Atlanta, GA) Joint with NERC IDCWG Free Template from www.brainybetty.com

3. Coordination with Other Groups • Executive Committee Leadership • EC Leadership is participating in multiple forums to support BPS activities • NAESB/NERC monthly coordination calls • NERC Standards Committee • NERC ORS • NERC Operating Reliability Subcommittee • November 15, 2011 • February 8, 2012 • NERC - Interchange Distribution Calculator Working Group • December 8, 2011 • February 1, 2012 • NAESB - Joint Electric • Scheduling Subcommittee • January 5-6, 2012 Free Template from www.brainybetty.com

4. Parallel Flow Visualization – Recent Activity • Continued Finalizing Parallel Flow Visualization Permanent Solution White Paper (Latest Draft included in EC Meeting Materials) • Common requirements • Component specific requirements • Definitions • Assumptions • Impacted entities • Coordination with other organizations • Key Decisions • Credit for Redispatch Approach • Support two impact calculations currently in use today • Mapping requirements to support tagging • Vertical stacked tags (network and point-to-point on same tag) • Initiation and termination Coordination Agreement exceptions • Identified Categories of Subcommittee Members to review Test Data Free Template from www.brainybetty.com

5. Parallel Flow Visualization – Challenges • Continuing to have “What if” scenarios • BPS by default is the forum for understanding the big picture • NERC Standards Coordination • BPS has included assumptions that NERC would modify standards • Interchange, Scheduling, and Coordination (INT) standards - INT-012 Intra-Balancing Authority Transaction Identification (FERC Order 693) • Interconnection Reliability Operations and Coordination (IRO) – IRO-006-EAST Transmission Loading Relief Procedure for the Eastern Interconnection • The timing for the changes to the INT and IRO standards should coincide with Parallel Flow Visualization moving into production • NAESB cannot set priority of NERC standards development nor can it direct the outcome Free Template from www.brainybetty.com

6. Parallel Flow Visualization – Challenges (Contd.) • NERC SC requested NERC ORS to identify Reliability Gap • NAESB BPS and EC Co-chairs presented PFV requirements to ORS on Feb 8th. • ORS discussed the alternative presented by NERC Director Standards that NAESB develop requirements/standards for tagging Intra-BA transactions – no final action taken. • NERC INT standards will need to be coordinated with JESS Free Template from www.brainybetty.com

7. Parallel Flow Visualization – Next Steps • March • Finalize Whitepaper / Address remaining open issues • April/May • Develop standards from Parallel Flow Visualization Permanent Solution White Paper • Vote to post standards/recommendation for 30-day formal comment period • Probability that BPS vote on recommendation may slide into June • June/July • Develop Late Comments for standards/recommendation Free Template from www.brainybetty.com

8. Questions/Feedback ? Free Template from www.brainybetty.com