Craig L. Williams Market Interface Manager

1. Craig L. WilliamsMarket Interface Manager Review of NAESB Items MIS & SIS Meetings February 1-3, 2012

2. North American Energy Standards Board, NAESB • Standards Development, WEQ • Wholesale Electric Service Across Multiple Transmission Systems (SAMTS) • The SAMTS process allows the transmission customer to perform a true-up once all transmission providers complete their request evaluations. • SAMTS recommendation approved by WEQ on 7/8/2011. Ratified by NAESB WEQ membership on 8/11/2011. Filed with FERC on October 7th. • Link to SAMTS Filing with FERC

3. North American Energy Standards Board, NAESB • Standards Development • Network Integration Transmission Services (NITS) Standards • Moving beyond OASIS system support for point-to-point transmission service, the WEQ OASIS subcommittee continues to establish standards permitting OASIS to accommodate network integration transmission service as mandated by FERC Order No. 890. The most recent NITS recommendation was presented on Oct 27thto WEQ EC.

4. North American Energy Standards Board, NAESB • Standards Development • (NITS) Standards • Significant changes - New Templates – Network reservations will need to move to the new system. - New Network Customers will need to fill out an on-line application on OASIS. - Existing Network Customers will not have to make a new application on OASIS.

5. North American Energy Standards Board, NAESB • Standards Development • (NITS) Standards • Subcommittee completed work in 4th Quarter 2011. Informal comments under review by the subcommittee. Very few substantive issues identified in informal comments. • Review is likely in 1st Quarter 2012 with FERC filing in ~2nd Quarter 2012. Due to the volume of information involved there was a motion made and adopted to allow a 60 day formal comment period upon posting.

6. North American Energy Standards Board, NAESB • Parallel Flow Visualization (Eastern Interconnection) • Approved Recommendation • The WEQ Executive Committee approved the recommended interim solution on 10/26/2010. • The Business Practices Subcommittee (BPS) is working on a permanent solution. White Paper from November 9thMtg - Hybrid Option: Tag all non-firm transactions within a BA and require upload of firmness of transmission service for each running generator every 15 minutes (Generator Prioritization) - BPS is still considering a two-tiered firm curtailment process (first-to-cut / last-to-cut). Policy change issue has been addressed. This would require coordination agreements between BA’s for loop flows to be granted last-to-cut priority.

7. North American Energy Standards Board, NAESB • Electric Industry Registry (EIR) - Transfers TSIN Registry from NERC to NAESB. - OATI will administer the registry for NAESB. - The NAESB EIR page with FAQ links and training schedules is posted at: http://www.naesb.org/weq/weq_eir.asp - TSIN data is not being ported to EIR, so re-registration will be necessary. - An annual fee will be required.

8. NAESB Members - FYI • E-Tag and Dodd-Frank • Applies to anyone with an end-user derivative, farmers, co-ops, etc., • It is strongly felt that the number of reports and their complexity is vastly underestimated by most groups. • The definition of a derivative or swap dealer is unclear, which may result in the inclusion of many parties that do not currently believe they qualify.

9. NAESB Members - FYI • Public Key Infrastructure (PKI) • PKI Mission To develop and maintain NAESB WEQ standards that support the electronic protection of information assets related to the WEQ body of business practices.  • February 16th, 8-10 MST March 8th, 8-10am MST

10. NAESB Members - FYI • Critical Infrastructure Committee (CIC) • On December 1, 2011 the NAESB Critical Infrastructure Committee (CIC) held its final conference call of the year to provide a status update on cyber security related legislation and the recent activities in the area. The committee is headed by Cade Burks and Jess Hurley. While this is a named committee, all interested parties are encouraged to attend and participate. If you plan to attend please RSVP to the NAESB office at your earliest convenience.

11. NAESB Members - FYI • Bulk Electric System (BES) Definition • Recommendation: 2012 Wholesale Electric Annual Plan Item No. 1.d – Revised Bulk Electric System Definition • Link: http://naesb.org/pdf4/weq_2012_api_1d_rec.doc Industry comments are due by February 18th, 2012.

12. NAESB Members - FYI • Gas – Electric Harmonization • A follow-up conference call/web cast on February 15, from 1 pm to 4 pm CST, to begin addressing issues raised in the NPC report and other energy industry actions related to gas-electric harmonization. • The agenda and background documents can be accessed from the link shown below, also the instructions for joining the call/web cast, and a list of the members of the committee: http://www.naesb.org/pdf4/geh012712a.docx. • Please contact Veronica Thomason for information (vthomason@naesb.org, 713-356-0060)

13. Craig L. Williams WECC Market Interface Manager cwilliams@wecc.biz w. 801.883.6846 c. 801.455.9812 Questions?