North American Energy Standards Board NAESB Review with the Demand Response Coordinating Committee

1. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Review with Demand Response Coordinating Council National Town Meeting on Demand Response & Smart Grid Mayflower Hotel, Washington, D.C. July 14, 2009 Prepared by the North American Energy Standards Board

2. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee Who are we? • In 1992, the Natural Gas Council agreed that the wholesale gas market needed a standards organization and fostered the needed efforts to start one. • In 1994, the Gas Industry Standards Board was incorporated to develop business practice standards and communications and e-commerce protocols for the interstate natural gas industry with support from several federal and state agencies. • NAESB expanded effective January 1, 2002 to include standards development for wholesale gas and electricity and retail gas and electricity markets. • We are an ANSI accredited standards development organization, with several thousand standards in use today. The wholesale electric market has more than 900 standards (version 2.1), the retail quadrants have more than 300 standards (version 1.1) and the wholesale gas quadrant has more than 600 standards available (version 1.8). The Federal Energy Regulatory Commission and several state commissions have adopted our standards through regulatory actions. • We have more than 350 companies as members and more than 1500 volunteers working in committees to develop standards. Prepared by the North American Energy Standards Board

3. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee How are we organized? Organization by Quadrant and Segment Wholesale Electric – 6 Segments Wholesale Gas – 5 Segments • End Users • Distribution/LSE • Transmission • Generation • Marketers/Brokers • Independent Grid Operators/Planners • End Users • Local Distribution • Pipelines • Producers • Services Retail Electric – 4 Segments Retail Gas – 4 Segments • End Users • Distributors • Service Providers • Suppliers • End Users • Distributors • Service Providers • Suppliers Prepared by the North American Energy Standards Board

4. Organizational Structure & Support Strategy & Issue Definition Board of Directors Annual Plan s Membership • Financial Authority • Strategic Plans • Direction of the Organization & Setting the Annual Plans Legal & Operational Procedures Liaisons Executive Committee Business Practices Coding & Data • Standards Development • Tactical Implementation of the Annual Plan Interpretations Technical Mapping Communication Protocols North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee How are we organized? Prepared by the North American Energy Standards Board

5. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee What is our relationship with regulatory agencies? • All wholesale electric and wholesale gas standards that are federally jurisdictional are filed with the FERC • The NAESB record of minutes, work papers, voting, comments related to the standards are forwarded, including all minority positions noted in comments • Related transcripts are made available to FERC and can be purchased by any other interested party • Any regulatory agency can request access to or copies of NAESB standards • Similarly, we provide retail market standards to NARUC and any interested state regulatory body • We do not advocate in front of any regulatory body Prepared by the North American Energy Standards Board

6. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Demand Response Standards: • NAESB filed 40 definitions and 31 business practices with FERC on April 17, 2009 • They address the measurement and verification aspects of 47 demand response products and services administered by ISOs and RTOs in the wholesale electric market • The M&V standards establish criteria for the use of equipment, technology and procedures to quantify demand reduction value delivered • Four product types are addressed: Energy Service, Capacity Service, Reserve Service and Regulation Service Prepared by the North American Energy Standards Board

7. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee • The standards identify commonalities among product types for • General – advance notification, deployment time, reduction deadlines, release/recall provisions, normal operations, demand response availability measurement, aggregation, transparency • Telemetry – telemetry requirements, accuracy, intervals, other telemetry measurements, communications protocols, governor control equivalent, on-site generation telemetry requirements • After the fact metering – requirements, measurement accuracy, details of meter/equipment standards, reporting deadlines, reporting intervals, clock/time accuracy, VEE methods, on site generation meter requirements • Performance Evaluation – rules for performance evaluations Prepared by the North American Energy Standards Board

8. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee • A matrix was developed by the ISOs and RTOS to support the drafting of these standards, and describes all DR programs and services in effect today in the wholesale market – including 2520 cells of information • It includes the ISO/RTO products and services, their features, deployment type and methodology, event timing, telemetry, after the fact metering and available performance evaluation methods • The matrix can be found at the following link: http://www.naesb.org/misc/dsm_matrix_print_format.pdf (for printing),http://www.naesb.org/misc/dsm_matrix_excel_format.xls (Excel for analysis) • It is being used also in phase 2 development for wholesale electric DR M&V standards and verifying against for phase 1 of the retail electric DR M&V standards Prepared by the North American Energy Standards Board

9. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Demand Response Standards Progress: • Current efforts are underway to provide additional technical M&V standards for the existing base of standards • The first phase of standards for the retail DR products and services are well underway with drafts of the standards under consideration by the subcommittee • Wholesale and retail electric interests are coordinated in the development of both sets of standards • NERC and NAESB are coordinated in the development of both sets of standards • Other demand side management efforts are under consideration and scoping efforts are underway now Prepared by the North American Energy Standards Board

10. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Demand Response Standards Development Upcoming Activities: • The subcommittee is meeting in Carmel on July 29 – phone and web cast are available. All interested parties are welcome. Information on the meeting is posted on the NAESB web site. • The wholesale group meets twice monthly to develop the more detailed technical M&V standards to support the current body of work • The retail group has a draft set of standards which should be released for comment and discussed at the meeting on July 29, for possible adoption. Prepared by the North American Energy Standards Board

11. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Comments on the Smart Grid Interim Roadmap: • NAESB has a body of more than 600 OASIS standards that at a minimum will require review to ensure consistency with smart grid applications that make use of the bulk power system. • NAESB standards for conditional firm service may be impacted by renewables. • NAESB has a sets of standards for congestion management/curtailment that may be impacted. • NAESB’s demand response standards may be impacted. • Tools such as the Registry may be impacted if they are used to support data interoperability. Prepared by the North American Energy Standards Board

12. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee NAESB Comments on the 16 standards proposed by NIST for Smart Grid: • Standards and specifications to be applied at a national level should be developed at a national level, or at a minimum vetted at a national level, where entities that will be expected to use the standards have had an opportunity to vote on the standards or otherwise provide input into their development and acceptance through an open and transparent process. • For those items that have not completed a national review by a SDO, we would recommend that it is premature to endorse the item as part of the initial list until the review and vote, including the incorporation of any changes endorsed by the SDO, is completed. • Interoperability extends from the Smart Grid to the Power Grid, and for standards and specifications that interact with the bulk power system and may impact standards already in place that support reliability or market transactions, coordination should take place with either the North American Electric Reliability Corporation or NAESB. Prepared by the North American Energy Standards Board

13. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee Questions ? How to receive more information on NAESB follows. Prepared by the North American Energy Standards Board

14. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee How to Participate • Join the distribution lists on the NAESB Web Site : www.naesb.org • All meetings are open and accessible via telephone • All materials are posted on the NAESB web site • Your comments are welcome and will be posted on any NAESB standards issues • If you are not a member, but are interested in membership, please call the NAESB Office: 713-356-0060 Prepared by the North American Energy Standards Board

15. North American Energy Standards BoardNAESB Review with the Demand Response Coordinating Committee How To Monitor NAESB Activities • Monthly Update Calls: http://www.naesb.org/monthly_update.asp • Review updated annual plans quarterly: http://www.naesb.org/materials/gov.asp • Review Board minutes quarterly: http://www.naesb.org/weq/weq_bod.asp • Sign up for email distribution notices on subcommittees of interest: http://www.naesb.org/listserv/mail/mail_register.cfm • Call NAESB office (713-356-0060, naesb@naesb.org) Prepared by the North American Energy Standards Board