North American Energy Standards Board NAESB Review & Smart Grid Update

1. North American Energy Standards BoardNAESB Review & Smart Grid Update The North American Energy Standards Board CIM Users Group Meeting Hosted by EPRI - Charlotte, North Carolina November 11, 2009 Prepared by the North American Energy Standards Board

2. North American Energy Standards BoardNAESB Review History and Creation of NAESB Prepared by the North American Energy Standards Board

3. North American Energy Standards BoardNAESB Review • In 1992, the Natural Gas Council agreed that the wholesale gas market needed a standards organization and fostered the needed efforts to start one. • During the formation from 1992 to 1994, the Department of Energy hosted monthly meetings where the gas industry in open meetings determined the best structure for the organization. • 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. • NAESB expanded effective January 1, 2002 to include wholesale gas and electricity and retail gas and electricity Prepared by the North American Energy Standards Board

4. North American Energy Standards BoardNAESB Review Organizational Structure Prepared by the North American Energy Standards Board

5. North American Energy Standards BoardNAESB Review Organization by Quadrant and Segment Wholesale Electric – 6 Segments Wholesale Gas – 5 Segments • End Users • Local Distribution • Pipelines • Producers • Services • End Users • Distribution/LSE • Transmission • Generation • Marketers/Brokers • Independent Grid Operators/Planners Retail Electric – 3 Segments Retail Gas – 3 Segments • Service Providers/Suppliers • Utilities • End Users/Public Agencies • Service Providers/Suppliers • Distributors • End Users/Public Agencies Prepared by the North American Energy Standards Board

6. North American Energy Standards BoardNAESB Review Two Governing Bodies with identical structures – Board of Directors – strategic direction, financial well being, annual planning for standards development, coordination of activities with other groups Executive Committee – Carries out the annual plan, develops and maintains the standards and business practices through its subcommittees and task forces Prepared by the North American Energy Standards Board

7. North American Energy Standards BoardNAESB Review 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 Prepared by the North American Energy Standards Board

8. North American Energy Standards BoardNAESB Review Advisory Council Board of Directors Executive Committee(s) Advises the Board of Directors on the general direction of the organization and the annual plans of each quadrant Standards Development Subcommittees Managing Committee Interpretations Subcommittee Parliamentary Committee Triage Subcommittee Prepared by the North American Energy Standards Board

9. North American Energy Standards BoardNAESB Review Standards Development Process Prepared by the North American Energy Standards Board

10. North American Energy Standards BoardNAESB Review • Focused on Common Business Practices and Technical Guidelines • Broadly Endorsed by the Industry • That Provide Conformity • Which Yield More Efficient and Effective Transactional Processes Prepared by the North American Energy Standards Board

11. North American Energy Standards BoardNAESB Review • Standards Development Process • The process begins with a request – which can come from a member, an interested industry participant, a government agency or commission, an ISO or RTO, or a NAESB subcommittee or it can be an annual plan item approved by the Board of Directors. • The process followed is ANSI accredited -- ANSI accredits organizations as Standards Development Organizations (“SDO”) based on their adherence to ANSI’s cardinal principles of standards-setting. • The process is open and any interested party can participate and contribute to the standards development regardless of membership in NAESB. Prepared by the North American Energy Standards Board

12. North American Energy Standards BoardNAESB Review • Voluntary Standards • From the organization’s perspective, all standards are voluntary and may be provided to regulatory agencies as status reports as they are published. • The standards and model business practices may incorporate regional or operational differences • Regulatory agencies may choose to adopt standards or model business practices, but NAESB will not advocate such action. • The organization will not monitor for compliance, provide performance measures for compliance, nor will it define sanctions for non-compliance. • The organization will not advocate before any regulatory body. Prepared by the North American Energy Standards Board

13. North American Energy Standards BoardNAESB Review • Relationship of NAESB Standards and Model Business Practices to Policy • NAESB does not set policy. • We defer to state and federal agencies in determining policy. • Our work products are intended to focus on the implementation of policy decisions by providing a road map for the interactions between the various parties. • Our standards and model business practices recommend practices for alternative regulatory models but leave the decision as to the appropriate policy or model to the regulators. Prepared by the North American Energy Standards Board

14. North American Energy Standards BoardNAESB Review How do the members create the standards? • We average 30-35 meetings or calls per month • We average more than 800 participants by phone per month • We offer web casting to assist in the conference calls • All participants, regardless of NAESB membership status, are welcomed to the meetings and subcommittee efforts Prepared by the North American Energy Standards Board

15. North American Energy Standards BoardNAESB Review How fast can standards be developed? • Typically standards development takes 12 months • It can take longer when the underlying policy is not well understood or the industry has significant opposition • It can be accelerated (down to 4 months) if the policy is well understood, executives are willing to champion it, regulators are clear that it should have priority Prepared by the North American Energy Standards Board

16. North American Energy Standards BoardNAESB Review Executive Committee(s) Request For Standard/Annual Plan Item Balanced Vote Triage Subcommittee Membership Ratification Balanced Vote Executive Committee(s) Balanced Vote Final Actions Standards Development Subcommittee(s) Balanced Vote Published Standards Recommendation Formal Industry Comment Prepared by the North American Energy Standards Board

17. North American Energy Standards BoardNAESB Review NAESB Work Products Prepared by the North American Energy Standards Board

18. North American Energy Standards BoardNAESB Review Version 2.1 WEQ Standards: • OASIS Transmission Loading Relief • OASIS S&CP Contracts • OASIS Data Dictionaries Standards of Conduct • Coordinate Interchange Gas/Electric Coordination • ACE Equation Special Cases Public Key Infrastructure • Manual Time Error Correction eTariff • Inadvertent Interchange Payback Demand Response • Last Published: March 2009, Version 2.1 • Next Publication: First Quarter 2010, Version 2.2 Prepared by the North American Energy Standards Board

19. North American Energy Standards BoardNAESB Review Version 1.1 Retail Standards: • Defined TermsCreditworthiness • Market Participant Interactions Billing and Payments • Electronic Delivery Mechanism Contracts • Internet Electronic Transport Electronic Invoicing • Texas Registration AgentCustomer Information • Distribution Company-Supplier Disputes • Customer Enrollments, Drops and Account Information Change • Last Published: June 30, 2009, Third Version • Next Publication: December 31, 2009, Version 1.2 – Fourth Version Prepared by the North American Energy Standards Board

20. North American Energy Standards BoardSmart Grid Update NAESB Smart Grid Update Prepared by the North American Energy Standards Board

21. North American Energy Standards BoardSmart Grid Update • NAESB’s Involvement in the Smart Grid Initiative • NAESB Advisory Council Meeting • Contact with Government Agencies, Trade Organizations and other SDO’s • Participation in the April, May and August NIST Workshops Prepared by the North American Energy Standards Board

22. North American Energy Standards BoardSmart Grid Update • NAESB Assignments Resulting from August NIST Workshop • Priority Action Plan 3 – Common Price Communication Model • Priority Action Plan 4 – Common Scheduling Mechanism • Priority Action Plan 9 – Standard DR Signals Prepared by the North American Energy Standards Board

23. North American Energy Standards BoardSmart Grid Update • NAESB Smart Grid Standards Task Force and Subgroup • Co-Chairs • Robert Burke, ISO New England • Brent Hodges, Reliant • Wayne Longcore, Consumers Energy • First Meeting September 1, 2009 • 16 Conference Calls • 1 Face to Face Meeting • Over 250 participants • Coordinating with NIST, FERC, NARUC, FIX Protocol, UCAiug, CalConnect, etc… Prepared by the North American Energy Standards Board

24. North American Energy Standards BoardSmart Grid Update • NAESB Smart Grid Standards Task Force and Subgroup • Phase One Work Products • Framework for Integrated DR &DER Models (PAP 9) • Wholesale Market Use Cases (PAP9) • Retail Market Use Cases (PAP 9) • Common Glossary / Actors (PAPs 3 & 9) • Use Cases for a Common Price Communication Model (PAPs 3 & PAP 9) • Requirements for a Common Scheduling Mechanism (PAP 4) Prepared by the North American Energy Standards Board

25. North American Energy Standards BoardSmart Grid Update • NAESB Smart Grid Standards Task Force and Subgroup • Timeline • November 13, 2009 – The Task Force votes to approve the documents described above for an informal comment period ending on November 30, 2009. • November 18, 2009 – The documents described above are presented at Grid-Interop Week • Early January, 2010 – The Task Force votes to approve the documents as modified in response to the comments for a 30 day formal comment period ending early February 2010. • Early February, 2010 – The Task Force reviews the formal comments and prepares a report to the NAESB Wholesale Electric (WEQ) and Retail Electric Quadrant (REQ) Executive Committees (EC) with any additional suggested changes as late task force comments  • Mid to Late February, 2010 – The NAESB WEQ and REQ EC hold a single topic review session on the recommendations to prepare the EC members for a single topic EC meeting • Early March, 2010 – The NAESB WEQ and REQ EC hold a single topic EC meeting to vote on the recommendations Prepared by the North American Energy Standards Board

26. North American Energy Standards BoardNAESB Review How to Contact NAESB Prepared by the North American Energy Standards Board

27. North American Energy Standards BoardNAESB Review 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

28. North American Energy Standards BoardNAESB Review Web Site Information and Contacts • Web Site : www.naesb.org • Quadrant Procedures, Bylaws, Certificate for NAESB • Calendar of Meetings, Agendas, Work Papers, Comments • Board minutes, EC Minutes, How to order Transcripts • Standards and Related Work Products • Membership Information • Contact Information • Phone – 713-356-0060 • Fax – 713-356-0067 • Email –naesb@naesb.org • For further information on the organization, please contact Veronica Thomason (713-356-0060, naesb@naesb.org) Prepared by the North American Energy Standards Board

29. North American Energy Standards BoardNAESB Review How To Monitor 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