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NAESB WHOLESALE ELECTRIC QUADRANT

REPORTMIC MEETING

SALT LAKE, UT

March 24, 2015

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TODAY’S UPDATE CONTAINS….NAESB

Coordinate Interchange Scheduling Subcommittee

OASIS SubcommitteeBusiness Practice SubcommitteeOther

NERCFERC

Order 676-H ATC Workshop

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NAESB’S COORDINATE INTERCHANGE SCHEDULING SUBCOMMITTEE (FORMERLY JESS)

e-Tag 1.8.2 Electric Industry Registry Update WEQ-004 Coordinate Interchange Business Practice Standards

Meetings

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E-TAG 1.8.2 Interoperability testing completed

2014 Implementation/cut-over is midnight

CST between March 30th and 31st 2015 1.8.1.1 Retirement Date: May 1, 2015

You have the month of April to replace any 1.8.1.1 e-Tags

Materials are posted on the NAESB web site (but you have to login first)

https://www.naesb.org//weq/weq_jess_etag_1.8.1.asp

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NOTABLE CHANGES IN E-TAG 1.8.2 Ramp Duration logic regarding e-Tag duration – New

logic compares the time ordered segment duration(s) to verify that the ramps do not overlap between segments. The duration of each time ordered segment must be greater than or equal to the sum of one-half its ramp start duration plus one-half its ramp stop duration.

To help facilitate Network Integration Transmission Service (NITS) on OASIS, a NITS resource may be included on a tag by utilizing the NITSResource data elements in the transmission allocation. A Transmission Service Provider may require additional information to evaluate a NITS request. This additional information is not documented in the e-Tag Specification, but should be available in the Transmission Service Provider’s posted business practices.

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NOTABLE CHANGES IN E-TAG 1.8.2 Section 4.6.1.2 discusses the ability of a Market

Operator (MO) on the Physical Path to adjust the Market Level Profile. This will allow intermediate MOs to submit e-Tag market level profile adjustments based on market needs.

When a tag correction is submitted, the tag will require certain Approval Entities (based upon what was corrected) to reassess the tag. If the correction crosses a time limit and changes the Time Classification of the request, such as from “ON-TIME” to “LATE”, then the tag must be reassessed by all Approval Entities.

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MORE NOTABLE CHANGES IN E-TAG 1.8.2 Logic was added to verify that only one TSP may be

associated with a transmission physical segment, and to allow multiple PSEs to be associated with the same transmission physical segment, this is also referred to as stacking.

Logic and verification was added to ensure that the current profile of e-Tags is being computed using the lowest reliability limit based on comparison across participants, i.e. per participant reliability profiles are being considered. The e-Tag system will use the most restrictive profile limit.

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MORE NOTABLE CHANGES IN E-TAG 1.8.2 Appendix A, Special Interconnection

Implementations Requirements, provides a detailed description of special types of tags.

e-Tagging Requirements For Western Interconnection Capacity Tags:

Allows the capacity tag adjustment to be made by the Sink BA and LSE. Adjustments to the approved tag’s market level profiles will only require approval from the Source BA and Sink BA.

e-Tagging Requirements For Western Interconnection Ten Minute Recallable Tags:

Allows the ten minute recallable tag adjustment to be made by the Source BA and GPE. Adjustments to the approved tag’s market level profiles will only require approval from the Source BA and Sink BA.

CISS APPROVED EIR ENHANCEMENTS

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• ER14001 – TVA requested new energy product code 7-CB (for tagging CBM). Implemented.• ER13002 – NWMT requested mechanism to

notify when objects will be removed from EIR publication. Implemented.• ER13001 – NERC requested EIR include

schema and GUI for registration and approval of pseudo-ties. In testing. Implementation expected 2Q2015.

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WEQ-004 COORDINATE INTERCHANGE BUSINESS PRACTICE STANDARDS

Modified and approved by WEQ EC in August 2014 and ratified by the membership.

CISS CALENDAR Recent Meetings

Jan 20, 2015 – Conf CallFeb 10, 2015 – Conf CallMar 6, 2015 – Conf Call

Upcoming MeetingsMar 25, 2015 – Conf CallMar 30-31, 2015 – e-Tag Cutover CallApril 29, 2015 – ACES, Carmel, IN

OASIS SUBCOMMITTEE• J.T. Wood and Alan Pritchard, co-chairs (Paul Sorenson resigned chair position) • The subcommittee’s development activity on Preemption and Competition was placed on hold due Order 676-H.• In that order, NAESB was asked to make revisions to Version 003 Business Practice Standards to reflect the “Entergy/Dynegy” rulings and other modifications.

OASIS SUBCOMMITTEE• “Entergy/Dynegy” rulings addressed treatment redirects on a firm basis.• Redirected capacity on the parent path is not released until the redirect becomes unconditional. If a conditional redirect be impacted by a competition, the customer can return to the parent path/ reservation.

• A redirect on a firm basis which is end of term shall inherit the parent’s reservation priority.

• Dynegy – EL01-104• Entergy – ER05-1065, OA07-32, ER12-1071• 676-H – RM05-5

OASIS SUBCOMMITTEE• On March 17, 2015 NAESB posted for formal comment four recommendations from the OASIS subcommittee related to Order 676-H.

• The recommendation addressing the Entergy/ Dynegy orders only focusses on when the parent reservation is unconditional. The subcommittee could not reach consensus on how to handle a scenario where the parent reservation is still conditional at the time the firm redirect is confirmed. Providers will have to post in their business practices how they will handle this scenario.

• These recommendations will be considered at the next WEQ EC meeting.

OASIS SUBCOMMITTEE CALENDAR

Recent MeetingsNov 18-20, 2014 – Entergy, New Orleans, LADec 2, 2014 – Conf Call Jan 8, 2005 – Conf Call Jan 13-15, 2015 – Duke, Charlotte, NC Jan 29, 2015 – Conf CallFeb 19, 2015 – Conf CallFeb 25-26, 2015 – SRP, Tempe, AZMar 10-12, 2015 – SCL, Seattle, WA

Upcoming MeetingsMar 26, 2015 – Conf CallApr 14-16, 2015 – SPP, Kansas City, MO

BUSINESS PRACTICES SUBCOMMITTEE

Spent the last five years working on Parallel Flow Visualization (PFV). Subcommittee voted out for formal comment the end of September 2014.

At the end of October 2014, the WEQ EC was to vote on the PFV business practice standards. But pre-meeting communications indicated one or two segments may block approval.

So, WEQ EC formed a PFV Task Force to hammer out existing issues in an effort to preserve the work of the subcommittee.

The revised PFV recommendation was passed at the Feb 24, 2015 WEQ EC meeting.

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MOD A (ATC) BUSINESS PRACTICE STANDARDS In early 2014, NERC “MOD A” Standards

Drafting Team submitted NAESB Standards request R14002 for the potential development of ACE standards.

A WEQ EC Task Force took 200+ requirements/sub-requirements abandoned by the NERC MOD A drafting team and developed a recommendation of “1 must have” and “41 please consider” requirements.

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MOD A (ATC) BUSINESS PRACTICE STANDARDS In Oct 2014, the Business Practice

Subcommittee began crafting ATC/AFC business practice standards and has had one round of informal comments

Keeping the three methodologies A recent topic of discussion centers around

bounding commercial activity not only by reliability limits, but also by the “physical rights/investment” to “move” energy.

Desired completion by the end of 2Q2015

BUSINESS PRACTICES SUBCOMMITTEE CALENDAR

Recent MeetingsNov 25, 2014 – Conf CallDec 3-4, 2014 – Georgia Transmission, Tucker, GAJan 6-7, 2005 – FRCC, Tampa, FLJan 22, 2015 – Conf CallFeb 3-4, 2015 – SPP, Little Rock, ARFeb 17, 2015 – Conf CallMar 3-4, 2015 – FRCC, Tampa, FLMar 18, 2015 – Conf Call

Upcoming MeetingsApr 1-2, 2015 – Entergy, New Orleans, LA

RANDOM NAESB STUFF Next WEQ Executive Committee meeting

April 28, 2015 in Carmel, IN In December 2014 the Board approved

changes to NAESB’s structureRetail Market Quadrant (formally Retail Gas

and Retail Electric Quadrants officially combined)

NERC INT RELIABILITY STANDARDS All new standards became effective

October 1, 2014, except INT-004-3, Requirement 3.“Requirement R3 will become effective on

the first calendar day two calendar quarters after the NAESB Electric Industry Registry is able to accept Pseudo-Tie registrations. All existing and future Pseudo-Ties are to be registered in the NAESB Electric Industry Registry.”

FERC ORDER 676-H New compliance date:

Compliance with the Version 003 business practice standards not related to the NITS OASIS template, published in the rule of September 14, 2014 (79 FR 56939), is extended from February 2, 2015 to and including May 15, 2015, for all entities subject to the requirement.

NITS compliance date remains April 25, 2016.

FERC ATC WORKSHOP Workshop on Available Transfer Capability Standards

for Wholesale Electric Transmission Services (AD15-5-000)

FERC staff will convene a workshop to discuss actions the Commission could take to ensure that transmission providers continue to calculate and post available transfer capability (ATC) in a manner that ensures nondiscriminatory access to wholesale electric transmission services.

Suppose to be Thursday, March 05, 2015, but was postponed due to weather. It has been rescheduled April 21, 2015 at FERC offices in Washington, DC.

QUESTIONS/FEEDBACK

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