Reliability Standards Committee

Meeting Minutes

July 29, 2008

9:30 a.m. – 11:15 a.m.

7620 Metro Center Drive

Austin, Texas 78744

Room 206 B

Conference Call Information

Dial-in Number: 512.225.7280 | Conference Code: 6627

WebEx Information: N/A

Administrative

1.  Introduction and Attendance

Rick Keetch welcomed the attendees to the meeting.

The attendees were as follows:

Name / Company / Present / Called- In
Dale Bodden / CenterPoint Energy
Rick Keetch / Reliant Energy / X
Robert Kelly / Brazos Electric / X
Nick Fehrenbach / City of Dallas
Paul Johnson / AEP / X
Paul Gabba / Dow Chemical Company / X
Brian D. Bartos / Bandera Electric Coop / X
Les Barrow / CPS Energy / X
Joel Firestone / Direct Energy
Frank Owens / Texas Municipal Power Agency / X
Danny Bivens / Office of Public Utility Counsel / X
Matt Samsel / Exelon Generation
Darrell Scruggs / Calpine Corp. / X
Cesar Seymour / Suez Energy Marketing / X
Tony Marsh / Texas Power LP / X
Judith James / Texas RE / X
Steve Myers / ERCOT / X
Tom Burke / Luminant / X
Tom Foreman / LCRA / X
Jerry Ward / Luminant / X
Tom Jackson / Austin Energy / X
Ken McIntyre / ERCOT / X
Chad Seely / ERCOT / X
Carlos Benavides / Topaz Power Group / X
Eric Goff / Constellation / X
Nick Henery / FERC / X
Randy Jones / Calpine / X
Roy True / ACES Power Marketing / X
Carla Harriman / Alternative Energy / X
Ananth Palani / Energy Co. LLC / X

At least one representative from each of the segments was present to constitute a quorum.

2.  Antitrust Admonition

The Texas Regional Entity (Texas RE) Anti-Trust Admonition was displayed for the members. The attendees were reminded that it is both Texas RE and ERCOT policy to obey the antitrust laws and to avoid all conduct that unreasonably restrains competition.

3.  Approval of Minutes

Rick Keetch asked the attendees whether there were any comments on or changes to the draft meeting minutes from June. Cesar Seymour moved to approve the draft minutes. The motion was seconded by Paul Johnson and carried by voice vote. The notes were approved.

RSC Discussions and Activities

1.  Discussion on Alternates and Proxies for Standing Members

Rick Keetch led the discussion and presentation of a new form for use by standing members when there is a need for a member to designate either an alternate or a proxy. The form entitled “Form for Designation of an Alternate Representative or Proxy” was displayed for the committee. It is the same form used by the Texas RE Board. One error in the form was corrected, and a sentence was added to clarify where the form should be emailed when used for RSC. The committee accepted the form as an enabler form that does not require a formal vote. The form, as corrected and revised, will be posted on the Texas RE Website under RSC forms.

2.  Report from Chair of SAR-001-ERCOT ISO Vote, Standard Drafting Team

Jerry Ward, Chair of SDT for SAR-001 gave an update on the progress of the drafting team that is meeting to revise the Texas RE Standards Development Process document to allow ERCOT to vote in both the RBB and the RSC. He mentioned the additional purpose approved last month that requires the team to also make some changes to the process document to bring it into conformance with the FERC ordered delegation agreement and other minor revisions to promote clarification and consistency in the process implementation. To date, the team has made good progress on revising the necessary documents required by the purpose. These documents include: the Texas RE Standard Development Process, the RSC Procedure, and the RBB Procedure. The next meeting of the team will be today July 29 and again on July 30. The team hopes to complete the revisions, compose necessary questions to accompany the documents when they are posted for comment, and have a package ready for the RSC to consider at its August meeting. If not ready by August, then the team will try for the September RSC meeting. After that, if the package is approved by RSC, it will need to be posted for comments. The team is still hopeful to be able to get back to the RSC by the December meeting with a fully reviewed/commented package that can then be posted for a vote to the Registered Ballot Body pool by end of 2008 or early 2009.

3.  Report from Chair of SAR-002-UFLS, Standard Drafting Team

Brian Bartos, Chair of SDT for SAR-002 gave an update on this team’s progress. This team met for the first time on July 11. The initial task of this team is to put forth comments on the performance criteria associated with NERC Project 2007-01 UFLS Regional Reliability Standard Characteristics. To accomplish this, each team member prepared individual comments on the work so far of the national SDT, and those comments have been preliminarily compiled into a table for the team to review. Using this table, the team will then prepare a “group” comment and submit to NERC. The next meeting of the team is Monday August 4, where the team hopes to reach consensus as a group so that group comments can be submitted to NERC by the August 15 deadline.

4.  Report from Vice-Chair of SAR-003 CPS2 Waiver, Standard Drafting Team

Ananth Palani, Vice-Chair of SDT for SAR-003 updated the committee via phone and Power Point on this team’s initial meeting that was held on July 10. The purpose of this team meeting was to evaluate the impact of BAL-007, which eliminates CPS2 for all BAs in all interconnections, and to evaluate ERCOT Protocol 5.9 retirement. The team also discussed the “non-applicability” of CPS2 to ERCOT to replace the “CPS2 waiver” for ERCOT. The team intends to follow two paths to complete the assignment: 1) analyze Protocol 5.9 to develop requirements and measures of non-compliance, and 2) prove non-applicability of CPS2 to ERCOT as a single BA. The team’s next meeting will be August 14 to continue this discussion, research, and set a timeline for completing this assignment.

5.  Discussion by All on ATC Calculation and Possible Need for Regional Variance to MOD Standard

Ken McIntyre of ERCOT made a Power Point presentation of Steve Myers’ talking points concerning the ATC issue. This issue involves primarily MOD-001 that is currently up for vote (vote closes July 30). Steve Myers of ERCOT mentioned that ERCOT has a “physical difference” that makes ATC not applicable to them. He has convinced the national SDT on this issue to insert wording in the proposed national NERC standard that defines ATC, which, in his opinion, will cause the standard to be non-applicable to ERCOT. There was much discussion on this issue between Nick Henery of FERC and others on the committee concerning the issue of “non-applicability” and exemptions in the context of a regional variance. Mr. Henery posited that ERCOT should consider an exemption that would explain why ATC is not applicable to ERCOT. He indicated that FERC is trying to get away from usage of the term “not applicable”. If ATC is not used, then ERCOT, and others like them, should explain what ERCOT does do to handle congestion. Many others felt that this was redundant and should be handled instead by just getting it in the standard up front that it just does not apply to those who don’t calculate ATC. Some analogous standards were discussed that have this kind of exemption up front in the original standard with no need for any kind of regional variance. The discussion ended with no final resolution. Rick Keetch reiterated that attention should be paid to the issue, vote, and then look at the next steps when we see if the standard passes or fails.

6.  Adjourn

7.  Next Meeting: August 28, 2008.

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