Final Meeting Minutes April 10-11 2014

April 10, 2014, 10:00 a.m. - 5:00 p.m. EDT April 11, 2014, 8:00 a.m. - 3:00 p.m. EDT

AGENDA FOR MEETING #14-2

NPCC Office (10th Floor), 1040 Avenue of the Americas, New York, NY 10018 Attire: Business Casual Dial-In: 415-655-0003 (USA) / 416-915-6530 (Canada) Guest Code: 28796919

Note: For reference – Links to the Glossary of Terms Used in NERC Reliability Standards, updated March 12, 2014 and the NPCC Glossary of Terms, updated January 18, 2012, are provided here.

MEETING MINUTES Attendees: Name Organization Secto Day(s Comme r ) nt Kal Ayoub FERC Guest 1 & 2 Guy Zito Northeast Power Coordinating Council 1 & 2 Lee Pedowicz Northeast Power Coordinating Council 1 & 2 Day 1 Part-time Gerry Dunbar Northeast Power Coordinating Council 1 & 2 Damase Hebert Northeast Power Coordinating Council 1 & 2 Peter Scalici Northeast Power Coordinating Council 1 via phone for Project 2014-04 Michael Lombardi Northeast Power Coordinating Council 1 & 2 Chris de Graffenried Consolidated Edison Co. of NY, Inc. 1 / 3 1 & 2 Sector 3 Proxy for Peter Yost Ben Wu Orange and Rockland Utilities 1 1 & 2 10. Si-Truc Phan Hydro Québec TransÉnergie 1 / 2 1 & 2 ** Item in Meeting Material Page 1 of 21 Name Organization Secto Day(s Comme r ) nt Sector 1 Proxy for Sylvain Clermont 11. Brian Shanahan National Grid 1 1 12. Robert Pellegrini The United Illuminating Company 1 1 & 2 13. Alan MacNaughton New Brunswick Power Transmission 1 1 & 2 via phone 14. Mark Kenny Northeast Utilities 1 1 & 2 15. Helen Lainis Independent Electricity System 2 1 & 2 Operator 16. Matt Goldberg ISO-NE 2 1 & 2 Day 1 Proxy for Kathleen via Goodman phone 17. Jim Grant New York Independent System 2 1 & 2 Proxy for Greg Operator Campoli 18. Michael Jones National Grid 3 1 & 2 19. Thomas Neglia Orange and Rockland Utilities, Inc. 3 1 & 2 via Proxy for David phone Burke 20. Wayne Sipperly New York Power Authority 4 1 & 2 21. Mike Garton Dominion Resources Services, Inc. 4 1 & 2 via phone 22. David Ramkalawan Ontario Power Generation Incorporated 4 1 & 2 via phone 23. Christy Koncz PSEG Power 4 1 & 2 via phone 24. Herb Schrayshuen Power Advisors, LLC – Proxy for 4 1 & 2 Proxy for Silvia NextEra Energy, LLC Parada Mitchell 25. Bruce Metruck New York Power Authority 5 1 & 2 26. Brian Robinson Utility Services 5 1 & 2 27. Vijay Puran NYS Department of Public Services 6 1 & 2 Day 2 via phone 28. Muhammed Ali Hydro One Guest 1 & 2 29. Calvin Duncan New Brunswick Energy and Utilities Guest 1 & 2 Board 30. Ron Falsetti AESI Guest 1 31. Ben Li Independent Electricity System Guest 1 Day 1 Operator Part-time via

of 21 Name Organization Secto Day(s Comme r ) nt phone Introductions and Chair’s Remarks - Guy Zito called the meeting to order at 10:00 AM on Thursday April 10, 2014. - The NPCC Policy covering Visitor Safety and Security was reviewed. NPCC Antitrust Compliance Guidelines** - NPCC Antitrust Compliance Guidelines were read. Agenda Items: 1.0 Review of Agenda - The review of the agenda did not result in any changes to the agenda. 2.0 RSC Meeting Minutes 2.1 Approval of Minutes: February, 19 & 20, 2014 RSC Meeting #14-1** - The February 2014 meeting minutes were reviewed. A motion was made and seconded (by Mike Garton and Bruce Metruck, respectively) to approve the minutes as written. The motion passed. 3.0 Drafting Team Members and Executive Tracking Summary 3.1 NPCC Members on NERC Drafting Teams** - The spreadsheet of NPCC Members on NERC Drafting Teams was reviewed. The spreadsheet has been significantly revised. Specifically eight projects have been removed and nine projects have been added. It was reported that five of the nine new projects have NPCC members on the drafting teams. - RSC members noted the following changes should be made to the spreadsheet: [Action]  Project 2010-17, Remove Jennifer Dering as the NPCC Representative as she is no longer at NYPA  Project 2012-13, Add Kevin Donnelly, Con Edison, as the NPCC Representative  Project 2014-03, Add Kyle Russell, IESO, as the NPCC Representative  Project 2014-04, Add a row for project and identify Kathy Judge, National Grid, as the NPCC Representative - It was also noted that missing and incomplete contact information should be filled in. 3.2 Executive Tracking Summary** - The NERC Executive Tracking Summary (ETS) spreadsheet was reviewed. Updates to the spreadsheet, since the last RSC meeting were related to:  NERC Reliability Standards  NERC RSAWs  NPCC Regional Reliability Standards - Additionally it was reported that the Final Ballot for Project 2007-02 Operating Personnel Communications Protocols: COM-002-4 concluded subsequent to the posting of the NERC Executive Tracking Summary (ETS) spreadsheet. Ballot Passed (Quorum: 78.21%, Approval: 77.62%). Executive Tracking Summary spreadsheet will

of 21 be updated. COM-002-4 will be on the NERC BOT Agenda in May for approval. [Action] - An RSC member noted that Project 2010-05.1 was updated under the Reliability Standards tab but was missing from summary of changes. The summary of changes should be corrected. [Action] 3.3 NERC Project Tracking Spreadsheet (link) - A link to the NERC Project Tracking Spreadsheet, dated 3/11/14, was included for information. - The spreadsheet was reviewed to familiarize the RSC members with its structure and content. Highlighted during the review were the Project Status (Green: No Issues with Project; Yellow, Project Off Schedule by One Quarter; Red: Project Off Schedule by Two or more Quarters) and the Project Schedule which begins with the Initial Comment / Ballot periods and concludes with the Projected filing with FERC. 4.0 Open Action Items** - The Open Action Items from previous RSC meetings were reviewed and status updates provided.  Item 4.1, “Coordination with the Compliance Committee to develop Joint Activity Action List” - No joint items requiring a combined Compliance Committee and Regional Standards Committee meeting were identified.  Item 4.2, “New York Adoption of More Stringent/Specific NPCC Criteria - determine more stringent criteria and submit filing” - NPCC Legal has completed its initial draft which is being reviewed by NPCC senior staff. NPCC estimates filing with the NYSPSC in late April or early May.  Item 13-5.6, “NPCC outreach program development – discussion item: members provide input and opportunities for development of an outreach program” - Status: Ongoing - The March 2014 outreach meeting that was held with NYPA was described as positive and worthwhile.  Item 14-1.1, “Project 2010-17, BES - Follow up with Drafting Team to identify established set of criteria for when an entity can request an exclusion and what should be provided” - On March 31, 2014, the Standards Committee endorsed posting the final Reference Document as a supporting document. This action item will remain open to facilitate future discussions regarding the BES exception process  Item 4-1.2, “Revise the Directory Development Manual to address cost effectiveness” - Preliminary revisions incorporating cost concepts into the Manual have been completed. Posting to the Open Process is pending. - Gerry Dunbar indicated there are additional changes (based on internal review) to the manual that are also being considered. These changes will be presented at June RSC meeting.

of 21  Item 4-1.3, “Project 2007-06 - System Protection Coordination – share concerns raised at the RSC meeting with the Standard Drafting Team” [At the February RSC meeting there were concerns regarding: coordination between entities; tracking and notification of 10% or greater change in fault current at an interconnecting bus; need for a common tool to facilitate data exchange. The specific concerns were emailed to the RSC during the meeting.] - This item is still open and will be addressed prior to the June RSC meeting.  Item 14-1.4, “Follow up with NERC on current RSAW development process” - An RSAW that is being developed during the standards development process will be posted concurrently with the standard - A working group developed a process to vet proposed changes to an RSAW that is already in place for an existing standard. The working group was formed with representation from the MRC, NERC staff, and the NERC Board. The proposed process is slated to be on the MRC agenda for the May 2014 meeting. (Handout Item 4a was included in the meeting material for additional information.) - This item will remain open and updated at the June RSC meeting. 5.0 Items Requiring RSC Discussion / Approval 5.1 Standards Outreach - This item was discussed under Agenda Item 4.0, “Open Action Items” - specifically, Open Action Item 13-5.6. As noted, the March 2014 outreach meeting that was held with NYPA was described as positive and worthwhile. 5.2 Email Lists: rscmembers (primary) vs. rsc (alternates & others) - The current practice is to include “primary” RSC members only in the rscmembers email list. The “alternate” RSC members (as well as the rscmembers list) and other interested parties are included in the rsc email list. This practice was discussed and it was determined that both primary and alternate RSC members should be included in the rscmembers email list. A motion was made and seconded (by Bruce Metruck and Mike Garton, respectively) to include Primary and Alternate RSC members in the rscmembers email list. The motion passed. - The rsc and rscmembers email lists will be revised accordingly. [Action] 6.0 NERC Reliability Standards http://www.nerc.com/pa/Stand/Pages/Standards-Under-Development.aspx 6.1 Currently Posted Projects Standar Comme ds 4/10/1 nt Ballot Develop 4 Project Period Period er Call-In Project 2009-03: Emergency Operations - EOP-011-1 4/28/14 -- Laura 10:30 AM (I) Anderson Project 2008-02: Undervoltage Load Shedding - PRC- 4/16/14 -- Erika 10:40 AM 010, PRC-020, PRC-021 and PRC-022 (I) Chanzes

of 21 Standar Comme ds 4/10/1 nt Ballot Develop 4 Project Period Period er Call-In Project 2010-05.2: Special Protection Systems (I) Al 10:50 AM (definition) McMeekin Project 2010-02: Connecting Facilities to the Grid - FAC- 5/15/14 5/15/14 Mallory 11:00 AM 001-2 and FAC-002-2 (F) (I) Huggins Project 2007-17.3 (PRC-005-4) Protection System (F) (I) Jordan 11:15 AM Maintenance and Testing - Phase 3 (Sudden Pressure Mallory Relays) Project 2014-01: Standards Applicability for Dispersed (I) -- Sean 11:15 AM Power-Producing Resources (white paper) Cavote Project 2010-05.1 Protection System (Misoperations) – (F) (A) 11:45 AM PRC004-3 Scott Project 2010-13.3 Phase 3 of Relay Loadability: Stable (F) (I) Barfield Power Swings Project 2014-04: Physical Security: CIP-014-1** 4/24/14 4/24/14 Stephen 12 Noon (F) (I) Noess Project 2012-13: Implementation of NUC 5/22/14 5/22/14 Stephen 1:00 PM recommendations: NUC-001-3 (F) (I) Eldridge Project 2010-04: Demand Data (MOD C) – MOD-031-1 4/10/14 4/10/14 (F) (A) Project 2013-04: Voltage and Reactive Control – VAR- 4/14/14 4/14/14 Soo Jin 002-3 (F) (A) Kim Northeast Power Coordinating Council (NPCC) Regional 5/7/14 -- Standard Processes Manual (F) Project 2010-14.1: Phase 1 of Balancing Authority (F) (A) Reliability-based Controls: Reserves: BAL-002-2 Comments: (I) – Informal; (F) – Formal Ballots: (I) – Initial; (A) – Additional; (F) – Final - The NERC Standards Developers called into the meeting to provide an overview of projects that: 1) were recently posted; 2) are currently posted; and 3) will be posted shortly. The NERC Standards Developers also responded to questions from the RSC members regarding the associated standards. - The RSC members discussed the NERC projects and reviewed the associated comments forms and all comments received by NPCC to date. Based on RSC comments, Gerry Dunbar added responses to the appropriate Comment Forms. Comments will be finalized and submitted to NERC. - The following includes notes from the NERC Standards Developers overview and the subsequent and separate discussion by the RSC members of the comments for submittal:  Project 2009-03: Emergency Operations - EOP-011-1 - Project was created out of the five year review process - consolidates and replaces EOP-001-2.1b, EOP-002-3.1, and EOP-003-2 with EOP-011-1 - EOP-003-2, Requirements R2, R4, and R7 moved to PRC-010-1 (under Project 200802) - Project 2009-03 and Project 2008-02 are progressing simultaneously to properly align legacy standard retirements and revised standard

of 21 implementations. [The RSC meeting conflicted with the joint Webinar for these two projects – For your information and use, link to Webinar  Presentation and Streaming Webinar] - EOP-011-1 is posted for an Informal Comment Period until April 28, 2014. The Drafting Team will meet in May to consider comments and plans to post the standard for a Formal Comment period in June (June 12, 2014 targeted). - A question was asked concerning EOP-011-1, R4. Specifically, if the Emergency Operating Plans are disapproved what do you do? The NERC Standards Developer’s answer was: you need to work from the latest approved plans until such time as you get revisions approved. - Subsequent to the overview by the Standards Developer, the RSC reviewed and discussed proposed comments to be submitted to NERC. The NERC Standards Developer’s response to the concern raised earlier regarding how to proceed if your proposed revision is not approved was believed to be problematic in those cases where continuing to use the last approved plan may not be sufficient to address emerging issues.  Project 2008-02: Undervoltage Load Shedding - PRC-010, PRC-020, PRC-021 and PRC-022 - Project 2008-02 UVLS consolidates and replaces PRC-010-0, PRC-020-1, PRC- 021-1, and PRC-022-1 with PRC-010-1 - Project 2009-03 and Project 2008-02 are progressing simultaneously to properly align legacy standard retirements and revised standard implementations. [The RSC meeting conflicted with the joint Webinar for these two projects – For your information and use, link to Webinar  Presentation and Streaming Webinar] - A new NERC Glossary term, “UVLS Program,” is proposed to establish the types of UVLS systems the standard applies to o UVLS Program: An automatic load shedding program consisting of distributed relays and controls used to mitigate the risk of Cascading, voltage instability, voltage collapse, or uncontrolled separation resulting from undervoltage conditions. Centrally-controlled undervoltage-based load shedding is not included. - In addition to Project 2009-03, Project 2008-02 will be coordinated with Projects 201005.1, Misoperations, and 201005.2, SPS - The Drafting Team plans to post the standard for a Formal Comment period in June (June 12, 2014 targeted). - Q&A: Q1. Is there any discussion to revise the Protection System definition? A1. No, UVLS Standard does not use the term Protection System Q2. Is R6 sufficient to ensure changes to UVLS would be captured and studied in a timely manner? Some RSC members were concerned that R6 may not be sufficient while others believed that PCs and TPs (under R1) would already be aware of and have studied changes to the UVLS

of 21 Program. Adding to the discussion, it was asked if the replacement of failed equipment that required a change would be covered. A2. NERC Standards Developer indicated they would bring the questions / concerns back to the Drafting Team Q3. Will UVLS be formally defined? A3. NERC Standards Developer indicated they would bring the question back to the Drafting Team - Subsequent to the overview by the Standards Developer, the RSC reviewed and discussed proposed comments provided by RSC members and TFSS for submittal to NERC.  Project 2010-05.2: Special Protection Systems (definition) - Comment Period for the SPS Revised Definition closed on April 9, 2014 - The Drafting Team is meeting April 15 through 17, 2014 during which time it will consider comments for the recent posting - Q&A Q1. Regarding significant impact, where did the ≥ 300 MW come from? A1. EOP-004 / DOE Form OE-417  Project 2010-02: Connecting Facilities to the Grid - FAC-001-2 and FAC-002-2 - Five year review of FAC standards identified that two out of five standards required revisions to add clarity, remove redundancy, retire requirements with no impact on the reliable operation of the Bulk Electric System, and bring compliance elements in accordance with NERC guidelines - Drafting Team considered FAC-001, R3 too prescriptive and proposed moving details to the “Guidelines and Technical Basis” section of the standard. - Drafting Team chose to use the NERC Glossary term “Facilities” rather than “entities” in order to refer to both NERC Registered Entities that own Facilities seeking interconnection and third parties that may not yet be NERC Registered entities that own Facilities seeking interconnection - Subsequent to the overview by the Standards Developer, the RSC discussed comments for submittal to NERC. The use of the term “Facilities” rather than entities defined by the function model was not supported by the RSC. Helen Lainis will provide alternate language for consideration by the RSC to be proposed to NERC. [Action]  Project 2007-17.3 (PRC-005-4) Protection System Maintenance and Testing - Phase 3 (Sudden Pressure Relays) - Drafting Team has completed the first draft of the standard and is preparing to post for an initial 45 day comment period and ballot. Posting is targeted to begin on April 17, 2014. - “Sudden Pressure Relaying” will be a new defined term - Table 5 added for maintenance of Sudden Pressure Relaying - Added BA as an applicable entity to address a concern regarding the identification of the largest BES generating unit within the BA area. - Added new requirement R6 for sudden pressure relays - Webinar scheduled for May 15, 2014

of 21 - Q&A Q1. What was the genesis of adding sudden pressure relays? A1. The addition of sudden pressure relays was in response to a FERC directive in Order 758.  Project 2010-05.1 Protection System (Misoperations) – PRC 004-3 - NERC Standards Developer reported the standard drafting team (SDT) made two substantive revisions to the proposed PRC-004-3 Reliability Standard. o The first substantive change involved the proposed definition of “Misoperation” for the categories of Slow-Trip (3 & 4). The SDT, based on industry stakeholder comments, replaced ambiguous language in each category concerning “high-speed performance” with more direct language noting that “… if the duration time resulted in another Element operating…,” it would be a slow-trip. o The second substantive change addressed feedback from regulatory technical staff that a potential gap may exist in the proposed standard. The SDT agreed the gap existed and modified Requirement R2 to address the concern. Essentially, there was no performance required by the entity that had a failure to operate because the standard is triggered on the operation of a device, thus creating the gap - The Drafting Team will be holding conference calls in April to work toward an additional 45-day comment period and ballot in the last ten days of the period in early to middle May 2014. - Q&A Q1. A concern was raised about the time allotments in the proposed PRC- 004-3, R2 and R3. Specifically, the concern centered around the length of time (120 days) in R2 and the ambiguity of using both 60 and 120 days in R3. A1. The NERC Standards Developer explained that the 120 days which is found in R1 and R2 are maximum times to allow ample opportunity for entities to comply when it has a high number of operations due to seasonal issues. It was further explained the 60/120 day timing allows the notified entity (R3) to have the greater of the two times. Two points were provided for the basis of the 60/120 days in R3. First, the 60 days ensures a minimum time in case the entity receives notification on day 119, for example. Also, the 60 day time period is shorter because there is an expectation the entity would have already been aware of the operation before it is officially notified. Second, regulatory technical staff expressed concern that 120 days in R2 plus 120 days in R3 would be excessive; therefore, the SDT limited the maximum time to 60 days.  Project 2010-13.3 Phase 3 of Relay Loadability: Stable Power Swings - The NERC Standards Developer reported that the Drafting Team is comprised of industry subject matter experts new to standards development. - The Drafting Team has held more than a dozen two-hour plus conference calls and one week-long in-person meeting over the last month.

of 21 - The Drafting Team is concluding its first draft of the PRC-026-1 Reliability Standard and it expects to have the standard approved for its initial posting by April 18, 2014 for a 45-day comment period and ballot in the last ten days of the period.  Project 2014-04: Physical Security: CIP-014-1** - The NERC Standards Developer reported that a Request to Waive the Standards Process was approved by the Standards Committee on 3/21/14 to: o Standards Authorization Request to be posted for 7 calendar days prior to or congruent with the initial formal comment and ballot period. (Sections 4.1-4.2) o Initial formal comment and ballot period reduced from 45 days to 15 calendar days, with a ballot conducted during the last 5 days of the comment period. Form ballot pool in first 10 days. (Sections 4.7-4.9) o Additional formal comment and ballot period(s) reduced from 45 days to 10 calendar days, with ballot conducted during the last 5 days of the comment period. (Sections 4.9 and 4.12) o Final ballot reduced from 10 days to 5 calendar days. (Section 4.9) - Physical Security Standard Technical Conference was conducted on 4/1/14 immediately followed by 3 day drafting team meeting - Draft Standard posted / Overview document posted / Draft RSAW posted through April 24, 2014 - Q&A Q1. R5.1 includes the action to deter, would an entity be non-compliant if it failed to deter threat? A1. R5.1 identifies characteristics that need to be factored into your plan and does not address the success of failure of potential physical threats and vulnerabilities Q2. R6.1, unaffiliated third party reviewer, could be a challenge for Canada. Do we need this requirement? A2. The requirement came from the FERC Order. Entities need to look for someone with expertise to perform the verification. R6.1 indicates entity should select “from the following.” The choices listed build in options and flexibility for the entities. Q3. Standard requires the use of risk assessments. Should a bright line approach be used instead? A3. The FERC Order specified the use of risk assessments and not a bright line methodology. Recommend reviewing the draft RSAW that has been posted with the standard. Q4. Where did the “weighted value” come from? A4. CIP-002 Q5. Standard uses “Transmission Station” and “Transmission Substation.” Why both terms?

of 21 A5. Both terms are used to accommodate differences in terminology used within the industry to ensure standard is appropriately applied. Q6. R6.1.1 provides certification criteria. However, holder of certification may not have electric industry experience. A6. Entities need to choose a qualified reviewer from the certification holders Q7. It does not appear Exception / Inclusion / Exclusion not part of the standard A7. They are not. Q8. Regarding subsequent risk assessments, please clarify the use of “one of more” in R1.1. A8. R1.1 has two bullets. The first bullet requires a subsequent risk assessments be performed in 30 calendar months when the prior risk assessment has identified “something.” Hence, the “something” is described as “one or more.” The second bullet requires a subsequent risk assessments be performed in 60 calendar months when the prior risk assessment has identified “nothing.” Q9.Concern was raised that R2 does not obligate PC et al to perform the required verification but obligates the Transmission Owner to get the verification performed A9. Built into the requirement is the flexibility for a Transmission Owner to select registered and non-registered entities with transmission planning or analysis experience to perform the verification. - Subsequent to the overview by the Standards Developer, the RSC reviewed and discussed proposed standard. The RSC will develop comments or submittal to NERC. Additionally, the NPCC Standards will reach out to the NPCC Compliance for its feedback and comments.  Project 2012-13: Implementation of NUC recommendations: NUC-001-3 - NUC-001-3 is posted for a combined comment and initial ballot period ending on May 22, 2014. The RSC reviewed the proposed standard. Feedback and comments from the RSC members is requested no later than May 16, 2014.  Project 2010-04: Demand Data (MOD C) – MOD-031-1 - Based on the RSC review of the proposed standard, the RSC will not be submitting any comments and concurred on a ballot recommendation to support the standard.  Project 2013-04: Voltage and Reactive Control – VAR-002-3 - The RSC reviewed the standard and associated comment form. - The RSC reached consensus to vote Affirmative on the additional ballot than concludes on 4/14/14.

of 21  Northeast Power Coordinating Council (NPCC) Regional Standard Processes Manual - This item was included for information only to inform the RSC that NERC has posted the NPCC Regional Standard Processes Manual for comment to ensure that NPCC followed the applicable development criteria prior to submittal of the manual for NERC BOT approval.  Project 2010-14.1: Phase 1 of Balancing Authority Reliability-based Controls: Reserves: BAL-002-2 - The RSC reviewed the Balancing Standard Update presentation previously given at the March 26, 2014 TFCO meeting. A copy of the presentation was also distributed to the RSC members. 6.2 Ballot History (Since last RSC Meeting)** - Ballot History spreadsheet was included in the meeting materials for information. - Final Ballot for Project 2007-02 Operating Personnel Communications Protocols: COM-002-4 concluded. Ballot Passed (Quorum: 78.21%, Approval: 77.62%). Ballot History Spreadsheet will be updated. - A ballot recommendation to cast an Affirmative vote for MOD-031-1 [Ref: Project 2010-04: Demand Data (MOD C)] was disseminated on 4/9/14. The Ballot History spreadsheet will be updated. 6.3 Comment Form History (Since last RSC Meeting)** - Comment Form History spreadsheet was included in the meeting materials for information. - Comment Form for Project 2010-05.2 - Phase 2 of Protection Systems – Revised Definition of Special Protection System was submitted to NERC on 4/9/14. Comment Form History spreadsheet will be updated. 6.4 Project 2007-11 Disturbance Monitoring – PRC-002-2 - Lee Pedowicz provided an update on Project 2007-11, Disturbance Monitoring. - The next posting of the standard is targeted for the end of April. The posting will be a 45 day comment period with an associated ballot period during the last 10 days. - Clarification was provided that fault recording was not required from generators - Equipment connected to BES bus requires SOE - The standard is about capturing data and getting results and not about the equipment. - The CEAP Report has been completed and will be submitted to the NERC Standards Committee for endorsement. - There is a conference call Monday April 14, 2014 - it will include a discussion on combined cycle plants. - Rational boxes will stay with the standard. Technical details are being captured in rationale boxes 6.5 Project 2014-02 Critical Infrastructure Protection Standards Version 5 Revisions – Greg Goodrich @ 1:15 PM Thursday 4/10/14

of 21 - Greg Goodrich provided an update on Project 2014-02, Critical Infrastructure Protection Standards Version 5 Revisions - Drafting team was formed in February, 2014. - NERC to conduct an Industry Webinar for Project 2014-02 Critical Infrastructure Protection Standards Version 5 Revisions on April 22, 2014 from 10:00 AM to Noon, Eastern Time – to identify areas that need to be considered. - A Technical Conference is planned for April 29, 2014 - Project is working towards having a standard out for ballot by June 2, 2014. - FERC filing deadline for certain directives is February 3, 2015. 7.0 NERC Drafting Team Nominations http://www.nerc.com/pa/Stand/Pages/Drafting-Team-Vacancies.aspx 7.1 Currently Posted Drafting Team Vacancies 7.1.1 None at this time 7.2 Closed Drafting Team Nominations (Since last RSC Meeting) 7.2.1 Project 2014-04, Physical Security Standard, Drafting Team nominations were sought through March 18, 2014 - It was noted that Kathy Judge, National Grid, is on the Drafting Team and Peter Scalici, NPCC, will be an Observer. 7.3 Solicitation For Informal Development Teams 7.3.1 None at this time 8.0 NPCC Regional Reliability Standards** https://www.npcc.org/Standards/default.aspx 8.1 Current Activities: Regional Standards - There are not any Regional Standards currently in active development 8.2 Current Activities: Regional Standard Interpretations - There are no outstanding Regional Standard Interpretations 9.0 NPCC Non-Standards** https://www.npcc.org/Standards/SitePages/NonStandardsList.aspx 9.1 Directories In Development - Gerry Dunbar provided updates for Directories 1, 3, 4, 9 and 10: o Directory#1 --- Posted to the Open Process for 45 days concluding on Jan. 25th, 2014. Combined working group of the CP11 and CO7 have reconvened on behalf of the TFCO and TFCP to consider comments and draft responses and provide to TFCO and TFCP for May meeting. Re- posted in June (target) for 45 days. o Directory#3 --- TFSP has completed its comparison of the FERC approved PRC0052 Protection System Maintenance standard with Directory #3 and has determined that the standard is sufficiently comprehensive to allow Directory #3 to be retired without creating a reliability gap provided that some criteria is moved from Directory #3 to Directory #4. TFSP is finalizing its recommendation and will be posting Directory#3 to

of 21 the Open Process to receive comments on its proposal in accordance with the NPCC Directory Manual. The Directory #3 requirements recommended to be moved to Directory #4 will be identified in the posting. Posting, the proposal to retire Directory #3, to the Open Process is expected in May 2014 for 45 day comment period. RCC approval is targeted for Sept 2014. 9.2 Directory Interpretations - There are no outstanding Directory Interpretations 9.3 Criteria (A) / Guides (B) / Procedures (C) Documents - No activity to report. 10.0 RSC Member Items of Interest 10.1 RSC Roster** - The RSC Roster was included in the meeting materials for information. RSC members were requested to review and provide any necessary updates. It was noted that in the absence of the primary member, the alternates have the primary’s proxy. 11.0 Standards Activity Post NERC BOT Approval** (Since last RSC Meeting) 11.1 NERC Filings to FERC http://www.nerc.com/FilingsOrders/Pages/default.aspx 11.2 FERC Orders / Rules http://www.nerc.com/FilingsOrders/Pages/default.aspx 11.3 Federal Register https://www.federalregister.gov/ - Damase Hebert reviewed the standards activities, post NERC BOT approval, which has transpired since the last RSC meeting. - The review of NERC Filings to FERC included: o Project: 2008-12, Coordinate Interchange Standards. NERC submitted a petition for approval of five proposed Reliability Standards INT-004-3 (Dynamic Transfers), INT-006-4 (Evaluation of Interchange Transactions), INT-009-2 (Implementation of Interchange), INT-010-2 (Interchange Initiation and Modification for Reliability), and INT-011-1 (Intra-Balancing Authority Transaction Identification). o Project: 2010-01, Support Personnel Training. NERC submitted a petition for approval of proposed Reliability Standard PER-005-2-Operations Personnel Training and the retirement of the currently effective Reliability Standard PER005-1. o Project: 2010-03, Modeling Data (MOD B). : NERC submitted a petition for approval of proposed Reliability Standards MOD-032-1 (Data for Power System Modeling and Analysis) and MOD-033-1 (Steady-State and Dynamic System Model Validation).

of 21 o Project: 2010-14.1, Phase 1 of Balancing Authority Reliability-based Controls: Reserves. NERC submitted a petition for approval of proposed Reliability Standard BAL-001-2-Real Power Balancing Control Performance. - The review of FERC Orders included: o Project: 2007-09, Generator Verification. Order No. 796 Approving Generator Verification Reliability Standards. FERC issued a final rule approving five Generator Verification Reliability Standards MOD-025-2 (Verification and Data Reporting of Generator Real and Reactive Power Capability and Synchronous Condenser Reactive Power Capability), MOD- 026-1 (Verification of Models and Data for Generator Excitation Control System or Plant Volt/Var Control Functions), MOD-027-1 (Verification of Models and Data for Turbine/Governor and Load Control or Active Power/Frequency Control Functions), PRC-019-1 (Coordination of Generating Unit or Plant Capabilities, Voltage Regulating Controls, and Protection), and PRC-024-1 (Generator Frequency and Voltage Protective Relay Settings). o Project: 2010-13.2, Relay Loadability. Notice of Proposed Rulemaking to Approve Reliability Standards PRC-025-1 and PRC-023-3. FERC issued a Notice of Proposed of Proposed Rulemaking (NOPR) proposing to approve Reliability Standards PRC-025-1 (Generator Relay Loadability) and PRC-023-3 (Transmission Relay Loadability). o Project: 2010-17, BES Definition and BES Exception Procedure. Order Approving Revised Definition. FERC issued an order approving revisions to the definition of "bulk electric system" in the NERC Glossary of Terms Used in Reliability Standards (NERC Glossary). o Project: 2014-04, Physical Security. Order Directing Filing of Standards. FERC issued an order requiring NERC to develop reliability standards requiring owners and operators of the Bulk-Power System to address risks due to physical security threats and vulnerabilities - The review of Federal Register included: o Project: 2007-09, Generator Verification. Rule published in Federal Register. Effective date is May 27, 2014. o Project: 2010-13.2, Relay Loadability. Proposed Rule published in Federal Register. Comments due April 28, 2014. 12.0 NERC Meetings 12.1 Standards Committee (SC) http://www.nerc.com/comm/SC/Pages/default.aspx January 15th - Meeting January 29th - Call February 12th - Call March 12th & 13th - Meeting April 9th - Call May 14th - Call June 10th & 11th - Meeting July 16th - Call August 20th - Call September 23rd & 24th October 22nd - Call November 19th - Call Meeting

of 21 December 9th & 10th - Meeting 12.2 Standards Committee Process Subcommittee (SCPS) http://www.nerc.com/comm/SC/Pages/Standards%20Committee%20Process %20Subcommittee%20SCPS/Standards-Committee-Process-Subcommittee- SCPS.aspx February 6th & 7th March 12th & 13th April 23rd Call June 10th & 11th September 23rd & 24th 12.3 Standards Committee Project Management and Oversight Subcommittee (PMOS) http://www.nerc.com/comm/SC/Pages/ProjectManagementandOversightSubc ommittee(PMOS).aspx February 21st - Call February 28th - Meeting April 17th - Meeting 12.4 Member Representatives Committee (MRC) Meeting http://www.nerc.com/gov/bot/MRC/Pages/AgendaHighlightsandMinutes2013. aspx February 5th May 6th & 7th August 13th & 14th November 12th & 13th 12.5 Board of Trustees (BOT) Meeting http://www.nerc.com/gov/bot/Pages/Agenda-Highlights-and-Minutes-.aspx February 6th May 6th & 7th August 13th & 14th November 12& 13 12.6 Reliability Issues Steering Committee (RISC) http://www.nerc.com/comm/RISC/Pages/AgendasHighlightsandMinutes.aspx February 13th - Call March 19th - Meeting April 9th - Call May 7th - Meeting June 17th - Meeting June 10th - Call August 14 - Meeting September 12th - October 7th – Call Meeting November 13th - December 2nd - Meeting Meeting 13.0 NERC Compliance Tools (Since last RSC Meeting) 13.1 Compliance Analysis Reports (CARs) http://www.nerc.com/pa/comp/Pages/Compliance-Analysis-Reports.aspx 13.1.1 There have not been any CARs posted since the last RSC meeting 13.2 Reliability Standard Audit Worksheets (RSAWs) http://www.nerc.com/pa/comp/Pages/Reliability-Standard-Audit-Worksheets- (RSAWs).aspx 13.2.1 Sixteen RSAWs have been issued since the last RSC meeting:  FAC-003-3, Transmission Vegetation Management, issued 2/25/2014  PRC-001-1, System Protection Coordination, issued 2/26/2014

of 21  BAL-003-0.1b, Frequency Response and Bias, issued 3/20/2014  EOP-002-3.1, Capacity and Energy Emergencies, issued 3/20/2014  FAC-008-3, Facility Ratings, issued 3/20/2014  IRO-002-2, Reliability Coordination – Facilities, Issued 3/20/2014  IRO-003-2, Reliability Coordination - Wide-Area View, issued 3/20/2014  TOP-002-2.1b, Normal Operations Planning, issued 3/20/2014  TOP-003-1, Planned Outage Planning, issued 3/20/2014  TOP-006-2, Monitoring System Conditions, issued 3/20/2014  TPL-002-0b, System Performance Following Loss of a Single Bulk Electric System Element (Category B), issued 3/20/2014  TPL-003-0b, System Performance Following Loss of Two or More Bulk Electric System Elements (Category C), issued 3/20/2014  TPL-004-0a, System Performance Following Extreme Events Resulting in the Loss of Two or More Bulk Electric System Elements (Category D), issued 3/20/2014  BAL-001-1, Real Power Balancing Control Performance, issued 3/28/2014  PRC-004-2.1a, Analysis and Mitigation of Transmission and Generation Protection System Misoperations, issued 3/28/2014  PRC-005-1.1b, Transmission and Generation Protection System Maintenance and Testing, issued 3/28/2014 13.2.2 One RSAW has been posted for comment since the last RSC meeting:  PRC-004-3, Protection System Misoperation Identification and Correction, was posted through 3/19/14 13.3 Compliance Application Notices (CANs) http://www.nerc.com/pa/comp/Resources/Pages/Compliance-Application- Notices.aspx 13.3.1 On March 20, 2014, NERC retired the following 14 Compliance Application Notices:

 CAN-0008  CAN-0026  CAN-0009  CAN-0027  CAN-0011  CAN-0028  CAN-0015  CAN-0029  CAN-0018  CAN-0039  CAN-0020  CAN-0040  CAN-0022  CAN-0043

of 21 13.3.2 FYI/Use – There a 7 CANs that have not been retired:  CAN-0005 CIP-002 R3: Critical Cyber Asset Designation for System Operator Laptops (Revised) 12/9/2011  CAN-0007 CIP-004 R4.2: Revocation of Access to Critical Cyber Assets (CCAs) (Revised) 12/9/2011  CAN-0010 Implementation of Annual in Reliability Standards Requirements (Revised) 11/16/2011  CAN-0012 Completion of Periodic Activity Requirements During Implementation Plan (Revised) 6/15/2012  CAN-0017 CIP-007 R5: Technical and Procedural System Access and Password Controls 11/11/2011  CAN-0030 Attestations 12/9/2011  CAN-0031 CIP-006 R1: Acceptable Opening Dimensions 14.0 NERC Items of Interest (Since last RSC Meeting) 14.1 Lessons Learned http://www.nerc.com/pa/rrm/ea/Pages/Lessons-Learned.aspx 14.1.1 Four Lessons Learned have been issued since the last RSC meeting:  LL20140201 - Identify Relay Programming Errors to Prevent Unintended Operations Issued 2/25/14 Primary Interest Groups: Transmission Owners (TOs), Transmission Operators (TOPs)  LL20140202 - A Generating Station Ground Mat Problem Led to the Trip of Two Generating Units (2000 MW) Issued 2/25/14 Primary Interest Groups: Generator Owners (GOs), Generator Operators (GOPs), Transmission Owners (TOs), Transmission Operators (TOPs)  LL20140301 - Turbine Combustor Lean Blowout on Large-Frame Combustion Turbines Issued 3/11/14 Primary Interest Groups: Generator Owners (GOs) & Generator Operators (GOPs)  LL20140302 - Verification of Alternating Current Quantities during Protection System Commissioning Issued 3/11/14 Primary Interest Groups: Generator Owners (GOs), Generator Operators (GOPs), Transmission Owners (TOs), Transmission Operators (TOPs) 14.2 Alerts http://www.nerc.com/pa/rrm/bpsa/Pages/Alerts.aspx

of 21 14.2.1 Two NERC Alert has been released since the last RSC meeting:  Industry Advisory: Elevated Risk due to media assertion of electric sector vulnerabilities (No Response Required) Issued 2/28/14 Responsible Entities: Balancing Authorities, Generator Owners, Transmission Owners, Transmission Operators, Reliability Coordinators  Industry Advisory: Preventable SCADA/EMS Events – II (No Response Required) Issued 3/27/14 Responsible Entities: Balancing Authorities, Distribution Providers, Generator Operator, Generator Owner, Interchange Authority, Load Serving Entity, Reliability Coordinator, Reserve Sharing Group, Transmission Owner, Transmission Operator 15.0 - A third alert that was released during the RSC meeting was added below:  Industry Advisory: Elevated Risk due to Large Scale Encryption Vulnerability Issued 4/11/14 Responsible Entities: Balancing Authority, Distribution Provider, Generator Owner, Generator Operator, Interchange Authority, Load-Serving Entity, Planning Authority, Purchasing-Selling Entity, Reliability Coordinator, Resource Planner, Reserve Sharing Group, Transmission Owner, Transmission Operator, Transmission Planner, Transmission Service Provider 16.0 Other Items of Interest 16.1 NPCC Spring Compliance and Standards Workshop – May 28-30, 2014, Cooperstown, NY 16.1.1 Preliminary NPCC Spring 2014 Workshop Agenda** 16.2 NERC Reliability Leadership Summit – September 11, 2014, Washington, DC 16.3 NERC Fall Standards and Compliance Workshop – September 23-25, 2014, Atlanta, GA 16.4 NERC launched a new balloting and commenting software system (the Standards Balloting System or SBS) on April 1, 2014. 16.4.1 NERC provided a training session on April 2, 2014 from 8 a.m. – 10:00 a.m. PT at the Spring Standards and Compliance Workshop 16.4.2 NERC conducted an Industry Webinar - New Balloting and Commenting Software System Training conducted April 8, 2014 – recording and slide deck available on NERC website 16.4.3 NERC SBS presentation and introduction, Barb Nutter-NERC**

of 21 17.0 - Barb Nutter, NERC, gave a presentation and answered questions on the new Standards Balloting and Commenting System (SBS) which covered the following topics: o Updated Balloting and Commenting Page o Registering in the New System o Features of the Standards Balloting and Comment System (SBS)  All Users  Register/Requesting Additional Permissions  Voter  Proxy  Contributor  Cast a Vote  Take Survey (Commenting)  Social Survey 17.1 NERC conducted an Industry Webinar - Project 2008-02 Undervoltage Load Shedding and Project 2009-03 Emergency Operations on April 10, 2014 18.0 Future RSC Meetings and Conference Calls 18.1 RSC 2014 Meeting Dates 19.0 Feb. 19th – 20th, NextEra Energy Offices 20.0 April 10th & 11th, NPCC Offices 21.0 June 18th & 19th, Saratoga, NY 22.0 September 17th & 18th, Montreal, Quebec 23.0 December 4th & 5th, Halifax, Nova Scotia 23.1 RSC 2014 Conference Call Schedule all Calls are planned to start at 10:00 a.m. (call: 415-655-0003 (USA) / 416- 915-6530 (Canada), Guest Code 29173141) 24.0 February 25.0 March 14 26.0 March 28 28 27.0 April 11 28.0 April 25 29.0 May 9 30.0 May 23 31.0 June 6 32.0 June 20 33.0 July 3 34.0 July 18 35.0 August 1 36.0 August 15 37.0 August 29 38.0 Septembe r 12 39.0 Septembe 40.0 October 41.0 October r 26 10 24 42.0 November 43.0 November 44.0 December 7 21 5 45.0 December 46.0 47.0 19 48.0 - The meeting adjourned at 10:15 AM on Friday April 1, 2014.

of 21 49.0Respectfully Submitted,

50.0Guy V. Zito, Chair RSC 51.0Assistant Vice President-Standards 52.0Northeast Power Coordinating Council, Inc.