North American Energy Standards Board s14

North American Energy Standards Board 801 Travis, Suite 1675, Houston, Texas 77002 Phone: (713) 356-0060, Fax: (713) 356-0067, E-mail: [email protected] Home Page: www.naesb.org

via posting TO: NAESB Web Site for Posting RE: Notes from the NAESB Advisory Council Meeting – February 14, 2015 DATE: March 17, 2015 NORTH AMERICAN ENERGY STANDARDS BOARD ADVISORY COUNCIL MEETING NOTES Renaissance Washington Hotel – Washington, DC February 14, 2015 – 4:00 PM to 6:00 PM Eastern

1. Welcome Mr. Ellsworth opened the meeting and welcomed the Advisory Council members and observers. Mr. Booe provided the NAESB antitrust and other meeting policies guidance. The Advisory Council and other participants introduced themselves. Mr. Ellsworth reviewed the agenda1 and Ms. Hollis moved to adopt it as drafted. Mr. Gee seconded the motion and the motion passed without opposition. 2. Impact of the Advisory Council in Providing Direction to NAESB Mr. Ellsworth provided an overview of the responsibilities of the Advisory Council and encouraged the participants to get involved and provide their recommendations and comments. Ms. McQuade reviewed some of the major standards development efforts that have resulted from previous Advisory Council meetings including the NAESB smart grid, demand response and energy efficiency, cybersecurity and net metering standards. 3. Coordination, Coordination, Coordination Gas-Electric Markets Mr. Booe reviewed the activities of the organization in 2014 to support the requests of the Federal Energy Regulatory Commission (“FERC” or “Commission”) in the March 20, 2014 Notice of Proposed Rulemaking (“NOPR”) Coordination of the Scheduling Processes of Interstate Natural Gas Pipelines and Public Utilities . Through NAESB, nearly 600 individual participants from over 400 companies attended over 114 hours of meetings to develop an industry consensus alternative to the modifications to the timely and intraday nomination cycles included in the March NOPR. The effort did not result in an alternative to the 4:00 am proposed start time of the gas day offered in the NOPR; however, an extensive record of the various participants’ comments and positions was provided to the Commission. NAESB stands ready to support the Commission through conforming standards development when a final order on the NOPR is issued. Ms. Crockett noted that the Commission is also hosting a series of technical conferences concerning the EPA regulations resulting from Section 111 of the Clean Air Act (“CAA”), and that the results of those meetings may have a bearing on the Commission’s decisions regarding the final order. NAESB, NERC and the IDC Association Mr. Booe provided an update of the efforts to coordinate with North American Electric Reliability Corporation (“NERC”) and the IDC Association on the Parallel Flow Visualization (“PFV”) project and the transition of several NERC modeling standards to NAESB. Close coordination with both groups is essential on these projects, as the PFV standards will require a field trial conducted by the IDC Association and a reliability review by NERC, and the transitioning of the NERC modeling standards will require simultaneous action by the FERC to adopt the NAESB standards and remove the NERC standards, if the Commission determines to act on the standards. To ensure that these and other projects are coordinated, NAESB staff has monthly calls with FERC staff, NERC staff and the IDC Association leadership and reports any significant action on the coordinated items between meetings. In addition, NAESB circulates all reports that impact the external groups before filing with the Commission. Mr. Booe thanked

1 The agenda is available through the following hyperlink: https://www.naesb.org/pdf4/advisory021415a.docx

NAESB Advisory Council Meeting Notes – February 14, 2015 Page 1 of 6 North American Energy Standards Board 801 Travis, Suite 1675, Houston, Texas 77002 Phone: (713) 356-0060, Fax: (713) 356-0067, E-mail: [email protected] Home Page: www.naesb.org

Mr. Cauley and Mr. Lauby with NERC and Don Shipley, the IDC Association chair, for all of their support on these and other projects. NAESB and ANSI NAESB has been working with American National Standards Institute (“ANSI”) in response to a request for NAESB to consider additional standards development to support energy efficiency (“EE”) resulting from a gap analysis conducted by an ANSI committee on existing EE standards. NAESB is in the process of meeting with some other standards organizations to ensure that any standards development pursued by NAESB is not duplicative of other efforts. Additionally, NAESB and ANSI have contact with the National Association of Regulatory Utility Commissioners (“NARUC”) to evaluate the states’ need for new standards in the EE space. Mr. Booe also noted that Ms. McQuade was selected to sit on the Board of ANSI and will attend her first meeting as a Board member in the spring. Other Coordination Mr. Booe asked the participants if there are other groups or individuals that NAESB should begin coordinating with to support the industry and specific standards projects. Mr. Freitas recommended that NAESB contact Larry Mansueti with the Department of Energy for participation in the White House’s interagency Quadrennial Energy Review (“QER”) activities. Mr. Booe stated that Ms. McQuade participated on a panel for a QER meeting on gas and electric market interdependencies. Ms. Lee suggested that NAESB contact Sharon Allan, as she has just been hired as the new president of the Smart Grid Interoperability Panel (“SGIP”). Mr. Desselle stated that within NAESB there has been discussion on reengaging with the Environmental Protection Agency (“EPA”) to determine if there is anything that NAESB can do to support the development of regulations in response to Section 111 of the Clean Air Act. Mr. Freitas stated that outreach to the EPA may be helpful, but that it is probably premature for NAESB’s involvement in standards development at this time. Mr. Desselle and Ms. Ogg also noted that additional outreach to the Commodity and Futures Trading Commission may be appropriate as the regulations to support the Dodd-Frank Act are starting to solidify. 4. Status of Other Projects Smart Grid, Data Privacy and Green Button Mr. Booe reviewed the organization’s smart grid related activities and noted that they began over five years ago at the request of the Advisory Council. The original smart grid standards developed to support the request of the SGIP were adopted by the Commission on September of 2014 as guidance for the deployment of smart grid technologies. The NAESB Energy Services Provider Interface standard, which serves as the basis of the Green Button initiative of the Department of Energy and the White House Office of Science and Technology Policy to allow consumers to easily access their energy usage information in a downloadable format, is now being used by over fifty domestic utilities and many service companies. Additionally, NAESB has just adopted a new certification program for third party service providers to support the NAESB Data Privacy standards at the leadership of the Texas Public Utility Commission. He noted that these are just a few examples of the activities underway within NAESB to support the proliferation of smart grid technologies. Ms. Ogg asked if the NAESB Data Privacy standards address Personally Identifiable Information (“PII”) issues. Mr. Booe responded that the standards do not address PII, but reference the work of the National Institute of Standards and Technology (“NIST”) related to PII data security. He also stated that the standard is only focused on the communication of smart meter data. Ms. Ogg stated that the protection of PII is a major issue and that some of the meter data may fall under the PII umbrella. She recommended that NAESB consider whether additional standardization in this area would be helpful. Net Metering During the 2014 Advisory Council meeting it was recommended that NAESB consider developing standards that could support net metering transactions in the retail markets. As a result the Retail Markets Quadrant has initiated a technical standards development effort for Electronic Data Interchange (“EDI”) transactions related to net metering

NAESB Advisory Council Meeting Notes – February 14, 2015 Page 2 of 6 North American Energy Standards Board 801 Travis, Suite 1675, Houston, Texas 77002 Phone: (713) 356-0060, Fax: (713) 356-0067, E-mail: [email protected] Home Page: www.naesb.org information. As there are many policy variations between the jurisdictions, the standards have been developed to be used in any market that supports the use of EDI, despite regulatory structures. The effort is expected to be complete by year end. Cybersecurity The NAESB Public Key Infrastructure (“PKI”) standards were adopted by the Commission in September 2014 and the standards will require all entities conducting transactions on the OASIS system for the scheduling of power on the bulk power grid to support the PKI standards and maintain a digital certificate issued by a NAESB authorized certificate authority to verify their identity. To support the industry implementation, NAESB held a web course in January to review a sample implementation and the adopted standards. Additionally, the NAESB Wholesale Electric Quadrant has included a review of the NERC Critical Infrastructure Protection standards to determine if there are areas where complementary standards development for commercial transactions would be beneficial to the industry. Registry Efforts The transition of the NERC TSIN Registry to NAESB over the last several years has been a wonderful success thanks to the partnership between NAESB, NERC and Open Access Technology International, Inc. (“OATI”), the chosen administrant of the NAESB Electric Industry Registry (“EIR”). The EIR serves as a repository of information used in the scheduling of power through the OASIS system on the bulk power grid. Through the transition, a number of industry generated requests for enhancements to the EIR have been submitted to NAESB and NAESB has responded to all supported requests. However, the costs of implementing the new functionalities in the EIR have not been covered in a timely manner by the registration fees charged for the tools use, as originally contemplated. To ensure that the tool remains self-funded, the NAESB Board determined to increase the cost of participation in the EIR during the December 2014 board meeting. This cost increase will be implemented in the coming weeks. Mr. Ellsworth thanked Mr. Booe for his project review and asked the participants if they have additional projects that they would like NAESB to consider. 5. Strategic Directions for 2015 and Tactical Plans Ms. McQuade reviewed the 2015-2017 NAESB Strategic Plan adopted by the Board of Directors in September 2014 and Mr. Booe reviewed the annual plans of the three quadrants. The participants noted the lack of activity planned in the Wholesale Gas Quadrant (“WGQ”) and discussed whether the quadrant should take this opportunity to be more proactive in their standards development. Mr. Goldenberg stated that the pipeline community may want to consider an automated system for the current nomination and confirmation process, much like what is used in the wholesale electric market. Mr. Freitas stated that the Department of Energy recently produced a report on the natural gas infrastructure implications from the increased demand from the electric power sector, and noted that findings of the report do not necessarily recommend expansion of the current pipeline infrastructure, and indeed the report shows that the rate of expansion of infrastructure is actually decreasing. Ms. McQuade stated that the report may be informative for WGQ activities in the future. The participants also discussed how the shale gas revolution is impacting gas quality issues, and that NAESB may want to review the NAESB gas quality standards in light of shale gas on the system, including the introduction of biogenic gas. 6. New Business Next, Mr. Booe provided a brief report on a recent informal request to consider the development of standards to support microgrid integration and the status of EPA activities in response to Section 111 of the CAA. Mr. Ellsworth opened the floor for the thoughts of the Council members on these or any other issues. Mr. Simon stated that the issues related to microgrid integration are already present in the California markets, and that several policy issues concerning the cost of service and the rate of return for utilities to support these services need to be addressed prior to the development of standards. Ms. Breathitt stated that there are a number of legal restraints concerning the definition of a “utility” resulting from the Public Utility Regulatory Policies Act that may add complications to any supportive standards development. Mr. Gardner suggested that NAESB continue to monitor the activities of the

NAESB Advisory Council Meeting Notes – February 14, 2015 Page 3 of 6 North American Energy Standards Board 801 Travis, Suite 1675, Houston, Texas 77002 Phone: (713) 356-0060, Fax: (713) 356-0067, E-mail: [email protected] Home Page: www.naesb.org states in this area to determine if future action is needed. Mr. Spitzer stated that NAESB’s reputation of being proactive in these types of areas is one of the organization’s better traits and that supporting the integration of microgrids in a manner similar to its net metering standards may be appropriate. Mr. Shafferman stated that Exelon has a microgrid project underway, but he is not sure how standards could play a role at this point. Ms. Seidler noted that Dominion also has a project underway. Mr. Thorn stated that the business models should probably develop in the individual jurisdictions before NAESB should get involved in a standards development effort. Mr. Gee recommended reaching out to the Hawaii commissioners regarding the question, as they have several successful microgrid activities in use today. Mr. Ellsworth asked if there were other issues or recommendations the council members would like to make before closing the meeting. Ms. Ogg stated that NAESB may want to contact the International Swaps and Derivatives Association concerning their activities related to Dodd-Frank and how they are addressing bankruptcy issues, because it may have an impact on how the NAESB contract is used in the future. Mr. Gee stated that NAESB may want to consider some ways to expand the organization’s exposure through participation at NARUC and other organizations as the election has caused a lot of turnover in utility commissions. Mr. Freitas stated that another venue may be the National Governor’s Association and that it may beneficial to work with Sue Gander to consider developing a primer on NAESB at the state level. He also recommended that NAESB consider contacting the Congressional Research Service to provide a briefing concerning NAESB as an organization and the current standards development activities. Ms. Hollis stated that the Energy Bar Association offers an educational briefing session for Capitol Hill staff and that it may be beneficial to offer something similar. Ms. Bloodworth stated that NAESB may want to monitor the activities of the Florida utilities that are making investments in natural gas reserves stored in the ground and that there may be some time of accounting standards that would be helpful once the rate issues in the jurisdictions are resolved. Mr. Ellsworth thanked the participants for their participation and asked if there were any other ideas or suggestions from the floor for the Advisory Council to consider. Mr. Pearce made a motion to elect Mr. Ellsworth as Chair of the Advisory Council for 2015-2016 and Mr. Keating seconded the motion. The motion passed unanimously. 7. Adjourn The meeting was adjourned at 6:06 PM Eastern by consensus.

8. Attendance

Advisory Council Members in Attendance Bruce Ellsworth Chairman, NAESB Advisory Council & Former Commissioner, NH PUC & Past President of NARUC W. Robert Keating Vice Chairman, NAESB Advisory Council & Former Commissioner, MA DPU Linda Breathitt Former Commissioner, Kentucky Public Service Commission & Former FERC Commissioner Alex DeBoissiere Senior Vice President, Government Relations, The United Illuminating Company & Former General Counsel, NAESB Christopher Freitas Senior Program Manager Natural Gas Infrastructure, Office of Oil and Natural Gas, U.S. Department of Energy Wayne Gardner Former Commissioner, Pennsylvania Public Utility Commission Robert Gee President, Gee Strategies Group, LLC & Former Assistant Secretary, U.S. Dept. of Energy & Former Chair, Public Utility Commission of Texas Craig Goodman President, National Energy Marketers Association (NEM) Sheila Hollis Partner, Duane Morris LLP Annabelle Lee Senior Technical Executive, Electric Power Research Institute

Advisory Council Members in Attendance Joelle Ogg General Counsel, DC Energy & Former Interim Counsel to NAESB Thomas Pearce Public Utilities Commission of Ohio staff Patricia Poli Executive Advisor to Commissioner Greg White, Michigan Public Service Commission Paul Roberti Rhode Island Public Utilities Commission, Commissioner Howard Shafferman Partner, Ballard Spahr LLP Timothy Simon TAS Strategies, Former Commissioner, California Public Utilities Commission Holly Rachel Smith Assistant General Counsel, National Association of Regulatory Utility Commissioners Marc Spitzer Partner, Steptoe and Johnson LLC & Former FERC Commissioner & Former Arizona Public Service Commission Commissioner Terry Thorn President, JKM Energy & Environmental Consulting Pamela Witmer Pennsylvania Public Utility Commission, Commissioner

Board Members and Speakers in Attendance

Valerie Crockett Tennessee Valley Authority Michael Desselle Southwest Power Pool Marie Seidler Dominion Voltage Inc. Kathy York Tennessee Valley Authority Guests in Attendance

Michelle Bloodworth ANGA Dale Davis Williams Carrie Lee Early Former Counsel to the House Energy and Commerce Committee Sheri Givens Gee Strategies Group Michael Goldenberg FERC Bill Hederman US DOE Sheree Kernizan Georgia Public Service Commission Chuck Linderman Formerly with EEI Shelby Linton-Keddie Pennsylvania PUC Kathleen Magruder BP Energy Bill Malcolm AARP Valerie McQuade Delia Patterson APPA Arnie Quinn FERC Rick Smead RBN Energy NAESB Staff in Attendance

Jonathan Booe NAESB Vice President Bill Boswell NAESB General Counsel

Advisory Council Members in Attendance

Elizabeth Mallett NAESB Staff Attorney Rae McQuade NAESB President Veronica Thomason NAESB Executive Assistant and Office Manager Caroline Trum NAESB Deputy Director

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