BPS/ESS/ITS Agenda July 8-9, 2008

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

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TO: Wholesale Gas Quadrant (WGQ) Business Practices Subcommittee (BPS) and Interested Industry Parties FROM: Elizabeth Mallett, NAESB Deputy Director RE: Draft Minutes – Thursday, August 25, 2016 WGQ BPS Conference Call DATE: August 30, 2016

WHOLESALE GAS QUADRANT Business Practices Subcommittee Conference Call with Webcasting Thursday, August 25, 2016 9:00 AM to 11:30 AM Central

DRAFT MINUTES 1. Administrative Ms. Van Pelt opened the conference call and welcomed the participants. Ms. Mallett delivered the Antitrust and Other Meeting Policies reminder and called the roll. Mr. Lander moved, seconded by Ms. Hogge, to adopt the draft agenda as final. The motion passed without opposition. The participants reviewed the August 11, 2016 WGQ BPS draft meeting minutes as redlined by Ms. Davis. Mr. Lander suggested several edits for clarification. Mr. Lander moved, seconded by Ms. Davis, to adopt the revised redlined minutes as final. The motion passed without opposition. The August 11, 2016 final meeting minutes may be accessed at the following link: https://www.naesb.org//pdf4/wgq_bps081116fm.doc. 2. Discussion on Standards Request R16003 The subcommittee reviewed the WGQ BPS Subcommittee Work Paper on R16003 as modified during the August 11, 2016 conference call. Mr. Lander stated that he would like to discuss the term/definition “Special Efforts” in proposed standard 1.2.z4. He stated that Special Efforts activity could not only take place through a nomination confirmation scheduling, but also a park and loan or some other transaction between the shipper and the pipeline. The subcommittee modified the proposed definition to reflect that “Special Efforts” may refer to a scheduling or transaction request. Mr. Lander explained that the definition is permissive, rather than prescriptive and encompasses transactions involving the Transportation Service Provider (TSP) or the party that is conducting the transaction with the requester. Ms. Davis suggested changing the term to “Special Efforts Request” and indicating that it may refer to a transaction or nomination in the definition for the term. Mr. Connor stated that the word “transaction” in the definition may be overly inclusive, as the focus of the gas electric harmonization (GEH) effort is scheduling. He stated that he is concerned with undue discrimination regarding the proposed transaction and noted that the transaction is not permitted in tariffs. Mr. Lander stated that nondiscrimination is a hallmark of the industry and will not be introduced as a contradictory notion within the proposal. Mr. Gracey asked whether the proposal suggests the utilization of any standards outside the nomination dataset. Ms. Davis stated that the use of the nomination dataset creates a transaction, which leaves a redundancy in the current proposed definition. She suggested that the definition be revised to refer to only a nomination rather than a “nomination and/or transaction”. Mr. Lander stated that the transaction is a request outside of a standard nomination time and the service agreement, but within the tariff. Mr. Schoene suggested that the term be renamed to “Special Efforts Transaction” because the language contemplates a service for a price. Mr. Lander agreed and applied the revisions to the proposed standard 1.2.z4. Ms. Hogge asked why the phrase “and/or tariff” was deleted from the definition. Ms. Davis stated that the proposal in R16003 may appear to skirt the regulations, as a pipeline is given the ability to perform a service that is agreed upon outside of the FERC-approved services. Mr. Field stated that the

WGQ Business Practices Subcommittee Conference Call August 25, 2016 – Draft Minutes Page 1 of 3 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 phrase “and/or tariff” is unnecessary, as a service agreement encompasses the tariff language. Ms. Van Pelt stated that any further discussion on proposed standards 1.2.z3 and 1.2.z4 should be reserved for the Special Efforts Nominations discussion in a future meeting. The subcommittee moved onto the proposed definition for a Shaped Flow Transaction within the R16003A work paper. Mr. Lander stated that the phrase “any portion of hourly” is necessary, as it permits increments less than an hour. Ms. Van Pelt stated that “i.e.,” is referring to a non- uniform rate of flow. Mr. Lander asked whether the language allows the flow to vary within fifteen minute intervals. Ms. Van Pelt suggested adding the phrase “an portion of an hour.” Mr. Connor noted that the definitions within the work paper do not contemplate the priority of the service. Mr. Lander agreed. Ms. Van Pelt stated that the proposed definitions in R16003 and R16007 should be considered together, with changes being made to both as the subcommittee discussion progresses. Mr. Field stated that the term “Shaped Transaction” is referring to the quantities moving in a flow period and suggested that the term “Shaped Nomination” may be more accurate. The proposed definition was modified accordingly. The subcommittee reviewed the existing NAESB WGQ Business Practice Standard No. 1.2.4 in R16003A. Mr. Field asked why the subcommittee is contemplating revisions to the definition of “Intraday Nomination” in the standard. He explained that, with a shaped nomination, “0” is placed in the field indicating the hours or the time period when there is not a nominated quantity. He stated that shaped flows can exist for timely nominations and intraday nominations include the evening cycle. Mr. Lander explained that the term “grid-wide” was included in the language to signify that it supports grid-wide. He noted that Special Efforts did not require grid-wide. Mr. Connor asked how the Special Efforts approach fits within an Intraday Nomination. Mr. Lander stated that the proposed language specifies grid-wide and during the flow period. If the transaction is outside of 1, 2, or 4 it is Special Efforts or may be a Shaped Transaction. Ms. Davis suggested that, rather than modify the existing standard, a new standards be created to explain what is not an Intraday Nomination. She stated that the modifications will have implications on tariff language. Ms. Van Pelt asked whether the language is related to proposed standard 1.2.z1 or the Special Efforts Nominations. Mr. Lander responded affirmatively. Ms. Van Pelt stated that she does not believe that modifications to NAESB WGQ Standard No. 1.2.4 are needed. Mr. Lander stated that the subcommittee may need to look at NAESB WGQ Standard No. 1.2.4 as the effort advances in order to avoid unintended consequences. The subcommittee turned to the existing NAESB WGQ Business Practice Standard No. 1.2.12, the definition of Elapsed-Prorated-Scheduled Quantity (EPSQ). Mr. Lander stated that the word “uniform” should be retained in the language. He stated that the EPSQ is the result of a preexisting timely or intraday grid-wide which could be superseded by a Special Efforts. He explained that the elimination of the word “uniform” is a mistake because the default in the EPSQ is uniform absent a specific agreement otherwise. Mr. Connor stated that the Special Efforts will not be uniform. Mr. Lander stated that, regardless of what happens in the day, uniform flow is assumed. Mr. Field stated that the subcommittee should not change the definition. He suggested that the group create a separate definition for Shaped Flows. He stated that the effective time of the confirmation of the Intraday Nomination should be referred to in the definitions related to R16003. Ms. Van Pelt stated that the proposed revised definitions for existing NAESB WGQ Standard No. 1.2.4 and 1.2.12 would be added to the Parking Lot. The WGQ BPS Parking Lot and the WGQ BPS work paper, upon which all revisions during the meeting were documented, meeting will be posted to the WGQ BPS website when available. 3. Discussion on Standards Request R16007 Ms. Van Pelt suggested the participants review the work paper for R16007 and be prepared with any questions for Ms. Munson during the next meeting. 4. Next Meeting(s) and Agenda The WGQ BPS has scheduled a face-to-face meeting with webcasting for Monday, September 12, 2016 from 12:00 PM to 5:00 PM Central and Tuesday, September 13, 2016 from 8:00 AM to 3:00 PM Central. The meeting will be hosted by the NAESB office in Houston, Texas. During this conference call, the participants will discuss the GEH- related Standards Request(s) and 2016 WGQ Annual Plan Items. This meeting is open to any interested party. The agenda for the meeting can be found on the NAESB website.

WGQ Business Practices Subcommittee Conference Call August 25, 2016 – Draft Minutes Page 2 of 3 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

5. Adjourn Mr. Lander, seconded by Mr. Field, moved to adjourn the meeting at 11:40 AM Central. The motion passed without opposition. 6. Attendees Name – First Name – Last Organization Segment Wayne Benoit Boardwalk Pipeline Pipeline Rich Brown PJM Interconnection End User Pete Connor American Gas Association LDC David Crabtree TECO/Peoples Gas System Pipeline Dale Davis Williams Pipeline Mary Draemer Energy Transfer Equity, L.P. Pipeline Douglas Field Southern Star Central Gas Pipeline Pipeline Brian Fields Calpine Energy Services End User Brian Fitzpatrick PJM Interconnection End User Jeremy Flynt ONEOK Partners Pipeline Michael Goldenberg Federal Energy Regulatory Commission N/A Mark Gracey Kinder Morgan Inc. Pipeline Tom Gwilliam Iroquois Gas Transmission System Pipeline Brandy Heckerman Kern River Gas Transmission Company Pipeline Ronnie Hensley Southern Star Central Gas Pipeline Pipeline Rachel Hogge Dominion Transmission Pipeline Brenda Horton Kern River Gas Transmission Company Pipeline Natalie Karas Environmental Defense Fund, Inc. End User Robert Kott California Independent System Operator End User Darren Lamb California Independent System Operator End User Greg Lander Skipping Stone Services Thomasz Lange Tenaska, Inc. Services Eric Larson Questar Pipeline Company Pipeline Nichole Lopez Kinder Morgan Inc. Pipeline Robin Luntz Tennessee Valley Authority End User Elizabeth Mallett North American Energy Standards Board N/A Beth Martin Wisconsin Electric Power Company LDC Melissa McBroom ONEOK Partners Pipeline Marcy McCain Spectra Energy Transmission Pipeline Willis McCluskey Salt River Project Agricultural Improvement & Power End User Steve McCord Columbia Gas Transmission Corporation Pipeline Cary Metz Enable Energy Resources Services Robin Moates Tennessee Valley Authority End User Christi Nicolay Macquarie Energy LLC Services N. Jonathan Peress Environmental Defense Fund, Inc. End User Deepak Raval NiSource LDC Marty Saldivar Williams Pipeline Oscar Santillana Federal Energy Regulatory Commission N/A Ben Schoene ConocoPhillips Company Producer Lisa Simpkins Exelon Generation Company Services Richard Smith Golden Pass Products LLC Pipeline Robby Smith ONEOK Partners Pipeline Leigh Spangler Latitude Technologies, Inc. Services Janene Steckleberg Tenaska, Inc. Services Michael Tita Federal Energy Regulatory Commission N/A Kim Van Pelt Boardwalk Pipeline Partners, LP Pipeline Rob Vrabel Alliance for Cooperative Energy Services Power Marketing End User LLC Rodney Wheeler California Independent System Operator End User Randy Young Boardwalk Pipeline Partners, LP Pipeline

WGQ Business Practices Subcommittee Conference Call August 25, 2016 – Draft Minutes Page 3 of 3