Duke Energy Carolinas Duke Energy Progress

Quarterly Stakeholder Meeting

4th Quarter 2017

Thursday, November 9, 2017

2:00 to 3:30 p.m. EST

Agenda

NAESB WEQ Update

TSP Consolidation

Dynamic Transfers

Loss Percentages

Roundtable

Wrap-up

NAESB WEQ New Publication of Standards

A New NAESB Wholesale Electric Quadrant (WEQ) Publication will be released in December 2017.

Short Term Firm Preemption and Competition WEQ 2017 API 2.a.i.1 and5.a. (WEQ-000, WEQ-001, WEQ-002, WEQ-003, WEQ-013)

New OASIS Mechanism That Allows for the Merger of Like Reservations – Consolidation 2016 API 5.b. (WEQ-000, WEQ-001, WEQ-002, WEQ-003, WEQ-013)

Clean-up of NERC references 2017 API 1.e.iii. (WEQ-001, WEQ-002, WEQ-003, WEQ-013) 2017 API 1.e.iv. (WEQ-008) 2017 API 1.e.v. (WEQ-015, WEQ-018, WEQ-020)

Other NERC related items Incorporation of NERC INT-004-3.1 R1 and R2 into the WEQ-004 Coordinate Interchange

Business Practice Standards 2017 API 1.d.i. Remove references to NERC to reflect transition to NAESB EIR 2016 API 5.c. (WEQ-022) Retire WEQ-006 Manual Time Error Correction 2016 API 1.d. Make the necessary modifications to recognize the Market Operator Role 2016 API 5.d.

(WEQ-004, EIR Business Practice Standards, e-Tag Specification, and e-Tag Schema)

NAESB WEQ 2018 Annual Plan

Subcommittee API Completion Description

BPS & OASIS 2.a.i.1. 4Q 2018 Posting of additional information on OASIS regarding firm transmission curtailments

2.a.i.2. 2Q 2018 Allow for posting of third party offers of planning redispatch services 3.a. 2Q 2018 Enhance TSR results posting to allow showing of available

generation dispatch options that would allow acceptance of reservation request

3.b. 3Q 2018 Enhance TSR results posting to allow a showing of limiting transmission elements for denied transmission service requests

OASIS 3.c. TBD Requirements for OASIS to use data in the Electric Industry Registry

3.d. TBD Evaluate the ability to define specific lists to submitted for the Query/Response in the OASIS Template format and develop new standards/modifications as needed

3.e. TBD Evaluate adding dynamic notification for the rollover rights renewal deadline and develop new standards/modifications as needed.

3.f. TBD Review for needed modifications in NITS Business Practice Standards

3.g. TBD new standards to ensure that reservation capacity that is assigned to untagged Pseudo-Ties is preserved for that purpose

3.h. TBD Evaluate the need for a mechanism to allow documentation for coordination of partial path reservations to demonstrate compete path associated with long-term firm interchange

NAESB WEQ 2018 Annual Plan

Subcommittee API Completion Description

BPS 1.a. TBD Parallel Flow Visualization (IDC test underway) 1.b. TBD Revise TLR5 next hour allocation (IDC test underway)

Cybersecurity 4.a. 4Q 2018 Annual review of WEQ-012 and the accreditation requirements for ACA to determine if changes are needed

4.b. 4Q 2018

Evaluate and modify as needed standards to complement NERC CIP Standards and any other NERC or NAESB activities related to cybersecurity

Joint WEQ/WGQ FERC Forms 5.a. 2018

Develop business practices as needed to support electronic filing protocols for submittal of FERC Forms

TSP Consolidation December 15, 2017

DEP TSP functions (Transmission Service Requests, Tags, and checkouts) currently performed in Raleigh, move to Charlotte, and performed by DEC.

DEC/DEP Interchange desk phone number

704-382-8008

DEP Reliability functions will remain in Raleigh with DEP.

New Annulment form.

Check boxes for DEF, DEC, and DEP in Section 2.

DukTP-CAR@duke-energy.com used for DEC and DEP.

Will be placed on both DEC and DEP OASIS for download.

TSP Consolidation Annulment Form

Dynamic Transfers Depending on the type of dynamic transfer requested,

implementation can be very complicated and require design time.

DEC and DEP now have a documented process that will govern the dynamic transfer process.

The purpose is to provide customers with more clarity around the timeline and expectations of implementing a dynamic transfer.

Dynamic Transfers The documents and process are posted on the OASIS in the

Dynamic Transfer folder under Business Practices, Waivers and Exemptions (shown for DEC and similar for DEP).

Dynamic Transfers The process has been reviewed and approved by System

Operations Management Team.

All new dynamic transfer requests will now follow this process.

For questions about the process, please contact:

Scott Lewter-DEC

Jim Eckelkamp-DEP

Mike Anthony-DEC and DEP

Loss Percentages

A FERC filing was made on March 31, 2017 under Docket No. ER17-1357 with a requested effective date of June 1, 2017

The FERC issued an Order on September 27, 2017 accepting and suspending proposed rates and established a hearing and settlement judge procedures

The FERC accepted the new loss rates effective on June 1, 2017 subject to refund

On November 1, the loss percentages were changed to 2.17% for DEC and 2.07% for DEP

Business Practices, loss calculators and validations have been updated

Roundtable

Current Issues

Discuss any topics that customers want to review today

Customer Suggested Topics for Future meetings

Identify any topics of discussion for future meetings

Wrap-up

Next Quarterly Stakeholder Meeting

– Thursday, February 8 – 2 p.m. to 3:30 p.m. ET

Questions and Comments