Duke Energy Carolinas Quarterly Stakeholder Meeting

Independent Entity Services Thursday, May 13th, 2010 2:00 to 3:00 p.m. EDT

Agenda

        Follow-up Action Items from February 25th, 2010 Daylight Saving Time Change – How did it go? Duke OASIS Business Practices FERC Order 729-A NAESB Update - Wholesale Electric Quadrant Open Access Transmission Tariff Filing Duke – Progress Energy Non-Firm ATC Agreement Wrap-up

Action Items Follow-up from February 25, 2010

There were no items that required follow up

3

Daylight Saving Time Change

How did it go?

Spring Forward - March 14, 2010

– Non-event for Duke Tariff Administration – Any customer events?

Prepare to Fall Back – November 7, 2010

– Return to Eastern Standard Time

OATI User Guides

– webOASIS - HELP – Table of Contents – DST Cutover Document – webTag - HELP – User Guide – Contents – General ETS Options 4

Duke OASIS Business Practices

Update - Structure and Content Changes Alignment with NAESB

• Eliminate redundant/conflicting text • Duke will show references to NAESB Standards • Full Alignment upon implementation of 676-E

NAESB BP Standards are copyrighted

• NAESB permission has been granted – Allows Duke to duplicate certain Practices and Standards •

Request Timing Requirements Table Duke BP Section 3.D includes Timing for Non-Designated Network

•

Priorities for Competing Reservation Requests Table Duke BP Section 3.F includes Tier 1 Service - Recallable Long Term Firm

FERC Order 729-A

FERC Order 729-A ( Docket No. RM08-19-002 )

– Issued May 5, 2010 – Clarified the implementation timeline for the ATC

Reliability Standards as well as certain directed modifications

• Standards become effective in US on 1/1/2011 • Clarified that auditing calculations of capacity benefit margin and transfer reliability margin is performed under Requirement R3.1 of MOD-001-1 • Clarified position on benchmarking of models • Clarified its requirement for modeling of designated network resources in base case models • Clarified position on updates to dispatch model following material changes • Clarified position on managing the use of Capacity Benefit Margins

NAESB Update Wholesale Electric Quadrant

NAESB WEQ Glossary

– The Glossary was adopted and is being incorporated into standards by NAESB staff

Network Service on OASIS

– The timeline for completion of the recommendation was extended to the third quarter 2010

Coordination of Transmission Requests Across Transmission Providers

– EC Task Force Scoping Team – Mid-June target for scope

NAESB Update Wholesale Electric Quadrant

Electric Industry Registry

– No EIR specific confidentiality agreement will be developed – RFP for EIR administrator closes May 21

E-Tag version 1.8.1 went into production on March 30, 2010 TLR and Parallel Flow Visualization

– NAESB working on finding a method to correlate the firmness of transmission service with generator output for intra-BA service

Open Access Transmission Tariff Filing

In 2010 Duke Energy Carolinas will request FERC approval of a new rate for the Transmission Service under our Open Access Transmission Tariff (OATT). • Current rate was approved in 1996 and was based on 1994 data • Costs to provide reliable transmission service have increased however, it is too early in process to quantify rate impacts • Propose to move from a stated (fixed) rate to a formula rate to be updated annually • Propose to have new rates in effect prior to the end of 2010 • Holding discussions with our Network Customers prior to filing the new rate with FERC

Duke - Progress Energy Non-Firm ATC Agreement

• Duke Energy Carolinas and Progress Energy Carolinas have negotiated an agreement addressing Non-Firm parallel flows across the PJM interface • Implementation details and timeline are to be determined • Combined Non-Firm ATC with PJM will be calculated and posted on Duke and PEC OASIS sites • Customers will still reserve transmission service with either PEC or Duke

Wrap-up

• Proposed Next Quarterly Stakeholder Meeting – Thursday, August 26, 2010 – 2 p.m. to 3 p.m. ET • Customer Suggested Topics?

– This is the forum for discussing emergent topics

(Upcoming changes, stakeholder input)

• Questions and Comments