Duke Energy Carolinas Duke Energy Progress Quarterly Stakeholder Meeting. 2nd Quarter 2016 Thursday, May 19, :00 to 3:30 p.m.

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1 Duke Energy Carolinas Duke Energy Progress Quarterly Stakeholder Meeting 2nd Quarter 2016 Thursday, May 19, :00 to 3:30 p.m. EST

2 Agenda NITS on OASIS Implementation Plan Pending Business Practices Recent Business Practice Changes Loss Percentage Formula Rate Update NAESB WEQ Update Roundtable Wrap-up

3 NITS on OASIS Implementation Plan Changes for Network Service only. Customer training for DEC and DEP has been completed. Available on demo OASIS now for customers to experience the new functionality. DEC: Available on Production OASIS June 6. DEP: Available on Production OASIS June 20. Transition existing network reservations from to NITS on OASIS templates until July 24. July 25: Network Customers must use NITS on OASIS templates.

4 Pending Business Practices NITS on OASIS (NAESB Business Practice Standards WEQ series) DEC: New NITS on OASIS functionality will be available for Customers to use in production on 6/6/16. There is a transition period between 6/6/16 and 7/25/16 where Customers can use either method. DEP: New NITS on OASIS functionality will be available for Customers to use in production on 6/20/16. There is a transition period between 6/20/16 and 7/25/16 where Customers can use either method. DEC and DEP: The new functionality will be required for NITS requests on and after 7/25/16. Will remove link to Designation of Network Request Form after 7/25/16. Will remove link to Undesignation of Network Request Form after 7/25/16. Section 5 of these standards has been completely rewritten to reflect NAESB s NITS on OASIS.

5 Pending Business Practices NAESB Business Practices Updated section 2.E. of these business practices to reference NAESB WEQ Version 003 standards. Bid Prices Prior to NAESB WEQ Version 003, both PTP and NITS requests were made using the same request template and the business practice indicated that NITS requests should show $0.00 in the Bid Price field. The NITS on OASIS templates do not have a bid price field. Reservation Profiles Requests should not begin or end with MW values of 0. The shortest duration for DNR profile segment is 1 day and the shortest duration for Secondary Network Transmission Service profile segment is 1 hour. Nullification of NITS Reservations (CONFIRMED requests) In NITS on OASIS, Customers wanting to nullify all or part of a NITS reservation will submit a Termination request rather than submitting the Annulment Request Form.

6 Pending Business Practices Rollover Rights No change in making requests to exercise rollover rights for Yearly Firm PTP. In NITS on OASIS, requests to extend a Network Service agreement must be done on OASIS (see 5.Q.). In NITS on OASIS, requests to exercise rollover rights of a DNR is done by submitting a DNR Extension In NITS on OASIS, requests to exercise rollover rights of a DNR is done by submitting a DNR Extension (see 5.Q.). Losses Additional information on treatment of losses for NITS (does not represent a change in treatment, just a more complete write-up on Losses). Calculation of Energy Imbalance An explanation of the treatment of losses in the calculation of Energy Imbalance is included in the business practices. This doesn t represent a change in the calculation but rather provides additional clarity about the calculation. Unreserved Use The definition of Unreserved Use was updated..

7 Recent Business Practice Changes Duke Energy Progress May 1, 2016 Added Firm Daily Sliding and Non-Firm Daily Sliding services. Aligns with services offered by Duke Energy Carolina.

8 DEC Transmission Formula Rate DEC calculates the DEC OATT formula rates for the period June 1, 2016 through May 31, 2017 based on DEC s latest FERC Form No. 1 data that reflects 2015 actual costs. DEC will hold the customer meeting at 10:00 p.m. on June 8, Formula supporting documents are posted on Oasis

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10 DEP Transmission Formula Rate DEP calculates the DEP OATT formula rates for the period June 1, 2016 through May 31, 2017 based on DEP s latest FERC Form No. 1 data that reflects 2015 actual costs. DEP held the customer meeting at 1:00 p.m. on May 6, Formula supporting Documents posted on Oasis.

11 2015 DEP 2016 Point-To-Point Services Long/Short Term Firm Point-To-Point Point-To-Point Services Long/Short Term Firm Point-To-Point $16,675 Per MW-Year $17564 Per MW-Year $ 1,390 Per MW-Month $ 1,464 Per MW-Month $ Per MW-Week $ Per MW-Week $ Per MW-Day (on-peak) $ Per MW-Day (on-peak) $ Per MW-Day (off-peak) $ Per MW-Day (off-peak) Non-Firm Point-To-Point Service Non-Firm Point-To-Point Service $ 1,390 Per MW-Month $ 1,464 Per MW-Month $ Per MW-Week $ Per MW-Week $ Per MW-Day (on-peak) $ Per MW-Day (on-peak) $ Per MW-Day (off-peak) $ Per MW-Day (off-peak) $ 4.01 Per MW-Hour (on-peak) $ 4.22 Per MW-Hour (on-peak) $ 1.91 Per MW-Hour (off-peak) $ 2.01 Per MW-Hour (off-peak)

12 DEC DEP 3.0% to 2.2%. 2.15% to 1.6%. Loss Percentages FERC filing targeted for the end of May with an effective date of 60 days after filing. If the 60 days results in a date other than the 1 st of the month, Duke will seek a waiver to the 60 day FERC review to allow for an effective date on the 1 st of the month for billing purposes Tag Loss validation change will occur on the effective date. Losses will be revisited annually which may result in loss factors decreasing or increasing.

13 NAESB WEQ Update Key Activities in NAESB WEQ WEQ Executive Committee Meeting on Tuesday, Feb. 23 Meeting on Feb 23 Remanded the recommendation for Long-Term Firm Rollover Rights Competition (OATT Section 2.2) back to the OASIS subcommittee. Meeting on Apr 26 - Modified the OASIS Subcommittee revised recommendation for Long-Term Firm Rollover Rights Competition (OATT Section 2.2) and voted not to adopt the revised recommendation.

14 NAESB WEQ Update Key Activities in NAESB WEQ OASIS Subcommittee current work Create a new OASIS mechanism that allows for the merger of like reservations without the use of the resale mechanism. Short-Term Firm Preemption and Competition (OATT Section 13.2 and 14.2).

15 NAESB WEQ Update Key Activities in NAESB WEQ Business Practices Subcommittee (BPS) current work Posting of additional information on OASIS regarding firm transmission curtailments. Allow for posting of third party offers of planning redispatch services. Enhance the TSR result postings to allow showing of (i) limiting transmission elements and (ii) available generation dispatch options that would allow acceptance of request. Additional information on OASIS when service is denied to customer(s) using SAMTS to serve their NITS load on multiple systems.

16 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

17 Wrap-up Next Quarterly Stakeholder Meeting Thursday, August 11 2 p.m. to 3:30 p.m. ET Questions and Comments