NPRR XXX: PRR 307 Inclusion in Nodal…Part II

1. NPRR XXX: PRR 307 Inclusion in Nodal…Part II

2. Section 3 COP (resource parameters) CLR participation limits Telemetry Requirements Section 4 Loads and simultaneous CLR and UFR Section 6 SCED – yes or no? Pseudo-Resource AS Capacity Monitor Section 6 (continued) Load Frequency Control (LFC) Limit Calculations – HASL, LASL… CLR RRS Deployment and Recall Scheduled Power Consumption Section 8 Regulation Service Energy Deployment Criteria Performance Settlement Questions Raised 06/26/06

3. Section 3: Management Activities for the ERCOT System • COP • Edited Section 3.7.1.2 to distinguish between the data provided for a Controllable Load Resource versus and non-CLR • Edited Section 3.9.1 to create a clear status for Controllable Load Resources providing Responsive Reserve Service • Controllable Load Resource Participation Limits • In the initial NPRR edit to the Nodal Protocols, Section 3.16 (2) was revised to provide ERCOT the ability to determine annually the methodology for determining the minimum quantity requirement for each Ancillary Service needed for reliability and the percentages of Resources allowed to provide those Ancillary Services, including CLRs.

4. Section 3: Management Activities for the ERCOT System (continued) • Telemetry Requirements • Section 3.10.7.4 Telemetry Criteria • The appropriate TAC subcommittee shall establish a task force that is open to Market Participants, comprised of technical experts to develop a set of Telemetry Criteria consistent with the minimum requirements of the Protocols. TAC shall approve a set of Telemetry Criteria and the appropriate TAC subcommittee shall update the Telemetry Criteria annually each October or more often on a periodic basis as deemed necessary. • The Telemetry Criteria must define the performance and observability requirements of voltage and power flow measurements, including requirements for redundancy of telemetry measurement data, necessary to support the State Estimator in meeting the approved performance standard, and to support TAC-approved accuracy standards for the calculation of LMPs.

5. Section 4: Day-Ahead Operations • Loads and Simultaneous CLR and UFR • Revised Section 4.4.7.2.1 to add a clarification that disallows the offering of Ancillary Services as both a Controllable Load Resource and a Load Resource on high-set under-frequency relay simultaneously behind a common breaker.

6. Section 6: Adjustment Period and Real-Time Operations • SCED – yes or no? • Include CLRs in the second generation Nodal design. • Pseudo-Resource • If the pseudo-resource bid is struck, SCED increases the Base Points of Generation Resources providing Responsive Reserve (100MW Max). Without inclusion of CLR’s in SCED, an alternate deployment method would need to be created to participate in the pseudo-Resource calculation.

7. Section 6: Adjustment Period and Real-Time Operations (continued) • Section 6.5.7.5 Ancillary Service Capacity Monitor • Changed Section 6.5.7.5(1) to clearly provide the Responsive Reserve Service Capacity quantities by Load Resource type (non-CLR v. CLR) • Necessary values from CLRs would be the HASL and LASL which are already calculated by the Resource Limit Calculator and fed into the AS Capacity Monitor

8. Section 6: Adjustment Period and Real-Time Operations (continued) • Load Frequency Control (LFC) • Revised Section 6.5.7.6.2 in first pass of revisions. Didn’t see any additional areas that required further revision. • Limit Calculations – (HASL, LASL) • In running the calculations through various simulations it appears they work sufficiently for Controllable Load Resources.

9. Section 6: Adjustment Period and Real-Time Operations (continued) • Controllable Load Resource RRS Deployment and Recall • Deployment is addressed sufficiently with LFC • Section 6.5.9.4.2 Restoration of Market Operations is vague on how to recall deployed Resources. Will this be elaborated upon in the Operating Guides or in requirements?

10. Section 6: Adjustment Period and Real-Time Operations (continued) • Scheduled Power Consumption • The concept of Scheduled Power Consumption was discussed 6/26 TPTF meeting. We’ve added this reporting requirement to the Operational Data Requirements in Section 6.5.5.2 and as a defined term in Section 2.

11. Section 8: Performance Monitoring and Compliance • Performance Settlement • Section 8 modified to account for non-compliance.

12. Section 8: Performance Monitoring and Compliance (continued) • Regulation Service Energy Deployment Criteria • At the TPTF meeting on 6/26 Section 8.1.2.4.1(2) – (4) was highlighted concerning the evaluation of QSE’s participation factors. • By using the data provided by the Scheduled Power Consumption, a Controllable Load Base Point may be derived to be included in this section for QSE evaluations.