Tab 8: TAC Update

1. Tab 8: TAC Update Kenan Ogelman and Bob Wittmeyer TAC Chair and Vice Chair Board of Directors Meeting ERCOT Public September 18, 2012

2. Summary of TAC Update • Revision Requests Recommended for Approval by TAC - Unopposed (Vote): • NPRR464, SASM Procurement Reporting – Urgent • NPRR470, Real-Time PTP Option Modeling Language Cleanup – Urgent • NPRR472, Implementation Clarifications for Consideration of DC Tie Lines and Outages in CCTs – Urgent • NPRR477, Exception for Block Load Transfers at Presidio – Urgent • Protocol Section 4.4.10, Credit Requirement for DAM Bids and Offers, Required Annual Review of Point to Point (PTP) Obligation Bid Reduction Factor (Vote) • Guide Revisions Approved by TAC • September TAC Highlights • Parking Deck Update • Future Agenda Items Tab 8 ERCOT Public

3. Revision Requests Recommended for Approval by TAC (Unopposed) Tab 8 ERCOT Public

4. NPRR464, SASM Procurement Reporting - Urgent Tab 8 ERCOT Public

5. NPRR470, Real-Time PTP Option Modeling Language Cleanup - Urgent Tab 8 ERCOT Public

6. NPRR472, Implementation Clarifications for Consideration of DC Tie Lines and Outages in CCTs and Modification to the Long Term CCT- Urgent Tab 8 ERCOT Public

7. NPRR477, Exception for Block Load Transfers at Presidio - Urgent Tab 8 ERCOT Public

8. Protocol Section 4.4.10, Credit Requirement for DAM Bids and Offers, Required Annual Review of PTP Obligation Bid Reduction Factor (Vote) • Paragraph (6)(d)(iv) of Protocol Section 4.4.10, Credit Requirement for DAM Bids and Offers, requires ERCOT Board annual review of the Point to Point (PTP) Obligation bid reduction factor: • For qualified PTP Obligation bids, ERCOT shall reduce the credit exposure in paragraph (6)(d)(i) above, by the product of the bid price, if positive, and the quantity of the bid less than or equal to the quantity of the total of all expiring CRRs at the specified source and sink pair and delivery period, less all valid previously submitted PTP Obligation bids at the specified source and sink pair and delivery period multiplied by a factor initially set at 80% and to be reviewed by TAC and approved by the ERCOT Board at least annually. • The Board last considered the factor at its July 19, 2011 meeting. • On 9/7/12, TAC unanimously voted to recommend to the ERCOT Board maintaining the 80% PTP Obligation bid reduction factor as recommended by both the WMS and the Credit Work Group. Tab 8 ERCOT Public

9. Notice of Guide Revisions Approved by September TAC NOGRR086, Clarification of Seasonal Unit Capability Testing Requirements. This NOGRR clarifies the Seasonal unit capability testing requirement. NOGRR091, Criteria for the Selection of Operators. This NOGRR deletes the criteria for the selection of operators in the ERCOT Region. NOGRR096, Clarification of RRS Obligation. This NOGRR references the Other Binding Document, ERCOT Methodologies for Determining Ancillary Service Requirements, which describes a process that may be used to procure additional Responsive Reserve (RRS) Service; and adds clarifying language affirming that the minimum RRS obligation remains unchanged (2300 MW), but that additional RRS may be procured if there is a reliability need. NOGRR097, New Section 8I, Black Start Resource Availability Test Form. This NOGRR adds a Black Start Resource availability test form to the Nodal Operating Guides. NOGRR098, Change of Facility Submission Time Lines to Align with Protocols. This NOGRR clarifies the submission time line for facility reactive capability and other modeling information. Withdrawal of NOGRR099, SPS Procedure Changes for Consistency with NERC Reliability Standards. This NOGRR removes the Protection System Misoperation Report format and procedural references and adds references to reporting per Texas Reliability Entity procedure(s). Tab 8 ERCOT Public

10. September TAC Highlights • At its 9/7/12, TAC took the following actions: • Approved the list of Competitive Constraints for 2013 as recommended by WMS and identified by the modified Option 3 methodology, which deems a constraint to be competitive if it is competitive in either the August 2013 or April 2013 CRR case. There were two opposing votes from the Generator Market Segment and eight abstentions from the Generator (2), IREP (4), IPM, and IOUMarket Segments. • Unanimously approved the release to WMS of 2011 CRR Annual Auction transactional data as prescribed in Protocol Section 7.5.2, CRR Auction Offers and Bids. • Unanimously approved the removal of the Power System Planning Charter and Processes/Regional Planning Group (RPG) Processes and Procedures from the list of Other Binding Documents. • Unanimously endorsed the ERCOT recommendation for the STEC KEC-MEC Load Addition RPG Project. • Revised TAC Procedures related to PRS/COPS voting. Tab 8 ERCOT Public

11. Parking Deck Update • A zonal Protocol provision required the ERCOT CEO to review NPRRs to determine if they were necessary prior to the Texas Nodal Market Implementation Date in an effort to help resources remain focused on delivering the Nodal project. • NPRRs that were deemed “not needed for go-live” were considered in the stakeholder process; however, the ERCOT Impact Analysis was deferred and the NPRRs were included on a “parking deck” for future impact assessment and ERCOT Board approval for implementing the parking deck NPRR. • The following slide summarizes the status of the NPRRs that remain on the parking deck. Tab 8 ERCOT Public

12. Parking Deck Update Tab 8 ERCOT Public

13. Future TAC Items to Board • NPRR460, WGR Ramp Rate Limitations • NPRR466, Asset Depreciation Schedule for Capital Contributions • NPRR467, Balancing Account Resettlement due to DAM Resettlement • PGRR018, Clarify the Prerequisites for Adding a New Generation Resource to the Planning Models and Capacity Demand and Reserves Report • NOGRR093, Synchronization with NPRR365 Tab 8 ERCOT Public