TAC October 23, 2014 Meeting Update to Commercial Operations Subcommittee

1. TAC October 23, 2014 Meeting Update to Commercial Operations Subcommittee Harika Basaran 11/05/2014

2. NPRRs & RRs & OBDs Approved • NPRR595, RRS Load Resource Treatment In ORDC 6.7.4 • NPRR640, As-Built Clarification of Load Resource Participation in SCED and Non-Spin Qualification • NPRR612, Reduction of Cure Period Subsequent to Event of Default • Effective date 4/1/2015. • Reduces the cure period for failure to make payment, transfer funds, provide collateral, or designate or maintain an association with a Qualified Scheduling Entity (QSE), to one Business Day subsequent to written notification of the breach. • Clarifies that an Invoice payment from available security will be considered a Late Payment per Section 16.11.6. • NPRR647, CRR Auction Shadow Price Transparency • Requires ERCOT to post the Congestion Revenue Right (CRR) Auction Shadow Prices to the Market Information System (MIS) Public Area. • SCR781, MP Online Data Entry Market Requirements • Replaces the current Resource Asset Registration Form (RARF) spreadsheet and associated manual processes with MP Online Data Entry. • CRR Activity Calendar 2015 & 2016 • 2015 Ancillary Services Methodology 2

3. COPS 2014 GOALS/ACCOMPLISHMENTS • Align TAC and Subcommittee Goals with the strategic vision of the ERCOT Board of Directors. • Approved TAC Goals that apply to COPS are: • Improve settlement process to better accommodate changes in the ERCOT market design. • Work with ERCOT to develop Protocols and other market improvements that support increased data transparency and data availability to the market • COPS met every other month to reduce number of meetings • COPS Working Groups met via Webex as topics allowed 3

4. COPS 2014 Initiatives- CSWG & PWG • COPMGRR037 Market Notification for Ad Hoc Invoices and COPMG Cleanup Approved • COPMGRR038 Administrative Changes for the June 1, 2014 Commercial Operations Market Guide Approved • NPRR628 Notification of Financial Impact of Settlement Disputes Approved • CSWG monitored and reported on the NPRR 570 Reduced RTM Settlement TimeLine to OD +5 regularly • LPGRR052 Change to Oil & Gas Assignment Process Approved • LPGRR053 Zip Code to Weather Zone Table Update Pending • LPGRR054 Alignment with NPRR661, Discontinue Posting Profile Data Evaluation Report Pending 4

5. COPS 2014 Initiatives contd. MISUG • MISUG has reviewed the 15 reports that have been recommended for discontinuation. • Comments have been solicited from all working groups and subcommittees. • Having had no comments, MISUG submitted the following NPRRs, LPGRR, and NOGRR to decommission the following reports to PRS. PRS tabled them and send them to appropriate Subcommittees or WGs for their input. • NPRR, 659 Discontinue RMR Cost Data Deviation Requests/Responses Report • NPRR 658 Changes to Annual Reporting Requirements for RUC Payments Made to Resources with PPAs • NPRR 661 Discontinue Posting Profile Data Evaluation Report. • NPRR 654 Discontinue Ancillary Service Requirement Methodology Assessment Report • NPRR 656 Discontinuation of the Long-Term Weekly Peak Demand Forecast, 36 Month Resource Capacity Report, and Projected Transmission Constraints for Medium Term PASA Reports. Withdrawn (must stay per PUCT Rules) • NPRR 657 Discontinue Backup Control Plan Submittal Results, Dispatch Instructions Compliance Metrics, and Backup Control Plan Test Dates and Results Summary Reports. • NPRR 655 Discontinue Contingency List Changes Due to Weather Report. • LPGRR054 Alignment with NPRR661, Discontinue Posting Profile Data Evaluation Report. • NOGRR138 Delete grey boxes for Backup Control Plan Test Dates and Results Summary and Backup Control Plan Submittal Results. 5

6. QUESTIONS