Energy Grid Committee Updates: January-March 2017

1. January 26, 2017TACUpdate to COPS Michelle Trenary March 8, 2017

2. TAC and Subcommittee Leadership • Technical Advisory Committee (TAC) Chair: Adrianne Brandt, CPS Energy Vice Chair: Bob Helton, Dynegy, Inc. • Protocol Revision Subcommittee (PRS) Chair: Martha Henson, Oncor Electric Delivery Vice Chair: Diana Coleman, OPUC • Reliability and Operations Subcommittee (ROS) Chair: Alan Bern, Oncor Electric Delivery Vice Chair: Boone Staples, Tenaska Power Services • Retail Market Subcommittee (RMS) Chair: Kathy Scott, CenterPoint Energy Vice Chair: Rebecca Reed Zerwas, Reliant Energy Retail Services • Wholesale Market Subcommittee (WMS) Chair: Jeremy Carpenter, Tenaska Power Services Vice Chair: David Kee, CPS Energy 2

3. PRS Update • NPRR794, Relocation of Unregistered Distributed Generation (DG) Reporting Requirements, Effective Date: March 1, 2017 Approved • NPRR800, Revisions to Credit Exposure Calculations to Use Electricity Futures Market Prices, URGENT, Effective Date: Upon system implementation, Priority 2017, Rank 1561 Approved • NPRR805, Clarification for Multi-Month Congestion Revenue Right (CRR) Auction Offers, Effective Date: March 1, 2017 Approved • NPRR806, Clarification for Designation of Capacity of Refund Pre-Assigned Congestion Revenue Rights (PCRRs), Effective Date: January 1, 2017Approved 3

4. Revision Requests Previously Tabled by TAC • COPMGRR044, Alignment with NPRR794, Relocation of Unregistered Distributed Generation (DG) Reporting Requirements, Effective Date: March 1, 2017 Approved via email vote 2/23/2017 • Appeal of NOGRR149, Revision of Definition of Transmission OperatorTabled until the August TAC meeting; With monthly written updates and an in-person update in May 4

5. ROS Update • NOGRR165, Emergency Operations Plans as Required by NERC Reliability Standards, Effective Date: February 1, 2017 Approved • PGRR052, Stability Assessment for Interconnecting Generation, Effective Date: Upon system implementation, but no earlier than August 1, 2017, Priority 2017, Rank 2000 Tabled pending consideration of NPRR809 • PGRR053, Addition of Proposed Generation Resources to the Planning Models, Effective Date: March 1, 2017 Approved 5

6. ERCOT Update • ERCOT Revisions to “Setting the Shadow Price Caps and Power Balance Penalties in Security Constrained Economic Dispatch” Other Binding Document (OBD) Approved • Forecast Adequacy of the Budgeted System Administration Fee • The ERCOT System Administration Fee is forecast to be adequate for 2016-2019 • Under-Frequency Load Shedding (UFLS) Survey Workshop • Held 2/20/2917 to look at ways to better handle Load Resources in the survey 6

7. ERCOT Update • Annual Reliability Unit Commitment (RUC) Reporting Requirement 7

8. ERCOT Update 2016 RUC Statistics • Of the 1,514 instructed RUC resource-hours in 2016, 1,481 (97.8%) were for congestion and 33 (2.2%) were for capacity • There were no resource-hours of commitment for ancillary service shortages, voltage/reactive support, system inertia or for anticipation of extreme cold weather/startup failures • 478 resource-hours were successfully bought back through use of the ONOPTOUT Resource status option • 170.1 resource-hours were dispatched above the Resource’s Low Dispatchable Limit (LDL) when the Resource was not opted-out • Inconsistencies between settlement treatment and the triggering of the Real-Time Reliability Deployment Price Adder (RTRDPA) were again observed; This will be resolved with the implementation of NPRR744, RUC Trigger for the Reliability Deployment Price Adder and Alignment with RUC Settlement, later in 2017 • 17% of the instructed RUC resource-hours were settled as ONRUC, but the Resource did not telemeter ONRUC • 0.3% of the instructed RUC resource-hours were settled as ONOPTOUT, but the Resource telemetered ONRUC • The total RUC make-whole amount was $1.2 million and these payments were fully covered by capacity-short charges for all months in 2015 and 2016 8

9. Questions? 14