December 3, 2013 Technical Advisory Committee (TAC) Update to RMS

1. December 3, 2013 Technical Advisory Committee (TAC) Update to RMS Kathy Scott TAC Update to RMS

2. ERCOT Board Update • ERCOT Strategic Plan for 2014-2018 Final: • ERCOT Strategic Pillars: • Operational Reliability • Flexible Market Design • Data Transparency and Access • Committee Strategic Alignment – ERCOT Staff Assignment • TAC        Brad Jones • COPS    Mandy Bauld • PRS        Kristy Hobbs and Troy Anderson • RMS      Mandy Bauld • ROS        Dan Woodfin • WMS     John Dumas • http://www.ercot.com/content/news/presentations/2013/ERCOT%20Strat%20Plan%20FINAL%20112213.pdf TAC Update to RMS

3. ERCOT Board Update • User Fee Policy: • Several Protocols revisions are needed to clarify when and how fees are applied and collected by ERCOT, such as: • Section 7 – CRR Auction Fee and Point to Point (PTP) Option Award Fee • Section 9- several areas where fees are referenced requires clean-up including Administrative Fees that must be approved by PUCT • Section 17.4 – MIS Adhoc report(s) fees will be continued per the Board, however, clarifying language needed for MPs to be aware of when these fees would be requested, collected and how. TAC Update to RMS

4. ERCOT Board Update • Process for Finalizing the Load Forecast Methodology for the Capacity, Demand and Reserves (CDR) Report • The Board didn’t approve the Load Forecast Methodology for Capacity, Demand and Reserves (CDR) • ERCOT is requesting TAC guidance on moving forward, TAC’s recommendation is to schedule a joint ROS/WMS workshop for MPs to discuss and understand ERCOT’s proposal and allow MP(s) an opportunity to comment. • ROS/WMS Workshop on Monday, December16, 2013 TAC Update to RMS

5. PRS Initiatives and Votes • Nodal Protocol Revision Requests (NPRRs) (Vote): • NPRR563, Credit Lock Standards (Vote) - Unanimously Approved • NPRR567, Stakeholder Review of Resource Registration Data Requirements (Vote) –TAC Unanimously Approved with ERCOT comments as modified by TAC • NPRR569, Retail Clarification and Cleanup (Vote) – Unanimously Approved • NPRR571, ERS Weather-Sensitive Loads Requirements – Urgent (Vote) – Approved with Priority and Rank as recommended by PS • NPRR575, Clarification of the RUC Resource Buy-Back Provision for Ancillary Services – Urgent (Vote) – Impact Analysis corrected by ERCOT – TAC Unanimously Approved. • NPRR578, Restores RUC Decommitment Charge Language Deleted in NPRR416 – Urgent(Vote) - Unanimously Approved • NPRR579, Amendment to the Minimum PTP Option Bid Price Approval Timeline – Urgent (Vote) - Unanimously Approved • Notice of PRS Rejection of NPRR537, ERS Clearing Price – No Action TAC Update to RMS

6. Additional TAC Votes • Tabled Revision Requests (Vote): • NOGRR113, Synchronization with NPRR536, ERS Time Obligation Certainty (Vote) - Unanimously Approved • COPMGRR036, Alignment with NPRR570, Reduce RTM Settlement Timeline to Operating Day Plus Five – Urgent (Vote) - Unanimously Approved • 2014 Ancillary Service Methodology (Vote): • Motion: ERCOT recommends that TAC approve the proposed changes to the Ancillary Services Methodology for 2014 as the changes were endorsed during the 11/14/2013 ROS meeting. These changes will be effective on February 1, 2014. TAC also required ERCOT to provide quarterly updates to TAC concerning this change. • Motion was Unanimously approved by TAC TAC Update to RMS

7. ROS Initiatives and Votes • Reliability and Operations Subcommittee Report * • NOGRR121, ERCOT Operator Certification Program and ERCOT Fundamentals Manual (Vote)– Unanimously Approved • NOGRR122, CRR Network Model Clarification for Accepted Outages (Vote) – Unanimously Approved • PGRR031, Implement 95% Facility Rating Limit in the Planning Criteria (Vote) – A lot of discussion at TAC that required roll-call voting: • Motion to Approve PGRR031 as recommended by ROS originally Failed 18-9-3, but ERCOT re-evaluated their voting calculations where an error was discovered, after correcting the calculation error the motion was approved by TAC. • PGRR032, Stakeholder Review of Resource Registration Data Requirements (Vote)– Unanimously Approved • RRGRR001, Section 2, Resource Registration Glossary – Urgent (Vote) – Unanimously Approved. TAC Update to RMS

8. WMS/COPS/RMS Initiatives & Votes • Wholesale Market Subcommittee Report* • Protocol Required Annual Review of Minimum Point to Point Option Bid Price (Vote) – Unanimously Approved • Commercial Operations Subcommittee Report* • Update only concerning Market Information System User Group Kick-off meeting held on November 12, 2013 • Retail Market Subcommittee Report* • Update only, interest continued from TAC members concerning TX SET Mass Transition discussions, mainly : • 75,000 ESI IDs Per Day Mass Transition Volume Limitation • Reduction in Mass Transition timelines where possible TAC Update to RMS

9. ERCOT Operations, Planning & IT Report • NPR568, Real Time Reserve Price Adder Based on Operating Reserve Demand Curve, Update: • November 2013 • Team Mobilized • Review of NPRR • December 2013 • Requirement Definitions • System Design & Test Planning • Planning Complete • January 2014 • Development commences TAC Update to RMS

10. 2014 TAC Goals • Align TAC and subcommittee goals with the strategic vision of the ERCOT Board of Directors • Maintain market rules that support ERCOT system reliability consistent with PURA, PUCT and NERC standards. • Implement any appropriate Resource Adequacy related market changes. • Explore market design enhancements • Pursue the appropriate incorporation of load participation • Pursue the appropriate incorporation of emerging technologies • Implement Retail Market enhancements TAC Update to RMS

11. 2014 TAC Goals • Facilitate market enhancements necessary to leverage the benefits of TDSP’s deployment of Advanced Metering Systems (AMS) in the retail market • Improve settlement process to better accommodate changes in the ERCOT market design • Collaborate with ERCOT on the review of Ancillary service needs and implement changes as necessary • Maintain market rules that support open access to ERCOT markets • Work with ERCOT to develop protocols and improvements that support increased data transparency and data availability to the market • Work with ERCOT to insure appropriate credit and collateral rules that recognize market changes. TAC Update to RMS

12. Other Business • Next Steps: Revised Settlement Timelines and Collateral Requirements: • The market is leaving benefits on the table with only changing settlement timelines if the collateral requirements don’t catch-up with the new shorten settlement timelines. • ERCOT will provide a report to TAC at the next meeting of changes that the Credit Working Group should focus upon to obtain collateral benefits. Any changes that TAC considers a benefit to collateral requirements may necessitate an NPRR to be drafted. TAC Update to RMS

13. Other Business • January 2014 TAC Meeting Schedule: • January 7, 2014 meeting cancelled in lieu of conducting only one TAC meeting on January 30th. • This cancellation of the January 7th meeting still allows voting items to be considered by the Board during their February 11th BOD meeting since the Board isn’t scheduled to meet in January 2014. • NPRR584 - Alignment with TAC Procedures to Shorten the Appeals Timeline : TAC Update to RMS

14. Questions? TAC update to RMS