December 11, 2012 Mc meeting

1. December 11, 2012 Mc meeting Robert B. Burke Email: rburke@iso-ne.com PRD Full Integration Conforming Changes and Fixes

2. Additional Changes Since Last MC Presentation • Section I.2.2 – Definition of Demand Response Holiday • Section III.13.7.2.5.4. Energy Settlement for Real-Time Emergency Generation • Appendix III.E1.7

3. Definition of Demand Response Holiday

4. Section III.13.7.2.5.4

5. Appendix III.E1.7 7. Demand Response Baselines A Market Participant must establish a Demand Response Baseline pursuant to Section III.8A prior to submitting a Demand Reduction Offer for a Real-Time Demand Response Asset.

6. Section I.2.2 Definitions • The August 19, 2011 filings • Had several new definitions that become effective June 1, 2017. • Had several definitions that changed effective June 1, 2017 • Other effective date changes require these definitions to be incorporated into the tariff now. • These definitions are: Demand Response Asset Demand Response Resource Demand Response Resource Notification Time Demand Response Resource Ramp Rate Demand Response Resource Startup Time Maximum Reduction Minimum Reduction Minimum Reduction Time Minimum time Between Reductions

7. Section III.8 Baseline • There are two versions of Section III.8 • One for transitional PRD – effective now • One for full integration PRD – needed Q1 2013 • III.8A • Effective for CCP before June 1, 2017 • III.8A.3(b) • Correct typo • III.8A.4.2 • Correct typo

8. Section III.8B Baseline • Effective for CCPs commencing on or after June 1, 2017 • Carry forward RTEG changes from TPRD April 13, 2012 filing • Clarify Baseline calculation • Prior day • Present day • Next day • Clarify more than seven of the prior 10 days

9. RTEG Change Carry Forward • Carry the RTEG baseline and baseline adjustment language filed on April 13, 2012 and approved by the FERC into the version of MR1 Section 8 that is applicable under full integration • Maintain from transitional PRD that RTEG performance can be determined based on its Average Hourly Load Reduction or its Average Hourly Output depending on its metering configuration (relates to prior slide) • Meter data from a RTERG dispatched for an audit or OP-4 would not automatically be used to compute the asset’s baseline for the next day of the same day type (7 of the prior 10 applies) • The start-up time for RTEG (if using a baseline) must be specified for use in the baseline adjustment

10. Section III.13 FCM • III.13 includes TPRD and PDR FI • Effective 1/15/2013 • RTEG Metering Requirement carry forward the transitional change allowing RTEG to be metered either at the Retail Delivery Point or at the RTEG output • Very specific limitations applicable • Otherwise both RTEG output and Retail Delivery Point for facility must be metered • Requirement III.13.1.4.3.2 • Updated references to III.8A, III.8B, III.E1, and III.E2 • III.13.1.4 – deal with early commercial date for Demand Response Capacity Resource • III.13.6.1.5.4.2 – carry asset audits into PRD FI

11. Section III.13 FCM (continued) • For all active demand response clarify the appropriate value of the gross-up factor for: • Resources with multi-year commitment which commenced before full integration, but is still in effect once full integration commences • Resources that clear in a FCA after full integration commences but have an early COD that is for a transition period Commitment Period • III.13.7.1.5 • Back out change eliminating transmission factor to capacity under PRD FI • Replace the terms “online” and “offline” for demand resources with “reducing demand” and “not reducing demand”

12. Appendix E • Define sections E1 and E2 • Identify their effective dates • Capitalize the term Retail Delivery Point Appendix E2 • III.E2.6 – Carry forward Threshold Price changes April 13, 2012 filing

13. Schedule