Protocol Revision Subcommittee

1. Protocol Revision Subcommittee Report to the ERCOT Technical Advisory Committee June 4, 2003

2. PRR 418 – Creation of New CSC • Intended to address recent local congestion in the Roan’s Prairie area by creating a CSC out-of-cycle including the sale of monthly TCRs • Impacts TCR auction process • Contingent effective date-July 1, 2003 • ERCOT & MPs working to establish SPS/RAP prior to June 24, 2003

3. PRS Information Items • Created TF to address PRR 381 • PRR 412 withdrawn after PRS provided clarification of Protocols • TDSP not required to install IDR meter for generation behind the meter and where energy is not intended to reach the grid

4. Urgent PRR Status • PRR 414 – Sunset Date on Balancing Bid Cap • PRR 415 – 50% Limit for LaaRs Providing RRS • PRR 416 – Post Balancing Energy Information • PRR 417 – Changes to 816_06, Handling of Move-Ins • PRR 418 – Creation of New CSC • PRR 419 – Transfer of BUL Qualification Testing Responsibility from ERCOT to QSEs

5. Urgent PRR Status • PRR 420 Modified Competitive Solution Method • PRR 422 – Out-of-Merit Zonal Deployments

6. PRR 384 – Code of Conduct & Preamble • Creates a preamble containing code of conduct guidelines and a list of prohibited activities for wholesale market participants • No computer system impact • Effective July 1, 2003

7. PRR 391 – Waiver Recipients Must Designate an LSE • Clarifies that resources receiving a resource agreement waiver must designate an LSE to serve auxiliary load when the generator does not operate • No ERCOT computer system impact • Effective July 1, 2003

8. PRR 397 – McCamey Area Congestion Management • Proposed to minimize uplifted congestion costs while trying to maximize transmission system use in the McCamey Area • Impacts ERCOT computer systems • Priority 1.3 • Effective upon implementation

9. PRR 406 – Two-year Forward CSC & Zone Determination • Proposal modifies current annual determination process in order to add stability to support forward markets • No ERCOT computer system impact • Effective July 1, 2003

10. PRR 414 – Sunset Date for Balancing Energy Bid Cap • Removes July 4, 2003 bid cap from BES and places bid cap on all Ancillary Services • Complies with Interim Orders in Docket No. 24770 • Requires system change to reject bids above bid cap; activity rule effective immediately • Effective July 1, 2003

11. PRR 416 – Posting of Balancing Energy Information • Publishes the name of any QSE submitting bids for UBES at a price greater than $900/Mwh when MCPE is greater than $900/Mwh • Complies with Interim Order in Docket No. 24770 • No ERCOT computer system impact • Effective July 1, 2003

12. PRR 420 – Modified Competitive Solution Method • Applies MCSM price mitigation to BES when there is no zonal congestion and all UBES bids are deployed in the interval • Complies with Interim Order in Docket No. 24770 • Requires changes to settlement system; manual work-around available • Effective June 18, 2003

13. Action Items • Urgent Status for: • 414 – BES Sunset • 415 – 50% LaaR Limit for RRS • 416 – Posting of BES Information • 417 – MIMO Changes • 418 – New CSC Creation • 419 – XFR BUL Qualifications ERCOT-QSE • 420 – MCSM Implementation • 422 – OOM Zonal Deployments

14. Action Items • Approve, Reject or Remand: • 384 – Code of Conduct • 391 – Designation of LSE • 397 – McCamey Congestion Management • 406 – 2-year Forward CSC/Zone • 414 – Bid Cap Sunset Date • 416 - Posting of BES Information • 417 - MIMO Changes • 418 – New CSC Creation • 420 – MCSM Implementation