May 28, 2015 and June 30, 2015 Information Session TAC Meeting Update to COPS

1. May 28, 2015 and June 30, 2015Information SessionTAC MeetingUpdate to COPS Michelle Trenary, July 15, 2015

2. COPS and TAC Meetings • COPS June 10th Meeting Cancelled • TAC April 30th Meeting Cancelled • TAC May 28th Meeting • TAC Information Session June 30th 2

3. PRS Report (May) • NPRR662, Proxy Energy Offer Curves (EOCs), Effective Date: Upon system implementation, Priority 2015, Rank 1310 Approved • NPRR668, Updates to Texas Standard Electronic Transaction (SET) Implementation Guide, Effective Date: July 1, 2015 Approved • NPRR674, Clarification of Water Supply Rights Documentation, Effective Date: July 1, 2015 Approved • NPRR679, ONOPTOUT for Reliability Unit Commitment (RUC) Given After the Adjustment Period, Effective Date: Upon System Implementation, Priority 2015, Rank 1320 Approved • NPRR680, Allow QSEs to Self-Arrange Ancillary Services (AS) Quantities Greater than their AS Obligation, URGENT, Effective Date: Upon system implementation, Priority 2015, Rank 1330 Approved • NPRR681, Clarification to Dynamic Ratings, Effective Date: July 1, 2015 Approved • NPRR682, Changes to Notification Method when ERCOT Intends to Procure Additional Ancillary Services, Effective Date: Upon system implementation Approved • NPRR683,Revision to Available Credit Limit (ACL) Calculation, Effective Date: Upon system implementation, Priority 2015, Rank 1300 Approved 3

4. PRS Report (Cont.) • NPRR686, Changing the Intermittent Renewable Resource (IRR) Forecast from Next 48 Hours to Next 168 Hours, Effective Date: Upon system implementation, Priority 2015, Rank 1130 Approved • NPRR687, Required Telemetry for Operational Awareness and Performance Disturbance Compliance Working Group (PDCWG) Analysis, Effective Date: July 1, 2015 Approved • NPRR688, Black Start Services Testing Clarifications, Effective Date: July 1, 2015 Approved • NPRR690, Incorporation of Creditworthiness Standards into Protocols, Effective Date: Upon system implementation Approved • NPRR698, Clarifications to NPRR595, RRS Load Resource Treatment In Operating Reserve Demand Curve (ORDC), URGENT, Effective Date: Upon system implementation , Priority 2015, Rank 885Approved • NPRR675, Modifications for Emergency Response Service (ERS) Estimates in Calculating Future Planning Reserves Withdrawn • Other Binding Document (OBD) List, Removal of Credit Formulas and Detail Whitepaper for the Day-Ahead Market Approved • Maintaining Duplicate Energy Emergency Alert (EEA) Language in Protocols and Operating GuidesApproved 4

5. ROS Report (May) • NOGRR142, Phasor Measurement, Effective Date: June 1, 2015 Approved • PGRR040, Clarification of Water Supply Rights Attestation Obligation, Effective Date: July 1, 2015 Approved • LCRA/Austin Energy Application for Permanent Site-Specific Exemption from Compliance with ERCOT Nodal Metering Protocols, Section 10.3.2.3(2)(b) and 10.3.2.3(5) Approved 5

6. WMS Report (May) • NPRR664, Fuel Index Price for Resource Definition and Real-Time Make-Whole Payments for Exceptional Fuel Costs Events - Update The WMS was asked to consider alternative implementation options for automation of NPRR664, which creates the Fuel Index Resource of HSC, WAHA, or weighted average and authorized a manual workaround to implement MWPs for the winter of 2014 and was discontinued on May 1, 2015. Other options may be brought forward as well. Option 1 - Restart manual implementation of NPRR664 (Would require an NPRR) Option 2 ‐ Resources can set an Exceptional Fuel Event “Flag” due to an exceptional event and Resources with this flag set would not be mitigated Option 3 ‐ Increase Mitigated Offer Caps (MOCs) during Cold Weather Events through multipliers in Protocol Section 4.4.9.4.1, Mitigated Offer Cap, Paragraph (e) 6

7. COPS Report (May) • LPGRR055, Extend Load Profile Model Calendar Inputs to 2030, Effective Date: To be determined Remanded back to COPS • DER Workshop 1 and 2 • DER Workshop 1 was held on June 18, 2015 • Draft NPRR, Removal of Trigger and Requirement to Reduce the DG Registration Threshold • TAC will create a DER Task Force, which will report directly to the TAC, so all TAC Subcommittee members can participate simultaneously, at their July meeting • Issues to be addressed include such questions as What is the ERCOT definition of DER?, Does DER include Demand Response?, Does the PUC metering rule prohibit dual metering?, and Should DER Light or DER Heavy status be optional, or mandatory? • DER Task Force Meeting • This afternoon, July 15, 2015 1:00 PM – 4:00 PM, Room 206 7

8. ERCOT Reports (May) • Rewrite of Protocol Section 20, Alternative Dispute Resolution (ADR) Procedure Chad Seely provided information on ERCOT’s proposed changes to the ADR Procedure • Special Meeting: Discussion Regarding NPRR709, Revisions to ADR Procedure was held July 1, 2015 • Market Participant Training Bill Kettlewell provided an update on ERCOT Market Participant Training and has agreed to provide the same update to COPS next month • NPRR638, Revisions to Certain Price Components of EAL - Update Mark Ruane let TAC Members know that the CWG and the MCWG will continue their work to define the scope of NPRR638. 8

9. TAC Information Session (June) • Ancillary Services (AS) Redesign Update Kenneth Ragsdale provided an update on the AS Redesign. • FAS Next steps • ERCOT will file comments on NPRR667, Ancillary Service Redesign, by early July 2015 - Comments will include the removal of the cap on the Fast Frequency Response (FFR) price, improvements based on MP comments, and general clean-up items • Stakeholders have until early Fall to provide additional comments • ERCOT staff to present a “polished” version to the PRS and TAC by late Fall 2015 • CBA target completion – October 2015 • Synchronous Inertial Reserve Service (SIRS) Working Group meeting scheduled for August 17, 2015 • CBA Scope Review • 8 scenario runs for production cost simulation, with 6 being run with a unique set of Ancillary Services requirements 9

10. TAC Information Session (June) • Budget Process Discussion Brad Jones addressed budge process concerns involving the notification of the recent system administration fee increase request. ERCOT’s Board approved a nearly 20% increase for 2016 and 2017 and will seek approval for the new fee from the PUCT. The request fee will go from $0.4650/MWh to $0.5550/MWh. • ERCOT agrees that consideration by the F&A Committee prior to consideration by the Board will be beneficial • ERCOT staff will signal at the beginning of the year, if they see the need for seeking an increase in the fee or not 10