COPS Update: Retail Market Improvements and Requirements

1. Commercial Operations Subcommittee (COPS)Update to TACMichelle Trenary3/23/2017

2. TAC Voting Items • LPGRR060, Load Profiling Guide Clean Up Related to LPGRR057 • Proposed Effective Date: April 1, 2017 • Provides additional clarification to the LPG by removing orphaned language that was not captured in LPGRR057, Alignment with NPRR781, Updates to Nodal Protocol Section 18, Load Profiling, to Align with Current Market Processes, which was approved by TAC on October 27, 2016 • Aligns with TAC 2016 Goal #8, Implement Retail Market improvements and requirements • LPGRR061, Modifications to Annual Validation Timelines • Proposed Effective Date: April 1, 2017 • Modifies the Annual Validation timelines for Residential (RES) and Business (BUS) ESI IDs by starting the Annual Validation process on March 30 and concluding on September 30 of each calendar year • Aligns with TAC 2016 Goal #8, Implement Retail Market improvements and requirements

3. TAC Voting Items (Cont.) • 2017 COPS Goals • Maintain settlements stability in alignment with Protocol Section 8.2, ERCOT Performance Monitoring (2) Paragraphs (c), Settlement Stability and (g) Load Uplift Amounts • Improve Commercial Operations processes to accommodate changes in the ERCOT Market design • Work with ERCOT staff to develop Market improvements and Protocols that support increased Commercial Operations data transparency and data availability • Maintain and update the Commercial Operations Market Guide and the Nodal Settlements Handbook • Work with ERCOT staff and Transmission and Distribution Service Provider staff to address issues and facilitate improvements to market rules pertaining to load profiling as reflected in the ERCOT Protocols and the Load Profiling Guide • Perform Retail Load Profiling Annual Validation • Work with ERCOT staff to review Market Communications/Notifications and identify process improvements • Work with ERCOT staff to implement improvements to the Market Information System (MIS) and External Web Services (EWS), data access points for market participants, information security classifications, data extracts and Commercial Operations reports

4. COPS Voting Items • Confirmed COPS 2017 Working Group Leadership Communications and Settlements Working Group (CSWG) • Chair: Heddie Lookadoo, Reliant Energy Retail Services • Vice-Chair: John Moschos, Tenaska Market Data Working Group (MDWG) • Chair: Julie Thomas, Vistra Energy • Vice-Chair: Daniel Spence, Denton Municipal Profiling Working Group (PWG) • Chair: Sheri Wiegand, TXU Energy • Vice-Chair: Sam Pak, Oncor • Approved Market Data Transparency Service Level Agreement (SLA) • Updated Release Calendar and added Weekend/Retail Release Dates

5. ERCOT Reports • IT Report – February 2017 • Market Data Transparency IT systems met all SLA targets • Incidents & Maintenance • 02/07/17 – ercot.com experienced a 6 minute outage • 02/21/17 – Planned Maintenance (Site Failover – MPIM, Retail API) • 02/22/17 – Planned Maintenance (Site Failover – External Web Services) • 02/23/17 – Planned Maintenance (Site Failover – MIS) • The Market Information Service (MIS) was unavailable for an additional hour beyond the scheduled and communicated maintenance window

6. ERCOT Reports • Market Notice Archives Available on ERCOT.COM under MARKET INFORMATION > View Notices and Bulletins • Market Notice M-B031017-01 General sent March 10, 2017 Market Notice Archive QueryCapability

7. ERCOT Reports • Overview on Wholesale Storage Load Resource Settlements Provided by Austin Rosel Energy Storage Guiding Principles: • An energy storage resource has the option of receiving wholesale storage load treatment • Wholesale Storage Load is defined in NPRR461 as – “Energy that is separately metered from all other Facilities to charge a technology that is capable of storing energy and releasing that energy at a later time to generate electric energy” • Load for an energy storage Load Resource must be separately metered to be considered wholesale storage load • Storage facility energy that is re-generated is treated in the same manner as traditional generation; The re-generated energy can self-serve associated Load behind the same Point of Interconnect at the generation site and/or be valued as an injection to the ERCOT system • Wholesale storage load is exempt from charges and credits based on Load Ratio Share or per MWH basis • Wholesale storage load will not be included in the ERCOT 4CP calculations • Wholesale storage load pricing shall be based on the LMP at the electrical bus, not the LMP of the Load Zone

8. ERCOT Reports • Review of Virtual Weather Zones Provided by Calvin Opheim • ERCOT staff determined a need for independent modeling of the Valley to facilitate more accurate load forecasting and address operational needs • A supplemental Valley load forecast was created to meet immediate operational needs, e.g. Outage analysis • For transparency, ERCOT staff is looking at providing the supplemental Valley load forecast data to Market Participants; The initial thought was to add a new Valley Weather Zone, because load forecasts are created by Weather Zone, however there is an alternative • 4CP Report Update Provided by Mark Ruane • ERCOT prepared two revised 4CP matrices for the PUCT, one incorporating the Golden Spread adjustments and one incorporating both the Golden Spread and the July 2016 anomaly adjustments • A proposed order has been published by PUCT staff that doesn’t specify which option; Awaiting a final determination from the PUCT

9. CSWG Update • 2% Resettlement Rule (Protocol Sections 9.2.5 (2) and 9.5.6 (2)) • Will review NPRR819, Resettlement Clean-ups, submitted by ERCOT • Removes language referencing “data errors” for resettlement of the Day-Ahead Market (DAM) and the Real-Time Market (RTM); gives the ERCOT Board authority to direct a DAM resettlement parallel to its authority to direct RTM resettlement; removes references to undefined “declarations” of resettlements; and fixes a semantics error • Reviewing a proposal submitted by Tenaska Power Services • Keeps the 2% rule for a single Operating Day event • Uses a cumulative total for multiple Operating Day events and compares to the average total ERCOT charges for those same Operating Days • ERCOT staff will run some scenarios and bring back to CSWG their March 27 meeting

10. CSWG Update • Reviewed the following NPRRs prior to implementation, March 7-9, 2017 • NPRR272, Definition and Participation of Quick Start Generation Resources • Allows QSEs with Quick Start Units to telemeter OFFQS status • NPRR649, Addressing Issues Surrounding High Dispatch Limit (HDL) Overrides • Allows High Dispatch Limit Override Payment and Charge via a dispute filing • NPRR764, QSE Capacity Short Calculations Based on an 80% Probability of Exceedance (P80) • Fixed language to account for 80% Probability of Exceedance (P80) instead of P50 for PVGR/Settlement

11. PWG Update • Annual Validation Proposed Changes (LPGRR061)

12. PWG Update • 2017 PWG Goals • Address issues and facilitate improvements to market rules pertaining to load profiling • 2017 Profile ID Annual Validation Residential & Business • Review UFE report for 2016 • 2017 Weather Sensitivity Change Report

13. The next COPS meeting is scheduled for April 12, 2017 Questions?