Commercial Operations Subcommittee (COPS) Update to RMS Michelle Trenary 7/11/2017

1. Commercial Operations Subcommittee (COPS)Update to RMSMichelle Trenary7/11/2017

2. COPS Meeting Since Last Update COPS met in person on May 10, 2017 and COPS Information Session via WebEx on June 14, 2017

3. Voting Items Approved by TAC • LPGRR062, Load Profiling Guide Revision Request Process, and • COPMGRR046, Commercial Operations Market Guide Revision Request Process • Proposed Effective Date: June 1, 2017 • Refines the process for revising the Load Profiling Guide and the Commercial Operations Market Guide so that RRs are originally considered at the voting Subcommittee level, and expands the list of LPGRRs requiring ERCOT Board approval • Aligns with TAC 2017 Goal #14, Work with ERCOT Staff to develop Protocols and market improvements that support increased data transparency and data availability to the market

4. COPS Voting Items Approved • Profile Working Group ScopeUpdate Needed to align with updated roles from the LPGRR “overhaul”

5. COPS Voting Items • Draft SCR, Correction of 60-day SCED GRD Disclosure Report Approved draft SCR for submission to ERCOT • Sponsored by the MDWG • Populates unused MW and price values in SCED Generation Resource Data (GRD) Energy Offer Curves with null values rather than zeroes • NPRR831, Inclusion of Private Use Networks in Load Zone Price Calculations Approved submission of Comments • COPS reviewed NPRR831 • Concluded that NPRR831 does not have any impacts to Settlement systems requiring further review

6. ERCOT Reports • IT Report – April 2017 • Market Data Transparency IT systems met all SLA targets • Incidents & Maintenance • 04/02/17 – ERCOT experienced an outage of the following services between 12:35 AM – 5:05 AM: • Downloading of extracts and reports from the MIS and External Web Services (EWS) • 04/15/17 – ERCOT experienced an outage to the Market Information System (MIS) between 11:17 AM – 12:00 PM • 04/22/17 – ERCOT experienced an outage of the following services between 9:51 AM – 11:11 AM: • Downloading of extracts and reports from the MIS and External Web Services (EWS) • 04/25/17 – Planned Maintenance (Site Failover – MPIM, Retail API) • 04/26/17 – Planned Maintenance (Site Failover – External Web Services) • 04/27/17 – Planned Maintenance (Site Failover – MIS) • 04/27/17 – The Supplemental AMS Interval Data Extract (COMS-456, Report ID 1040) posted late at 11:30 AM on 04/28/2017 • 04/29/17 – The Supplemental AMS Interval Data Extract (COMS-456, Report ID 1040) posted late at 12:17 AM on 04/30/2017

7. ERCOT Reports • IT Report – May 2017 • Market Data Transparency IT systems met all SLA targets • Incidents & Maintenance • 05/04/17 – ERCOT experienced an outage to the Market Information System (MIS) between 9:29 AM – 10:34 AM • 05/09/17 – 05/22/17 – ERCOT experienced an issue with the 60-Day Day Ahead Market (DAM) Disclosure Reports (EMIL ID: NP3-966-ER) • Multiple records for the same Resource were reported in the Generation Resource Data files (60d_DAM_Gen_Resource_Data) within the DAM Disclosure Reports • ERCOT implemented a fix for this issue and re-ran the affected files for the dates of 05/09/2017 through 05/22/2017. These re-run files were posted to the MIS in their standard posting location. • 05/18/17 – The 22:00 posting of the Short-Term System Adequacy Report was missed • 05/31/17 – Planned Maintenance (Site Failover – External Web Services) • 06/01/17 – Planned Maintenance (Site Failover – MPIM, Retail API) • 06/02/17 – Planned Maintenance (Site Failover – MIS)

8. ERCOT Reports • Revenue Neutrality Update by Aaron Townsend Increase in Revenue Neutrality; Jan – Mar 2017 $42 million • Primary cause is PTP obligation payments • Congestion near PUNs caused High Settlement Point Prices without increasing the Load Zone price • PTP’s sinking at the PUN Node can result in PTP payments without offsetting Load imbalance charges • NPRR 831, Inclusion of PUN Networks in Load Zone Pricing Status submitted by ERCOT • Overselling of PTP’s that occur when a Node is islanded under a contingency in the DAM • PTP modeling can result in overselling when source or sink settlement point are disconnected due to a contingency • Load Distribution Factors in DAM Model may not accurately represent load patterns in RT

9. ERCOT Reports • Unaccounted For Energy (UFE) Annual Report by Randy Roberts UFE Daily Average from July 1 2016 through March 31, 2017 • Initials: Between -5.03% and 2.93% • Finals: Between -0.37% and 1.14% UFE Monthly Average from July 2016 through March 2017 • Initials: Between -0.98% and 0.79% • Finals: Between 0.03% and 0.5% Daily Load Change from January 1, 2016 through March 31, 2017 • AMS: Between -1,174 MWh and 1,158 MWh • NIDR: Between -354 MWh and 157 MWh • BUSIDRRQ: Between -6,777 MWh and 7,381 MWh Monthly Load Change from January 2016 through March 2017 • AMS: Between -1,935 MWh and 1,028 MWh • NIDR: Between -6,848 MWh and 1,821 MWh • BUSIDRRQ: Between -50,919MWh and 45,857MWh

10. ERCOT Reports Daily Load Change from January 1, 2016 through March 31, 2017

11. ERCOT Reports • 2017 Release 3: NPRR801, Non-Controllable Load Resource MW in Physical Response Capability (PRC) • NPRR801 revises the PRC calculation in EMS from including the Responsive Reserve (RRS) service MW responsibility from Load Resources controlled by high-set under frequency relays to including all MW from these Load Resources from their current output to their Low Power Consumption (LPC) capped at 150% of the Qualified Scheduling Entity’s (QSEs) RRS responsibility from non-Controllable Load Resources • The Operating Reserve Demand Curve (ORDC) reserves have been adjusted in the Other Binding Document to align with this PRC change • The Ancillary Service imbalance Settlement was changed to align with the change to the ORDC reserves • ERCOT sent a 10 day notice to MPs before implementing these changes in Release 3, on June 29, 2017

12. CSWG Update • 2% Resettlement Rule (Protocol Sections 9.2.5 (2) and 9.5.6 (2)) • ERCOT will submit Comments to NPRR819, Resettlement Clean-ups, with language to replace the current 2% Resettlement Rule • CSWG Objectives: • Implement a resettlement threshold that is fair to large and small MPs, replacing the existing 2% resettlement rule • Base the resettlement threshold on the DAM and RTM median settlement statement amounts • Address the issue of small errors that cumulatively create an impact which exceeds a threshold that is fair to large and small MPs • Propose actual daily resettlements, as opposed to alternative settlement resolution, to provide for automation and systematic historical reference • For an error other than a pricing error that has a cumulative impact, designate a cutoff for the number of days the market will go back and resettle • Set the cutoff for DAM resettlements due to the cumulative impact of an error other than a pricing error prior to the RTM True-up Resettlement, so its results are included in the resettlement of the RTM • Add the number of resettlements due to errors other than pricing errors to the Settlement Stability Report for visibility into and review of the impact of NPRR819

13. MDWG Update • 2017 Priorities • MIS Change Visibility/Change Management • Raising awareness of issues related to down-stream impacts of data product changes • Contributing to process improvements • MDWG is preparing a whitepaper for review • EWS Modifications • Continuing solution proposals • API Quick-Start Guide • Started process of evaluating and test driving the guide ERCOT created for Market Participants • Upcoming Release 6 Changes; Go-live 12/6/17 – 12/8/17 • Change to Load Forecast Distribution Factors report publishing frequency • QSEs in ERCOT Region report automated and published in MIS

14. PWG Update • Annual Validation Process • Annual validations are in progress • Reviewing observed spikes for required changes, e.g., RESHIWR to RESLOWR • Reviewing methodologies used • Reviewing the process and determining if it is still necessary • Reviewing the Impact Analysis for LPGRR063, Modification of Oil & Gas Profile Requests • PWG reviewed the Annual UFE Report on May 31, 2017

15. The next COPS meeting is scheduled for July 19, 2017 Questions?