Sept. 2, 2010 Technical Advisory Committee RTWG Report Mark Bruce

2 Overview Update on Texas Renewables Integration Plan (TRIP) development Discussion of modified TRIP scope –Transition from “renewable” to “emerging” technologies –Narrowed scope of recommendations –Key focus areas Preview draft goals and recommendations of the Emerging Technologies Integration Plan (ETIP) Next steps RTWG Report 09/02/10

3 Update Work on identifying and framing issues is nearly complete. –Written comments by: QMWG DWG OWG PDCWG –Oral comments by: ROS WMS Draft goals and recommendations are complete. Document is in the final editing stage. Final document should be ready for TAC consideration in Oct. RTWG Report 09/02/10 Calpine Centerpoint Luminant Oncor PSEG Texas STEC

4 Scope Scope is broadened from “renewable” to “emerging” technologies. Proposed name change from Texas Renewables Integration Plan to Emerging Technologies Integration Plan. Scope of the plan moves away from issue-specific solutions to process improvements. Leaves issue-specific solutions to the standing stakeholder process and traditional ERCOT activities. Five broad areas of focus: 1.Process 2.Awareness 3.Education 4.Preparedness 5.Communication RTWG Report 09/02/10

5 Preview: Goals Improve the stakeholder processes for identifying, organizing, deliberating, resolving, and tracking issues of importance regarding the integration of emerging technologies into the ERCOT system. Increase ERCOT and stakeholder awareness of emerging technologies which may impact ERCOT functions or ERCOT market functionality. Increase ERCOT and stakeholder education on those technical issues related to emerging technologies which are anticipated to have meaningful impact on ERCOT functions or ERCOT market functionality. RTWG Report 09/02/10 Process: Awareness: Education:

6 Preview: Goals (cont.) Ensure ERCOT is sufficiently prepared to resolve integration challenges associated with emerging technologies. Provide timely and effective communication to policy makers, decision makers, and stakeholders regarding the issues arising from the integration of emerging technologies and the progress and effectiveness of strategies to resolve such issues. RTWG Report 09/02/10 Preparedness: Communication:

7 Preview: Recommendations Repurpose the RTWG –Broad consensus in RTWG to expand focus from “renewable” to “emerging” technologies. –ERCOT impacts are similar: forecasting issues, energy/demand uncertainty, market entry issues, reliability issues, etc. –RTWG should transition into ETWG Place the new ETWG under WMS –Majority view of RTWG is that housing the working group directly under TAC hampers effective management of issues. Reporting to sub-TAC voting committee would improve ability to address key issues. –ET issues still expected to be addressed by multiple standing TAC subgroups and ERCOT-led efforts. –Minority view of RTWG is that moving the working group “down” the TAC structure de-emphasizes the issues and may reduce stakeholder participation or “bury” issues. RTWG Report 09/02/10

8 Preview: Recommendations (cont.) Improve the Emerging Technology issues tracking process –Develop issues submission and comment process which mirrors familiar Revision Request process –Designed to allow transparent vetting and tracking of issues which do not fit or are not ripe for Revision Request process –Considered to be a “pre-” Revision Request process –See attached draft ET Issue forms Provide ERCOT Staff support for certain ETWG activities –Market Rules Staff support for ET Issues document management is an important element of ensuring timeliness, accuracy, transparency, fairness. RTWG Report 09/02/10

9 Next Steps RTWG WebEx / conference call on Sept. 20 for final edits October 7 presentation to TAC RTWG Report 09/02/10