The Wholesale Market Subcommittee Update Prepared for the July 31st TAC meeting

WMS Update WMS overviewed the 2013 ERCOT retail DR/price response study – Quantified potential demand reductions during price spikes and 4CP intervals – The study marks significant progress in being able to assess DR impact, but the study did present some challenges – Frontier Associates concluded 432.5MW of estimated price response due to price spikes (>3,000) and 500MW due to 4CP intervals – Data collection for 2014 study will commence this fall

TAC Assignment List Update WMS Assignments From The TAC DateAssignmentStatus 7/9/12 Consider long-term solution for credit requirements in light of revisions to System Wide Offer Cap The Market Credit Working Group is looking into insurance that would absorb monies owed due to market defaults. 9/5/13Review steps ERCOT utilizes in the CDR load forecasts ERCOT’s analysis of incorporating ERS, Load Resources providing RRS, energy efficiency, and distributive generation in ongoing (~Fall 2014) 2/27/14 Review Operating Procedure that ERCOT uses to determine when they need RUC (specifically RUC for bad weather) WMS plans to create a task force to conduct a review of the RUC process. Optimize market based tools and minimize RUC. 2/27/14 Related to NPRR582, Refinements to Testing ERS – address testing requirements for all Resources. QMWG review ongoing 2/27/14 Related to NPRR598, Clarify Inputs to PRC and ORDC – address additional ORDC enhancements including addressing bandwidth oscillations QMWG review ongoing 5/30/14Augmented ORDC NPRR 627 Augmented ORDC to Include Reliability Factor Methodology was referred to the RUC Task Force, however was rejected at PRS