Generation Adequacy Task Force Meeting April 10, 2014

2 Wind Capacity Value All generators in service as of Jan 1, 2011 ∑ HSL capacity for 20 peak load hours All generators in service as of Jan 1, 2012 ∑ HSL capacity for 20 peak load hours All generators in service as of Jan 1, 2013 ∑ HSL capacity for 20 peak load hours Three-year average HSL capacity All generators in service as of Jan 1, 2011 ∑ Year-end nameplate capacity All generators in service as of Jan 1, 2012 ∑ Year-end nameplate capacity All generators in service as of Jan 1, 2013 ∑ Year-end nameplate capacity Three-year average nameplate capacity Three-yr. Average Summer Peak Capacity Factor Calculations for 2015 CDRs would use four years of data for averaging, Calculations for 2016 CDRs would use five years of data for averaging,

3 CDR Resources without a Full Interconnection Study Planning Guide, Section (2): Before an SGIA is signed, all studies included in the FIS scope must be completed, unless mutually agreed by the IE and the TSP. The IE and TSP must meet and maintain compliance with all North American Electric Reliability Corporation (NERC) Reliability Standards, Protocols, and the requirements of this Planning Guide and the Operating Guides concerning interconnection. There are 20 projects with a signed SGIA but don’t have a FIS completed and approved (15 wind, four gas, one coal) Proposed language change to section :

4 Emergency Response Service Capacity Estimates ERCOT would like to add the following wording to the existing ERS capacity estimation methodology in Section : The estimate may be adjusted to account for program modifications, procurement methodology changes, changes in the seasonal risk assessment, and ERS time period expenditure limits.

5 NERC 2014 LTRA Planning Reserve Margins NERC 2014 Long Term Reliability Assessment will report four types of Planning Reserve Margin based on the likelihood of capacity to be available for the summer/winter seasons –Existing-Certain & Net Firm Transfers Margin –Anticipated Margin –Prospective Margin –Adjusted-Potential Margin

6 NERC 2014 LTRA Planning Reserve Margins, Cont. Existing-Certain: Includes existing generator units (expressed in MW), or portions of existing generator units, that are physically located within the assessment area that meet at least one of the following requirements when examining the projected peak for the summer and winter of each year: –Where energy-only markets exist, unit must be a designated market resource eligible to bid into the market “Existing-Certain & Net Firm Transfers Margin” only includes Existing-Certain capacity Planned, Tier 1: Planned units in Tier 1 must meet at least one of the following requirements when examining the period of peak demand for each season/year: –Resource construction is underway or complete (not in commercial operation) –Resource has been designated or approved by a market operator and an Interconnection Service Agreement has been signed “Anticipated Margin” includes Existing-Certain and 100% of Planned Tier 1 capacity

7 NERC 2014 LTRA Planning Reserve Margins, Cont. Planned, Tier 2: Planned units in Tier 2 (that do not meet the requirements of Tier 1), must meet at least one of the following requirements when examining the period of peak demand for each season/year: –A power purchase agreement (PPA) or Generation Interconnection has been requested “Prospective Margin” includes Existing-Certain, Planned Tier 1 capacity, and up to 50% of Tier 2 capacity Planned Tier 3: Includes all capacity that does not meet the requirements of Tier 2 when examining the period of peak demand for each season/year. “Adjusted-Potential Margin” includes Existing-Certain, Planned Tier 1 capacity, up to 50% of Tier 2 capacity, and up to 10% of Tier 3 capacity