Technical Advisory Committee Presentation to the ERCOT Board of Directors April 22, 2009

TAC Report Summary 5 PRRs for Board approval 1 NPRR for Board approval 1 SCR for Board approval Report: 2 CREs approved Report: 2 COPMGRRs approved Report: SCR approved Report: 2009 TAC Goals Report: Wind Metrics Development Report: Unfunded Projects List Update: PRR 791 Update: Stakeholder Engagement in Nodal Program

Protocol Revision Requests PRR 768 TDSP Energy Storage Reliability - URGENT PRR 789 Removal of Grey Box Language Related to Dynamics Load Profiling Due to Unfunded Projects PRR 790 Load Profile ID Annual Validation Change Request PRR 803 Revised Implementation Approach for PRR 601 – URGENT PRR 804 Revisions to Section 21 Appeals Process – URGENT

PRR 768 – TDSP Energy Storage for Reliability -- URGENT Purpose (AEP) Clarifies that electricity flows from TSP-owned battery storage will be treated as substation equipment and that measurement of such flows is not required for settlement; this clarification will be limited to ERCOT Board endorsed TSP reliability projects Benefit Provides additional technology to address reliability needs Market Impact N/A System Change No Assumptions TAC Vote TAC recommended approval with 2 opposing votes (electric cooperative segment) and 1 abstention (independent generator segment); all Market Segments were present Effective Date May 1, 2009

PRR 768 – TDSP Energy Storage for Reliability -- URGENT No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

PRR 789 – Removal of Grey Box Language Related to Lagged Dynamics Load Profiling Due to Unfunded Projects Purpose (Direct Energy for Profiling WG) Removes grey-box language related to the use of lagged dynamic samples for new profiles. Benefit Administrative clean-up. Market Impact N/A System Change No Assumptions TAC Vote TAC unanimously recommended approval; all Market Segments were present. Effective Date May 1, 2009

PRR 789 – Removal of Grey Box Language Related to Lagged Dynamics Load Profiling Due to Unfunded Projects No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

PRR 790 – Load Profile ID Annual Validation Change Request Purpose (Direct Energy for Profiling WG) Allows for changes in the Annual Validation process timeline due to extreme events. Benefit Allows Market Participants to utilize their resources to handle emergency situations. Market Impact N/A System Change No Assumptions TAC Vote TAC unanimously recommended approval; all Market Segments were present Effective Date May 1, 2009

PRR 790 – Load Profile ID Annual Validation Change Request No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

PRR 803 – Revised Implementation Approach for PRR 601 -- URGENT Purpose (ERCOT) Changes the BES ramping period from 10 minutes to 14 minutes Benefit Improve dispatch efficiency by better ramp rate utilization Market Impact Ramping over 14 minutes will allow more BES to be deployed and may tend to reduce Regulation Service deployments System Change Yes $100K to $250K Assumptions Impacts EMMS, EDW, Market Database and Lodestar TAC Vote TAC unanimously recommended approval with a “2 - High” priority and rank of 39.1; all Market Segments were present Effective Date Not later than 6 months after approval; earlier than 6 months after approval only if all affected market participants have successfully tested new ramping capability

PRR 803 – Revised Implementation Approach for PRR 601 -- URGENT No Impact Impact Description Item Reviewed Budget $100K to $250K Staffing EMMS, EDW, Market Database and Lodestar Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

PRR 804 – Revisions to Section 21 Appeals Process -- URGENT Purpose (ERCOT) Provides that if a motion to approve a revision request fails, the revision request shall be deemed rejected by the body considering it and subject to appeal, unless at the same meeting that body votes to remand, refer or reconsider the revision request Benefit Further defines an “appealable event” Market Impact N/A System Change No Assumptions TAC Vote TAC unanimously recommended approval as amended by ERCOT comments; all Market Segments were present Effective Date May 1, 2009

PRR 804 – Revisions to Section 21 Appeals Process -- URGENT No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

Nodal Protocol Revision Request NPRR 149 Change the Name of Emergency Electric Curtailment Plan (EECP) to Energy Emergency Alert (EEA)

NPRR 149– Change the Name of Emergency Electric Curtailment Plan (EECP) to Energy Emergency Alert (EEA) Purpose (ERCOT) Companion of PRR 775; changes EECP to EEA; changes the defined term “Alert” to “Watch” Benefit Reduce confusion when ERCOT communicates statuses or reports on recent events Market Impact System Change Yes <$50K Assumptions Impacts EMS TAC Vote TAC unanimously recommended approval; all Market Segments were present Effective Date ERCOT believes NPRR 149 is needed for “go-live”; effective upon Nodal implementation; no impact to schedule

NPRR 149– Change the Name of Emergency Electric Curtailment Plan (EECP) to Energy Emergency Alert (EEA) No Impact Impact Description Item Reviewed Budget <$50K Staffing EMS Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

System Change Request SCR 754 Replace E-mail Delivery of WGRPP Forecasts Formerly “WGRPP Forecasts Posted on Zonal TML” Provides secure and programmatic means to supply WGR QSEs with ERCOT wind power forecast WGR QSE forecasts currently sent by e-mail, which has caused delays and errors WGR QSE-specific forecast required for ERCOT capacity adequacy studies ERCOT will utilize existing XML User Interface Project cost/timeline: $50-100k; 3 months TAC unanimously recommended approval; all market segments were present

Report: ERCOT CREs approved On March 20, ERCOT requested the addition of 3 North to Houston Closely Related Elements (CREs) Gibbons Creek-Singleton #2 Singleton-Roans Prairie Singleton-Tomball ERCOT requested the addition because the new Singleton substation split an existing CRE TAC unanimously approved the ERCOT request through an e-mail vote

Commercial Operations Market Guide Revision Requests COPMGRR 009 Planned Schedule Release and Planned Maintenance Outage Notifications Updates language describing ERCOT planned systems outages Unanimously approved by TAC; all market segments were present COPMGRR 010 Creating Section 12, Renewable Energy Credits Adds REC program language to improve information availability, impacts on REC program Unanimously approved by TAC; all market participants were present

Report: SCR Approved SCR 753 Transmission Outage Notice Detail Enhancements Increases transmission outage transparency to all market participants by making available information already stored in ERCOT databases No system project required, no FTEs required Minor programmatic changes to be absorbed by existing Staff and O&M budgets of affected departments

Report: 2009 TAC Goals Oversee stakeholder engagement in the ERCOT nodal market implementation program and ensure the activities of TAC and its subgroups are properly focused on delivering the nodal project by its intended Go-Live date; that Market Participant Readiness is communicated to the Board of Directors; and that post-Go-Live issues are properly framed and ready to be addressed after nodal market open.   Develop a renewable technologies integration plan which captures the benefits of new energy resources while addressing the challenges such resources pose and economically maintaining system reliability.

Report: 2009 TAC Goals Improve the transparency of the identification and analysis of transmission congestion, including out of merit dispatch, its communication to TAC, and the basis by which solutions are proposed, evaluated and implemented with the goal of maximizing market driven solutions. Oversee the development of advanced metering settlement, transaction, and procedural activities and assure appropriate revisions to the protocols and guides are made to reflect changes supporting successful implementation of advanced metering.  

Report: Wind Metrics Review of recently approved performance requirements and related performance metrics Use of AWS Truewind forecast for Day Ahead and intra-day capacity adequacy studies (PRR 763) Metric: pass/fail Low-Voltage Ride Through Requirement for new wind units (OGRR 208) and study for applicability to existing units (Study due June 2010) LSL as % of HSL (PRR 773) metric: pass/fail Deleted Resource Plan performance metric for intervals affected by PRR 763 (PRR 777) metric: removed in certain intervals

Report: Wind Metrics Ramp Rate limitation for new wind units (PRR 771) Metric: pass/fail Ramp Rate limitation for existing wind units (PRR 778) WGR QSE scheduling metric (PRR 793) WGR QSE meteorological data telemetry requirement (PRR 794)

Report: Wind Metrics Proposed metrics in process QSE Day Ahead Metric (PRR 800) Real Time Production Potential (PRR 811) Development of new and revised WGR and WGR QSE requirements and performance measures will be an ongoing task for some time RTWG issues development “governor-like” response Metrics development is part of draft Texas Renewables Integration Plan PUCT requested additional detail on issues prioritization and target dates for completion of tasks

Report: Unfunded Projects List Protocols Sec. 21.9 requires quarterly report to the ERCOT Board regarding projects on the “Unfunded Projects List” There are no Unfunded Projects at this time

Update: PRR 791 TAC considered the action and discussion on PRRs 776 and 791 at the March Board meeting A motion to table PRR 791 pending action by the PUCT carried unanimously; all market segments were present

Update: Stakeholder Engagement in Nodal Project TAC is engaged in productive and focused discussions with ERCOT Staff on best role for stakeholders to support nodal implementation and assure market participant readiness Key issues focus on market readiness activities productive engagement with ERCOT Staff coordination with ERCOT efforts visibility and input into ERCOT decision-making process transparency of relevant information to all market participants