RCWG Update to WMS July 8,

VCMRR008 - Alignment with NPRR700, Utilizing Actual Fuel Cost in Startup Offer Caps NPRR700 approved at May 2015 WMS meeting Clarifying the distinction between Verifiable Startup Offer Caps used in the MMS to cap offers and Verifiable Startup Costs used in the Settlement System to establish costs, both for the DAM and RUC. ERCOT submitted comments Vote? 2

VCMRR009 Calculation of Minimum Fuel Requirements Fee Background: ERCOT seeking clarification on allocating minimum gas transportation costs in the fuel adder calculation Resource can elect to submit an “actual” fuel adder instead of the default $0.50/MMBtu Resource must submit documentation to ERCOT for verification Options to allocate minimum requirement costs 1.Allocate to resource usage only, excluding third-party and storage 2.Allocate to resource and third-party usage, excluding storage 3.Allocate across all activity on transportation contract VCMRR reflects Option 1, as endorsed by WMS IMM submitted comments Vote? 3

RT Mitigation During Exceptional Fuel Events (Alternative to NPRR664) Options Discussed – Option 1 – Reinstate the manual workaround for the Real-Time Make-Whole Payment for Exceptional Fuel Costs in NPRR 664 – Option 2 - Pursue “Exceptional Fuel Cost flag” concept – Option 3 - Increase MOC’s during Cold Weather Events Engie (GDF Suez) submitted NPRR714 for Option 1 4