Congestion Revenue Rights Activity Calendar Update Donald House CMWG September 19, 2014

2 Protocol section 7.5.1(4)(b)(iii), CRR Auctions, requires ERCOT to maintain and publish a calendar of key milestone dates for the Congestion Revenue Right (CRR) auctions The “CRR Activity Calendar” is posted on the ERCOT public site and has all activity scheduled out through 2015 ERCOT is proposing to update the calendar to cover CRR activity through 2016 ERCOT would like to review the draft calendar with CMWG and ask for their endorsement of the proposed changes Summary

3 Current calendar –Dates from the currently approved calendar remain unchanged, with two minor exceptions –Credit lock date and auction bid window close date will be the same after implementation of NPRR586 on October 1, 2014 Current posted calendar reflects this change, as approved by TAC on April 24, 2014 – clean version (without grey box) will be posted on October 1 Added dates to cover CRR activity through 2016 –The same patterns were applied to 2016 to maintain Protocol requirements and consistency –The last long-term auction sequence covered by the proposed calendar is the initial auctioning of 7/1/18 through 12/31/18 –The last monthly auction covered by the proposed calendar is the February 2017 monthly auction Description of Changes - Overview

4 “On or Before This Date” was added to column headings for the following: –Post auction results –Credit release –Invoice posting –Ownership assigned Clarifies historical practices and provides flexibility for ERCOT to post results and release Auction credit early, when possible (most likely for LTAS Auctions) –Always accompanied by a Market Notice stating the posting date and the associated Invoice date Description of Changes – Column Headings

5 ERCOT proposes to not delay LTAS Seq. 3 and 4 until after the end-of-year holidays for the end of 2016/beginning of 2017 period –2018.1st6.AnnualAuction.Seq3 only moved back by 1 week to avoid overlapping bid window with 2017.JAN.Monthly.Auction –Dates for these auctions already avoid major holiday conflicts Biggest potential conflict is posting Seq. 3 Invoice on 12/30/2016 Option for continuing to delay LTAS Seq. 3 and 4 is provided in the calendar draft Description of Changes – Holiday Conflicts

6 The bid window and subsequent dates for the October 2015 monthly auction are updated to be in line with the typical monthly auction pattern –The pattern was originally modified to move the credit lock date to be after a Monday holiday –No longer relevant following the implementation of NPRR586 The model post date for st6.AnnualAuction.Seq3 is being updated from 12/14/2015 to 12/10/2015 –Corrected to properly take holidays into consideration for the posting requirement Description of Changes – Additional Notes

7 ERCOT plans to take the proposed calendar to WMS for endorsement on October 2 or 6, 2014 And, then to TAC for final approval on October 23, 2014 Once approved, the new version of the calendar will be posted on the ERCOT public site Next Steps

8 ERCOT would like feedback from CMWG on the current practice of sending a reminder Market Notice one Business Day before the auction credit lock –With credit lock aligning with bid window close (NPRR586), is this Market Notice necessary? –This Market Notice is not required by Protocol ERCOT currently posts reminder operator messages on the MUI on the morning of both the credit lock and bid window close dates –Is it sufficient going forward to post one reminder operator message (combining credit lock and bid window close), without the Market Notice? Additional Item – Credit Lock Reminder Market Notices