Protocol Revision Subcommittee Presentation to the ERCOT Technical Advisory Committee April 8, 2010

PRS Summary 1 PRR for Approval 3 NPRRs for Approval 0 NPRRs for Parking Deck Consideration 0 Rejections 1 Request for Withdrawal Current Discussions

Items for a Vote Unanimous Recommendations PRR844, Transmission and/or Distribution Service Provider (TDSP) Definition Revision NPRR205, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Non-Unanimous Recommendations NPRR208, Registration and Settlement of Distributed Generation (DG) Less Than One MW NPRR210, Wind Forecasting Change to P50, Synchronization with PRR841

PRR844, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Purpose(ERCOT) This PRR revises the definition of TDSP to include Entities that have been selected to own and operate Transmission Facilities and have a code of conduct approved by the PUCT. Market Impact N/A System Change NoN/A PRS Vote PRS unanimously voted to recommend approval of PRR844 as amended by the 1/22/10 CenterPoint Energy comments. CEO Determination No opinion on necessity prior to go-live Effective Date June 1, 2010

PRR844, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact Minor modifications to TDSP application process with ERCOT

NPRR205, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Purpose(ERCOT) This NPRR revises the definition of TDSP to include Entities that have been selected to own and operate Transmission Facilities and have a code of conduct approved by the PUCT. Market Impact N/A System Change NoN/A PRS Vote PRS unanimously voted to recommend approval of NPRR205 as amended by the 1/22/10 CenterPoint Energy comments. CEO Determination Necessary for Go-Live Effective Date Upon Texas Nodal Market Implementation

NPRR205, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

NPRR208, Registration and Settlement of Distributed Generation (DG) Less Than One MW Purpose (NOIE DRG) The NPRR includes proposed language changes by the Non-Opt-In Entity (NOIE) Distributed Renewable Generation (DRG) Task Force in regards to the registration requirements for DG greater than 50 kW and less than or equal to one MW. In addition, this NPRR synchronizes language approved through PRR756, Distributed Renewable Generation Modifications, with some recommended revisions consistent with the NOIE DRG Task Force discussions. Market Impact N/A System Change NoN/A PRS Vote PRS voted to recommend approval of NPRR208 as amended by the Profiling Working Group (PWG) comments. There were two abstentions from the Consumer and Independent Generator Market Segments. CEO Determination No opinion on necessity prior to go-live Effective Date Upon Texas Nodal Market Implementation

NPRR208, Registration and Settlement of Distributed Generation (DG) Less Than One MW Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact New business processes required to produce quarterly reports

NPRR210, Wind Forecasting Change to P50, Synchronization with PRR841 Purpose (Morgan Stanley) This NPRR changes the wind forecasting methodology to use a 50% probability of exceedance calculation instead of an 80% for Reliability Unit Commitment (RUC) considerations. This NPRR would align the Nodal Protocols with changes made to the zonal Protocols pursuant to PRR841, which was approved by the ERCOT Board on 3/23/10. Market Impact None. System Change None.N/A PRS Vote On 2/18/10, PRS voted to recommend approval of NPRR210 as amended by the Luminant comments and as revised by PRS. There was one opposing vote from the Independent Generator Market Segment and three abstentions from the Municipal, Investor Owned Utility (IOU), and Independent Retail Electric Provider (IREP) Market Segments. On 3/25/10, PRS voted to endorse and forward the PRS Report for NPRR210 as revised by PRS to TAC. There was one opposing vote from the Independent Power Marketer (IPM) Market Segment and four abstentions from the Consumer, IOU (2), and IPM Market Segments. CEO Determination Necessary prior to the Texas Nodal Market Implementation Date Effective Date Upon Texas Nodal Market Implementation

NPRR210, Wind Forecasting Change to P50, Synchronization with PRR841 Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

Request forWithdrawals and Rejections NPRR210, Wind Forecasting Change to P50, Synchronization with PRR841

Parking Deck Priority None this month

PRR/NPRR Summary Revision Requests Unanimously Recommended for Approval with No Impacts NPRR205, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Revision Requests Not Unanimously Recommended for Approval with No Impacts NPRR210, Wind Forecasting Change to P50, Synchronization with PRR841 Revision Requests Unanimously Recommended for Approval with Impacts PRR844, Transmission and/or Distribution Service Provider (TDSP) Definition Revision Revision Requests Not Unanimously Recommended for Approval with Impacts NPRR208, Registration and Settlement of Distributed Generation (DG) Less Than One MW

2010 PRR Approval Cycle – Normal Timeline PRR Posting Deadline PRS Consideration PRS CBA/IA Review TAC Consideration Board Consideration Effective Date 23-Dec21-Jan18-Feb4-Mar23-Mar4/1/10 22-Jan18-Feb25-Mar8-Apr18-May6/1/10 26-Feb25-Mar22-Apr6-May15-Jun7/1/10 26-Mar22-Apr20-May3-Jun20-Jul8/1/10 23-Apr20-May17-Jun1-Jul20-Jul8/1/10 21-May17-Jun22-Jul5-Aug21-Sep10/1/10 25-Jun22-Jul19-Aug2-Sep21-Sep10/1/10 23-Jul19-Aug23-Sep7-Oct16-Nov12/1/10

Nodal Parking Deck - Approved by ERCOT Board Source Document TitlePriority Current Status NPRR131Ancillary Service Trades with ERCOTHigh Board Approved 1/19/10 NPRR181FIP Definition RevisionHigh Board Approved 1/19/10 NPRR153Generation Resource Fixed Quantity Block OfferMedium Board Approved 1/19/10 NPRR164Resubmitting Ancillary Service offers in SASMMedium Board Approved 1/19/10 SCR755ERCOT.com Website EnhancementsMedium Board approved 2/16/10

Nodal Parking Deck – Pending Approval Source Document Title Suggested Priority Current Status NPRR146ICCP Telemetry Information SubmittalsTBD Tabled at TAC PRS approved 2/19/09 NPRR207 Hour Start Unit Deselection and Half Hour Start Unit RUC Clawback High Pending at TAC PRS approved 2/18/10 NPRR211 Modify RUC Capacity Short Charge to Use Final Energy Trades TBD Pending IA review at PRS PRS approved 3/25/10 SCR756 Enhancements to the MarkeTrack Application TBDTabled at RMS