TeraVolt Energy Industry Perspective on Energy Storage Issues ERCOT ETWG 17 Sept 2015 James A. “Hoss” Boyd, LtCol (Retired) TeraVolt Energy President & CEO

TeraVolt Energy Industry Perspective on Energy Storage Issues TVNRG is a Texas based Solar Energy and Energy Storage Developer and the Texas Affiliate of Borrego Solar Presentation gives an industry perspective on Energy Storage benefits and inhibitors to development Cyrus Reed dovetails with “the Rest of the Story”

TeraVolt Energy Background NPRR 410 (posted 7 Sept 2011) – Described ES (Energy Storage) as both a load and a generator Recent developments highlight a third aspect of ES – Transmission and distribution line augmentation – NPRR was withdrawn PURA prohibits T&M (Transmission and Distribution) line companies from owning generation assets – Technically no new electricity is generated---ES is just a storage medium – Primary objections to addition of ES by T&M companies came from generation companies.

TeraVolt Energy Questions to be Answered and Benefits Gained What are ways ES would improve the ERCOT Grid? How would ES help T&M companies? How would ES help both Renewable and Traditional Generators? How would ES benefit the ultimate consumer?

TeraVolt Energy Solutions No Changes to the Law should be necessary – PURA allows ES Operators to own and operate ES as generation resources Request the PUC allow T&M companies to contract with ES Operators for grid support only, AND/OR Request the PUC allow T&M companies to own ES on their systems but require T&Ms to sell electricity marketing rights to ES Operators (who would also control the operation of the resources). (Note: These are solutions that may be already covered by ERCOT Rules and the PUC Regs but might need to be clarified or re-evaluated. Since this is from the limited perspective of the author, others may have better insight.)

TeraVolt Energy Benefits – ES Developers would be incentivized to invest in the systems ES Operators (as generators) could sell the electricity through the ERCOT market as market participants, collect service fees from T&Ms, and receive incentives as a standby reserve resource – T&Ms would have lower capital investment in line equipment ERCOT could include the service charges for ES line support in Transmission and Distribution Line Charges reimbursable to the T&Ms – ERCOT would benefit from ES installed as standby resources

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