ERS Update Plus Revisions to Proposed Changes for ERS Time Periods Presented to: Demand Side Working Group November 5, 2014

2 Emergency Response Service (ERS) Trends

3 Revisions to Proposed Changes for ERS Time Periods

4 Align ERS time periods with the seasonal and hourly changes in the risk of entering into an EEA –Winter Peaks, currently winter peak hours (less than 2% of the annual hours) requires to contract for all NBHs for both the Oct- Jan and Feb-May standard contract terms (≈43% of the annual hours) Optimize the allocation of ERS expenditure dollars Purpose of Proposed Changes

5 Summary of Discussions February and the August DSWG Meetings – ERCOT introduced two options, one changed both SCT and Time Periods, the other only Time Periods. –A common concern from DSWG was that both options would introduce unnecessary confusion during the Standard Contract Terms and put providers at risk during deployments –DSWG requested that ERCOT develop a third option that would keep the time period definitions consistent across Standard Contract Terms August DSWG – 3 rd Option presented with a request that variations for the Business Hours 3 be considered. Options 3, 4, 5 and 6 now up for consideration

6 Option 3, 4 and 5 Features: 1.Modify time periods within each SCT to enable better alignment with the risk of ERS deployments 2.New time period that targets morning winter peak hours before the existing Business Hours 1 Time Period and extending evening Business Hours to 10 p.m. 3.Time Periods would be consistent across all SCTs 4.No change to the SCTs ERCOT recommends implementation at the beginning of the 2016 ERS Budget year (initiate for the Feb-May 2016 SCT) Changes would only require a 90 day notice and modifications to the Technical Requirements & Scope of Work document Would NOT require PUC Rule change, NPRR, or redefinition of the ERS budget year

7 Option 3 details Time Period NameTime Period Hours Business Hours 0 Hours Ending 0600 – 0800 (5:00:00a.m. to 8:00:00a.m.) Monday through Friday except ERCOT Holidays Business Hours 1 Hours Ending (8:00:00a.m. to 1:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 2 Hours Ending (1:00:00p.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3 Hours Ending (4:00:00p.m. to 10:00:00p.m.) Monday through Friday except ERCOT Holidays. Non-Business HoursAll other hours

8 Option 4 details Time Period NameTime Period Hours Business Hours 0 Hours Ending 0600 – 0800 (5:00:00a.m. to 8:00:00a.m.) Monday through Friday except ERCOT Holidays Business Hours 1 Hours Ending (8:00:00a.m. to 1:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 2 Hours Ending (1:00:00p.m. to 7:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3 Hours Ending (7:00:00p.m. to 10:00:00p.m.) Monday through Friday except ERCOT Holidays. Non-Business HoursAll other hours

9 Option 5 details Time Period NameTime Period Hours Business Hours 0 Hours Ending 0600 – 0800 (5:00:00a.m. to 8:00:00a.m.) Monday through Friday except ERCOT Holidays Business Hours 1 Hours Ending (8:00:00a.m. to 1:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 2 Hours Ending (1:00:00p.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3 Hours Ending (4:00:00p.m. to 8:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 4 Hours Ending (8:00:00p.m. to 10:00:00p.m.) Monday through Friday except ERCOT Holidays. Non-Business HoursAll other hours

10 Option 6 details Time Period NameTime Period Hours Business Hours 0 Hours Ending 0600 – 0800 (5:00:00a.m. to 8:00:00a.m.) Monday through Friday except ERCOT Holidays Business Hours 1 Hours Ending (8:00:00a.m. to 1:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 2 Hours Ending (1:00:00p.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3 Hours Ending (4:00:00p.m. to 7:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 4 Hours Ending (7:00:00p.m. to 10:00:00p.m.) Monday through Friday except ERCOT Holidays. Non-Business HoursAll other hours

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26 Implementation of NPRR491/634 (Reporting of Demand Response) ERCOT shall post on the MIS Public Area by the fifth Business Day after the start of a calendar month a report of the MW of Demand response that is participating in the past month in: –ERS ERS Load ERS Gen Gen offsetting Load –Load Resource providing A/S –Any Pilot Project Data will be aggregated according to 2003 ERCOT Congestion Management Zone On an annual basis, ERCOT shall work with Market Participants to produce a report summarizing Demand response programs, and MWs enrolled in Demand response in the ERCOT Region.

27 Name Plate Rating for Generators Protocols Section Reporting of Demand Response To the extent that a participating generator is not registered with ERCOT, information about the nameplate rating of the generator and the maximum deliverable to the ERCOT Transmission Grid or to serve native load shall be collected through the ERS contracting process. The ERS Submission form was updated during the Oct14Jan15 SCT to include a column titled Generator Name Plate Rating (MW). For Oct14Jan15 we did not require the column to be filled in since the protocol section referenced above was still gray boxed. For the FebMay15 SCT if the column is not filled in you will receive an error book.

28 Questions