Report to TAC August 2009

In Brief Working Group Reports Working Group Reports CMWG CMWG DSWG (No report) DSWG (No report) MCWG MCWG MWG (No report) MWG (No report) QMWG QMWG VCWG VCWG Task Forces Task Forces Generation Adequacy – is reactivated. Generation Adequacy – is reactivated. Other Issues Other Issues RPRS Procurement RPRS Procurement Multiple Interconnection for Generation Multiple Interconnection for Generation Issues with North to South Congestion Issues with North to South Congestion

Active Task Force WMS reactivated the Generation Adequacy Task Force WMS reactivated the Generation Adequacy Task Force

Working Group Reports CMWG CRE Configuration Change CRE Configuration Change Report on Status Report on Status ERCOT reported that there were still some resource outages leading to reliability concerns; ERCOT reported that there were still some resource outages leading to reliability concerns; The outage scheduler showed September 1, as the date when the configuration would return to previous settings. The outage scheduler showed September 1, as the date when the configuration would return to previous settings. We had a great deal of discussion about whether or not the configuration should return to original setting if the proper resources returned before September 1. The alternative was to stick with the date in the outage scheduler. We had a great deal of discussion about whether or not the configuration should return to original setting if the proper resources returned before September 1. The alternative was to stick with the date in the outage scheduler.

Working Group Reports CMWG CRE Configuration Change Continued. CRE Configuration Change Continued. WMS requested CMWG examine this issue further emphasizing giving ERCOT the flexibility it needs while giving the market the needed transparency. WMS requested CMWG examine this issue further emphasizing giving ERCOT the flexibility it needs while giving the market the needed transparency CSC/CRE Update 2010 CSC/CRE Update The timeline is for WMS to vote on CSCs on August 19, bringing it to TAC September 3, and the Board in September or October. CREs would be close behind. The timeline is for WMS to vote on CSCs on August 19, bringing it to TAC September 3, and the Board in September or October. CREs would be close behind.

Working Group Reports MCWG NPRR 147 NPRR 147 WMS instructed MCWG to develop a NPRR that: WMS instructed MCWG to develop a NPRR that: Employs a combination of an ERCOT financing vehicle and a stakeholder funded pool to cover short-pay situations in the Day Ahead Market. Employs a combination of an ERCOT financing vehicle and a stakeholder funded pool to cover short-pay situations in the Day Ahead Market. WMS also endorsed MCWG doing further work on mutualization: WMS also endorsed MCWG doing further work on mutualization: developing a methodology of assigning the cost of defaults across all market participants (mutualization) provided we also reduce the exposure by accelerating payments. developing a methodology of assigning the cost of defaults across all market participants (mutualization) provided we also reduce the exposure by accelerating payments.

Working Group Reports QMWG PRR 811 and OGRR 223 – Real Time Production Potential PRR 811 and OGRR 223 – Real Time Production Potential Data mining in process from multiple wind resources Data mining in process from multiple wind resources QMWG recommended that real time data be telemetered, after which ERCOT can average or smooth the data. QMWG recommended that real time data be telemetered, after which ERCOT can average or smooth the data. On PRR 811 WMS moved for QMWG to submit comments on behalf of WMS. On PRR 811 WMS moved for QMWG to submit comments on behalf of WMS. WMS endorsed OGRR 223 WMS endorsed OGRR 223 Draft NOGRR for ICCP Handbook Change Control Draft NOGRR for ICCP Handbook Change Control WMS moved to table NOGRR until ROS has resolved issues with handbook through NDSWG. WMS moved to table NOGRR until ROS has resolved issues with handbook through NDSWG.

Working Group Reports VCWG NPRR168 – Verifiable Costs NPRR168 – Verifiable Costs WMS endorsed a methodology for calculating a Proxy Heat Rate for a unit’s operations from breaker close to LSL whereby the proxy is calculated twice a month. WMS endorsed a methodology for calculating a Proxy Heat Rate for a unit’s operations from breaker close to LSL whereby the proxy is calculated twice a month. WMS endorsed VCWG drafting an NPRR including the Nodal Surcharge in Verifiable Costs. WMS endorsed VCWG drafting an NPRR including the Nodal Surcharge in Verifiable Costs. Draft Nodal Verifiable Cost Affidavit Draft Nodal Verifiable Cost Affidavit WMS tabled and instructed VCWG to develop a document that could be signed by both a QSE and a RE. WMS tabled and instructed VCWG to develop a document that could be signed by both a QSE and a RE.

Working Group Reports RTWG RTWG is making efforts to be proactive on incorporating solar technologies in ERCOT. RTWG is making efforts to be proactive on incorporating solar technologies in ERCOT. Developing a white paper on wind ramping events. Developing a white paper on wind ramping events. Reviewed a recent NERC study on accommodating high levels of variable generation. Reviewed a recent NERC study on accommodating high levels of variable generation. Found that on a historical basis the capacity value of wind was about 10% on average over the top 10 load hours. Found that on a historical basis the capacity value of wind was about 10% on average over the top 10 load hours.

Other WMS activity RPRS Procurement RPRS Procurement ERCOT is procuring significant amounts (up to 3000 MW) of RPRS in the late June mid July time period. These procurements tend to depress the Balancing Energy price. There is a concern that this encourages leaning on the balancing energy market. ERCOT is procuring significant amounts (up to 3000 MW) of RPRS in the late June mid July time period. These procurements tend to depress the Balancing Energy price. There is a concern that this encourages leaning on the balancing energy market. The issue of over forecasting load came up again. The issue of over forecasting load came up again. The net result is that in many intervals it appears that pricing does not reflect shortage conditions. The net result is that in many intervals it appears that pricing does not reflect shortage conditions.

Other WMS Activity Multiple Interconnection for Generation Multiple Interconnection for Generation The issue arose in the context of CREZ where a resource may wish to connect to a location other than where they are presently. The issue arose in the context of CREZ where a resource may wish to connect to a location other than where they are presently. WMS created a small group that will meet with a small group from ROS to go through the protocols guides to see where there may be some problems. Additionally the group will start framing the policy issues around multiple interconnections. WMS created a small group that will meet with a small group from ROS to go through the protocols guides to see where there may be some problems. Additionally the group will start framing the policy issues around multiple interconnections.