ERCOT Strategic Plan H.B. “Trip” Doggett President and Chief Executive Officer Technical Advisory Committee ERCOT Public December 3, 2013

TAC 11/6/ ERCOT Strategic Pillars Anticipate and communicate potential reliability issues through improved enterprise wide planning processes, probability scenario analyses, and grid impact evaluations. Operational Reliability Work to anticipate changes in market dynamics and systems and respond effectively to changes in market rules and processes that are directed toward maintaining a highly reliable grid and open access to ERCOT markets. Flexible Market Design Continue to evolve ERCOT’s role as a data and information gateway for electricity markets in Texas, recognizing its unique role and the value created for consumers and stakeholders of relevant, quality and timely market and technical intelligence. Data Transparency & Access Further evolve the stakeholder committee process to improve strategic alignment of processes and outcomes, including the use of strategic alignment and efficiency goals and measures. Committee Strategic Alignment

TAC 11/6/ Committee Strategic Alignment – Implementation GoalDeliverable The Board of Directors will identify and assign strategic goals to its sub-committees to provide consistency and alignment to the ERCOT strategic plan. TAC will ensure alignment to these goals down through the ERCOT committee structure. Subcommittees will submit goals to Board for review and consideration by February, ERCOT staff will work with Sponsors of Revision Requests to categorize them as either Operational, Strategic, Efficiency, Administrative, or Regulatory. Update the Nodal Protocol Revision Request to reflect categories. Greater involvement of ERCOT executive staff, in partnership with TAC, will maintain a high level focus on the strategic direction of the market and potential impacts to the ERCOT organization. Executive assignment to TAC supported by Director and Manager level assignment to supporting subcommittees (see next slide for details). The Sponsor will be responsible to complete the benefits portion (quantitative and qualitative) of the Revision Request. ERCOT will comment on reasonableness of approach, assumptions and methodology to develop Benefits from either CBA or Business Case. Modify the Nodal Protocol Revision Request to better delineate qualitative and quantitative benefits and provided area to identify market segments/stakeholders impacted by change. The Board of Directors, through the periodic budget review process will ensure alignment of sub-group efforts with the overall strategic direction of ERCOT. Improve strategic alignment among the ERCOT Board of Directors, ERCOT organization and ERCOT stakeholders by a Board annual review process of subcommittees, setting of annual strategic goals, greater participation of ERCOT Executives, and an enhanced process to evaluate proposed market rule revisions.

TAC 11/6/ Technical Advisory Committee (TAC) –Brad Jones, Vice President Commercial Operations Commercial Operations Subcommittee (COPS) –Mandy Bauld, Director Settlements and Retail Operations Protocol Revision Subcommittee (PRS) –Kristi Hobbs, Director Enterprise Risk Management & Strategic Analysis –Troy Anderson, Manager Portfolio Management Retail Market Subcommittee (RMS) –Mandy Bauld, Director Settlements and Retail Operations Reliability and Operations Subcommittee (ROS) –Dan Woodfin, Director System Operations Wholesale Market Subcommittee (WMS) –John Dumas, Director Wholesale Operations ERCOT Staff Assignments to Stakeholder Committees