March 7, 2013 Technical Advisory Committee (TAC) meeting update to RMS Kathy Scott March 20, 2013TAC Update to RMS 1

PRS Initiatives and Votes Nodal Protocol Revision Requests (NPRRs) (Vote): ◦ NPRR495, Changes to Ancillary Services Capacity Monitor  Unanimously Approved by TAC ◦ NPRR500, Posting of Generation that is Off but Available  Priority 2014 rank of 950 – was approved with 4 NO votes and 1 abstention. ◦ NPRR510, Discretion in Operating Days in OUT Calculation, Clarification of Source of ACP and Clarification of the Definition of Financial Statements  Unanimously Approved by TAC ◦ NPRR511, Correction to Emergency Energy Settlement Language – U RGENT  M OTION : T ABLE NPRR511 AT TAC AND TAC WILL REQUEST WMS TO DISCUSS AND MAKE A RECOMMENDATION TO TAC WAS UNANIMOUSLY A PPROVED BY TAC March 20, 2013TAC Update to RMS2

PRS Initiatives and Votes (cont.) ◦ NPRR518, Removal of Notification Requirement for Disclosures of Protected Information Required by CFTC – U RGENT  Unanimously Approved by TAC ◦ NPRR520, Real-Time Mitigation Rules and Creation of a Real-Time Constraint Competitiveness Test – U RGENT  Motion to include another binding document should be created and brought back to TAC for their April meeting.  Motion to Approve with ERCOT’s comments and binding document requirement was Approved with 4 abstentions. ◦ NPRR521, Transitional CRR Auction Capacity Value for Initial CRR Long- Term Auction Sequence – U RGENT  Unanimously Approved by TAC ◦ SCR772, New Extract for Five Minute Interval Settlement Data  Unanimously Approved by TAC March 20, 2013TAC Update to RMS3

PRS Initiatives and Votes (cont.) SCR773, Addition of Regulation Feedback to Generation to be Dispatched Calculation – U RGENT  TAC unanimously approved as recommended by PRS with a priority of 2013 and rank of 595. Impact Assessment for Parking Deck SCR756, Enhancements to the MarkeTrak Application (Vote) ◦ Unanimously approved by TAC with PRS/RMS recommended Priority of 2013 and Rank of 735 Notice of PRS Reprioritization of NOGRR084, Daily Grid Operations Summary Report ◦ Vote wasn’t conducted by TAC during this month’s meeting since more discussion will be needed by Market Participants NPRR487, QSGR Dispatch Adjustment – U RGENT (Vote) ◦ TAC Unanimously Approved with a Priority of 2014 and a Rank of 960 March 30, 2013TAC Update to RMS4

ROS Initiatives and Votes Reliability and Operations Subcommittee Report * ◦ NOGRR107, Disturbance Monitoring Requirements Clarification (Vote)  Request to Table NOGRR107 at TAC to request ROS/TRE to address TAC concerns about the application and need of this revision request– Motion was unanimously approved. ◦ NOGRR108, QSE and TSP Hotline Responsibilities (Vote)  Unanimously Approved by TAC ◦ PGRR025, Addition of Criteria for Autotransformer Unavailability (Vote)  Approved by TAC with 3 NO votes and 1 abstention. March 20, 2013TAC Update to RMS5

WMS Initiatives and Votes Wholesale Market Subcommittee Report* ◦ Alternatives to Definition of Wholesale Storage Load Created by NPRR461, Energy Storage Settlements Consistent With PUCT Project (Possible Vote)  Motion: TAC unanimously recommended that the WSL definition remain in the Protocols and that it retain the eligible technologies clarity requested by ERCOT, and directed the Emerging Technologies Working Group via WMS to proceed with redefining WSL-eligible technologies criteria, with a list for illustrative purposes ◦ Direction on Letter of Credit Concentration (Possible Vote)  ERCOT proposed a dollar limit on letters of credit per counter party per financial institution and an overall limit per financial institution based upon credit rating and tangible net worth with an absolute cap. ERCOT would be required to notify the market if near the aggregate limit.  MCWG and CWG spent lot of time on this, but all proposals raised serious concerns. WMS is requesting TAC guidance on this issue since it appears there is currently no workable solution.  No vote taken by TAC since more discussion will by needed by TAC Leadership March 20, 2013TAC Update to RMS6

COPS and RMS Initiatives and Votes Commercial Operations Subcommittee Report * ◦ Confirmation of 2013 COPS Leadership (Vote)  Harika Basaran, Austin Energy - Chair  Jim Lee, Direct Energy - Vice Chair  Both were Unanimously Confirmed by TAC ◦ LPGRR049, Include AMS ESI IDs in the Annual Validation Process (Vote)  Motion to Table LPGRR049 at TAC was unanimously approved by TAC pending approval of the associated NPRR504 at the ERCOT Board on March 19, 2013 before TAC considers this document. Retail Market Subcommittee Report* ◦ RMS Leadership provided only an RMS update this month since there were no voting items requiring TAC consideration from RMS March 20, 2013TAC Update to RMS7

Additional Votes or Recommendations Review 2/18/13 ERCOT Comments to NPRR489, Planning Reserve Margin (Possible Vote) ◦ Unanimously Approved by TAC Ancillary Services Methodology (Vote) ◦ Motion: TAC to endorse the Ancillary Service Methodology as written and endorsed by WMS and ROS, also ERCOT supports this endorsement.  TAC conducted roll-call vote: Failed ◦ Motion: To approve the Ancillary Service Methodology to remove the bias along with an effective date of May 1,  TAC conducted roll-call vote: Failed ◦ Motion: Stay with what we currently have in place until October 2013, timeline would be discussed at September’s WMS and recommendation to TAC in October – Motion passed with 2 abstentions March 20, 2013TAC Update to RMS8

Additional Votes or Recommendations ERS Weather-Sensitive Loads Pilot Project (Possible Vote) ◦ Pilot Timeline: June through September 2013 ERS Contract Period ◦ To be eligible to participate:  The Load must consist exclusively of residential sites and must qualify for performance evaluation under either the regression baseline methodology or the control group baseline methodology; or  The Load must consist exclusively of non-residential sites and must qualify as Weather-Sensitive under the regression baseline evaluation methodology. ◦ QSE participating in pilot must agree to participate in a post pilot survey ◦ Minimum Offer size – 100 KW ◦ Maximum pilot size 30 MWs ◦ Motion: TAC unanimously approved concept for ERS Weather-Sensitive Loads Pilot Project March 20, 2013TAC Update to RMS9

Additional Votes or Recommendations Proposed Revisions to Methodology for Setting Max Shadow Prices (Vote) ◦ Motion: Refer this request to WMS for discussion and an recommendation to TAC was unanimously approved. Update on TAC Workshop: Reserve Demand Curve ◦ TAC Leadership provided brief update concerning workshop held last month that recommended a Resource Adequacy Work plan Resource Adequacy Work Plan (Possible Vote) ◦ Motion for approval of the formation of Resource Adequacy Taskforce under WMS was unanimously approved by TAC March 20, 2013TAC Update to RMS10

Questions? 11March 20, 2013TAC update to RMS