December 18, 2014 Technical Advisory Committee (TAC) Update to RMS Kathy Scott January 6, 2015 TAC Update to RMS 1

ERCOT Board Update All recommended voting items received by the Board from TAC were Approved during the December 9 th Board Meeting. NPRR667 – Ancillary Service Redesign ◦ Requires 3,500 hours of development work including vendor support, which means implementation will not occur in less than 8 months. This also means project’s timeframe to start should be April for 2015 year end implementation date.  WMS will need to work to complete their tasks to allow NPRR667 implementation to go as planned.  NPRR667 status report will be discussed by TAC during the March 2015 TAC meeting Seasonal Adjustment Factor ◦ Topic of discussion at the December Board. MPs should talk to your Credit Working Group members to get this moving out of the Credit Working Group (CWG). The ERCOT Board is looking for a final solution on the Seasonal Adjustment Factor. January 6, 2015TAC Update to RMS2

PRS Initiatives Nodal Protocol Revision Requests (NPRRs) ◦ NPRR642, Constraint Management During Energy Emergency Alerts (Vote) – Motion to Table awaiting associated NOGRR was approved by TAC ◦ NPRR645, Real-Time On-Line Capacity Revisions (Vote) – Approved ◦ NPRR648, Remove References to Flowgate Rights (Vote) - Approved ◦ NPRR658, Changes to Annual Reporting Requirements for RUC Payments Made to Resources with PPAs (Vote)- Approved ◦ NPRR659, Discontinue RMR Cost Data Deviation Requests/Responses Report (Vote) - Approved ◦ NPRR665, As-Built Clarification of Reliability Deployment Price Adder (Vote) - Approved January 6, 2015TAC Update to RMS3

Withdrawals and/or Tabled Revisions Withdrawal: ◦ SCR782 and SCR784 – Request for Withdrawal by ERCOT was approved by PRS. ERCOT and the TDSPs have worked together and recommended combining only the necessary requirements into NPRR783, which should reduce market cost to implement this project.  Notice only to TAC Request Previously Tabled at TAC: ◦ VCMRR005, Index Fuel Price Urgent – Approved with ERCOT’s comments ◦ NPRR646, Emergency Operations Settlement for CFC (formerly Emergency Operations Settlement for CFC Testing) – Remained Tabled awaiting associated NOGRR January 6, 2015TAC Update to RMS4

Wholesale Market Subcommittee (WMS) ◦ Minimum PTP Option Bid Price (Vote) - Approved ◦ RUC Task Force Update:  Concludes –  When the wind chill is expected to be below freezing, a minimum of 600 MW of additional online generation capacity should be procured.  1300 MW when wind chill is expected to be below 20 degrees Fahrenheit  This accounts for the average amount of new generation forced outage, and is not intended to account for extreme evens like January 6 or February 6  This Conclusion will require more discussion at WMS to consider Ancillary Services as an option before invoking RUC. ◦ Supply Analysis Working Group (SAWG) Update Reliability Operations Subcommittee (ROS)  Update Only January 6, 2015TAC Update to RMS5 WMS and ROS Initiatives

Commercial Operations Subcommittee (COPS) ◦ No Update since COPS didn’t meet in December 2014 Retail Market Subcommittee (RMS) ◦ Update only of Retail Market Subcommittee Accomplishments for 2014 and End-of-Year Report Card:  January 6, 2015TAC Update to RMS6 COPS and RMS Initiatives

Ancillary Services Re-design Update Ancillary Services Re-design Update ◦ NPRR667 – Ancillary Service Redesign (posted)  Reminder: Comments due by January 21, 2015 ◦ NPRR667 – Impact Analysis (posted)  Reminder: Workshop dedicated to NPRR667 to discuss Market comments received by 1/21/15 instead of merging with another subcommittee meeting (couple of suggested dates planned for end of January 2015)  Reminder: Workshop maybe created dedicated to reviewing NPRR667 CBA January 6, 2015TAC Update to RMS7

ERCOT Operations & Other Business Brad Jones, new ERCOT COO, provided presentation of the ERCOT Organizational changes, Ken McIntyre will replace Brad at TAC. ◦ Per Brad there shouldn’t be any changes to ERCOT’s current representation at the Subcommittee level. January 6, 2015TAC Update to RMS8

Questions? 9January 6, 2015TAC update to RMS