Protocol Revision Subcommittee Sandy Morris December 1, 2011

2 Summary of Revision Requests 10 NPRRs Recommended for Approval 1 SCR Recommended for Approval 3 NPRR Withdrawn

3 Items for a Vote Unanimous Recommendations with No Impacts –NPRR414, Clarification of Pre-DAM RUC Instruction Sequence –NPRR415, UFE Calculation Clarifications –NPRR426, Standing Non-Spin Deployment in the Operating Hour for Generation Resources Providing On-Line Non-Spin - URGENT Unanimous Recommendations with Impacts –NPRR413, Oklaunion Exemption Calculation Verification

4 Items for a Vote - Continued Non-Unanimous Recommendations with No Impacts –NPRR351, SCED Look-Ahead Step 1: Pricing: Calculate Non-Binding Prices and Basepoints for Initial Research into SCED Look-Ahead and allow Consumers to have a Forward Price Projection (formerly “Calculate and Post Projected Non-Binding LMPs for the Next 15 Minutes”) – URGENT –NPRR405, Clarification of DC Tie Load Into Operational Systems and Processes –NPRR408, Clarification of ERCOT Authority to Deny Energization of Non-Compliant Generators –NPRR417, TDSP Submittal of Consumption and Demand Values for AMS ESI IDs –NPRR427, Energy Offer Curve Requirements for Generation Resources Assigned Reg-Up and RRS – URGENT –NPRR428, Energy Offer Curve Requirements for Generation Resources Assigned Non-Spin Responsibility – URGENT Non-Unanimous Recommendations with Impacts –NPRR351, SCED Look-Ahead Step 1: Pricing: Calculate Non-Binding Prices and Basepoints for Initial Research into SCED Look-Ahead and allow Consumers to have a Forward Price Projection (formerly “Calculate and Post Projected Non-Binding LMPs for the Next 15 Minutes”) – URGENT Withdrawals (no vote needed) –NPRR381, Registration Requirements for Interconnecting Entities –NPRR409, Outage Planning Criteria Clarifications and Enhancements to Narrow Gap Between Real-Time Operations and Outage Planning –NPRR420, Correct South Hub Back to Original Definition

5 NPRRs Recommended for Approval

6 NPRR351, SCED Look-Ahead Step 1: Pricing: Calculate Non-Binding Prices and Basepoints for Initial Research into SCED Look-Ahead and allow Consumers to have a Forward Price Projection Purpose (WMS) Using the inputs specified in this NPRR, ERCOT will calculate prices and base points over the next hour, using an hour-long optimization instead of a five- minute optimization. These calculated prices and base points will initially be non-binding, although it is anticipated that these will become binding as SCED Look-Ahead progresses in future phases. PRS Vote On 11/29/11, PRS voted to recommend approval of NPRR351 as amended by the 10/11/11 ERCOT comments and to endorse Option 2 via roll call vote. There were three opposing votes from the Independent Generator and IPM (2) Market Segments and two abstentions from the IPM and IOU Market Segments. PRS then voted to recommend a priority of 2012 and rank of 100, to forward NPRR351 to TAC, and to endorse the Business Case as set forth in the 9/20/11 Trefny-Crockett comments. There were two opposing votes from the Consumer and IPM Market Segments and five abstentions from the Independent Generator (2), IPM and IOU (2) Market Segments. Effective Date/Priority Upon System Implementation – Priority 2012; Rank 100 ERCOT Impact$650k - $750k (system implementation), $30k - $40k per year (ongoing infrastructure); impacts to MMS, EMS, MIS, CDR, and ISM; impacts to ERCOT business functions; Business Case Highlights Indications at 9/1/11 PUCT Open meeting that it is very important to improve the ability of loads to respond to market prices as part of the overall plan for Resource and reserve adequacy and shortage pricing market design and that this NPRR or something similar must be in place and urged ERCOT and ERCOT stakeholders to move forward; ability of loads to respond to prices is significantly enhanced by providing notice of a non-binding projection of prices; enhances market data transparency by providing the non-binding price projections to all Market Participants on the MIS Public Area.

7 NPRR405, Clarification of DC Tie Load Into Operational Systems and Processes Purpose (EDF Trading) This NPRR clarifies that Direct Current Tie (DC Tie) exports are to be treated as Load. PRS VoteOn 10/20/11, PRS voted to recommend approval of NPRR405 as submitted. There was one opposing vote from the Consumer Market Segment and two abstentions from the Independent Generator and Municipal Market Segments. On 11/17/11, PRS voted to endorse and forward the 10/20/11 PRS Report and Impact Analysis for NPRR405 to TAC. There was one opposing vote from the Consumer Market Segment and one abstention from the Independent Generator Market Segment. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactNo Impacts Business Case Highlights Qualitative benefits include clarification of Protocols; provision of service to DC Tie exports that they pay for.

8 NPRR408, Clarification of ERCOT Authority to Deny Energization of Non-Compliant Generators Purpose (ERCOT) This NPRR clarifies ERCOT’s authority to deny energization of a new or materially changed All-Inclusive Generation Resource if ERCOT determines the Resource Entity cannot demonstrate that the Resource would be able to comply with technical standards in the Protocols, the Planning Guide, the Nodal Operating Guides, and Other Binding Documents. PRS VoteOn 10/20/11, PRS voted to recommend approval of NPRR408 as amended by the 10/19/11 Topaz comments. There was one abstention from the Independent Generator Market Segment. On 11/17/11, PRS unanimously voted to endorse and forward the 10/20/11 PRS Report as revised by PRS and Impact Analysis for NPRR408 to TAC. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactNo Impacts Business Case Highlights Improve reliability by clarifying ERCOT’s authority to deny energization of any All-Inclusive Generation Resource when the Resource owner cannot demonstrate that the Resource will comply with technical standards listed above; encourage the construction of Facilities that comply with those standards; eliminates any uncertainty over ERCOT’s authority to preclude energization of non- compliant All-Inclusive Generation Resources.

9 NPRR413, Oklaunion Exemption Calculation Verification Purpose (ERCOT) This NPRR adds details to describe the ERCOT adjustment process when Oklaunion-exempt Load exceeds the actual net output of the Oklaunion Resource and adds the requirement to designate a non- exempt Qualified Scheduling Entity (QSE). PRS VoteOn 10/20/11, PRS unanimously voted to recommend approval of NPRR413 as submitted. On 11/17/11, PRS unanimously voted to endorse and forward the 10/20/11 PRS Report and Impact Analysis for NPRR413 to TAC. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactLess than $5k for minor changes to internal software program (covered by O&M budget) Business Case Highlights Transparency and clarity in Protocols.

10 NPRR414, Clarification of Pre-DAM RUC Instruction Sequence Purpose (ERCOT) This NPRR clarifies the treatment of Reliability Unit Commitment (RUC) instructions for instances in which ERCOT issues instructions prior to the closing of the Day-Ahead Market (DAM) submission window and to clarify how a QSE may self-commit in such a scenario. PRS VoteOn 10/20/11, PRS unanimously voted to recommend approval of NPRR414 as revised by PRS. On 11/17/11, PRS unanimously voted to endorse and forward the 10/20/11 PRS Report as revised by PRS and Impact Analysis for NPRR414 to TAC. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactNo Impacts Business Case Highlights Provide clarity in Protocols.

11 NPRR415, UFE Calculation Clarifications Purpose (ERCOT) This NPRR clarifies language in the Unaccounted for Energy (UFE) calculation. PRS VoteOn 10/20/11, PRS unanimously voted to recommend approval of NPRR415 as submitted. On 11/17/11, PRS unanimously voted to endorse and forward the 10/20/11 PRS Report and Impact Analysis for NPRR415 to TAC. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactNo Impacts Business Case Highlights Clarifies the use of the terms for scheduled and actual energy; consistent and clarified Protocol language.

12 NPRR417, TDSP Submittal of Consumption and Demand Values for AMS ESI IDs Purpose (ERCOT) This NPRR documents an existing market process where the Transmission and/or Distribution Service Providers (TDSPs) are providing consumption and demand data for Advanced Metering System (AMS) Electric Service Identifiers (ESI IDs) so the data can be utilized in the implementation of NPRR251, Synchronization of PRR845, Definition for IDR Meters and Optional Removal of IDR Meters at a Premise Where an Advanced Meter Can be Provisioned. PRS VoteOn 10/20/11, PRS voted to recommend approval of NPRR417 as submitted. There were three abstentions from the IPM and Independent Generator (2) Market Segments. On 11/17/11, PRS unanimously voted to endorse and forward the 10/20/11 PRS Report for NPRR417 as revised by PRS and Impact Analysis for NPRR417 to TAC. Effective Date/PriorityFebruary 1, 2012 ERCOT ImpactNo Impacts Business Case Highlights Allows for the use of existing non-IDR 867_03, Monthly Usage, information being submitted by the TDSP for AMS ESI IDs in support of implementing NPRR251 and for ERCOT to make changes to existing code when developing a solution for NPRR251, which results in a lower cost solution to deliver the functionality.

13 NPRR426, Standing Non-Spin Deployment in the Operating Hour for Generation Resources Providing On-Line Non-Spin - URGENT Purpose (ERCOT) This NPRR requires QSE action that routinely releases certain On- Line Non-Spinning Reserve (Non-Spin) energy to Security- Constrained Economic Dispatch (SCED) without the need for ERCOT to issue a Non-Spin deployment Instruction. The changes do not invalidate any other existing requirements contained in this section. Those Generation Resources not subject to the provisions contained in paragraph (5) of Section must respond to any Non-Spin deployment or recall Instruction issued by ERCOT Operators in accordance with the TAC-approved procedure to deploy Resources providing Non-Spin Service. PRS VoteOn 11/17/11, PRS unanimously voted to grant NPRR426 Urgent status. PRS then unanimously voted to recommend approval of NPRR426 as revised by PRS; an effective date of January 5, 2012; and to forward NPRR426 to TAC. Effective Date/PriorityJanuary 5, 2012 ERCOT ImpactNo Impacts Business Case Highlights Addresses the Commission’s discussion raised at its October 27, 2011 Open Meeting regarding Docket No

14 NPRR427, Energy Offer Curve Requirements for Generation Resources Assigned Reg-Up and RRS - URGENT Purpose (ERCOT) This NPRR adds a requirement for the Energy Offer Curve to be set at the System-Wide Offer Cap (SWCAP) for the capacity reserved for Responsive Reserve (RRS) Service Ancillary Service Resource Responsibility and Regulation Up (Reg-Up) Ancillary Service Resource Responsibility. Exemptions are provided for Resources that experience Forced Outages, Forced Derates, or Startup Loading Failures. PRS VoteOn 11/17/11, PRS unanimously voted to grant NPRR427 Urgent status. PRS then voted to recommend approval of NPRR427 as revised by PRS; an effective date of January 5, 2012; and to forward NPRR427 to TAC. There was one opposing vote from the Consumer Market Segment. Effective Date/PriorityJanuary 5, 2012 ERCOT ImpactNo Impacts Business Case Highlights Addresses concerns expressed at the October 27, 2011 Open Meeting regarding Project No and mitigates price suppression during deployment of reserve services to more accurately reflect the value of the service.

15 NPRR428, Energy Offer Curve Requirements for Generation Resources Assigned Non-Spin Responsibility - URGENT Purpose (ERCOT) This NPRR adds a requirement for the Energy Offer Curve to be at or above $120 for On-Line Non-Spin capacity and at or above $180 for Off-Line Non-Spin capacity. Exemptions are provided for Resources that experience Forced Outages, Forced Derates, or Startup Loading Failures. PRS VoteOn 11/17/11, PRS unanimously voted to grant NPRR428 Urgent status. PRS then voted to recommend approval of NPRR428 as revised by PRS; an effective date of January 5, 2012; and to forward NPRR428 to TAC. There was one opposing vote from the Consumer Market Segment. Effective Date/PriorityJanuary 5, 2012 ERCOT ImpactNo Impacts Business Case Highlights Addresses the Commission’s discussion raised at its October 27, 2011 Open Meeting regarding Project No and mitigates price suppression during deployment of reserve services to more accurately reflect the value of the service.

16 SCR764, Public Access to Select MIS Dashboards Purpose (ERCOT) System Change Request (SCR) 764 was approved by the ERCOT Board on May 17, However, during the development of the phased in dashboard approach, it was determined that the Locational Marginal Price (LMP) ticker functionality is not needed as the information is provided in the existing price reports and the LMP Contour Map. It is recommended that the LMP Ticker functionality be removed from the Market Information System (MIS) due to the nature of the data already being provided and the low usage of this dashboard. VoteSCR764 was approved by the ERCOT Board on 5/17/11. On 11/8/11, MIS User Group (MISUG) comments were posted in support of the recommendation to remove the LMP Ticker dashboard functionality from the scope of SCR764. On 11/10/11, ERCOT comments were posted in support of the recommendation to remove the LMP Ticker dashboard functionality from the scope of SCR764. On 11/21/11, PRS comments were posted in support of the recommendation to remove the LMP Ticker dashboard functionality from the scope of SCR764.

17 PRS Procedures PRS voted to amend its procedures to reflect the structural changes approved by TAC. PRS requests that TAC approve the amended PRS procedures.