1. 1 Summary of TAC Procedures for COPS & PRS May 17, 2005

2. 2 Revision of TAC Procedures Project began in October 2004 to incorporate the Commercial Operations Subcommittee into the TAC Procedures In January 2005, the project was expanded to provide more clarity and information related to the structure and voting process for TAC and all the subcommittees (PRS, RMS, ROS, WMS) Several conference calls have been conducted to discuss areas of concern by parties The primary goal was to add more information and clarity Some changes have also been proposed

3. 3 Subcommittee Designation Of Alternate Rep. Current – No language in TAC procedures, but included in subcom. procedures, similar to current TAC] If used, a designated Alternate Representative and proxy must be sent to ERCOT for each subcommittee meeting and shall only be valid for such meeting. Alternate Representatives, if not employed by the voting member thereby represented, must be confirmed in writing by such member (signed by a duly authorized representative of the member). Proposed – change to timeframe If the Standing Representative wishes to designate an Alternate Representative or proxy, a notification of the designation of such Alternate Representative or proxy must be sent to ERCOT and shall be valid for the time period designated by the Standing Representative. Alternate Representatives, if not employed by the voting member thereby represented, must be confirmed in writing by such member (signed by a duly authorized representative of the member).

4. 4 Subcommittee Meetings and Notification Current – No language in TAC procedures, but included in subcom. procedures Meetings called by the Chair and notice sent to each member and posted on website at least 1 week prior to the meeting, unless an emergency condition should suggest otherwise. In addition to the above, subcom. Meetings are normally attended by an ERCOT Staff Member who provides support for meeting arrangements, subcom. meeting minutes, meeting notes and other administrative support. Proposed – minor change Meetings called by the Chair and notices sent to each SR, the subcom. distribution list and posted on website at least 1 week prior to meeting unless an emergency condition requires a shorter notice. In addition, subcommittee meetings are attended by ERCOT Staff person(s) who coordinate ERCOT support of the meeting, including meeting arrangements, meeting minutes, and ERCOT Staff participation in the meeting.

5. 5 Subcommittee Membership – COPS & PRS Current – PRS Standing Membership shall consist of 2 Standing Representatives from each Segment. Current – COPS The Standing Reps on the COPS consist of 14 SRs, 2 from each of the 7 market segments. Term: The term of the SRs is one year. Proposed – no sig. change Membership shall consist of 2 Standing Representatives from each Segment.

6. 6 Subcommittee Quorum – COPS & PRS Current – PRS In order to take action, at least one standing member from each of 4 market segments must be present. Current – COPS In order to take action, a quorum must be present. A quorum is at least 1 Standing Rep in each of at least 4 segments. Proposed – no change In order to take action, a quorum must be present. A quorum is defined as at least 1 SR in each of at least 4 Segments.

7. 7 Subcommittee Votes – COPS & PRS Current – PRS Each Segment has 1 vote and each entity entitled to vote and present at the meeting will receive an equal fraction of its Segment’s 1 vote. Current – COPS, same as PRS Proposed – expand Consumer At all meetings, each Segment shall have one (1) Segment Vote except the Consumer Segment, which shall have one and one-half Segment Votes. The SRs of each entity entitled to vote, present at the meeting and participating in the vote shall receive an equal fraction of its Segment’s vote, except for the CS which shall be divided into three subseg that receive one third of the CS vote. For the CS, if no rep from a subseg is present at a meeting or all reps from a subseg abstain, such subseg’s fractional vote is allocated equally to the subseg that are present and casting a vote.

8. 8 Subcommittee Voting Entities – COPS & PRS Current – COPS & PRS Entities entitled to vote (Voting Entities) are ERCOT Corporate Members, ERCOT Adjunct Members, and entities who are not ERCOT Corporate Members, but who could qualify as a member within the definition of a particular Segment. Voting Entities must align themselves each calendar year with a Segment for which they qualify or, for Adjunct Members, a Segment to which they are similar. Proposed – same as current, plus Voting Entities that align themselves with a Segment must be aligned with that same Segment for all TAC subcommittees, and remain aligned with that Segment for the entire calendar year.

9. 9 Subcommittee Voting – COPS & PRS Current – PRS Recommendations for Protocol revisions from the PRS must be supported by a majority of the votes cast by the entities present in accordance with segment fractional voting. Votes will be tallied and records retained by ERCOT. COPS The act of the majority of the votes represented by members present and a minimum of three (3) votes will be the act of the subcommittee. Proposed – A motion of the subcommittee passes when 1) a majority of the aggregate of the fractional Segment votes are affirmative and 2) a minimum of three (3) Segment Votes are affirmative. A Segment Vote is considered affirmative when the majority of Standing Representatives of the Segment voted affirmatively. The results of all votes taken will be reported to TAC, whether or not the vote passed.

10. 10 Subcommittee - Abstentions Current – [No current language in TAC or subcom. procedures on treatment of abstentions except that abstentions during roll call votes will be recorded.] Proposed – In the event that a voting member, their designated Alternate Representative, or proxy, is not present during a roll call vote, or abstains from voting, that member’s fractional vote will be reallocated equally among the remaining voting members of that Segment; except for the Consumer Segment. NOTE: Alternative language for abstention: [For purposes of voting, an abstention is treated as if the individual did not cast a vote. A vote is cast as an “aye” or a “nay” vote. An abstention is not a vote.] In the event that a voting member, their Designated Alternate Representative, or proxy, abstains from a vote, the Segment Vote is allocated among the members casting a vote.

11. 11 Subcommittees – E-Mail Voting - PRS Current – Voting by E-Mail from the Standing Representatives may be used in consideration of an Urgent Revision Request, the need for an ERCOT Impact Analysis, and other administrative functions. The affirmative vote of eight (8) Standing Representatives shall be the act of the PRS by E- Mail vote. The structure for E-mail voting is as follows: A request for an E-mail vote can only be initiated by the Chair, Vice Chair or their designate of the PRS or approved designate in the absence of the Chair. Votes for an ERCOT Impact Analysis, and other administrative functions must be returned by the close of two (2) Business Days after issuance to be considered. Votes for Urgent Requests must be returned within 48 hours. All votes will be forwarded to ERCOT for tallying. The final tally will be sent to the Standing Representatives of the PRS, the sponsor of the revision request, and forwarded to the PRS distribution list and posted on the MIS.

12. 12 Subcommittees – E-Mail Voting - COPS Current – E-mail voting by the Standing Representatives is permitted to expedite processes provided the chair distributes to the ERCOT COPS public distribution list a detailed description of the issue or proposition. The chair will submit meeting minutes wherein the vote is recorded for review of accuracy at the next scheduled subcommittee meeting. The chair will establish appropriate timing for e-mail vote responses. (Individual exceptions will be made where needed to accommodate Standing Representatives who do not have e-mail addresses.) “Discussion Required” votes count as “No”.

13. 13 Subcommittees – E-Mail Voting – COPS & PRS Proposed – An e-mail vote is permitted provided a notification is distributed to the subcommittee distribution list that includes a detailed description of the issue or proposition. E-mail votes for COPS and PRS are primarily conducted for administrative purposes. A request for an e-mail vote can only be initiated by the Chair or Vice Chair. For e-mail votes, each Standing Representative shall have one (1) vote and a quorum of Standing Representatives must participate in the vote. [NOTE: This is different than the current requirement for PRS, which is “The affirmative votes of eight Standing Representatives shall be the act of the PRS by E-Mail vote.”] Participation requires casting a vote or abstaining. Votes shall be submitted to ERCOT for tallying by the close of two (2) Business Days after notification of the vote. A PRS e- mail vote on a request for Urgent Status shall be submitted to ERCOT for tallying within forty-eight (48) hours. Votes are tallied in the same manner as a regular meeting. The final tally shall be distributed to the subcommittee distribution list and posted on the MIS.