1. Commercial Operations Subcommittee (COPS) Update to RMS 9/1/2015

2. 2 COPS VOTING Items LPGRR055, Extend Load Profile Model Calendar Inputs to 2030 COPS voted to approve LPGRR055 as amended by the 8/5/2015 PWG Comments PRS Assignment: NPRR702, Flexible Accounts, Payment of Invoices, and Disposition of Interest on Cash Collateral o ERCOT provides Flexible (Pre-pay) Accounts today, but there is no language in the Protocols o IA includes $150k-$200k for automation with a 6 to 9 month project duration o Items discussed: Submitting an SCR separate of the NPRR, Funding deadlines, Adding wiring fee savings to IA, Overpayment language COPS voted to endorse NPRR702 as submitted. There was one abstention from the IOU Segment.

3. 3 COPS VOTING Items LPGRR055, Extend Load Profile Model Calendar Inputs to 2030 LPGRR055 extends the Load Profile Model calendar-related inputs in Appendix E, Profile Model Spreadsheets, from 2020 to 2030. o ERCOT has completed modification to the Load Profile Model Calendar Inputs o The PWG has requested an implementation date of October 1, 2015. o COPS requests that the TAC table LPGRR055 for one month, to avoid unnecessarily grey- boxing language

4. 4 Valley Load Forecasting Options Preliminary overview of options to address ERCOT’s Rio Grande Valley (Valley) area load forecasting and operational requirements Stakeholders will have the opportunity to discuss and provide input ERCOT staff plans to present options to ROS and RMS Reference: Load Profiling Guide Section 13, Changes to Weather Zone Definitions Weather Zone Boundaries, Modeling Regions, Weather Stations, Weighting of Weather stations

5. 5 Valley Load Forecasting Options ERCOT staff determined a need for independent modeling of the Valley to facilitate more accurate load forecasting and address operational needs. A supplemental Valley load forecast was created to meet immediate operational needs, e.g. Outage analysis. For transparency, ERCOT staff is looking at providing the supplemental Valley load forecast data to Market Participants. The initial thought was to add a new Valley Weather Zone, because load forecasts are created by Weather Zone, however there is an alternative.

6. 6 Valley Load Forecasting Options Option1: Create new Valley Weather Zone Impacts: o Processes and System modifications ERCOT, TDSPs, and CRs o ERCOT Systems: LFC, STNET, CIM Importer, State Estimator, Short Term Load Forecast, MTLF o Retail Operations o Settlements o Workforce Management 814 Transactions to update customer information o Depending on volume, will need to be in phases

7. 7 Valley Load Forecasting Options Option1: Create new Valley Weather Zone Estimated ESID count by TDSP and Type for the four targeted counties Valley Weather Zone Counties: Cameron, Hidalgo, Starr, and Zapata TDSP_NameESIID_TypeCount AEP TEXAS CENTRAL COMPANYResidential273,396 AEP TEXAS CENTRAL COMPANYSmall Non-Residential47,791 AEP TEXAS CENTRAL COMPANYLarge Non-Residential85 ENTERGY GULF STATES INCResidential5 NUECES ELECTRIC COOP INCResidential1 SHARYLAND UTILITIES LP MCALLENResidential2,665 SHARYLAND UTILITIES LP MCALLENSmall Non-Residential315 SHARYLAND UTILITIES LP MCALLENLarge Non-Residential2 Total324,260

8. 8 Valley Load Forecasting Options Option 2: Carve out Valley area for modeling and load forecasting purposes only (Virtual Weather Zone) o Solution will work for future areas as well 2A. If no interest by MPs, ERCOT will not provide Valley load forecast data in a report o Impacts: None 2B. Develop a mechanism to provide the load forecast data to the Market in a report/extract o Impacts ERCOT and CRs, but to a much lesser degree o An NPRR may not be required

9. 9 Market Participant Training Bill Kettlewell provided his Market Participant Training presentation to COPS Feedback provided by COPS included: Agreed with Credit Management Training being a high priority Suggested the development of a Verifiable Cost Class Suggested that Settlements training not be provided the first week of the month Suggested standard cycle training programs and locations for core classes Requested an annual Settlements Workshop Incremental to Settlements 301, Covering recent changes COPS will work with Mark Ruane on content

10. 10 Non-Registered DG Installed Capacity Randy Roberts provided the Second Quarter 2015 Non-Registered DG Installed Capacity Report COPS requested that all Load Zones be included in the report Aggregate MW reductions from the previous quarter are the result of a scrubbing effort performed by ERCOT and TDSP staff (LZ_North was previously at 6.8555 MW) –Cleaned up duplications, Load profiling issues, Data variations, etc. Load_ZoneQuantityAggregate_MWkWh_Exported_Prior_12_Months LZ_AEN355.291,221,036 LZ_CPS20.2269,814 LZ_HOUSTON173.55205596,037 LZ_NORTH385.3352471,382,886 LZ_SOUTH193.134381,033,799 LZ_WEST80.99568675,930

11. 11 Profiling Working Group (PWG) Annual Load Profiling Validation process is progressing on schedule UFE Allocation Factors o PWG will be reviewing the need for the current UFE allocation factors for NIDR, IDR-Distribution, and IDR- Transmission Effort to review and update Protocol Section 18, Load Profiling, is progressing on schedule

12. 12 Market Information System User Group (MISUG)  External Web Services (EWS) Modifications Workshop III o September 29, 2015 o 1:00 pm to 4:00 PM o ERCOT Met Center and WebEx  Load Forecast Distribution Factor Report Changes o Report currently publishes data on an hourly basis o Report is 1M lines of data o Some MPs only downloading the file once a day o Data only changes seasonally o Weekly if corrections are made o MISUG recommending daily publication at 5:00 AM o MISUG members to solicit feedback from their shops o Final recommendation to be made at the August 26th MISUG meeting

13. 13 Market Information System User Group (MISUG)  Reports to be Automated o Progress continues in review of requirements to automate 16 manual reports  Review of Open Items List o MISUG maintained an “Open Items” list prior to transitioning from ERCOT leadership to Market leadership o The open items list was reviewed and several items have been identified as potential new reports: List of Marginal Units Historical DC Tie Schedules Historical Information for AS Capacity Monitor o The remaining items had either already been addressed or were no longer relevant

14. 14 The next COPS meeting is scheduled for September 9, 2015. Questions?