1. Day in the life of an ERCOT Operator / Shift Engineer during the January 6, 2014 EEA Event Jimmy Hartmann Manager, System Operations ERCOT Seminar 2015

2. 2 Shift Engineer Shift Supervisor Transmission and Security Real-Time DC-Tie Resource RUC Introductions

3. 3 ERCOT Control Room

4. 4 At the completion of this presentation you will: Describe actions taken by ERCOT operators in response to a capacity shortage Explain the current process for TCEQ enforcement discretion during an EEA Describe ERCOT operator desk specific tasks associated with responding to an extreme cold weather event Define the possible Market Notifications issued by ERCOT during an extreme cold weather event Identify where Market Participants can locate the ERCOT operator desk procedures Explain Operator Authority Objectives

5. 5 Events of the January 6 th, 2014 EEA

6. 6 January 5, 2014, a cold weather front swept across the ERCOT region, bringing with it freezing conditions across much of the interconnection the evening of the 5 th and into the 6 th. An Advisory for extreme cold weather was issued at 10:00 on January 5 th. Extreme cold weather notifications are called when the daily temperatures are forecasted to remain 32°F or below in the following weather zones: North Central (NORTH_C) South Central (SOUTH_C) Coast (COAST) Pre-Event Conditions

7. 7 The morning of January 6, 2014, ERCOT entered into emergency operations. The unavailability of generation resources due to outages, derates, and failures to start in conjunction with freezing conditions contributed to the event. As the load increased due to the morning ramp and generation resource unavailability continued to increase, reserves declined. At 06:52 ERCOT entered level 1 of its Energy Emergency Alert (EEA) plan. EEA level 2 was declared at 07:01 Event Summary

8. 8 At the completion of this presentation you will: Describe actions taken by ERCOT operators in response to a capacity shortage Explain the current process for TCEQ enforcement discretion during an EEA Describe ERCOT operator desk specific tasks associated with responding to an extreme cold weather event Define the possible Market Notifications issued by ERCOT during an extreme cold weather event Identify where Market Participants can locate the ERCOT operator desk procedures Explain Operator Authority Time-Line of Events

9. 9 Physical Responsive Capability VS. Frequency

10. 10 Describe actions taken by ERCOT operators in response to a capacity shortage Explain the current process for TCEQ enforcement discretion during an EEA Describe ERCOT operator desk specific tasks associated with responding to an extreme cold weather event Define the possible Market Notifications issued by ERCOT during an extreme cold weather event Identify where Market Participants can locate the ERCOT operator desk procedures Explain Operator Authority Load Forecast

11. 11 RUC Operator – Running HRUC Enough generation to cover load forecast and solve transmission congestion. Commit any generation with a unit status of OFF or EMR that can be On-line within the timeframe of the emergency. RUC Operator – Response to a Capacity Shortage

12. 12 Monitors PRC and makes the Hotline calls to the QSEs Advisory – PRC below 3000 MW Watch – PRC below 2500 MW EEA 1 – PRC below 2300 MW o Deploy ERS – ERS-30 and / ERS-30 weather-sensitive (June – September, during BH2 or BH3) o HASL Release (HASL-(Gen+ 5 min load ramp)  < = 200 MW manually deploy 500 MW of RRS  10 min. < = 200 MW manually deploy another 500 MW  PRC < = 2000 MW deploy remaining RRS EEA 2 – Maintain 60 Hz or PRC below 1750 MW o Deploy ERS – ERS-10 and / ERS-10 weather-sensitive (June – September, during BH2 or BH3) o Deploy Load Resources EEA 3 – Maintain 59.8 Hz Real-Time Operator – Response to a Capacity Shortage

13. 13 Posts the notifications on the MIS Public for each step Advisory, Watch, EEA 1, EEA 2 & EEA 3 Send the XML deployments for Off-line Non-Spin, ERS-30, ERS- 10, including weather sensitive ERS and Load Resources As Business Hours change, additional services may be deployed Resource Operator – Response to a Capacity Shortage

14. 14 5 DC-Ties East – 600 MW North – 220 MW Laredo – 100 MW Railroad – 170 MW South – 30 MW Curtail all exports (expect Oklaunion exemption) Request emergency energy if any available capacity on DC-Ties: Southwest Power Pool (SPP) for the East or North DC-Ties. Comision Federal de Electricidad (CFE) through AEP TO for the South DC-Tie and Laredo VFT and Sharyland for the Railroad DC- Tie. DC-Tie Operator – Response to a Capacity Shortage

15. 15 Makes the Hotline calls to the TOs EEA 1 – PRC below 2300 MW o Deploy Load Management Program - Only on weekdays (except holidays) during June to September between 1330 and 1900 hours. o Block Load Transfers can be utilized EEA 2 – PRC below 1750 MW o Reduce customer loads by using distribution voltage reduction measures, if deemed beneficial EEA 3 – Maintain 59.8 o Shed firm load Works with Shift Engineer and coordinating with Local Transmission Operators to determine which actions should be taken for constraints that are limiting generation output (effective 5/1/15) Transmission Operators – Response to a Capacity Shortage

16. 16 NPRR 642/NOGRR135 – Constraint Management in EEAs (effective 5/1/15) o Evaluate constraints active in SCED, determine which constraints have the potential to limit generation output  Restore transmission elements that are out of service  Reconfiguring the transmission system  Adjustments to phase angle regulator tap positions  15-minute rating available  Determine whether double-circuit failures are at a high risk of occurring due to system conditions Send message from Emergency Notification System Start internal event reporting Shift Engineer – Response to a Capacity Shortage

17. 17 Coordinates and makes sure all steps are completed Shift Supervisor – Response to a Capacity Shortage

18. 18 EEA Dashboard in EMS

19. 19 Protocol Section 6.5.9.4.2 Operating Guide Section 4.5.3.3 ERCOT Operator Procedures ERCOT.com Grid Information>Operating Procedures Transmission Operators – Transmission and Security Operating Procedure QSE’s – Real Time Operating Procedure ERCOT Operator – Response to a Capacity Shortage

20. 20 Market Notice M-C041114-01 was sent out on 4/11/2014 Texas Commission on Environmental Quality (TCEQ) will use its enforcement discretion for power generating facilities when ERCOT is in an EEA situation. Any Generator who will exceed its air permit limits during an EEA should provide notice of this to the Director of Critical Infrastruction Division of TCEQ by e-mail. No response from them is needed. Notice of Enforcement Discretion on Air Permitting

21. 21 Extreme Cold Weather

22. 22 Extreme cold weather notifications will be issued when temperatures and/or wind chill is expected to be below freezing for sustained periods and may abnormally impact load levels or generation availability. Extreme Cold Weather

23. 23 Makes the Hotline calls to the TOs Issue an OCN - when approaching extreme cold weather is approximately 5 days away o Review Planned outages and existing outages for the possibility of canceling or restoring equipment o Review and implement winterization procedures o Notify ERCOT of any changes or conditions that could affect reliability Issue an Advisory - when approximately 3 days away Issue a Watch - when approximately 1 day away with concerns that this event could abnormally impact load levels or generation availability Issue an Emergency – only if weather is having an adverse impact on the system (EEA or local transmission emergency) Transmission Operator – Extreme Cold Weather

24. 24 Makes the Hotline call to the QSEs Issue an OCN - when approaching extreme cold weather is approximately 5 days away o Review fuel supplies and notify ERCOT of any known or anticipated fuel restrictions o Review Planned Resource outages and consider delaying maintenance or returning form outage early o Review and implement winterization procedures o Notify ERCOT of any changes or conditions that could affect reliability Issue an Advisory - when approximately 3 days away Issue a Watch - when approximately 1 day away with concerns that the event could abnormally impact load levels or generation availability Issue an Emergency – only if weather is having an adverse impact on the system (EEA or local transmission emergency) Real-Time Operator – Extreme Cold Weather

25. 25 Determine if additional Ancillary Services are needed for one or more Operating Hours than were procured in the Day-Ahead Guideline for that determination: o Look at Self-Scheduled HSL Margin after DRUC is complete o When wind chill is expected to be below freezing, a minimum of 600 MW is required for those hours, OR o When wind chill is expected to be below 20°F, a minimum of 1300 MW is required for those hours. Issue a Watch to increase the system-wide A/S requirement above what was procured in the Day-Ahead, give the 30 minute notice for QSEs to update A/S Offers Resource Operator – Extreme Cold Weather

26. 26 Operator Authority

27. 27 NERC Standards: EOP-002-3.1 R1 Each BA and RC shall have the responsibility and clear decision-making authority to take whatever actions are needed to ensure the reliability of its respective area and shall exercise specific authority to alleviate capacity and energy emergencies IRO-001-1.1 R3 The RC shall have clear decision-making authority to act and to direct actions to be taken by TOPs, BA, GOP, TSP, LSE, PSE within its RC area to preserve the integrity and reliability of the BES. These actions shall be take without delay, but no longer than 30 minutes Operator Authority

28. 28 NERC Standards: PER-001-0.2 R1 Each TOP and BA shall provide operating personnel with the responsibility and authority to implement real- time actions to ensure the stable and reliable operation of the BES TOP-001-1a R1 Each TOP shall have the responsibility and clear decision-making authority to take whatever actions are needed to ensure the reliability of its area and shall exercise specific authority to alleviate operating emergencies Operator Authority

29. 29 Protocols 6.5.1.1 – ERCOT Control Area Authority Operating Guides 4.5.2 - The ERCOT System Operators have the authority to make and carry through decisions that are required to operate the ERCOT System during emergency or adverse conditions Operator Authority

30. 30 QUESTIONS

31. 31 Question 1 1)Which ERCOT desk Operator is monitoring the PRC? a)ERCOT Shift Engineer b)ERCOT Shift Supervisor c)ERCOT Real-Time Operator d)ERCOT RUC Operator

32. 32 Question 2 2)Identify the current procedure for TCEQ enforcement discretion during an EEA event: a)Call ERCOT Shift Supervisor b)Call ERCOT Account Manager c)Send e-mail to TCEQ d)Send e-mail to ERCOT CEO

33. 33 Question 3 3)Identify which action TO’s and QSE’s should prepare for an extreme cold weather event: a)Call in sick during the event b)Review and implement weatherization and emergency operating procedures c)No action needed d)Ask the Texas Regional Entity

34. 34 Question 4 4) What Market Notifications could be issued by ERCOT in preparation for an extreme cold weather event? a)OCN, Advisory, or Watch b)Market Bulletin c)News release d)E-mail from ERCOT CEO

35. 35 Question 5 5) Identify where Market Participants can locate the ERCOT operator desk procedures a)Protocols b)Operating Guides c)NERC Standards d)ERCOT.com

36. 36 Question 6 6)Identify Operator Authority: a)Responsibility and authority to implement real- time actions to ensure the stable and reliable operation of the BES b)Responsible for saying who can come into the control room c)Authority to operate transmission equipment d)Don’t have to listen to my Manager

37. 37 Questions ?