1. July 30, 2015 TAC Meeting Update to COPS Michelle Trenary August 12, 2015

2. PRS Report 2 All of the following NPRRs were approved by the TAC. NPRR684, Remove Annual RUC Impact Report Requirement, Effective Date: September 1, 2015 NPRR692, Removal of MIS Posting Requirement of DAM Credit Parameters, Effective Date: Upon system implementation NPRR693, Incorporation of “Threshold Values for Competitive Constraint Test” into the Protocols, Effective Date: Upon system implementation NPRR694, Non-Spin Schedule Requirements, Effective Date: September 1, 2015 NPRR695, Posting and Notice Requirements for Notifications of Suspension of Operations and Notifications of Suspension of Operations and Notifications of Change of Generation Resource Designated, Effective Date: September 1, 2015 NPRR699, Energy Offer Curve Caps for Make-Whole Calculations for Resource Type Other, Effective Date: Upon system implementation

3. PRS Report (Cont.) 3 NPRR700, Utilizing Actual Fuel Costs in Startup Offer Caps, Effective Date: Upon system implementation, Priority 2015, Rank 1340 NPRR701, As-Built Clarification of NPRR589, Ancillary Service Offers in the Supplemental Ancillary Services Market, Effective Date: September 1, 2015 NPRR703, Clarification of Disclosure Requirements for GINR Study Information, Effective Date: September 1, 2015 NPRR706, Restore the ability to use Physical Responsive Reserve Capability as an Indicator of Available Frequency-Responsive Capacity, Effective Date: Upon system implementation, Priority 2015, Rank 1350 NPRR710, Removal of ORDC Phase 2 Language and Modification to HASL Calculation, Effective Date: Upon system implementation, Priority 2015, Rank 1360 RMGRR129, Revision to Customer Rescission Completion Timeline, Effective Date: To be determined Remains tabled at TAC

4. ROS Report 4 PGRR043, FIS Scoping Amendment, Effective Date: September 1, 2015 Approved PGRR044, IS Classification of GINR Study Information, Effective Date: Upon system implementation Approved NOGRR144, Incorporation of “Manual Deployment and Recall of Responsive Reserve Service during Scarcity Conditions into the Nodal Operating Guides, Effective Date: Upon system implementation Approved Voltage Reduction Task Force Update The VRTF completed their whitepaper, which will be presented to the Board. No follow-up action items at this time.

5. WMS Report 5 16.11.4.1, Determination of Total Potential Exposure for a Counter-Party – Request to Modify Value of Parameter T5 o TAC voted to remand this issue to the WMS and the Credit Working Group/Market Credit Working Group VCMRR007, Alignment with NPRR699, Energy Offer Curve Caps for Make-Whole Calculations for Resource Type Other, Effective Date: To be determined Tabled pending consideration of NPRR699 at the Board VCMRR008, Alignment with NPRR700, Utilizing Actual Fuel Cost in Startup Offer Caps, Effective Date: To be determined Tabled pending consideration of NPRR700 at the Board

6. ERCOT Reports 6 Ancillary Services Redesign Update o Methodology for Current vs. Future Ancillary Services (FAS) Requirements reviewed o Cost Benefit Analysis draft study assumptions reviewed; Brattle Group was available to answer questions o Brattle Draft Report Outline for the FAS CBA reviewed TAC/TAC Subcommittee Structural and Procedural Review o August 27, 2015 o Following the TAC Meeting ERCOT to submit an SCR to create a New Weather Zone, Valley o TAC Members asked the appropriate Subcommittee (COPS/PWG/RMS) to report back on the impacts of creating a new weather zone

7. ERCOT Reports (Cont.) 7 Distributed Resource Energy and Ancillaries Market (DREAM) Task Force (fka DER TF) Mission: To provide a forum for stakeholders and ERCOT Staff to develop market rules related to Distribute Energy Resources (DERs). The DREAM TF will consider and recommend a potential market framework that allows DERs an opportunity to more fully participate in the ERCOT Wholesale Market including, but not limited to, participation in SCED and the Ancillary Services Market. DER definition and whether load reduction should be included DER interconnections DER modeling DER registration DER metering DER market participation options DER settlements DER market and reliability impacts DER reporting o Chair: Greg Thurnher, Shell o Co-Vice Chairs: Lance Cunningham, Denton Municipal Electric, and Jim Lee, AEP o DREAMTF@lists.ercot.com

8. ERCOT Reports (Cont.) 8 Energy Management System (EMS) Coding Issue o ERCOT identified a case where the Shift Factor (SF) of a 138 kV radial transmission line was calculated in error due to a software coding issue in the Energy Management System (EMS). o EMS coding issue affected SFs used in the Security Constrained Economic Dispatch (SCED) solution for congestion management; Impacting dispatch and to some extent prices o Issue has existed since December 1, 2010 (Texas Nodal Market Implementation Date) and was corrected on July 8, 2015 o ERCOT is unable to determine more “accurate prices” and will not be resettling the market o ERCOT Market Notice W-C073115-01 Energy Management System Coding Change for Shift Factors