1. ERCOT Staff Demand Integration Update to DSWG 3/08/2013 DSWG Meeting

2. Weather-Sensitive ERS Pilot Update DSWG Meeting02/08/2013 2 Presented draft governing document during March 1 workshop Comments were due on March 5 th ERCOT Responses will be available ahead of March 19 th BOD meeting ERCOT modified draft governing doc (procurement section) for TAC consideration TAC endorsed modified draft governing doc during March 7 th meeting with one change (NOIE territory) Next Stop – March 19 th BOD meeting

3. ERS Time Period/Contract Term Discussion Why change time periods/contract terms? When should changes be implemented? 3 DSWG Meeting02/08/2013

4. Proposed Contract Terms 11/16/2015 DSWG Meeting 4 Contract Term NameDuration March 1 through May 313 months June 1 through September 304 months October 1 through November 302 months December 1 through February 283 months The shoulder months, Mar-May & Oct-Nov, have less risk Group contract terms better aligned with summer, winter and shoulder months

5. Proposed Time Period Changes June – September Contract Period 11/16/2015 DSWG Meeting 5 Time Period NameTime Period Hours Business Hours 1BH1 Hours Ending 0900-1300 (8:00:00a.m. to 1:00:00pm.) Monday through Friday except ERCOT Holidays. Business Hours 2*BH2 Hours Ending 1400-1600 (1:00:00p.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3*BH3 Hours Ending 1700-2000 (4:00:00p.m. to 8:00:00p.m.) Monday through Friday except ERCOT Holidays. WeekEnd Holidays*WEH Hours Ending 1400-2000 (1:00:00p.m. to 8:00:00p.m.) Saturdays, Sundays & Holidays Non Business HoursNBHAll other hours Weather Sensitive –BH2, BH3, WEH (Residential & Small Commercial Air Conditioning) Time Period which isolates the high risk hours. * Weather Sensitive Time Periods

6. Proposed Time Period Changes December – February Contract Period 11/16/2015 DSWG Meeting 6 Time Period NameTime Period Hours Winter Peak*WIN Hours Ending 0700-0800 (6:00:00a.m. to 8:00:00a.m.) Monday through Friday except ERCOT Holidays. and Hours Ending 0700-1000 (6:00:00a.m. to 10:00:00a.m.) Weekends and Holidays. Business Hours 1*BH1 Hours Ending 0900-1000 (8:00:00a.m. to 10:00:00a.m.) Monday through Friday except ERCOT Holidays. Business Hours 2BH2 Hours Ending 1100-1600 (10:00:00a.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3BH3 Hours Ending 1700-2000 (4:00:00p.m. to 8:00:00p.m.) Monday through Friday except ERCOT Holidays. Non Business HoursNBHAll other hours * Weather Sensitive Time Periods Weather Sensitive –WIN, BH1 (Electric Heat) Time Period which isolates the high risk hours.

7. Proposed Time Period Changes October – November & March – May Contract Periods 11/16/2015 DSWG Meeting 7 Time Period NameTime Period Hours Business Hours 1BH1 Hours Ending 0900-1300 (8:00:00a.m. to 1:00:00pm.) Monday through Friday except ERCOT Holidays. Business Hours 2BH2 Hours Ending 1400-1600 (1:00:00p.m. to 4:00:00p.m.) Monday through Friday except ERCOT Holidays. Business Hours 3BH3 Hours Ending 1700-2000 (4:00:00p.m. to 8:00:00p.m.) Monday through Friday except ERCOT Holidays. WeekEnd HolidaysWEH Hours Ending 1400-2000 (1:00:00p.m. to 8:00:00p.m.) Saturdays, Sundays & Holidays Non Business HoursNBHAll other hours No Weather Sensitive Time Period which isolates the high risk hours.

8. Recommendations for changing Time Periods/Standard Contract Terms Provide red-line of Jun-Sep2014 Technical Requirements reflecting new time periods/standard contract terms 8 DSWG Meeting02/08/2013

9. General ERS Discussion Draft Technical Requirements document form the Jun-Sep2013 Standard Contract Term Posted Comments due: March 20 Important Dates for Jun-Sep2013 Standard Contract Term –April 1, 2013: ERS Resource Identification (ERID) submission window opens –May 10, 2013: Offer submission deadline –May 24, 2013: Award Notifications go out to QSEs –May 31, 2013: ERCOT publishes procurement results –June 1, 2013: Contract Period for Pilot Project begins –September 30, 2013: Contract Period for Pilot Project ends ERS Outreach training 9 DSWG Meeting02/08/2013