1. September 24, 2015 Technical Advisory Committee (TAC) Update to RMS Kathy Scott October 6, 2015 TAC Update to RMS 1

2. TAC Structural & Procedural Reviews Alignment of 2015 Goals to TAC Approved Revision Requests, this spreadsheet was unanimously Approved. ◦ This vote will be included in the TAC update to the Board for the October 13 th Board meeting.  http://www.ercot.com/content/wcm/key_documents_li sts/75789/03._TAC_Structural_Procedural_Update.zip http://www.ercot.com/content/wcm/key_documents_li sts/75789/03._TAC_Structural_Procedural_Update.zip Frequency/Efficiency of Meetings: ◦ Per TAC Leadership a determination will be made later in October if the October 29 th TAC meeting will be necessary October 6, 2015TAC Update to RMS2

3. TAC Structural & Procedural Reviews Working Groups/Task Forces Review: ◦ NERC Reliability Working Group (NERC) and Critical Infrastructure Protection Working Group (CIPWG)  TAC membership suggested to recreate their charters and allow these two WGs to continue to have meetings/discussions under ERCOT. Reorganize them similar to the Regional Planning Group’s structure and their market meeting responsibilities. ◦ Voltage Reduction Taskforce (VRTF) will be disbanded. ◦ Outage Coordination Improvement Taskforce (OCITF), ROS will be looking at ways to reduce their scope. ◦ Texas Data Transport and MarkeTrak Taskforce responsibilities will be combined and renamed as Texas Data Transport and MarkeTrak Systems (TDTMS) Working Group. October 6, 2015TAC Update to RMS3

4. PRS Initiatives and Votes Nodal Protocol Revision Requests (NPRRs) ◦ NPRR663, Ancillary Service Insufficiency Actions  Approved with 2 Abstentions ◦ NPRR689, Settlement of Ancillary Service Assignment in Real-Time Operations  Roll Call Vote: 23 Yes /6No /0Abstentions- Motion carried ◦ NPRR714, Real-Time Make-Whole Payment for Exceptional Fuel Cost  Motion included a Sunset Date: June 1, 2017  Roll Call Vote: 22 Yes /1No /6Abstentions- Motion carried  Action Item: WMS was asked to investigate and determine if there are long term solutions ◦ NPRR717, Clarification of EPS Metering Exception for ERS Generation – Unanimously Approved October 6, 2015TAC Update to RMS4

5. PRS Initiatives and Votes Nodal Protocol Revision Requests (NPRRs) ◦ NPRR718, Correct Requirement for Posting AML Data  Unanimously Approved ◦ NPRR721, Removal of Language Related to NPRR455, CRR Shift Factors Report - Unanimously Approved ◦ NPRR722, Removal of Language Related to NPRR181, FIP Definition Revision - Unanimously Approved ◦ NPRR723, Removal of grey-boxes from NPRR256, Adding Non-Compliance Language to QSE Performance Standards  Unanimously Approved ◦ NPRR724, Removal of Language Related to NPRR493, Half- Hour RUC Clawback - Unanimously Approved October 6, 2015TAC Update to RMS5

6. Tabled and/or Withdrawn Revisions Request Previously Tabled at TAC (Possible Vote): ◦ LPGRR055, Extend Load Profile Model Calendar Inputs to 2030  Michele Trenary (COPS Chair) received a request from ERCOT to continue to Table LGPRR055 for another month since ERCOT was having implementation issues.  Motion to continue Tabling LPGRR055 was unanimously Approved  Action Item: TAC Leadership requested that COPS Leadership find out why the additional delays are being requested by ERCOT? October 6, 2015TAC Update to RMS6

7. Reliability Operations Subcommittee (ROS)  http://www.ercot.com/content/wcm/key_documents_lists/75789/0 6._ROS_Report.zip http://www.ercot.com/content/wcm/key_documents_lists/75789/0 6._ROS_Report.zip ◦ OCITF Report:  ROS endorsed four options to create revision request:  Option 1: Develop process to create and maintain High Impact Outage (HIO) list  Option 3A: Identify and post HIO list in new MIS report  Option 4A: Protection of HIOs submitted with more than 90 day notice from all planned resource outages submitted with less notice.  Option 5: Introduction of “rescheduled” outage types  Action Item: ROS to readdress Option 4A due to possible misunderstanding by generators of the impacts. October 6, 2015TAC Update to RMS7 ROS Initiatives and Votes:

8. Wholesale Market Subcommittee (WMS) ◦ Real-Time Co-optimization  Discussions were held last month concerning the need to quantify the potential costs and benefits of the Real Time Co-Optimization proposal  ERCOT accepted an assignment to firm up the RTCO Cost Analysis  At the September 2 nd WMS meeting there were discussions on whether the potential ERCOT and Market benefits should be quantified as well.  Action item: TAC Leadership’s direction, WMS should figure out the actual cost first and we can take that information to the Commission for their direction on how or if the market should proceed. ◦ http://www.ercot.com/content/wcm/key_documents_lists/75789/07._WMS_up date_2015_09_24.ppt.pdf http://www.ercot.com/content/wcm/key_documents_lists/75789/07._WMS_up date_2015_09_24.ppt.pdf October 6, 2015TAC Update to RMS8 WMS Initiatives and Votes:

9. Retail Market Subcommittee (RMS) ◦ http://www.ercot.com/content/wcm/key_documents_lists/75789 /08._RMS_Update_to_TAC_09_24_15.ppt http://www.ercot.com/content/wcm/key_documents_lists/75789 /08._RMS_Update_to_TAC_09_24_15.ppt ◦ Action item: TAC Leadership requests that ERCOT (Paul Wattles/Carl Raish) provide the Retail Price Responsive/Demand Response Update to TAC in the upcoming months. Commercial Operations Subcommittee (COPS) ◦ LPGRR056, Initial Profile Assignment for Temporary Services - Motion to Approve LPGRR056 was unanimous ◦ COPMGRR039, Commercial Operations Market Guide Clean- up of Old Invoices- Motion to Approve COPMGRR039 was unanimous ◦ http://www.ercot.com/content/wcm/key_documents_lists/75789/09._C OPS_Report.zip http://www.ercot.com/content/wcm/key_documents_lists/75789/09._C OPS_Report.zip October 6, 2015TAC Update to RMS9 RMS/COPS Initiatives and Votes

10. DREAM Taskforce Update DREAM Taskforce Update Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) ◦ DREAM Taskforce Update:  DREAM September meeting date and planned focus:  September 28, 2015: Definitions, Reporting, Distribution Awareness, and DR Aggregation Rules  http://www.ercot.com/calendar/2015/9/28/73836-DREAMTF http://www.ercot.com/calendar/2015/9/28/73836-DREAMTF September 1, 2015TAC Update to RMS10

11. Ancillary Services Re-design Update Ancillary Services Re-design Update FAS (NPRR 667) ◦ A FAS/SIRS workshop was held on Monday, September 21, 2015 where a lot good market feedback was received and ERCOT will be discussing that feedback internally. ◦ Brattle is planning to provide an update and presentations to the market on November 9, 2015. This meeting is already posted to ERCOT.com  http://www.ercot.com/calendar/2015/11/9/73769-FAST http://www.ercot.com/calendar/2015/11/9/73769-FAST ◦ ERCOT will provide comments to NPRR667 so that market participants can start reviewing and submitting their comments through the appropriate channels. October 6, 2015TAC Update to RMS11

12. Operations, Planning and IT Report AEPSC Live Oak Regional Planning Group Project (Possible Vote) ◦ http://www.ercot.com/content/wcm/key_documents_lists/75789/11._ AEPSC_Live_Oak_RPG_Project_TAC.pptx http://www.ercot.com/content/wcm/key_documents_lists/75789/11._ AEPSC_Live_Oak_RPG_Project_TAC.pptx ◦ http://www.ercot.com/content/wcm/key_documents_lists/75789/11._ ERCOT_Review_of_AEP_Live_Oak_County_Transmission_Project_0 9_14_2015.pdf http://www.ercot.com/content/wcm/key_documents_lists/75789/11._ ERCOT_Review_of_AEP_Live_Oak_County_Transmission_Project_0 9_14_2015.pdf ◦ Motion to recommend the AEPSC Live Oak Regional Planning Group Project as recommended by ERCOT was unanimously Approved. This recommendation will require Board Approval during their October 13 th Board meeting. October 6, 2015TAC Update to RMS12

13. Other Business Revisions to TAC Procedures (Vote) ◦ These changes were administrative changes that are needed.  Unanimously Approved as submitted to TAC. Board will need to confirm these changes during their October meeting.  http://www.ercot.com/content/wcm/key_documents_lists/75789/12._Other_Busin ess.zip http://www.ercot.com/content/wcm/key_documents_lists/75789/12._Other_Busin ess.zip Additional Discussion:  TAC requested/recommended that in the event that comments are submitted on behalf of Working Groups or Taskforces to a Subcommittee(s) and/or Committee, there will need to be an individual assigned to champion those comments throughout the governance and implementation process to address any questions and/or concerns from the voting body.  TAC Leadership and members agreed that sponsorship throughout the process is especially helpful for those not familiar with that market process or need for the recommended redlined changes. October 6, 2015TAC Update to RMS13

14. Changes In ERCOT’s Executive Management! If you haven’t heard effective in October Brad Jones, ERCOT’s Chief Operating Officer (COO), has been tapped as Chief Executive Officer (CEO) of New York’s ISO… Brad will be truly missed in the Texas Market!!! Additional announcements: ◦ Woody Rickerson, currently ERCOT’s Director of Grid Coordination, will be Vice President of ERCOT’s Grid Planning and Operations ◦ Kenan Ögelman, currently Director of Energy Market Policy for CPS Energy, will be Vice President of ERCOT’s Commercial Operations. October 6, 2015TAC Update to RMS14

15. Questions? 15October 6, 2015TAC update to RMS