1. Nodal Protocol Revision Request (NPRR) TITLE: Performance Measurement & Verification and Telemetry Requirements for Load Resources providing Non-Spin March 6, 20131

2. Background Sponsored by: David Kee, CPS Energy Origination Point: ALR Sub-group Chaired by: Ed Echols, Oncor First Presented:March 8, 2013 Contributors:CPS Energy LCRA Bluebonnet Electric March 6, 20132

3. Business Case 1)Bringing the load from demand resources (DR) management to the Non-Spin market. 2)Load Resources integrated into the wholesale market platform would create the ability to bid, schedule, trade, track, and settle the Load Resource(s) in the Wholesale energy and Non- Spin Ancillary Services markets. 3)Increased tools for market participants to manage resources and price volatility. 4)Potential positive impact to Load Serving entities allowing them to meet Non-Spin obligations using Load Resources. March 6, 20133

4. Revision Overview Description – Add language to allow Load Resources to provide Non-Spin Ancillary Services to ERCOT markets. Reason – Current market rules do not address this functionality for Load Resources. March 6, 20134

5. Sections Requiring Revision 3.9.1 – Current Operating Plan (COP) Criteria (pg. 2) 6.5.5.2 – Operational Data Requirements (Pg. 6 ) 8.1.1.2.1.3 – Non-Spinning Reserve Qualification (Pg. 10) 8.1.1.4.3 – Non-Spinning Reserve Service Energy Deployment Criteria (Pg. 12) March 6, 20135

6. Specifics by Revision 3.9.1 – Current Operating Plan (COP) Criteria o Resource Status Change - ONRL March 6, 20136

7. Specifics by Revision 6.5.5.2 – Operational Data Requirements o Telemetry o Not changing existing language o Adding LRs requirement for Scheduled Power Consumption (SPC). o Adding requirement for SPC +2 March 6, 20137

8. Specifics by Revision 8.1.1.2.1.3 – Non-Spinning Reserve Qualification o Qualification using meter data & telemetry data o Validation methods o Baseline o Meter Before Meter After March 6, 20138

9. Event Impact: July 31 March 6, 20139

10. Specifics by Revision 8.1.1.4.3 – Non-Spinning Reserve Service Energy Deployment Criteria o Focus on M&V o Compliance o LRNEDP o 8% or 8MW as starting point March 6, 201310

11. QUESTIONS…? March 6, 201311