1. November 3, 2015 RMS Review of RMS Member Responsibilities and Voting Structure Suzy Clifton

2. 2 RMS November 3, 2015 Introduction What we will cover: 1)Functions of RMS 2) Meetings - Quorum - Alternates/Proxies - Voting/Email Votes

3. 3 RMSNovember 3, 2015 1. Functions of RMS Functions of RMS (RMS Procedures http://www.ercot.com/committees/board/tac/rms/index.html)http://www.ercot.com/committees/board/tac/rms/index.html RMS shall: a.Serve as a forum for issue resolution in regards to retail market matters directly affecting ERCOT and ERCOT Protocols. b.Be responsible for monitoring PUCT rulings as they would apply to retail markets and retail Market Participants and ensure PUCT requirements are reflected in the respective Guides. c.Recommend changes and document justification for proposed changes to ERCOT Protocols, ERCOT systems, resources or procedures. d.Provide comments and make recommendations as appropriate on SCRs, NPRRs, RMGRRs, CMGRRs and other projects with respect to impacts on retail market operations. e.Define processes to address changes to Retail Transactions and Business Processes, Retail Market Testing, Retail Reports, Data Transport, Retail Metering and Advanced Metering. f.Report to TAC on a regular basis or as otherwise directed by TAC.

4. 4 RMSNovember 3, 2015 2. Meetings Notification All meetings of the Subcommittee shall be called by the Chair. Notices shall be sent to each Standing Representative, the subcommittee distribution list, and posted on the ERCOT website at least one week prior to the meeting, unless an emergency condition requires a shorter notice.

5. 5 Market Rules Back-to-Basics Training October 30, 2009 2. Meetings Quorum 51% of eligible, seated Representatives of RMS – currently, 24 Representatives on RMS; therefore,13 needed for a quorum. One standing Representative from each of four Segments Alternates and Proxies Designated in writing and sent to ERCOT. Alternate Representative – can vote on member’s behalf and be counted towards a quorum. Proxy – can vote on member’s behalf but shall NOT be counted towards a quorum.

6. 6 RMSNovember 3, 2015 2. Meetings Phone Voting RMS Representatives may participate in the meeting and vote via telephone; however, participation shall not count towards a quorum. Email Voting - in lieu of meeting; or to address urgent issues An email vote can only be initiated by the Chair or Vice-Chair. A quorum of Standing Representatives must participate. Email votes are completed at the close of two Business Days after notification of the vote. Votes are tallied in same manner as a regular meeting.

7. 7 RMSNovember 3, 2015 2. Meetings Voting Each Standing Representative (or Alternate or Proxy) shall vote as part of a Segment; Each Segment shall have one Segment vote, except the Consumer Segment which shall have 1.5 Segment votes. –Consumer Segment shall be equally divided into a Fractional Segment vote of 0.5 for each of the three sub-segments. An act of the Subcommittee requires the majority of the aggregate of the Fractional Segment votes to be: i.affirmative; and ii.a minimum total of three (2/3 vote is required for returning to a previously tabled item/stop debate and vote, i.e. call the question, limit or extend debate, waive notice) Abstentions/Absences –In the case of abstentions (or absence of a Standing Member), the fractional vote shall be reallocated equally among the remaining voting members of that Segment; except for the Consumer Segment –For the Consumer Segment, if no Standing Representative from a sub-segment is present at a meeting, the Consumer Segment vote is allocated equally to the sub-segment(s) that are voting; if a Standing Representative abstains from a vote, the fraction of the Consumer Segment Vote allocated to such representative is NOT included in the vote tally. Consumer two-step: If Consumer sub-segment not present, reallocate; then, if consumer sub-segment abstains, do NOT reallocate.

8. 8 RMSNovember 3, 2015 2. Meetings Call meeting to order. Note the Anti-Trust Admonition. Acknowledge any proxies (do not count towards a quorum) or alternate representatives (count towards a quorum). Confirm that a quorum is present. Review agenda and announce any changes. Notice must be waived to vote on items not noticed for a vote on the agenda. Proceed through agenda - all submitted written comments to pending issues should be addressed. Discussion and debate.

9. 9 RMSNovember 3, 2015 2. Meetings Vote – Voice vote or show of hands – used when there is a clear consensus. Roll-call vote – used when a record individual vote is desired or when there is no clear consensus on the issue. Any participant may request a roll-call vote. Announcement of vote results – the Chair should always announce the results of the vote.

10. 10 RMSNovember 3, 2015 Link: http://www.ercot.com/committees/board/tac/index.html TAC Approved Procedures Proxy And Alternative Representative Form Questions?