1. Final Report on ERCOT Pilot Project for Fast Responding Regulation Service (FRRS) PDCWG March 26th, 2014

2. 2 OUTLINE FRRS Pilot Overview Summary of Findings FRRS Up and FRRS Down performance FRRS-Pilot Resource’s ability to respond to sudden large frequency deviation Measuring ERCOT deployed FRRS-up against rate of change of Frequency and Regulation-up deployment 3/26/2014 2 ERCOT

3. 3 FRRS Pilot Overview 1.November 13, 2013: Board Approval 2.February 25, 2013: First day of Pilot 3.July 16, 2013: ERCOT Board approves request to extend the FRRS pilot to February 28, 2014 4.February 28, 2014 Pilot project ended 5.Total three Resources participated in the pilot –Participant 1 was a nominal 36 MW battery in Winkler/Ector County –Participant 2 was a nominal 1 MW battery in Harris County –Participant 3 was a nominal 0.1 MW fleet Electric Vehicle Charging Station in Tarrant County 3/26/2014 3 ERCOT

4. 4 Summary of Findings Based on the observations; 1.The introduction of FRRS improves ERCOT’s ability to arrest frequency decay during unit trips. 2.FRRS Pilot Resources generally followed ERCOT FRRS deployments and responded automatically using local frequency detecting techniques. 3.When deployed, FRRS reduces the rate of change of frequency and regulation deployed to conventional Resources. 4.Observed lower quantities offered for FRRS-down and an overall lower performance for FRRS-down. 3/26/2014 4 ERCOT

5. 5 FRRS Performance 3/26/2014 5 ERCOT FRRS Performance per Month Operating MonthFRRS-UP PerformanceFRRS-DN Performance Feb 25 - 28 201374%68% March 201389%80% April 201398%75% May 201394%62% June 201395%15% July 201392%6% August 201392%No offers September 201392%No offers October 201390%No offers November 201397%No offers December 201393%No offers January 201495%No offers February 201499%No offers

6. 6 FRRS Performance 3/26/2014 6 ERCOT

7. 7 FRRS Performance 3/26/2014 7 ERCOT

8. 8 Detect and Respond (60 cycles) to low Frequency 3/26/2014 8 ERCOT

9. 9 Rate of Change of Frequency (RoCoF) 3/26/2014 9 ERCOT

10. 10 Rate of Change of Regulation-Up Deployments 3/26/2014 10 ERCOT

11. 11 Final Cost 3/26/2014 11 ERCOT

12. 12 Final Cost 3/26/2014 12 ERCOT

13. 13 Appendix 3/26/2014 13 ERCOT

14. 14 FRRS Impact on RoCoF 3/26/2014 14 ERCOT

15. 15 FRRS Impact on Reg-Up Deployment 3/26/2014 15 ERCOT

16. 16 Impact on Reg-up in Feb 2013 3/26/2014 16 ERCOT