1. 1 Protocol Clarification: Section 9.14.4.2, Resolution of Dispute Notification of Financial Impact of Granted and Granted with Exception Disputes COPS ERCOT Public October 8, 2013

2. 2 ERCOT Public Notification of Financial Impact of Settlement Disputes ERCOT’s Perspective of Issue Current protocol language and actual practice may not be in sync: Nodal Go-Live Design deployed a daily dispute summary report on MIS Secure ERCOT’s review of language questions whether this MIS report meets the protocol requirement ERCOT asks COPS to discuss this language and make recommendations to meet the requirements Work towards an NPRR to document the changes and implement.

3. 3 ERCOT Public Notification of Financial Impact of Settlement Disputes Protocol Language 9.14.4.2.2Granted When ERCOT determines that the disputed Settlement Statement or Invoice are in error as alleged in the Settlement and billing dispute, ERCOT shall grant the Settlement and billing dispute and notify the Settlement Statement or Invoice Recipient of the resolution and provide it the reasons and supporting data for resolution, while maintaining the confidentiality of Protected Information. ERCOT shall notify all other Settlement Statement or Invoice Recipients of the financial impact of granted disputes. Upon resolution of the issue, ERCOT shall process the dispute’s resolution on the next available Settlement Statement for the affected Operating Day.

4. 4 ERCOT Public Notification of Financial Impact of Settlement Disputes 9.14.4.2.3Granted with Exceptions (2)If a Settlement Invoice or Statement Recipient rejects the outcome of a dispute “Granted with Exceptions,” ERCOT must investigate the dispute further. ERCOT must include the granted portion of the dispute on the next Settlement Statement for the affected Operating Day and notify all other Settlement Statement or Invoice Recipients of the financial impact of the granted portion of the dispute. After further investigation, if ERCOT subsequently grants the Settlement and billing dispute, ERCOT must process the dispute on the next available Settlement Statement for the affected Operating Day. ERCOT shall notify all other Settlement Statement or Invoice Recipients of the financial impact of the granted portion of the dispute. If exceptions to the dispute still exist, the Settlement Statement or Invoice Recipient may either accept the dispute for resolution as “Granted with Exceptions” or begin ADR according to Section 20, Alternative Dispute Resolution Procedure. Protocol Language

5. 5 ERCOT Public Notification of Financial Impact of Settlement Disputes Current Solution 9.14.4ERCOT Processing of Disputes (3)On each Business Day, ERCOT shall issue an aggregated Settlement and billing dispute resolution report on the MIS Secure Area containing information related to all disputes that are not yet closed or that have been closed recently. Additionally, on each Business Day and for each Settlement Statement Recipient or Invoice Recipient, ERCOT shall issue a report on the MIS Certified Area containing details about each dispute that is not yet closed or that has been closed recently.

6. 6 ERCOT Public Notification of Financial Impact of Settlement Disputes Current Solution ERCOT Summary Dispute Report

7. 7 ERCOT Public Notification of Financial Impact of Settlement Disputes Current Solution ERCOT Summary Dispute Report OPERATING DAY MARKET TYPESUB TYPESTATUSRESOLUTION SUMMED DOLLAR AMOUNTTOTAL COUNT 16-Nov-10CRRCRR AuctionClosedDenied24363.81 20-Aug-13CRRCRR AuctionOpenDenied501 17-Sep-13DAMAncillary Services-DAMOpen200.521 6-Sep-13DAMEnergy-DAMOpen250001 25-Oct-12DAMEnergy-DAMADRDenied31070.291 20-Aug-13DAMMake-WholeClosedDenied101 13-Mar-13RTMAncillary Services-RTMOpenGranted with Exceptions9684.421 1-Apr-13RTMEnergy-RTMOpenGranted539.251 3-May-11RTMEnergy-RTMADRDenied310620.831 5-Sep-13RTMEnergy-RTMOpen156200.751 11-Apr-13RTMEnergy-RTMOpenGranted383.841 31-Oct-12RTMEnergy-RTMADRDenied-8401.841 1-Aug-13RTMGene. Res. Base Pt DeviationOpenGranted24247.281 26-Jun-13RTMGene. Res. Base Pt DeviationOpen8413.531 1-Dec-10RTMReliability Unit CommitmentADRDenied58525.991 1-May-13RTMReliability Unit CommitmentOpen2838.671 2-Jan-11RTMReliability Unit CommitmentADRDenied50225.811

8. 8 ERCOT Public Notification of Financial Impact of Settlement Disputes NEXT STEPS Current protocol language and actual practice may not be in sync: ERCOT asks COPS to discuss this language and make recommendations to meet the requirements Work towards an NPRR to document the changes and implement.

9. 9 DISCUSSIONS ERCOT Public