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TPTF Update

Trip Doggett

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Agenda

Item Description Purpose

1. Meeting Summary • Summary of recent TPTF activities For review

2. Next Meetings • Upcoming activities For review

3. Approval of Milestone

• Request TAC approval of Milestone – Business Requirements Complete for

CO Real-Time AS Settlements CO RUC Settlements CO DAM Make Whole Settlements

For Vote

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Meeting Summary – August 7

Meetings August 7 & 8 and August 21, 22 & 23 On August 7, we discussed:

Proposed changes to Principles of Consistency Document that were proposed by joint ROS/TPTF Task Force, including proposed definition for Annual Planning Model. Draft language to incorporate refined Annual Planning Model definition in Section 3.10.2(1).

On August 7, after voting unanimously to waive notice for the vote, TPTF approved the refined Annual Planning Model definition in Section 3.10.2(1) by a unanimous voice vote. On August 7, after voting unanimously to waive notice for the vote, TPTF approved the changes to the Principles of Consistency Document by a unanimous voice vote.

Draft Nodal PRRs On August 7, TPTF approved a draft NPRR for changes to Sections 1, 6, and 10 to address net metering concerns in the nodal market. The draft Nodal PRR was approved by a ballot vote of 100% in favor, with one abstention by CenterPoint Energy. The Cooperative and Independent Generator segments were not present. This draft NPRR will be sent to PRS.

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Meeting Summary – August 7 (continued)

On August 7, we discussed: Draft Nodal PRRs

Discussed a proposed NPRR from the ERCOT Modeling Group to clarify required tests of the Network Model. ERCOT agreed to meet with individuals having concerns with the document, offline, and circulate an updated version of the NPRR for consideration at our next meeting.

ERCOT protocol clarifications Discussed the treatment of block Offers in the Market Management System and ERCOT agreed to discuss the possibility of Relaxed Mixed Integer Programming with the vendor. Reviewed the words in 4.4.2.2(3) and agreed the words should be revised to say QSE trades should be posted in the MIS Certified Area, not the MIS Secure Area. ERCOT will prepare a draft NPRR to correct. Discussed whether ERCOT is expected to notify QSEs if their Base Point is based on a mitigated Offer. Agreed this is not a requirement.

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Meeting Summary – August 7 (continued)

On August 7, we discussed: ERCOT protocol clarifications

Discussed Combined Cycle power augmentation methods in 6.5.5.2(9) and recommended ERCOT discuss with Randy Jones before returning decisions to TPTF Discussed the use of Generic Cost of energy in RUC, 5.5.2(4) versus the use of Energy Offer Curves. ERCOT will bring a draft NPRR for TPTF consideration. ERCOT asked if an Energy Offer Curve should be mandatory for RUC committed units. ERCOT will study further before bringing a NPRR to TPTF Discussed the use of telemetered ramp rate, versus ramp rate provided through registration, in SCED. ERCOT will research further and bring a recommendation to TPTF. Discussed whether a unit committed in DAM should be required to show the unit ON in their COP before RUC execution.

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Meeting Summary – August 8

On August 8, we discussed: Draft Nodal PRR

Discussed how to settle CRRs when the DAM fails to execute. Provided direction to ERCOT to draft a NPRR using no deration. Discussed options for CRR block sizes. Reviewed draft NPRR for Section 16.8.1 to prohibit Unbundled TSPs, DSPs, and ERCOT employees from owning CRRs

On August 8, approved changes to Section 16.8.1 to prohibit Unbundled TSPs, DSPs, and ERCOT employees from owning CRRs by a unanimous voice vote.

Reviewed formatting changes proposed by ERCOT Market Rules for Section 8.1.2.2.1

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Meeting Summary – August 8 (continued)

On August 8, we discussed: Changes proposed by ERCOT Market Rules for Section 8.1.2.2.1 Commercial Operations Business Requirements Schedule Eligibility Scenarios for Make-Whole and RUC Training Update Initial Overview of Real-Time AS Commercial Operations Business Requirements Document Initial Overview of RUC Settlement Commercial Operations Business Requirements Document Draft Nodal PRRs

Reviewed draft NPRR to address settlement issues with net metering in the nodal market.

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Meeting Summary – August 21

On August 21, we discussed: Net Metering

Reviewed draft Net Metering NPRR with language changes in Sections 1, 3, 6, and 10.

On August 21, TPTF approved draft Net Metering Nodal PRR by a ballot vote of 100% in favor, with abstentions by CenterPoint, Occidental, and Exelon. All market segments were present. This draft NPRR will be sent to PRS.

ERCOT discussed the association of EPS metering points to an electrical bus and concluded no additional protocol language was needed to allow ERCOT to map these relationships.

EMS Business Requirements Review Initial review of State Estimator Initial review of Forced Outage Detection Initial review of Load Frequency Control

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Meeting Summary – August 21 (continued)

On August 21, we discussed: ROS Update

Update on ROS approval of ROS/TPTF Task Force recommendations on Principles of Consistency document Approval of draft NPRR for Annual Planning Model definition in Section 3.10.2.

On August 21, TPTF approved draft NPRR for Annual Planning Model definition in Section 3.10.2 by a unanimous voice vote. This draft NPRR will be sent to PRS.

Discussed ROS comments on Section 5.5.1(5). The consensus of the group was to recommend using a reference to the Operating Guides instead of duplicating Operating Guide language in the Protocols.

On August 21, TPTF approved comments on Section 5.5.1(5) by a ballot vote of 90% in favor, with one negative vote by Garland and abstentions by CenterPoint and TXU Energy. All market segments, except Consumers, were present. These comments will be sent to TAC.

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Meeting Summary – August 22

On August 22, we discussed: MMS Project Issues Review

Ancillary Service/Energy Modeling Block Offer Modeling and Pricing Submission of Bilateral Trades Overlapping Offers/Bids Hot/Intermediate/Cold Startup Offer Offer/Bid Validation Timeline Offer/Bid Expiry Time

Market Information System MIS Update ERCOT Clarification to Section 12.3(d)

Training Update Draft NPRR for CRR Settlement without DAM

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Meeting Summary – August 22 (continued)

On August 22, we discussed: Commercial Systems Requirements Schedule Initial overview of Real-Time Energy Settlements Business

Requirements Document Review of comments received on Commercial Operations Real-Time

AS Settlement Business Requirements Document On August 22, TPTF approved Real-Time AS Settlement Business

Requirements by a ballot vote of 100% in favor, with abstentions by GEUS, CenterPoint Energy, Calpine, City of Dallas, Occidental, and Residential Consumers. All market segments were present.

Review of comments received on Commercial Operations RUC Settlement Business Requirements Document

On August 22, TPTF approved RUC Settlement Business Requirements by a ballot vote of 100% in favor, with one abstention by CenterPoint Energy. All market segments were present.

Review of comments received on Commercial Operations DAM Make Whole Settlement Business Requirements Document

On August 22, TPTF approved DAM Make Whole Settlement Business Requirements by a ballot vote of 100% in favor, with abstentions by CenterPoint Energy, Occidental, and Residential Consumers. All market segments, except cooperative, were present.

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Meeting Summary – August 22 (continued)

On August 22, we discussed: Draft NPRRs related to CRRS

Draft NPRR to address hourly granularity of bilateral trades On August 22, TPTF approved a draft NPRR to limit CRR trading,

registered through ERCOT’s CRR system, to time-of-use blocks for any number of days. The draft NPRR was approved by a ballot vote of 100% in favor, with abstentions by City of Garland and Calpine. All market segments, except cooperative, were present. This draft NPRR will be sent to PRS.

Draft NPRR to address ability to offer 24-hour blocks On August 22, TPTF approved draft NPRR to specify that CRR

awards and allocations of a one-month strip in a 7x24 block will be split into one-month strips of the three other blocks (5x16, 2x16, 7x8). Each of these three blocks may be offered into subsequent CRR Auctions as separate block offers but not as a single 7x24 block. The draft NPRR was approved by a ballot vote of 83.3% in favor, with one negative vote by TXU Energy and abstentions by NRG Texas, Calpine, City of Dallas, Residential Consumers, Stream Energy, StarTex Power, Strategic Energy, Accent Energy, Cirro Group, and Reliant. All market segments were present. This draft NPRR will be sent to PRS.

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Meeting Summary – August 23

On August 23, we discussed: Nodal Program Update TXMAC Timeline

On August 23, TPTF approved TXMAC Timeline as being in compliance with the protocols by verbal affirmation, with no abstentions. All market segments were present.

Network Model Testing Clarification - Section 3.10.4 On August 23, TPTF approved Network Model Testing draft NPRR as modified by TPTF for Sections 3.10.1 and 3.10.4 by a unanimous ballot vote of 100% in favor with no abstentions. All market segments were present.

Review PRS Remand of NPRR018, Separate LaaR and Generator MCPCs for RRS, for completeness Default QSE / LSE Scenarios and NPRR Draft for Synchronization of PRR624

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Next Meetings

Next meetings Tuesday, September 5 and Wednesday, September 6 Monday, September 11 and Tuesday, September 12 Wednesday, September 27 thru Friday, September 29

On September 5&6, will be discussing Program Timeline and Budget. On September 11&12, will be discussing:

Draft NPRR on CRR Settlement without DAM Draft NPRR for Synchronizing PRR624 (Clarification of MP Default Language) Commercial Operations Business Requirements:

Initial Overview of RMR, Voltage Support, Black Start, Emergency Operations Settlement Commercial Operations Business Requirements Document Review of comments received on Real-Time Energy Settlements and DAM/RUC Eligibility Commercial Operations Business Requirements Documents

EMS Business Requirements: Initial Overview of second round of EMS Business Requirements Documents Review of comments received on Forced Outage Detection, State Estimator, and Load Frequency Control EMS Business Requirements Documents

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TAC Approval of Milestone

On August 22, TPTF approved Real-Time AS Settlement Business Requirements by a ballot vote of 100% in favor, with abstentions by GEUS, CenterPoint Energy, Calpine, City of Dallas, Occidental, and Residential Consumers. All market segments were present. On August 22, TPTF approved RUC Settlement Business Requirements by a ballot vote of 100% in favor, with one abstention by CenterPoint Energy. All market segments were present. On August 22, TPTF approved DAM Make Whole Settlement Business Requirements by a ballot vote of 100% in favor, with abstentions by CenterPoint Energy, Occidental, and Residential Consumers. All market segments, except cooperative, were present. The Transition Plan says: “Any declaration of the accomplishment of a major milestone (business requirements, conceptual design, and successful completion of Market Participant testing) or a decision to proceed is contingent on the approval of both ERCOT and TAC.” Request that TAC approve the milestones

Approval of Real-Time AS Settlement Business Requirements Approval of RUC Settlement Business Requirements Approval of DAM Make Whole Settlement Business Requirements

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Questions