Protocol Revision Subcommittee

Tom Burke

March 7, 2013

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Summary of Revision Requests

7 NPRRs Recommended for Approval

2 SCRs Recommended for Approval

1 Parking Deck Impact Assessment Recommended for Approval

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Items for a Vote

Unopposed Recommendations

• NPRR495, Changes to Ancillary Services Capacity Monitor• NPRR510, Discretion in Operating Days in OUT Calculation, Clarification of Source of ACP and Clarification of the

Definition of Financial Statements*• NPRR511, Correction to Emergency Energy Settlement Language – URGENT*• NPRR518, Removal of Notification Requirement for Disclosures of Protected Information Required by CFTC –

URGENT*• NPRR520, Real-Time Mitigation Rules and Creation of a Real-Time Constraint Competitiveness Test – URGENT• NPRR521, Transitional CRR Auction Capacity Value for Initial CRR Long-Term Auction Sequence – URGENT*• SCR772, New Extract for Five Minute Interval Settlement Data• SCR773, Addition of Regulation Feedback to Generation to be Dispatched Calculation – URGENT

Recommendations with Opposing Votes

• NPRR500, Posting of Generation that is Off but Available• Parking Deck SCR756, Enhancements to the MarkeTrak Application

(* denotes no impacts)

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NPRR Descriptions

NPRRs/SCRs Recommended for Approval

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NPRR495, Changes to Ancillary Service Capacity Monitor

Purpose

(MISUG)This NPRR modifies the Ancillary Service Capacity Monitor information provided by ERCOT both through ICCP telemetry and the MIS Public Area.

PRS Vote On 11/15/12, PRS unanimously voted to recommend approval of NPRR495 as submitted. On 2/21/13, PRS unanimously voted to endorse and forward the 11/15/12 PRS Report and Impact Analysis for NPRR495 to TAC with a recommended priority of 2013 and rank of 870.

Effective Date/Priority Upon System Implementation – Priority 2013; Rank 870

ERCOT Impact $105k - $125k; impacts to MMS, EMS, MIS, ISM, EI, and CDR.

Business Case Highlights Improves transparency of available Ancillary Services capacity; Allows Market Participants greater efficiencies in operations and intraday hedging; Lowers costs to the market due to greater market efficiencies; More economical selection of units based on available capacity information.

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NPRR500, Posting of Generation that is Off but Available

Purpose

(Morgan Stanley)

This NPRR adds to the Short-Term System Adequacy Report a field showing the aggregate Generation Resource capacity that is schedule in the COP as “Off” and can be started in time to be available each Operating Hour.

PRS Vote On 12/13/12, PRS voted to recommend approval of NPRR500 as revised by PRS. There were two opposing votes from the Independent Generator and IREP Market Segments and three abstentions from the Consumer, IPM and Municipal Market Segment. On 2/21/13, PRS voted via roll call vote to endorse and forward the 12/13/12 PRS Report and Impact Analysis for NPRR500 to TAC with a recommended priority of 2014 and rank of 950. There were four opposing votes from the IPM (3) and IREP Market Segments and three abstentions from the Independent Generator (2) and IPM Market Segments.

Effective Date/Priority Upon System Implementation – Priority 2014; Rank 950

ERCOT Impact $60k - $75k; impacts to MMS and CDR.

Business Case Highlights

Improves transparency of Resource capacity available to the market but not “On”; minimal cost and impact to ERCOT resources and systems is expected; Corrects a chronic problem in the way external markets handle information currently available in the Short-Term System Adequacy Report.

ERCOT Public

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NPRR510, Discretion in Operating Days in OUT Calculation, Clarification of Source of ACP and Clarification of the Definition of Financial Statements

Purpose

(ERCOT)

This NPRR clarifies discretion for ERCOT to adjust Operating Days used in the calculation of Outstanding Unpaid Transactions (OUT), consistent with certain other components of Estimated Aggregate Liability (EAL); and provides clarification of the appropriate CRR Auction clearing price to be used when there have been multiple auctions for the same period and specifies required financial statements.

PRS Vote On 1/17/13, PRS voted to recommend approval of NPRR510 as amended by the 1/8/13 ERCOT comments. There was one abstention from the Independent Generator Market Segment. On 2/21/13, PRS unanimously voted to endorse and forward the 1/17/13 PRS Report as amended by the 1/31/13 Credit Work Group comments and Impact Analysis for NPRR510 to TAC.

Effective Date/Priority June 1, 2013

ERCOT Impact No impacts.

Business Case Highlights

Aligns Protocol language with existing credit calculation methodology.

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NPRR511, Correction to Emergency Energy Settlement Language - URGENT

Purpose

(ERCOT)

This NPRR clarifies the Settlement of Quick Start Generation Resources (QSGRs) when ERCOT Operations issues a manual override.

PRS Vote On 1/17/13, PRS unanimously voted to grant NPRR511 Urgent status. On 2/21/13, PRS unanimously voted to recommend approval of NPRR511 as revised by PRS.

Effective Date/Priority April 1, 2013

ERCOT Impact No impacts.

Business Case Highlights

Will ensure consistent Protocol language in regards to the Settlement of QGSR additional variable O&M included in Mitigated Offer Cap.

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NPRR518, Removal of Notification Requirement for Disclosures of Protected Information Required by CFTC – URGENT

Purpose

(ERCOT)

This NPRR creates an explicit exception to the prohibition against disclosing Protected Information that would authorize ERCOT to respond to Commodity Futures Trading Commission (CFTC) requests; adds an exception to the existing notice requirement to accommodate CFTC investigative requests; and requires ERCOT to submit a written request for confidential treatment to the CFTC whenever disclosing Protected Information.

PRS Vote On 2/21/13, PRS unanimously voted to grant NPRR518 Urgent status. PRS then voted to recommend approval of NPRR518 as submitted. There were two abstentions from the Consumer and Cooperative Market Segments.

Effective Date/Priority April 1, 2013

ERCOT Impact No impacts.

Business Case Highlights

Necessary step in obtaining an exemption from most provisions of the Commodity Exchange Act. Without this exemption, ERCOT, its products, and its Market Participants would be subject to substantial administrative and regulatory burdens, which would only create additional costs for Market Participants.

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NPRR520, Real-Time Mitigation Rules and Creation of a Real-Time Constraint Competitiveness Test – URGENT

Purpose

(ERCOT)

This NPRR addresses SCED over-mitigation issues by minimizing the set of Resources that are mitigated to only those Resources that have significant impacts to a Non-Competitive Constraint; ensures that Resources that do not impact a Non-Competitive Constraint, when dispatched up in SCED Step 2 to meet the power balance constraint, will set the price based on their competitive offers; and minimizes Base Point oscillations for Resources that become marginal due to offer price floors for NSPIN/RUC/RMR, high QSGR offers priced above the reference LMP, or high offers submitted based on Voluntary Mitigation Plan above the reference LMP.

PRS Vote On 2/21/13, PRS unanimously voted to grant NPRR520 Urgent status. PRS then unanimously voted to recommend approval of NPRR520 as submitted with a recommended priority of 2013 and rank of 205.

Effective Date/Priority Upon System Implementation – Priority 2013; Rank 205

ERCOT Impact $180k - $200k; impacts to MIS, MMS, EI, CDR, and NMMS.

Business Case Highlights

Addresses the over mitigation issues by minimizing the set of Resources that are mitigated to only those Resources that have significant impacts to a Non-Competitive Constraint; minimizes Base Point oscillations for Resources that become marginal due to offer price floors for Non-Spin Service, RUC and RMR Service, high QSGR offers priced above the Reference LMP, or high offers submitted based on a voluntary Mitigation Plan above the Reference LMP.

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NPRR521, Transitional CRR Auction Capacity Value for Initial CRR Long-Term Auction Sequence – URGENT

Purpose

(ERCOT)

For initial implementation purposes only, this NPRR proposes to increase the initial CRR Auction Capacity for the first six-month portion of the initial CRR Long-Term Auction Sequence from 60% up to 70% in order to mitigate potential system and market issues during the transition from the Annual CRR Auction to the CRR Long-Term Auction Sequence.

PRS Vote On 2/21/13, PRS voted to grant NPRR521 Urgent status. There was one abstention from the IPM Market Segment. PRS then voted to recommend approval of NPRR521 as submitted. There was one abstention from the IPM Market Segment.

Effective Date/Priority April 1, 2013

ERCOT Impact No impacts.

Business Case Highlights

Minimize the risk of not being able to successfully run the first sequence of the CRR Long-Term Auction Sequence.

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SCR772, New Extract for Five Minute Interval Settlement Data

Purpose

(CSWG)

This SCR proposes that ERCOT provide a new Real-Time code extract that will have five minute interval data only.

PRS Vote On 1/17/13, PRS voted to recommend approval of SCR772 as submitted. There was one abstention from the Independent Generator Market Segment. On 2/21/13, PRS unanimously voted to endorse and forward the 1/17/13 PRS Report and Impact Analysis to TAC with a recommended priority of 2014 and rank of 940.

Effective Date/Priority Upon System Implementation – Priority 2014; Rank 940

ERCOT Impact $80k - $90k; impacts to MIS and ISM;

Business Case Highlights

Size and complexity of the Settlement extract tables will be more manageable; Only one extract with column size 300 instead of many; Downloading and querying data from the extracts will be more efficient; Parties not interested in five minute data do not need to revise their databases to accept five minute data; Savings in database administration and efficient data download and upload; All Market Segments will benefit from the five minute only extracts.

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SCR773, Addition of Regulation Feedback to Generation to be Dispatched Calculation – URGENT

Purpose

(PDCWG)

This SCR updates the formula used by the system to calculate the amount of generation to be dispatched that takes into account a configurable quantity for Regulation Service that has been deployed.

PRS Vote On 2/21/13, PRS voted to grant SCR773 Urgent status. There was one abstention from the IOU Market Segment. PRS then voted to recommend approval of SCR773 as submitted and to forward SCR773 to TAC. There was one abstention from the IOU Market Segment.

Effective Date/Priority To be determined.

ERCOT Impact To be determined.

Business Case Highlights

Reduces the amount of Regulation Service deployed.

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Parking Deck SCR756, Enhancements to the MarkeTrak Application

Purpose

(MTTF)

This SCR adds functionality to the MarkeTrak Issue Resolution Tool to improve and standardize Market Participant administration functions, implement ERCOT validations requested by the MTTF, and redesign the workflows to leverage potential vendor upgrades to the MarkeTrak application.

PRS Vote On 2/21/13, PRS voted to endorse and forward the impact assessment for SCR756 to TAC with a recommended priority of 2013 and rank of 735. There was one opposing vote from the Consumer Market Segment and two abstentions from the Independent Generator and IPM Market Segments.

Effective Date/Priority Upon System Implementation – Priority 2013; Rank 735

ERCOT Impact $250k - $300k; impacts to MarkeTrak, Siebel and EI.

Business Case Highlights

Efficiencies gained by Market Participant’s MarkeTrak Administrators in managing users and by Market Participant’s MarkeTrak users in execution of workflows; Improved reporting; Improved validations; benefits end use Customer with a more efficient resolution process; higher Market Participant utilization of the application to identify, track, and resolve a wide variety of discrepancies.

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PRS Review of Pending Project Priorities

• Notice of PRS Reprioritization of NOGRR084, Daily Grid Operations Summary Report

• Voted to change priority and rank of NOGRR084 to 2013/860• COPS/MISUG will be holding a workshop to discuss NOGRR084

and more cost efficient implementation methods.