1. Reliability Must Run Workshop Introduction May 24, 2016

2. 2 Introduction Environmental Regulation Update RMR Study Process RMR Dispatch and Commitment RMR Settlements MRA Discussion

3. PUBLIC 3 What is RMR? Protocol Section 3.14.1: RMR [Reliability Must Run] Service is the use by ERCOT, under contracts with Resource Entities, of capacity and energy from Generation Resources that otherwise would not operate and that are necessary to provide voltage support, stability or management of localized transmission constraints under applicable reliability criteria, where market solutions do not exist.

4. PUBLIC 4 Has ERCOT had RMR contracts before? Yes! In 2011 ERCOT entered into RMR contracts for Spencer and S.R. Bertron units Previous RMR contracts (all in the zonal market) include Laredo, Permian Basin, PH Robinson, Eagle Mountain, Frontera, Fort Phantom, San Angelo, Rio Pecos, J. L. Bates, Barney Davis, La Palma

5. PUBLIC 5 What are the goals for today? Capture stakeholder comments on possible RMR Protocol or process revisions Review relevant RMR Protocol requirements Provide informational update on environmental regulations

6. PUBLIC 6 Questions?