1. October Project Release (NPRRs 710, 706, 698 and 595) ERCOT Operations & Market Operations WebEx Training October XX, 2015

2. 2 Antitrust Admonition ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, an electronic version is available at http://www.ercot.com/about/governance/index.html. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.

3. 3 Overview October project release scheduled for October 22nd NPRR595 – RRS Load Resource Treatment In ORDC NPRR698 – Clarifications to NPRR595, RRS Load Resource Treatment In ORDC NPRR706 – Restore the ability to use Physical Responsive Reserve Capability as an Indicator of Available Frequency-Responsive Capacity NPRR710 – Removal of ORDC Phase 2 Language and Modification to HASL Calculation Market notices went out on October 9 th with release details http://lists.ercot.com/scripts/wa-ercot.exe?A0=NOTICE_PRR_SCR

4. 4 Outline I.NPRR 706 a.Protocol review b.NFRC Telemetry Examples II.NPRR 710, Resource Limit Calculator Change a.Protocol review b.HASL Calculation Examples III.NPRRs 698 and 595 a.Protocol review b.Examples IV.Questions

5. 5 NPRR 527 (and NPRR 687) allow Generation Resources to send to ERCOT the portion of their HSL that represents non-dispatched power augmentation capacity as the new telemetry Non Frequency Responsive Capacity (NFRC). [Approved – 11/19/2013, 6/9/2015] Background

6. 6 NPRR 706 alters Physical Responsive Capability (PRC) calculation to exclude NFRC, so that PRC indicates only the frequency responsive headroom. [Approved – 8/11/2015] NPRR 706 & PRC VariableDescription PRC 1 Generation On-Line greater than 0 MW PRC 2 Hydro-synchronous condenser output PRC 3 RRS supplied from Load Resources controlled by high-set under-frequency relay PRC 4 Capacity from Controllable Load Resources active in SCED and carrying Ancillary Service Resource Responsibility PRC 5 Capacity from Controllable Load Resources active in SCED and not carrying Ancillary Service Resource Responsibility PRCPhysical Responsive Capability RDF The currently approved Reserve Discount Factor LRDF_1 The currently approved Load Resource Reserve Discount Factor for Controllable Load Resources carrying Ancillary Service Resource Responsibility LRDF_2 The currently approved Load Resource Reserve Discount Factor for Controllable Load Resources not carrying Ancillary Service Resource Responsibility NFRCNon-Frequency Responsive Capacity

7. 7 A representation of the total amount of system wide On-Line capability that has a high probability of being able to quickly respond to system disturbances. 1.Control room operators monitor PRC for determining OCN, Advisory, Watch and EEA. 2.Currently PRC includes available capability from Online Generation, Loads Resources and Hydro units on Synchronous Condenser mode. 3.PRC uses a Reserve Discount Factor (RDF) to account for effect of temperature on Generator Capability. 4.Conventional Generation Resources and Controllable Load Resources maximum contribution to PRC is limited to 20% of their HSL*RDF.  Why 20%? The Generator with a governor droop setting of 5% will provide 20% of its HSL as Governor Response if Frequency drops to 59.40 Hz from 60.00 Hz. 5.Hydro Resources operating under synchronous condenser fast response mode can contribute their full HSL*RDF towards PRC. 6.Non-Controllable Load Resources providing RRS is 100% counted towards PRC. Physical Responsive Capacity (PRC)

8. 8 PRC Example

9. 9 NPRR 687 approved Generation Resources to send to ERCOT the portion of their HSL that represents non-dispatched power augmentation capacity as the new telemetry Non Frequency Responsive Capacity (NFRC). NFRC can include any unloaded power augmentation capability from the following: –Duct firing –Auxiliary boilers that augments the HSL capacity NFRC cannot include the following: –Steam Turbine of a Combined Cycle Plant –Any method that supplements efficiency of Combustion Turbine Chillers or Inlet air cooling NFRC must dynamically change as output from Generation Resource changes. NFRC Telemetry

10. 10 NFRC Telemetry Example #1 CC on start-up. CC switches to full train configuration.

11. 11 NFRC Telemetry Example #1 Duct burners enabled.

12. 12 NFRC Telemetry Example #1 Duct burners enabled.

13. 13 NFRC Telemetry Example #1 HSL reflects the base load capacity of the 2 CTs. NFRC should be 0. ST online, NFRC included in ST capacity and in HSL.

14. 14 NFRC Telemetry Example #2 CT fully loaded before duct burners enabled. 1x1 CC. NFRC = 0 and not included in HSL. Duct burners enabled and included in HSL.

15. 15 NFRC Telemetry Example #3 CC switches from 2x0 to 3x1 configuration.

16. 16 NFRC Telemetry Example #3 CT & ST ramp up. Duct burners are fired.

17. 17 NFRC Telemetry Example #3 Non-zero NFRC telemetry when ST is off-line. NFRC reduces as duct burners are fired. HSL reflects capacity of CT, ST and duct burners

18. 18 NFRC Telemetry Example #3 NFRC should be 0 when ST and duct burner capacity not reflected in HSL.

19. 19 NPRR 710, Protocol Review NPRR 710, Removal of ORDC Phase 2 Language and Modification to HASL Calculation Removed ORDC Phase 2 language Added language, highlighted below, in the Resource Limit Calculator (RLC) to adjust the High Ancillary Service Limit (HASL) for Non-Frequency Responsive Capacity (NFRC) if a resource has a non-zero Responsive Reserve Schedule (RRS) 6.5.7.2 Resource Limit Calculator (1)ERCOT shall calculate the HASL, LASL, SURAMP, SDRAMP, HDL and LDL within four seconds after a change of the Resource-specific attributes provided as part of the QSE’s SCADA telemetry under Section 6.5.5.2, Operational Data Requirements. The formulas described below define which Resource-specific attributes must be used to calculate each Resource limit. The Resource limits are used as inputs into both the SCED process and the Ancillary Service Capacity Monitor as described in Section 6.5.7.6, Load Frequency Control. These Resource limits help ensure that the deployments produced by the SCED and Load Frequency Control (LFC) processes will respect the commitment of a Resource to provide Ancillary Services as well as individual Resource physical limitations.

20. 20 NPRR 710 –Removes ORDC phase 2 language –Changes High Ancillary Sustained Limit (HASL) calculation in Protocol section 6.5.7.2 to conditionally exclude NFRC –Note that HASL changes only when RRS Schedule is non-zero, i.e. IF RRSC = 0 THEN HASL = Max (LASL, (HSLTELEM – (RRSTELEM + RUSTELEM + NSRSTELEM ))) ELSE HASL = Max (LASL, (HSLTELEM – (RRSTELEM + RUSTELEM + NSRSTELEM + NFRCTELEM))) NPRR 710 – Protocol Review HASL = Max (LASL, (HSLTELEM – (RRSTELEM + RUSTELEM + NSRSTELEM + NFRCTELEM))) VariableDescription HASLHigh Ancillary Service Limit. HSLTELEMHigh Sustained Limit provided via telemetry – per Section 6.5.5.2. LASLLow Ancillary Service Limit. RRSTELEMResponsive Reserve Ancillary Service Schedule provided by telemetry. RUSTELEMReg-Up Ancillary Service Resource Responsibility designation provided by telemetry. NSRSTELEMNon-Spin Ancillary Service Schedule provided via telemetry. NFRCTELEMNFRC currently available (unloaded) and included in the HSL of the Generation Resource with non-zero Responsive Reserve Ancillary Service Schedule telemetry.

21. 21 NPRR 710 HASL Examples when NFRC > 0 1.On-line Resource w/wo RRS Schedule telemetry 2.On-line Resource telemetering non-zero Reg-Up and w/wo RRS Schedule telemetry HSL200 RRSC020 Reg-Up20 NSSC (NSRS=0)00 NFRC30 Current-HASL180160 710-HASL180130 HSL200 RRSC020 Reg-Up00 NSSC (NSRS=0)00 NFRC30 Current-HASL200180 710-HASL200150

22. 22 1.On-line Resource telemetering a non-zero NSRS, a zero NSSC and w/wo RRS Schedule telemetry (On-line non-spin part of the energy offer curve >= $75/MWh) 2.On-line Resource telemetering non-zero Reg-Up, a non-zero NSRS, a zero NSSC and w/wo RRS Schedule (On-line non-spin part of the energy offer curve >= $75/MWh) NPRR 710 HASL Examples when NFRC > 0 HSL200 RRSC020 Reg-Up00 NSSC (NSRS ≠ 0)00 NFRC30 Current-HASL200180 710-HASL200150 HSL200 RRSC020 Reg-Up20 NSSC (NSRS ≠ 0)00 NFRC30 Current-HASL180160 710-HASL180130

23. 23 1.On-line Resource telemetering a non-zero NSRS, a non-zero NSSC and w/wo RRS Schedule telemetry 2.On-line Resource telemetering non-zero Reg-Up, a non-zero NSRS, a non- zero NSSC and w/wo RRS Schedule telemetry NPRR 710 HASL Examples when NFRC > 0 HSL200 RRSC020 Reg-Up20 NSSC (NSRS ≠ 0)20 NFRC30 Current-HASL160140 710-HASL160110 HSL200 RRSC020 Reg-Up00 NSSC (NSRS ≠ 0)20 NFRC30 Current-HASL180160 710-HASL180130

24. 24 NPRR 698 and 595, Protocol Review NPRR 698, Clarifications to NPRR595, RRS Load Resource Treatment In ORDC NPRR595 and NPRR698 adjusts the Ancillary Service Imbalance calculation used for the ORDC to account for additional capacity from Load Resources controlled by high set under frequency relays providing Responsive Reserve above their RRS Responsibility up to 150% of their telemetered RRS Responsibility. When deployed for unannounced testing or as part of the response in an emergency condition, the Load Resource will receive a unit specific XML deployment instruction. XML message sent to Load Resources other than Controllable Load Resources for manual deployment of Responsive Reserve Service will be updated to show a value (MW) calculated as follows. XML Instruction = min(max(RRS Responsibility, Net Power Consumption – Low Power Consumption), 150% of RRS Responsibility) Currently, the XML message shows a value (MW) equal to the Net Power Consumption – Low Power Consumption. Compliance will be measured using the actual response compared to the XML instruction. Note: All payments are made on telemetry values not on COP values Section 3.9 language change will remain grey boxed for this release (NPRR 735 proposes deletion of grey box language)

25. 25 NPRR 698 and 595, Example 1.On-line Load Resources controlled by high set under frequency relay providing Responsive Reserve ORDC MW are credited in the Ancillary Service Imbalance for the QSE (Section 6.7.4) 2.On-line Load Resources controlled by high set under frequency relay providing Responsive Reserve deployment example: XML message for resource above MW value: min(max(RRS Responsibility, Net Power Consumption – Low Power Consumption), 150% of RRS Responsibility) Example A:min(max(100, 110) 150) = 110 MW Example B:min(max(100, 200) 150) = 150 MW Example C:min(max(100, 90) 150) = 100 MW Performance monitoring will be done on value in xml message (Protocol section 8.1.1.4.2) ExampleABC MPC200 LPC000 NPC11020090 RRS100 Current ORDC MW000 Post 698 ORDC MW10100-10

26. 26 Questions and Additional Information October project release scheduled for October 22nd NPRR595 – RRS Load Resource Treatment In ORDC NPRR698 – Clarifications to NPRR595, RRS Load Resource Treatment In ORDC NPRR706 – Restore the ability to use Physical Responsive Reserve Capability as an Indicator of Available Frequency-Responsive Capacity NPRR710 – Removal of ORDC Phase 2 Language and Modification to HASL Calculation Client Services for Market Participants –512-248-3900 ClientServices@ercot.com ClientServices@ercot.com Market notice archive http://lists.ercot.com/scripts/wa-ercot.exe?A0=NOTICE_PRR_SCR