1. Lead from the front Texas Nodal http://nodal.ercot.com 1 TPTF Update Trip Doggett

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 Agenda ItemDescriptionPurpose 1. Meeting SummarySummary of recent TPTF activitiesFor review 2. Next MeetingsUpcoming activitiesFor 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

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 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.

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 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.

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 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.

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 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

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 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.

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 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

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 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.

10. Lead from the front Texas Nodal http://nodal.ercot.com 10 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

11. Lead from the front Texas Nodal http://nodal.ercot.com 11 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.

12. Lead from the front Texas Nodal http://nodal.ercot.com 12 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.

13. Lead from the front Texas Nodal http://nodal.ercot.com 13 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

14. Lead from the front Texas Nodal http://nodal.ercot.com 14 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

15. Lead from the front Texas Nodal http://nodal.ercot.com 15 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

16. Lead from the front Texas Nodal http://nodal.ercot.com 16 Questions