1. QSE Managers Working Group Report to WMS, April 8, 2011 S. Looney, Luminant

2. Review of NPRRs NPRR312, Clarification of QSE Requirements for Split Generation Resources – Discussion deferred to PRS conference call. NPRR314, Requirement to Post Resources Temporal Constraints – Luminant agreed to strike language requiring system changes to modify parameters. NPRR332, Revise QSGR Processes for COP Reporting of QSGR Assigned Off-Line Non-Spin and Application of Emergency Operations Settlement – Discussed two possible solutions for the COP: (1) allow QSGRs to enter zero LSL or (2) add a new Resource Status of ONQSGR. ERCOT will evaluate least impact solution.

3. Review of NPRRs – cont. NPRR341, Remove AS Offers from SASM that do not Meet the Lead Time – Projected implementation date is July 2011. NPRR334, Incorporate Resource Limit for the Amount of Regulation Service – ERCOT is attempting to address three reliability issues for AS: (1) failure to provide due to risk of a unit outage; (2) undeliverability of AS energy and (3) unit ramp rate limitations. Discussion at QMWG, this is not a responsive solution to these issues because applying this philosophy in all situations could unnecessarily increase the cost of regulation. Unit outages and ramp rate limitations are addressed elsewhere in the Protocols. Deliverability should be addressed directly; award of Regulation service does not consider deliverability.

4. Operational Issues HDL/LDL Manual Override Update, Settlement of HDL/LDL Override Base Points – Reasons given for manual overrides: o To stop continuous activation of SPSs o No SCED solution for a constraint o Preparation for a planned transmission outage o Resource reactive control issues. QMWG ask for information on Resources. Statistics in report on meeting page. Requesting identification of Resources and constraints on Daily Operations Report through MISUG.

5. Operational Issues Base Point Oscillations for WGRs, Review of March 11 data –Management of W-N Stability Limit -- Evaluation of March 11 data. When curtailment released, the QSE reset the HSL to actual while the Resource was still under the influence of the curtailment. Should continue to set HSL equal to RTPP for at least 10 minutes. ERCOT does not believe a Protocol revision is necessary. QSEs should check their algorithms. ERCOT will issue market notice.

6. Operational Issues Discussion of Non-Spin Deployment Procedure Changes -- ERCOT wants Non-Spin units to remain online for 30 minutes at the end of a deployment if their responsibility discontinues into the next hour. Need further discussion of non-spin deployments which bridge the start of an operating hour. GREDP Update – Good passing rate on non- WGRs. Recommend study of performance criteria for WGRs by PDCWG because they have access to ERCOT’s data.

7. Operational Issues Implementation of WGR Curtailment Flag Update -- ERCOT is checking on delay of BP deviation charges until June 1 to allow for end to end systems testing. Market Notice April 15, May 18 implementation. ERCOT NPRR for Shutdown Resource Status -- ERCOT provided draft NPRR language, posted.

8. Draft NPRR Luminant presented draft NPRR for clarification of Non-Spin deployment and performance criteria – LUME will submit draft which includes Non-Spin ICCP deployment signal and XML notification to all QSEs of a Non-Spin deployment.