7/15/2013 CSWG CSWG – ERCOT Update ERCOT Matthew Tozer

2 Settlements Project Updates February 27, 2012 NPRR 461: Energy Storage Settlements Consistent With PUCT Project –On track for release into production on between 7-27 and –10 day market notice will provide actual production release date –Only impact to QSEs other than those with Whole Sale Storage load is a new price bill determinant, RTRMPRWSL –Since NPRR was technically live on February 14, 2013 before the system changes were implemented, we will be loading RTRMPRWSL records from through the release date. This data will be published in the SID extract and in the RTM Mode extracts when the February 14 through Release Date Finals and True-Ups are settled NPRR 416: Creation of the RUC Resource Buyback Provision –On Track for release into production in September of 2013 –This NPRR allows RUC Committed resources the ability to opt out of the RUC Commitment thereby forfeiting RUC Make Whole Payments and waiving RUC Clawback charges NPRR 509: Shortened RTM Settlement Timeline –Assuming the Board recommends moving forward with Phase 2 Implementation, changes will be effective for the August 1, 2013 Operating Day

3 Settlements Operational Updates – Resettlements and Short Pays Short Pays February 2 nd and 3 rd of 2011 were resettled due to an ADR ERCOT received late payments or no payments from 3 entities and had to follow the short payment procedure for participants owed monies from ERCOT due for payout on July 3 rd June 23, 2013 RTM Resettlement ERCOT found a data error that exceeded the 2% threshold per Protocol Section 9.5.6(2) triggering the Resettlement Issue affected one QSE and was related to Ancillary Services data June 5, 2013 DAM Resettlement Only one June operating day ( ) affected by the SFT data error exceeded the 2% threshold ERCOT issued this DAM resettlement earlier than the rest of the operating days affected by the SFT issue to avoid having to resettle the June Balancing Account

4 Review of Section 9.19(1)(g) Protocol Language Language States: –To the extent ERCOT is able to collect past due funds owed by a short-paying Invoice Recipient before the default uplift process defined in Section , ERCOT shall allocate the collected funds to the earliest short-paid Invoice for that short-paying Invoice Recipient. ERCOT shall use its best efforts to distribute collected funds quarterly by the 15 th Business Day following the end of a calendar quarter for a short paying Entity when the cumulative amount of undistributed funds held exceed $50,000 on a pro rata basis of monies owed. Subsequently collected funds that have not previously been distributed will be applied against unpaid Invoices in conjunction with the uplift process outlined in Section Question for CSWG: –Was this language intended to address situations where an entity has defaulted and during resettlements, small credits come in. In such cases, did the market not want to receive wires for small credit amounts? –What about situations where the funds just come in late and are paid in full? Would the group like to reconsider when those funds will be distributed back to the short paid entities? February 10, 2009