COPS DECEMBER 2013 UPDATE TO RMS 12/18/2013 Harika Basaran, Chair Jim Lee, Vice Chair

2 COPS HIGHLIGHTS Approved 2014 Market Data Transparency Service Level Agreement with COPS comments (minor formatting) ERCOT Holiday ERS (Emergency Response Service) Issue: Market Participants need to know the ERCOT Holidays for ERS settlements, without having to update their systems every year Interim Solution: ERCOT Holidays will be approved in advance ERCOT Staff has provided the Holidays through 2016 ERCOT Staff will post an Excel spreadsheet in the following location on the ERCOT Website: Long Term Solution: Tenaska Staff will work with ERCOT Staff to draft an NPRR to include ERCOT Holidays in an Extract as a determinant that can be used by Market Participants’ settlement systems ERCOT Executives will continue to have flexibility in determining the ERCOT Holidays from year to year

3 ERCOT UPDATES  Settlements Input Data Error for Operating Days 11-1 to 11-2 and 11-4 to 12-1 due to DST code change Charge Types Affected: Real-Time Market Base Point Deviation Charge Real-Time Energy Imbalance at a Resource Node Real Time Final Settlements will use the corrected data for the impacted days for the above two charges Payments and Charges for PTP Obligations and Options with Refund Settled in the Day-Ahead Market The criteria of market wide impact of 2% was not met for this charge, therefore no resettlement  The Real Time Obligations with Links to Options did not settle for Operating Day 11/26/2013 Error Impacted Settlement for 10 QSEs. They were notified of the issue by ERCOT Client Services The error was caused by a batch dependency being released over the Thanksgiving weekend Real Time Final Settlements will have the corrected settlement amounts

4 CSWG Protocol Clarification: Section Notification of Financial Impact of Granted and Granted with Exception Disputes –Some improvements may be desired for the report but they would require a scoping effort and System Change Request –Interim step to draft an NPRR that will align protocol language with the current report With NPRR 570 implementation (TD 1/1/2014), CSWG will continue to look at impacts going forward to the timeline and settlement results CSWG leadership has requested feedback from market participants regarding alternative methods for estimation –Examples of using Base Points (in lieu of meter data for resources) and Back- casted weather adjusted load estimates were discussed at the last CSWG meeting –Although results using Base Points and Back-casted load indicated small changes from Estimate to Actual, the process does not necessarily cover all concerns on market data (i.e. smaller generators, NOIE load available for estimate)

5 PWG AMS meter vs. IDR meter discussion PWG will leverage discussions held at the Retail Metering WG performed several years ago. It will help evaluate whether conditions/situations have changed enough to warrant another look. Market challenges/questions raised: –What ERCOT Protocols and Guides are impacted? –Will IDR customers be charged the Advanced Metering Cost Recovery Factor? (By Legislation the Answer is No.) –How can data transfer be changed to minimize the impact to REP billing systems? –Interval data to be sent on both the LSE files and 867s for IDR Required meters? –Will the 700 kW threshold be used to determine if TDSPs will bill using 4CP demand? How will REPs know their customer is being billed on 4CP? Profile changes? TDSP Rate codes? –Can customers and REPs who currently download data directly from the meter continue to do so with AMS meters? PWG Leadership will coordinate these issues with other interested groups and decide what groups or formats would be best to analyze these topics effectively in 2014.

6 MISUG Market Report True-Up/Audit: Three years into Nodal, MISUG would like to take a look at the reports that are currently being published and conduct a true-up –Automation: There are currently 227 “reports” available on the MIS ERCOT currently produces 134 reports manually –95 Required by Sub Rules, Protocols or OBD –39 Requested or self prompted 15 Recommended to discontinue - eliminates ~500 hrs of manual work 15 Recommended to be automated - ~4000 hrs of manual work to be automated 119 Recommended to continue - ~25,000 hrs of manual work –True-Up: We will go through the entire list of reports and review the following: Is the report still needed? Is the report being prepared according to protocols/requirements? Are the data in the report accurate? NOGRR084. After discussion at MISUG, we have come to the conclusion that there is still a need and desire to have a Daily Operations Report. –We will keep NOGRR084 active and MISUG will evaluate alterations to the data included in the proposed Daily Operations Report as the market changes. –When appropriate, we will request to move NOGRR084 to active implementation. MISUG is now considering a proposal to transition the Market Reports functionality to a query-able database.

7 Questions?