1. Jan 22, 20031 TAC Report to the ERCOT Board January 22, 2003

2. Jan 22, 20032 Summary OGRR123 - notice of TAC approvalOGRR123 - notice of TAC approval SMOGRR2002-3 - vote to approveSMOGRR2002-3 - vote to approve PRRs 342, 361, 367, 368, 370 - vote to approvePRRs 342, 361, 367, 368, 370 - vote to approve Resolution to Suspend True-Up Settlements for 2002 - vote to approveResolution to Suspend True-Up Settlements for 2002 - vote to approve Update on Subcommittee activitiesUpdate on Subcommittee activities

3. Jan 22, 20033 OGRR123 Increases amount of interruptible load on high-set under-frequency relays (UFR) participation Resources can provide as Responsive Reserve Service (RRS) from 25 to 35%.Increases amount of interruptible load on high-set under-frequency relays (UFR) participation Resources can provide as Responsive Reserve Service (RRS) from 25 to 35%. Approved unanimously by TAC on Jan 9Approved unanimously by TAC on Jan 9

4. Jan 22, 20034 SMOGRR2002-3 Modify Change Control Process The current change process requires board confirmation to become effective.The current change process requires board confirmation to become effective. The requested revision will make the changes to the SMOG effective following TAC approval.The requested revision will make the changes to the SMOG effective following TAC approval. The Board will be advised of votes taken by TAC on a Settlement Metering Operating Guides Revision Request, but no Board action will be required.The Board will be advised of votes taken by TAC on a Settlement Metering Operating Guides Revision Request, but no Board action will be required. Approved unanimously by TAC on Jan 9Approved unanimously by TAC on Jan 9

5. Jan 22, 20035 PRR 342 – Simultaneous Select of Ancillary Services Forwarded by TAC to Board for approval in Dec.Forwarded by TAC to Board for approval in Dec. Board remanded to PRS to review a suggested clarification of PRR 342 to clarify that the bid qualifications applied to capacityBoard remanded to PRS to review a suggested clarification of PRR 342 to clarify that the bid qualifications applied to capacity PRS recommended the proposed clarifications (insert “capacity”) and a 1.1 priority (complies with PUC Order)PRS recommended the proposed clarifications (insert “capacity”) and a 1.1 priority (complies with PUC Order) TAC unanimously approved the PRS recommendation and priority on January 9TAC unanimously approved the PRS recommendation and priority on January 9

6. Jan 22, 20036 PRR 361 – Section 15 Update Updates Section 15 per RMS directive that Critical Care be relabeled “Special Needs” in the TXSET Implementation GuidesUpdates Section 15 per RMS directive that Critical Care be relabeled “Special Needs” in the TXSET Implementation Guides Conforms Section 15 to use the 814_82/29 for both Unexecutable and Permit Required for move-ins/move-outsConforms Section 15 to use the 814_82/29 for both Unexecutable and Permit Required for move-ins/move-outs Effective with Version 1.5 implementationEffective with Version 1.5 implementation Unanimously recommended by TACUnanimously recommended by TAC

7. Jan 22, 20037 PRR 367 – IDR Installation & Use Clarifies that ERCOT does not install IDRs, but may request an IDR to be installedClarifies that ERCOT does not install IDRs, but may request an IDR to be installed Clarifies that the IDR would be used to calculate coincident demand as one of the components—currently refers only to “demand”Clarifies that the IDR would be used to calculate coincident demand as one of the components—currently refers only to “demand” No computer system impactNo computer system impact Effective February 1, 2003Effective February 1, 2003 Unanimously approved by TACUnanimously approved by TAC

8. Jan 22, 20038 PRR 368 – Section 18 References Changes the reference from “Load Profiling Operating Guides” to “Load Profiling Guides”Changes the reference from “Load Profiling Operating Guides” to “Load Profiling Guides” No computer system impactNo computer system impact Effective February 1, 2003Effective February 1, 2003 Unanimously approved by TACUnanimously approved by TAC

9. Jan 22, 20039 PRR 370 – RMR Contract Process PRR 370 previously approved by TAC and forwarded to the BoardPRR 370 previously approved by TAC and forwarded to the Board Board remanded to PRS to address the Board’s involvement in the approval processBoard remanded to PRS to address the Board’s involvement in the approval process Recommended PRR 370 includes Board Task Force recommendationsRecommended PRR 370 includes Board Task Force recommendations Does not reflect changes that may be recommended by the RMR TFDoes not reflect changes that may be recommended by the RMR TF

10. Jan 22, 200310 PRR 370 – RMR Contract Process Board no longer involved in process to approve “multi-year contracts” or any other RMR contractBoard no longer involved in process to approve “multi-year contracts” or any other RMR contract Clarifies alternatives ERCOT will evaluate prior to executing RMR agreementsClarifies alternatives ERCOT will evaluate prior to executing RMR agreements Reasserts point that ERCOT will minimize use of RMR facilities (Section 6.3.1 (17))Reasserts point that ERCOT will minimize use of RMR facilities (Section 6.3.1 (17)) Sets contract term at 12 months with a 90-day cancellation noticeSets contract term at 12 months with a 90-day cancellation notice

11. Jan 22, 200311 PRR 370 – RMR Contract Process Clarifies applicability to include resources that would be “…disconnected from the ERCOT Transmission Grid…”Clarifies applicability to include resources that would be “…disconnected from the ERCOT Transmission Grid…” Establishes comment period on RMR useEstablishes comment period on RMR use ERCOT will certify to the Board that the resource owner complied with the application requirements, information was posted on the MIS, consistency with Protocols and that ERCOT made the required evaluation of alternativesERCOT will certify to the Board that the resource owner complied with the application requirements, information was posted on the MIS, consistency with Protocols and that ERCOT made the required evaluation of alternatives

12. Jan 22, 200312 PRR 370 – RMR Contract Process ConfidentialityConfidentiality –Makes available information pertaining to ERCOT’s assessment of whether an RMR unit satisfies ERCOT’s criteria No impact to computer systemsNo impact to computer systems Effective upon Board approvalEffective upon Board approval Approved by TAC (20-5-4)Approved by TAC (20-5-4)

13. Jan 22, 200313 Resolution to Suspend True-Up Settlements Significant uncertainty continues to exist around ESI ID consumption and assignment to REPs.Significant uncertainty continues to exist around ESI ID consumption and assignment to REPs. Data extract defined in SCR727 is necessary tool for REPs to reconcile their settlement statements.Data extract defined in SCR727 is necessary tool for REPs to reconcile their settlement statements. TAC approved SCR727 with a 1.1 priority - - ERCOT expects completion 1Q 2003TAC approved SCR727 with a 1.1 priority - - ERCOT expects completion 1Q 2003

14. Jan 22, 200314 Resolution to Suspend True-Up Settlements Restart True-ups at Jan 1, 2002 when “adequate accuracy” is achieved and SCR727 has been implemented for 45 days.Restart True-ups at Jan 1, 2002 when “adequate accuracy” is achieved and SCR727 has been implemented for 45 days. “Adequate accuracy” to be defined by RMS“Adequate accuracy” to be defined by RMS Target restart on April 1, 2003. Board will be updated on progress every month.Target restart on April 1, 2003. Board will be updated on progress every month. TAC approved (29-1).TAC approved (29-1).