1. August 28, 2014 Technical Advisory Committee (TAC) Update to RMS Kathy Scott September 9, 2014 TAC Update to RMS 1

2. PRS Initiatives Nodal Protocol Revision Requests (NPRRs) ◦ NPRR611, Modifications to CDR Wind Capacity Value – Unanimously Approved ◦ NPRR632, Eliminate Manual Calculations When Producing 4-CP Billing Determinant Data Unanimously Approved NPRR633, Removes Requirement for Confirmation of Ancillary Service Test Using Primary and Secondary Voice Circuits- Unanimously Approved ◦ NPRR634, Clarification for the Reporting of Demand Response Unanimously Approved ◦ NPRR635, Clarification of Congestion Revenue Right Source and Sink Points- Unanimously Approved ◦ NPRR636, Cleanup to Remove Software Documentation Posting Requirement and Align Three-Part Supply Offer Language- Unanimously Approved ◦ NPRR637, Clarification of ERS Language and ERCOT Process for Co- located Resources - Unanimously Approved September 9, 2014TAC Update to RMS2

3. Withdrawals and Tabled Revisions Request for Withdrawals (Vote): ◦ SCR776, Retail Data Transport Upgrade to NAESB EDM v2.2 – Unanimously Approved Withdrawal ◦ SCR780, Macomber Map System Operations Test Environment Enhancement - Unanimously Approved Withdrawal Revision Requests Previously Tabled by TAC ◦ NPRR612, Reduction of Cure Period Subsequent to Event of Default Continued to be Tabled! ◦ RMGRR122, Synchronization with NPRR608, Alignment of Transaction Timing to the PUCT Performance Measures – Unanimously Approved September 9, 2014TAC Update to RMS3

4. Other Binding Documents (Votes) Emergency Response Service Procurement Methodology- Approved Methodology for Implementing ORDC to Calculate Real-Time Reserve Price Adder ◦ Referred to PRS for additional review based upon comments received from the following Market Participants:  GDF Suez Comments – ERS (Withdrawn at TAC)  CPS Energy Comments - ERS+RUC (Withdrawn at TAC)  GDF Suez Comments - Reliability Factor/NPRR627 (Withdrawn at TAC) September 9, 2014TAC Update to RMS4

5. Wholesale Market Subcommittee (WMS) ◦ VCMR004, Caps for Energy Storage Resources – Urgent  Approved with 1 abstention– planned implementation is 10/1/14 ◦ CRR Auction Transaction Limits (Vote) Unanimously Approved Reliability Operations Subcommittee (ROS) ◦ NOGRR134, Posting Process for Black Start Plans (Vote)  Unanimously Approved Retail Market Subcommittee (RMS) Report ◦ Retail Market activities update only Commercial Operations Subcommittee (COPS) ◦ Didn’t meet in August, therefore, there was no update to TAC September 9, 2014TAC Update to RMS5 WMS, ROS, RMS and COPS Updates

6. Future Ancillary Services/TAC Workshop 2 Update on FAST/TAC Workshop 2 ◦ September 15, 2014 scheduled as the next FAST/TAC Workshop to be prepared for TAC’s September 25, 2014 meeting Update on Request for Proposal for Cost Benefit Analysis Determination of Policy Issues (Possible Vote) ◦ Consensus and Motions were mainly to DO NOT DELAY Cost Benefit Analysis (CBA) awaiting other processes to be completed or developed such as:  Synchronous Inertia Response  Transition plan from current Ancillary Services September 9, 2014TAC Update to RMS6

7. ERCOT Operations, Planning & IT Reports ◦ Project Status Updates Provided by ERCOT:  NPRR626, Implementation Update  9-12 month development time will be needed by ERCOT. ERCOT is working through that process now and will need to provide an update to TAC once additional information is finalized.  Real-Time Co-optimization of Ancillary Services Discussion and Multi-Interval SCED/Whitepaper Update  Concept paper should be available to the market prior to TAC’s September meeting. Per ERCOT how do TAC members want to process and discuss the concept paper – through Workshops?  TAC Chair would like ROS to own the workshop documentation to allow a voting body to review and approve workshop recommendations prior to TAC’s consideration. September 9, 2014TAC Update to RMS7

8. Subcommittee and Procedural Review Reviewed the alignment of TAC Goals and Revision Requests with ERCOT Strategic Plan both at TAC review session and meeting: TAC Leadership requests all Subcommittees complete a mid-year review of their 2014 Goals:  http://www.ercot.com/calendar/2014/04/20140401-RMShttp://www.ercot.com/calendar/2014/04/20140401-RMS Discussed Working Groups and Taskforces alignments, plans are to sunset some TFs by end of 2014 and suggested combining Generation and Resource Adequacy Taskforces into one meeting group: September 9, 2014TAC Update to RMS8

9. Subcommittee and Procedural Review Joint subcommittee workshops will continue in the future to address various projects and market issues that cross intersect into subcommittee’s scope and requires both subcommittee's expertise. Reviewed 2015 ERCOT Board, TAC and its Subcommittees meeting schedules. TAC Approved 2015 schedule during their 8/28/14 meeting: New Seminar/Training Group facilitated by ERCOT, Brad Jones and/or Mandy Bauld (ERCOT) will provide more details. September 9, 2014TAC Update to RMS9

10. Questions? 10September 9, 2014TAC update to RMS