1. Overview Art Deller, P.E. Supervisor, Model Administration New Resource Workshop May 28, 2014

2. Housekeeping

3. 3 PROTOCOL DISCLAIMER This presentation provides a general overview of the resource interconnection process and is not intended to be a substitute for the ERCOT Nodal Protocols (available at http://www.ercot.com/mktrules/nprotocols/current), as amended from time to time. If any conflict exists between this presentation and the ERCOT Nodal Protocols, the ERCOT Nodal Protocols shall control in all respects. ANTITRUST ADMONITION ERCOT strictly prohibits market participants and their employees, who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate antitrust laws. The ERCOT Board has approved guidelines for Members of ERCOT Committees, subcommittees, and working groups to be reviewed and followed by each market participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. Disclaimers and Admonitions

4. 4 Housekeeping –Restrooms –Refreshments –Attendance sheet –Exam –Questions –Microphones Please turn off cell phones & other electronics

5. 5 Agenda I. Welcome and Introduction II. ERCOT Overview III. Proposing New Generation – Where to start IV. Registration as a Market Participant V. Submitting a RARF VI. Commissioning VII. Managing Outages VIII. Ancillary Services IX. Available resources

6. New Resource Workshop 5/28/2014 6 ERCOT Overview

7. New Resource Workshop 5/28/2014 7 ERCOT Introduction Slide 7 ERCOT

8. New Resource Workshop 5/28/2014 8 ERCOT Introduction Key Features of the ERCOT Grid –Contained entirely in Texas –Represents 85% of Texas Load –>74,000 MW of generation capacity –>41,500 miles of transmission lines –Record Peak Demand 68,305 MW (Aug 3, 2011) Slide 8

9. New Resource Workshop 5/28/2014 9 ERCOT Operational Concepts ERCOT’s Primary Responsibility is Reliability Match generation with demand Operate transmission system within established limits ERCOT facilitates competitive markets to help achieve reliability. ERCOT facilitates competitive markets to help achieve reliability. Slide 9

10. New Resource Workshop 5/28/2014 10 ERCOT Operational Concepts Network Operations Model Models allow ERCOT to: –“See” grid at any point in time –Predict how various actions affect grid Representation of a physical system. Slide 10

11. New Resource Workshop 5/28/2014 11 Network Operations Model Physical characteristics Ratings Operational limits Including Transmission Elements Resources Topology ERCOT Operational Concepts Slide 11