1. March 27, 2014 Technical Advisory Committee (TAC) Update to RMS Kathy Scott April 1, 2014 TAC Update to RMS 1

2. ERCOT Board Update Proposed ERCOT Bylaws Amendment Board Member Eligibility: TAC Approved these amended Bylaws as they were presented by ERCOT April 1, 2014TAC Update to RMS2

3. Houston Import Project Review 02/27/14 TAC Meeting: Tabled at TAC 03/27/14 TAC Meeting: ERCOT, Calpine and NRG provided the following presentations concerning the Houston Import Project (HIP): A lot of discussion and passion was displayed that reflected differing positions concerning ERCOT’s HIP Independent Review and project’s total cost requiring a roll call vote: ◦ Motion: Endorse ERCOT’s Independent Review of Houston Import Project (HIP) as submitted by ERCOT:  Roll Call Tally : 20(Y)- 5(N) and 5(A) – Motion Approved April 1, 2014TAC Update to RMS3

4. PRS Initiatives and Votes Nodal Protocol Revision Requests (NPRRs) (Vote): ◦ NPRR576, Changing Non-Spin Service to be Dispatched by ERCOT (formerly “Changing Non-Spin Service to an Off-Line Service”) – U RGENT  A FTER 3-R OLL V OTES : A PPROVED AS MODIFIED BY ERCOT AND CPS E NERGY ’ S COMMENTS WITH A VALUE OF X= $75.00 – R OLL C ALL T ALLY : 24(Y) 5(N) 2(A) ◦ NPRR589, Ancillary Service Offers in the Supplemental Ancillary Services Market –  Approved ◦ NPRR590, Inclusion of WSL in the Default Uplift Invoice Allocation  Approved as submitted by PRS (Showed posting will be in MIS Public area) ◦ NPRR592, Clarification of Meter Repair Timelines for RTM Settlements  Approved as submitted ◦ NPRR594, Clarifications to the ERCOT Fee Schedule and the Point-to- Point Option Award Fee  Approved as submitted April 1, 2014TAC Update to RMS4

5. PRS Initiatives and Votes NPRRs: ◦ NPRR596, External Load Service Entities – U RGENT  Approved as submitted ◦ NPRR602, Exemption for Sharyland Brady Load Transition – U RGENT  Approved as submitted ◦ NPRR603, ERS Settlement and Service Types – U RGENT  Approved as submitted ◦ Withdrawal Request  NPRR583, Validate That CSA Bypass Code in a Move-Out Request is From Current CSA CR of Record (Request for Withdrawal)  Withdrawal Unanimously Approved as Recommended by RMS and PRS ◦ Annual Review:  Annual Review of Other Binding Document List (Vote)  Approved as submitted by PRS April 1, 2014TAC Update to RMS5

6. WMS/COPS/RMS Initiatives & Votes Wholesale Market Subcommittee Report* ◦ Resource Adequacy Task Force (RATF) Update  NPRR598 OBD - Methodology for Implementing an Operating Reserve Demand Curve (Possible Vote)  Approved with ERCOT’s clean-up document and TAC Comments to include “$1,000.00 at or above” clarifying language.  Changes to RATF scope where also agreed upon by TAC Commercial Operations Subcommittee Report* ◦ NPRR570 Phase 2 Implementation (Possible Vote)  TAC Unanimously Approved Phase 2 of NPRR570 for Initial Settlements to move to OD+5 Days effective May 1, 2014. Retail Market Subcommittee Report* ◦ Update provided of RMS voting on NPRR583 and NPRR602, Working Groups and Taskforce’s activities, along with ERCOT’s Unplanned System Outage occurring on 3/11 & 3/12 April 1, 2014TAC Update to RMS6

7. ROS Initiatives and Votes Reliability and Operations Subcommittee Report * ◦ Critical Infrastructure Protection Working Group (CIPWG) Update:  http://www.ercot.com/calendar/2014/03/20140327-TAC http://www.ercot.com/calendar/2014/03/20140327-TAC April 1, 2014TAC Update to RMS7

8. Other Binding Documents (Vote) Credit Formulas and Detail Whitepaper for the Day- Ahead Market and Congestion Revenue Rights Auction – Approved Emergency Response Service Procurement Methodology – Approved Setting the Shadow Price Caps and Power Balance Penalties in SCED – Approved April 1, 2014TAC Update to RMS8

9. ERCOT Operations, Planning & IT Reports NPR568, Real Time Reserve Price Adder Based on Operating Reserve Demand Curve, Update: March 2014  Development In Progress  Incorporated NPRR591 As-Built Clarification & Corrections Related to NPRR568  Incorporated NPRR598 Clarify Inputs to PRC & ORDC  Creation of Test Plans and Scripts In Progress  Operating Reserve Demand Curve (ORDC) Workshops scheduled:  Monday 4/7 Houston at CenterPoint Tower Auditorium  Wednesday 4/16 DFW at Garland Fire Administration Building  Friday 4/18 Austin at ERCOT Austin + WebEx April - May 2014  ERCOT Internal Testing ◦ June 1 st - Go Live!!!!  April 1, 2014TAC Update to RMS9

10. ERCOT Operations, Planning & IT Reports Future Ancillary Services Team (FAST) Update Annual ERS Report (Q&A Only) Review the Final Assessment Report of the 30-Minute ERS Pilot Review the Final Assessment Report of the FRRS Pilot These updates and reports are located in Key Documents on TAC’s 3/27/14 meeting page: http://www.ercot.com/calendar/2014/03/20140327- TAChttp://www.ercot.com/calendar/2014/03/20140327- TAC April 1, 2014TAC Update to RMS10

11. Other Business Reserve Margin/Resource Adequacy Discussion – ◦ Will be slated for a future TAC meeting agenda NPRR Appeals Process ◦ TAC and ERCOT Legal agreed with Clayton Greer’s suggestion to refer to PRS for discussion. Real Time Co-Optimization Process (PUCT Discussion Topic) ◦ Brad Jones (ERCOT) stated ERCOT will be ready later this summer to start this discussion following several large projects’ implementation. April 1, 2014TAC Update to RMS11

12. Questions? 12April 1, 2014TAC update to RMS