1. CMWG Update to WMS 1-9-13 Report of CMWG Meetings of 12-14-12 & 1-4-13

2. CRR Auction Calendar—Rolling 6 Month Auctions to Start 4/13 See 1-4-13 CMWG ERCOT calendar for docs Decision for WMS—break for Christmas/New Year Holidays?

3. Draft NPRR on changes to CCT, Overmitigation and Tie Breaking Support for moving it forward to PRS process Would change process for Constraint Competitiveness Tests (CCT)— replacing annual designation of Non/Competitive with a daily process— annual test will be done for advisory purposes [CCT] – Monthly/Daily (CCTs) will be replaced with a CCT that in Security-Constrained Economic Dispatch (SCED) process – Will consider only constraints that are active in SCED & current system conditions IMM would have ability to designate constraints as either competitive or non-competitive, regardless of CCT results Only those Resources that have a significant contribution in getting the DME considered for mitigation for a non-competitive constraint will have mitigation applied in SCED [overmitigation] The formula for mitigating energy offers in SCED is changed to include a small adder to the reference price from SCED Step 1 in order to minimize issues caused by the tie breaking logic [tie breaking]

4. Some Proposed Changes to SP CAP Document Proposed by Priority Power Proponents addressed suggestions from earlier meetings. Now Proposing – Net margin trigger threshold from $65k to $80k (current is $95k) – Extend caps to similar constraints once triggered (new) – Reset trigger over rolling 12 months (vs. current annual), recalculated daily – Caps would remain in place for 6 calendar months. Cap would terminate 5 months after the rolling 12-month net margin from rents falls below the $80,000 /MW/year trigger. But would again apply when hit the $80k – Apologies if I have details incorrect—tried to get them right.

5. Misc Discussion Items CRR Auction Revenue Distribution—no proposed changes in written form were presented Rio Hondo – Ajo outage (Fall 2012) Dsicussed timeline of outage and ERCOT Notification processes ERCOT has been encouraged to notify market when they ask TOs to put outaged equipment back in service—early Brown Killeen Line Line derated due to interference with some equip that is not transmission related—expected fix by end of Q3

6. Not Discussed at CMWG but potential Parallel Issue with Settlements Should 6.6.9Emergency Energy Settlement continue to cap all at MOC or only those mitigated? Resources are considered for 6.6.9 Emergency Operations Settlement under the following conditions: 1. During Emergency conditions (when Emergency Base Points are in effect). 2. In accordance with paragraph (8) of Section 8.1.1.2, General Capacity Testing Requirements, QSEs that receive a VDI to operate the designated Generation Resource for an unannounced Generation Resource test. 3. A QSE that represents a QSGR that comes On-Line as a result of a Base point less than its Resource Registration applicable Seasonal net minimum sustainable rating (MOC includes a Startup and Min Energy in the variable O&M component), limited to the first q Settlement Intervals. 4. QSEs that received Base Points that are inconsistent with Real-Time Settlement Point Prices. 5. QSEs that receive a manual override from the ERCOT Operator. Settlement is based on the Emergency Base Point Price by SCED interval averaged across the 15 minute settlement interval: Emergency Base Point Price per QSE per Settlement Point per Resource by interval—The average incremental energy cost calculated per the Energy Offer Curve, capped by the Mitigated Offer cap pursuant to Section 4.4.9.4.1, Mitigated Offer Cap, for the output levels between the SCED Base Point immediately before the Emergency Condition and the Emergency Base Point of Resource (or SCED base points in case of 2-5).