1. COPS NOVEMBER 2012 UPDATE TO TAC 11/01/2012 Harika Basaran, Chair Jim Lee, Vice Chair

2. 2 COPS MAJOR DISCUSSION ITEMS ERCOT’s proposal-Method for Paying Small Amounts: Applies only to Default, Late Fee, and Misc Invoices. If the amount due to MP is < $50, money will be deposited to the Pre- pay account. MP can request wire of the funds in prepay account any time via e-mail to ERCOT Credit. Discussed at CSWG meeting to address how to opt out. MPs would like to opt out with just one e-mail instead of e-mailing ERCOT every time there is a small fund coming in. Will be discussed more at COPS meeting on November 6, 2012 to see if ERCOT can agree to that.

3. 3 NPRR 377 Alternate Inputs to Base Point deviation Charge This NPRR aligns the Adjusted Aggregated Base Point (AABP) formula with the inputs to the Generation Resource Energy Deployment Performance (GREDP) measure. The current formula for AABP inaccurately assesses Base Point Deviation Charges for under and over generation when shortened Security-Constrained Economic Dispatch (SCED) intervals occur. The GREDP inputs are linearly ramped 5 minute data points as follows: AVGBP5M – Base Point instruction AVGREGUP5M, AVGREGDN5M, AVGREG5M – Regulation Instructions1 AVGTG5M – Telemetered Generation Current design is to include the 5 minute data for the above listed billing determinants in the existing Market Input Header and Market Input Interval tables. Number of columns will increase from 100 to 300. Some MPs concern is that too much data pushed in one table which may slow down data queries/uploads. The same data may be already available to MPs in GREDP data SCR needed if a separate table or extract is to be created for 5 Minute data only. However some MPs would like to have the 5 minute data and may not receive it until SCR is implemented. This will be a voting item at next COPS meeting.

4. 4 NPPR 347/391 IMPLEMENTATION  First Settlement Invoice( DAM & RTM Combined) posts on 11/12  Payments due to ERCOT on 11/14, on the 2 nd BBD Reminder November 12 is Veterans Day and Bank Holiday  Last DAM Invoice is for Operating Day 11/7  Posts on 11/9  Payments due to ERCOT on 11/15, on the 3 rd BBD  Last RTM Invoice posts on 11/15  Payments due to ERCOT on 11/26, on the 5 th BBD Date

5. 5 Reducing the RTM Settlement Time Line PUCT meeting on 9/28/2012 Agenda Item # 16, Project No: 40000 Commission Proceeding to Ensure Resource Adequacy in Texas Commissioner Anderson discussed benefits of reducing the settlement time line to 3 days You can listen to the discussion at PUCT Open Meeting video clip via link below http://streaming.aanet.org/ramgen/puc/smil/PUCT_OM092812-160.smil A COPS workshop with WEBEX is scheduled on November 6, 2012 after the COPS meeting 12:30-4:00 pm at Met Center 206B Market Notice was sent to COPS, WMS, RMS, CSWG, PWG, CWG, MCWG Action items for next steps and high level cost benefit summary will be provided to TAC at their November 29, 2012 meeting Follow up discussions will be also held at CSWG meeting on November 19, 2012

6. 6 Annual TAC Review of Subcommittees ERCOT raised concerns about COPS’ short meetings Should COPS be eliminated and moved as a sub working group under WMS to use ERCOT resources more efficiently? TAC Chair attended the October COPS meeting, answered questions and addressed COPS Members’ concerns COPS Members agree and support fully the annual review of each committee and group to improve the stakeholder process COPS already combined 2 working groups into 1 and met only if needed in 2012 COPS Members told ERCOT Staff they can attend by WebEx or phone instead of traveling to Austin COPS Members agreed strongly that a separate and independent forum with a voting structure is needed for the Settlement and Back Office professionals of the market to discuss the issues directly affecting their processes with ERCOT SMEs and their peers Software vendors also stated that they benefit greatly from the detailed technical discussions at the COPS/CSWG meetings Currently the COPS/CSWG is the only forum dedicated to that purpose

7. 7 Annual TAC Review of Subcommittees cont. COPS Members’ and attendees’ concerns with moving under WMS are: –WMS agenda’s are already full each meeting with complex issues that require long discussions –Settlement and Extract SMEs usually do not attend WMS meetings –If pushed to the end of the agenda, sometimes there is no quorum left to vote on the items that could be very important to Back Office personnel but not so important to the typical WMS attendee –Volume of items tabled and pushed to the next month’s agenda –Current structure allows Settlement SMEs to meet, discuss and decide efficiently the issues directly affecting them with no policy or operational impact and take them directly to the TAC instead of taking them to the WMS and then the TAC

8. 8 COPS Members’ Recommendation to TAC for 2013 Keep COPS as a separate subcommittee directly reporting to the TAC COPS will schedule combined meetings with its working groups, the CSWG and the PWG, as much as possible in 2013 Evaluate effectiveness throughout the year and report to the TAC if any changes are needed Even if COPS is eliminated and the PWG moved under the RMS, keep the CSWG as a separate WG reporting directly to the TAC

9. 9 UPCOMING WORKSHOP TO DISCUSS REDUCING THE SETTLEMENT TIME LINE On November 6, Tuesday 2012 after COPS Meeting 12:30-4:30 pm ERCOT Met Center Room 206B WebEx Conference Teleconference: 1-877-668-4493 Meeting number: 655 977 604 Meeting password: STW123 NEXT COPS MEETINGs: – NOVEMBER 6, 2012 TUESDAY – DECEMBER 14, 2012 FRIDAY