1. January 28, 2016 Technical Advisory Committee (TAC) Update to RMS Kathy Scott February 2, 2016 TAC Update to RMS 1

2. December 2015 Board Update On December 8, 2015 ERCOT Board Approved: ◦ NPRR641, Season Definition Change for Switchable Resources Reporting Unavailable Capacity ◦ NPRR702, Flexible Accounts, Payment of Invoices, and Disposition of Interest on Cash Collateral ◦ NPRR705, Provides Consistency for References to the End Date of the Generation Interconnection Process ◦ NPRR708, Clarifying ERCOT Actions During Energy Emergency Alerts ◦ NPRR712, Clarification of RUC Process ◦ NPRR715, Clarification of Generator Modeling in the Market System ◦ NPRR716, Corrections to Aggregated Load and Participant Specific Generation Data Requirements ◦ NPRR719, Removal of Trigger and Requirement to Reduce the Distributed Generation (DG) Registration Threshold ◦ NPRR725, Modifications to CDR PUN Capacity Forecasting and PUN Net Capacity Reporting Requirements ◦ NPRR726, Daily Network Operations Model PSS/E File Posting Modification February 2, 2016TAC Update to RMS2

3. December 2015 Board Update On December 8, 2015 ERCOT Board Approved : ◦ NPRR727, Removal of Language Related to NPRR327, State Estimator Data Redaction Methodology ◦ NPRR728, Removal of Language Related to NPRR484, Revisions to Congestion Revenue Rights Credit Calculations and Payments, and NPRR554, Clarification of Future Credit Exposure Calculation ◦ NPRR729, Clarification of Metering Requirements for Resources ◦ NPRR730, Elimination of the RUC Behavioral Pricing Rule ◦ NPRR731, Changes to Annual Reporting Requirements for RUC Decommitment Payment Amounts ◦ NPRR732, Adjustments to Verifiable Costs for Required Resubmissions and Clarification of RUC Forced Outage and Cancellation Procedures ◦ PGRR045, Alignment with NPRR705, Provides Consistency for References to the End Date of the Generation Interconnection Process ◦ RRGRR007, Adding Solar Resource Registration Inputs ◦ SCR786, Retail Market Test Environment ◦ Panhandle Regional Planning Group Project ◦ 2016 Methodology for Determining Minimum Ancillary Service Requirements ◦ February 2, 2016TAC Update to RMS3

4. 2016 Leadership Voting Technical Advisory Committee 2016 TAC Leadership  Chair: Randa Stephenson LCRA  Vice Chair: Adrianne Brandt CPS  Announcement: Kenan Olgeman TAC’s ERCOT CEO Designee Subcommittee Leadership Unanimously Confirmed by TAC: ◦ Commercial Operations Subcommittee (COPS)  Chair: Michelle Trenary, Tenaska Power Services  Vice Chair: John Schatz, TXU Energy ◦ Protocol Revision Subcommittee (PRS)  Chair: Amanda Frazier, Luminant  Vice Chair: Chris Lyons, Exelon ◦ Reliability and Operations Subcommittee (ROS)  Chair: Alan Bern, Oncor Electric Delivery  Vice Chair: Boone Staples, Tenaska Power Services ◦ Wholesale Market Subcommittee (WMS)  Chair: Jeremy Carpenter, Tenaska Power Services  Vice Chair: David Kee, CPS Energy February 2, 2016TAC Update to RMS4

5. PRS Initiatives and Votes Nodal Protocol Revision Requests (NPRRs) ◦ NPRR691, Alignment of Protocols with NERC Reliability Standard, BAL-001- TRE-1 – Approved ◦ NPRR713, Reactive Power Testing Requirements - Approved ◦ NPRR720, Update to Settlement Stability Reporting Requirements - Approved ◦ NPRR734, Digital Attestation Signature Authority Expansion - Approved ◦ NPRR739, Prohibiting Load Resources in Participating as Dynamically Scheduled Resources - Approved ◦ NPRR740, Retail Clarification and Cleanup - Approved ◦ NPRR742, CRR Balancing Account Invoice Data Cuts - Approved ◦ NPRR743, Revision to MCE to Have a Floor For Load Exposure - Approved ◦ Note: Amanda Frazer announced that NPRR667 will be on the PRS agenda for the February 11 th meeting. This NPRR will be at the end of the agenda following the scheduled voting items to allow as much time as possible for Market Participant’s discussions. February 2, 2016TAC Update to RMS5

6. Tabled and/or Withdrawn Revisions Revision Request Previously Tabled: ◦ LPGRR055, Extend Load Profile Model Calendar Inputs to 2030 –  This Load Profiling Revision Request (LPGRR) extends the Load Profile Model calendar-related inputs in Appendix E, Profile Model Spreadsheets, from 2020 to 2030. The calendar inputs include calendar variables, daylight savings variables, sunrise/sunset times and holiday variables. Corresponding changes to calendar-related inputs will be made to the Load Profile Models in MetrixIDR  01/28/TAC Vote: Motion to Approve with the Profile Working Group’s comments was Unanimous February 2, 2016TAC Update to RMS6

7. Wholesale Market Subcommittee (WMS) ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/10._ WMS_Update_to_TAC_012816.ppt http://www.ercot.com/content/wcm/key_documents_lists/76817/10._ WMS_Update_to_TAC_012816.ppt ◦ Response to PUCT Memo regarding ORDC (Possible Vote)  http://www.ercot.com/content/wcm/key_documents_lists/76817/10. _SAWG_ORDC_Discussion__Analysis__and_Positions_1_11_16.p df http://www.ercot.com/content/wcm/key_documents_lists/76817/10. _SAWG_ORDC_Discussion__Analysis__and_Positions_1_11_16.p df  TAC Unanimously Endorsed the SAWG ORDC Discussion, Analysis and Positions document without prejudice to any specific option and requested that ERCOT file this ORDC Response to the Commission. February 2, 2016TAC Update to RMS7 WMS Initiatives and Votes:

8. Reliability Operations Subcommittee (ROS) ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/11._R OS_Report.zip http://www.ercot.com/content/wcm/key_documents_lists/76817/11._R OS_Report.zip ◦ NOGRR143, Alignment of Nodal Operating Guides with NERC Reliability Standard, BAL-001-TRE-1 (Vote)  Recommendation to Table to allow NOGRR143 to sync-up with NPRR691 once taken up by the Board on February 9 th  Motion to Table was Unanimous ◦ NOGRR147, Reactive Power Testing Requirements (Vote)  Budgetary cost to implement this NOGRR needed to be approved at the February Board to sync with the associated NPRR.  Motion to Approve as recommended by ROS was Unanimous February 2, 2016TAC Update to RMS8 ROS Initiatives and Votes:

9. Commercial Operations Subcommittee (COPS) ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/12._C OPS_UPDATE_TO_TAC_012816.ppt http://www.ercot.com/content/wcm/key_documents_lists/76817/12._C OPS_UPDATE_TO_TAC_012816.ppt ◦ Market Data Working Group (MDWG) Update  MISUG Update  MISUG has evolved since its inception in 2011  MISUG encompasses all data-related issues  Name Change: Market Data Working Group (MDWG)  Current plan is to continue to report to COPS  TAC requested that COPS revisit MDWG Scope since “Data” could be misunderstood to include “All” data in the market including SMT and/or AMS Meter Data, which wasn’t the intent or the scope of MDWG. February 2, 2016TAC Update to RMS9 COPS Initiatives and Votes:

10. Retail Market Subcommittee (RMS) Update ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/13._R MS_Update_to_TAC_01_28_16.ppt http://www.ercot.com/content/wcm/key_documents_lists/76817/13._R MS_Update_to_TAC_01_28_16.ppt ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/13._2 015_RMS_Goals___TAC_Approved_20150326_End_of_Year__Repor t_Card_12_31_15.doc http://www.ercot.com/content/wcm/key_documents_lists/76817/13._2 015_RMS_Goals___TAC_Approved_20150326_End_of_Year__Repor t_Card_12_31_15.doc February 2, 2016TAC Update to RMS10 RMS Initiatives and Votes

11. DREAM Taskforce Update DREAM Taskforce Update Distributed Resource Energy and Ancillaries Market Taskforce (DREAM) ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/14._T AC_Dream_Report_Draft___2016_01_22_DREAMTF.docx http://www.ercot.com/content/wcm/key_documents_lists/76817/14._T AC_Dream_Report_Draft___2016_01_22_DREAMTF.docx ◦ February DREAM TF will come back to TAC with their completed report. TAC’s plan will be to conduct a half day workshop to discuss Dream’s recommendations on February 24 th with TAC voting on those consensus items on February 25 th. ◦ TAC membership thought it would be helpful to have the half-day workshop prior to voting for those that haven’t been involved in the prior DREAM Taskforce meetings and/or market discussions. February 2, 2016TAC Update to RMS11

12. Ancillary Services Re-design Update Ancillary Services Re-design Update FAS (NPRR 667) ◦ http://www.ercot.com/content/wcm/key_documents_lists/76817/15._H igh_Level_Schedule_for_NPRR_667_as_of_1_21_16_1347.docx http://www.ercot.com/content/wcm/key_documents_lists/76817/15._H igh_Level_Schedule_for_NPRR_667_as_of_1_21_16_1347.docx  Timeline proposed with TAC’s revisions:  February 1, 2016: NPRR667 workshop to review Stakeholders’ comments  February 11, 2016 : PRS meeting with possible vote on NPRR667  March or April TAC Meeting: TAC meeting with possible vote on NPRR667  Subsequent Board Meeting: Board of Directors meeting June 14 or August 9 th depending upon when TAC takes up NPRR667 February 2, 2016TAC Update to RMS12

13. Other Business Appeal Process Discussion  Chad Seely (ERCOT Legal) updated TAC concerning Appeal of NPRR649 has been noticed to the market by ERCOT and this Appeal has been scheduled for the ERCOT Board on February 9 th.  If any commenters planned to speak at the Board concerning this Appeal, Chad Seely (ERCOT) needed to know this information by close of business Monday, February 1, 2016. Market Continuity Planning  Blackstart discussions, ERCOT is ready to start developing during and post procedures to be invoked during a Blackstart event.  TAC directs the creation of a Taskforce/Workshop because this affects all aspects of the market. TAC agreed to plan for a Workshop in March and/or April with ERCOT leading the effort to get Workshop(s) kicked-off. February 2, 2016TAC Update to RMS13

14. Other Business Market Continuity Planning (cont.) ◦ Some questions?:  What happens if systems are down for 3 days or more days– what do we do as a market?  How long should or will we go before cash flow becomes an issue?  What is the plan during event/steps to be taken by whom, when and clean-up post event?  What happens when transactions and market processes unavailable for multiple days?  Extended Emergency Period and how do we function during the emergency period?  Per ERCOT “Better to be prepared for the what if scenario than to wait until it occurs. “  Action Item: Per Kenan (ERCOT), ERCOT will frame and place some structure around the issue in preparation for workshop. February 2, 2016TAC Update to RMS14

15. 2016 Goals and Strategic Initiatives http://www.ercot.com/content/wcm/key_documents_lists/76817/06._201 5_TAC_Goals.doc http://www.ercot.com/content/wcm/key_documents_lists/76817/06._201 5_TAC_Goals.doc ◦ TAC Discussion –  Suggested changes to:  Goal #2 to include promote market solutions and remove market  Goal #9—and improve the integrity and availability of AMS data to Market Participants. http://www.ercot.com/content/wcm/key_documents_lists/76817/06._201 5_TAC_Strategic_Initiatives.docx http://www.ercot.com/content/wcm/key_documents_lists/76817/06._201 5_TAC_Strategic_Initiatives.docx ◦ TAC Discussion -  Suggested the adding the underlined words for  “Smart Meter Texas transition and governance (pending before the PUCT) – Voting on “Final 2016 TAC Goals and Strategic Initiatives” expected to be conducted during the February 25 th TAC meeting. February 2, 2016TAC Update to RMS15

16. Questions? 16February 2, 2016TAC update to RMS