TAC JUNE 6, 2013 Meeting Update to Commercial Operations Subcommittee

1. TAC JUNE 6, 2013 Meeting Update to Commercial Operations Subcommittee Harika Basaran 06/11/2013

2. NPRR491 Updated Demand Response Information for ERCOT NPRR515 Day-Ahead Market Self-Commitment of Generation ResourcesNPRR522 Adjustment of Demand Response Performance for Distribution Losses NPRR531 Clarification of IRR Forecasting Process Posting Requirement________________________________________________________ NPRR508 Setting of Real-Time LMPs During EEA ERS/Load Resource Deployment Rejected This NPRR is related to addressing price reversal issues during ERCOT deployed ERS and Load resources. The RTSPP would have been kept at the system wide offer cap as long as ERS/Load is deployed. NPRRs Approved 2

3. Methodology for Setting the Shadow Price Caps and Power Balance Penalties in Security-Constrained Economic Dispatch Approved as modified by TAC to update the baseline language. Effective upon Board approval for those items that do not require system changes.5-7 months. Priority 2013/ Rank 855.Recommendation on Planning Reserve Margin and Effective Load Carrying Capability of Wind The WMS recommendation of a planning reserve margin target of 16.1% was adopted by TAC.  ELCCs were not meant to indicate a value attributed to any resource type in any future market design. This is consistent with the IMM's concern that the ELCCs might set a precedent for valuation of capacity if ERCOT adopted a capacity market.ELCC Non-Coastal- 14.2%ELCC Coastal- 32.9% Other Items Approved 3

4. Price Reversal Assignment from The BoardTAC Chair presented an outline of options and actions taken to address the price reversal issues. A draft will be distributed next week and a final version will be considered at July TAC meeting. Board assigned this after rejecting the appeal of NPRR 444.ERCOT Bylaws Update: These will be subject to vote at ERCOT members’ annual meeting in December 1) Use actual total TAC votes instead of total of TAC seated members (to avoid equate absent member with a NO vote)2) Revise definition of Power Marketer to include employees of companies that control the PM (to treat PM same as Generators)3) Add a new Market Segment to include stakeholders that may not fit well under Residential such as Environmental. This would only apply to TAC Subcommittees since Market Segments for TAC and Board are clearly defined in PURA. TAC needed more discussion, therefore will be a voting item in July TAC meeting. Other Items 4

5. Project Funding Update: NPRR 484 Revisions to CRR calculationsPhase 1: Credit, October 2013 (instead of the generic 75 cents adder, each path will have its own adder based on its risk, WILL impact credit and collateral up or down)Phase 2: Deferred invoicing, 2015ERCOT will schedule training sessions to educate the market for the changes related to NPRR 484. Other items of interest to COPS 5

6. Assignment to COPS: ERCOT reports to the market:TAC chair recommended that all manually developed ERCOT market reports be reviewed for market interest and labor involved. The objective is to free up ERCOT man-hours if there is little interest in a report or a report could be automated. This is assigned to COPS to assign to MISUG. Other items of interest to COPS cont. 6

7. RMS Update:ERCOT will no longer provide Staff support to working groups to facilitate the meetings such as reserving room, setting up Webex, taking notes etc.WG Chairs are to contact Stakeholder via email to reserve room, administer Webex, take notes and perform any other task.ERCOT will continue provide SMEs for the discussions.TAC chair will work with ERCOT to provide training materials to each Committee Chair so that WGs can function properly. Other items of interest to COPS cont. 7

8. QUESTIONS