“10 SECOND” ANCILLARY SERVICE

1. “10 SECOND” ANCILLARY SERVICE IT IS ALL ABOUT THE “C” POINT

2. IT IS ALL ABOUT THE “C” POINT • ERCOT’s WHITE PAPER FOCUSSES ON “C” POINT ISSUES AS THE REASON FOR FAST • IF WE DON’T “CATCH” THE “C” POINT - THE REST OF THE ANCILLARY SERVICES MAY NOT MATTER • LAARs HAVE PROVEN THE VALUE OF A “10 SECOND” SERVICE RESPONDING IN 30 CYCLES • LAARs ARE EXPOSED TO MORE USE IN THE FUTURE

3. “10 SECOND” AS • LOW FREQUENCY RESPONSE ONLY • 100 mHz DEAD-BAND • RESPONDS IN LESS THAN 30 CYCLES • AFTER 10 SECONDS STARTS A RAMPED RECALL TO BE FULLY RECALLED IN 20 SECONDS (30 SECONDS TOTAL) • IDEALLY PROVIDES PROPORTIONAL RESPONSE FULLY DEPLOYED BY 59.8 Hz

4. “10 SECOND” AS MW 30s 0.5s 10s STEP RESPONSE WITHIN 30 CYCLES WHEN FREQUENCY REACHES 59.9

5. “10 SECOND” AS MW 30s 0.5s 10s PROPORTIONAL RESPONSE STARTING WITHIN 30 CYCLES WHEN FREQUENCY REACHES 59.9 Hz FULLY DEPLOYED AT 59.8 Hz

6. “10 SECOND” AS MW 10s 30s 0.5s EVEN IF FREQUENCY REMAINS LOW THE OBLIGATION ENDS IF ALL DEPLOYMENT IS NOT RECALLED AT 10 SECONDS THE RESOURCE THEN STARTS A RAMP TO RECALL ALL DEPLOYMENT BY 30 SECONDS

7. SUPPLIERS OF “10 SECOND” AS • BATTERIES • POSSIBLE “OVERRATING” • DC TIES • POSSIBLE “OVERRATING” • LOADS • LAARs • LOTS OF NEW LOADS • BATTERY CHARGERS • LOTS OF APPLIANCES

8. LIMITED TIME AND ENERGY OBLIGATION IS THE KEY 100 MW x (10s + 20s/2) = 2,000 MW SECONDS OR 0.56 MWh • OVERRATING NOW POSSIBLE • USE OF DC TIE NO LONGER A COMMERCIAL ISSUE • WHO CARES IF • TURN OF REFRIGERATION FOR 30 SECONDS • STOP CHARGING THE CAR FOR 30 SECONDS • STOP HEATING, PUMPING, ETC, ETC, FOR 30 SECONDS