1. 2% Resettlement Rule Update • 2% Resettlement Rule (Protocol Sections 9.2.5 (2) and 9.5.6 (2)) CSWG Objectives: • Implement a resettlement threshold that is fair to large and small MPs, replacing the existing 2% resettlement rule • Base the resettlement threshold on the DAM and RTM median settlement statement amounts • Address the issue of small errors that cumulatively create an impact which exceeds a threshold that is fair to large and small MPs • Propose actual daily resettlements, as opposed to alternative settlement resolution, to provide for automation and systematic historical reference • For an error other than a pricing error that has a cumulative impact, designate a cutoff for the number of days the market will go back and resettle • Set the cutoff for DAM resettlements due to the cumulative impact of an error other than a pricing error prior to the RTM True-up Resettlement, so its results are included in the resettlement of the RTM • Add the number of resettlements due to errors other than pricing errors to the Settlement Stability Report for visibility into and review of the impact of NPRR819

2. 2% Resettlement Rule Update • 2% Rule NPRR819, Modification of Non-Price Error Resettlement Thresholds and Resettlement Clean-Ups • Removes language referencing “data errors” for DAM and RTM resettlements • Gives the ERCOT Board authority to direct a DAM resettlement • Removes reference to undefined “declarations” of resettlements • Fixes a semantics error

3. 2% Resettlement Rule Update • 2% Rule NPRR819, Modification of Non-Price Error Resettlement Thresholds and Resettlement Clean-Ups • ERCOT worked with COPS and submitted 5/24/17 Comments • Revises the 2% of OD Payments resettlement threshold to 2% of the DAM statement amount for any Settlement Recipient with a $200 minimum • Revises the 2% of OD Payments resettlement threshold to 4% of the RTM statement amount for any Settlement Recipient with a $400 minimum • Adds a DAM cumulative error threshold of $5,000 minimum and a 150-day allowable resettlement window • Adds reporting of the number of resettlements made under this language to the Settlement Stability Report • ERCOT 8/30/2017 Comments • Clarifies that revisions to meter data not made in connection with a dispute or ADR will not trigger an evaluation of a resettlement

4. 2% Resettlement Rule Update • NPRR819 Timeline • 3/9/2017 Tabled at PRS and referred to COPS and WMS • 4/4/2017 WMS referred to QMWG • 5/24/2017 ERCOT submitted Comments • 7/20/2017 COPS endorsed the 5/24/2017 ERCOT Comments • 8/30/2017 ERCOT submitted Comments • 10/11/2017 COPS will take up the 8/30/2017 ERCOT Comments • QMWG meets 10/27/2017 • WMS meets 11/1/2017 • PRS meets 11/9/2017