ERS Update – DSWG Presentation

1. ERS Update – DSWG Presentation September 21, 2012

2. Agenda • Latest Procurement Update • ERS 30 Update, including testing • Participation in ERS 10 and ERS 30 • ERS Resource Performance Report Card • NOGRR 25 ERS Test Results Reporting • EPS Metering Requirements for ERS Generators (NPRR 475) • Telemetry Requirements for ERS Generators

3. ERS 10 Procurement Note: Resources and Capacity Not Procured Were Awarded in ERS 30

4. ERS 10 October 2012-January 2013 Procurement • Generators offered into the program • 4 Self Serving Generators awarded • BH1 – 11.0 MW, BH2 - 10.9 MW, BH3 – 11.0 MW, NBH – 11.6 MW • Opt In Options Results

5. 30-Minute ERS Pilot (Oct 2012 - Jan 2013 Procurement)

6. 30-Minute ERS Pilot • New ERS Providers • July – September • 1 new QSE • 2 new providers represented by an existing QSE. • October – January • 3 new QSEs • New players for July - September continuing to participate • Types of sites offered • July – September: 396 sites offered for ERS 30 • 378 first time sites (never previously offered for ERS 10) • 18 sites previously offered for ERS 10 • 0 sites were in reinstatement offers • October – January: 635 sites offered for ERS 30 • 154 first time sites (never previously offered for ERS 10 or ERS 30) • 527 sites never offered for ERS 10 • 120 sites previously offered for ERS 10 • 83 sites were in reinstatement offers (suspended from ERS 10) • Total first time sites offered for ERS 30: 532 • First ever ERS Residential aggregation • July – September: 284 sites • October – January: 347 sites

7. 30-Minute ERS Pilot Testing • ERS 30 tests were run as fleet deployments using the All-QSE hot line • Three tests have been run … each in different time periods • XML messages were sent out • all deployments were for Group 1 and Group Type t • Tests were limited to about one hour of deployment • including the 30 minute ramp • The VDI message for the first test may have been confusing … ‘all contracted 30 minute resources in the current time period’ • Changed to ‘all 30 Minute ERS Resources with an obligation in the current time period’ • Event analysis will be performed and presented to the Board in November

8. ERS 10 + 30 Procurement Note: Resources and Capacity Not Procured For ERS 10 Were Awarded in ERS 30

9. ERS QSE Qualifications • Starting for the October 2012-Jan2013 Procurement ERCOT accepted offers from QSE’s that met one of the following: • QSE can receive XML over the WAN • QSE has submitted a WAN data application and has submitted an acceptable implementation plan to receive XML over the WAN • QSE has a completed agency agreement with a QSE capable of receiving XML over the WAN • All QSEs participating during the ERID process met the XML requirements • QSEs are expected to maintain a 24 hour by 7 day a week control center capable of communicating with ERCOT operators • Wholesale Client Services and the Demand Integration Team are working on an ERS QSE Qualification Guide that will be posted to the website when complete … currently in draft form

10. Participation in ERS 10 and ERS 30 • Only 3 Resources submitted offers for both ERS 10 and ERS 30 • QSEs were eligible to submit offers to both programs • Offers could be made to both programs for the same time period • ERCOT considered ERS 30 offers first • If offer rejected for ERS 30, it was considered for ERS 10 • Offers to both programs in different time periods would have been allowed (none were submitted) • Offers would have been considered and awarded separately • ERCOT has reservations about continuing to allow this form of dual participation because of deployment/recall concerns • Sites were eligible to participate in both programs • Sub-metering required to isolate the ERS 10 and ERS 30 load • For overlapping deployment performance is based on the sub-meter data and is validated at the premise level to establish that total obligation is met • If a site is awarded in ERS 30, it is ineligible for ERS 10 for that time period • No requirement to offer the same configuration of sites in a Resource to both programs • If a site is awarded for ERS 30 and is offered in a different Resource for ERS 10, the ERS 10 Resource is removed from consideration for an ERS 10 award

11. Historical ERS Performance Information • ERCOT is concerned with providing historical performance information for the following reasons: • The site was part of an aggregation; in this case ERCOT evaluates performance only for the aggregation as a whole and is unable to assess whether sites within the aggregation performed. • The level of the ERS obligation for a resource is established by the QSE representing the resource in conjunction with all the sites participating in the resource, and, thus, performance of the resource is a shared responsibility. • Sites in NOIE territories are identified with an arbitrary unique meter ID assigned by the QSE representing the resource. If another QSE submits the site in a subsequent contract period, ERCOT cannot make a positive link to the previous submission. • ERCOT proposes the following: • During ERID process, and on request only, ERCOT will provide a list of the deployment dates (test or actual deployments) for sites that were represented by a different QSE in any of the 3 preceding ERS Standard Contract Terms. • Include whether site was a member of aggregation or an individual ERS Resource for each event or test. • QSE can request meter data from customer/TDSP and perform own performance analysis • 3rd party access through SMT will be operational in Q2 of 2013

12. Demand Response Provider List • Inclusion on list is voluntary and QSE driven • QSE’s Authorized Rep must submit an email to ERS@ercot.com asking to be added to the list • Contact Person does not have to be the Authorized Rep • Removal from list or changes to the contact information must be submitted by the QSE’s Authorized Rep • Link to the list: http://www.ercot.com/services/programs/load/ • Very limited participation thus far … current list below:

13. NOGRR025 Reporting Requirements Language below is currently gray-boxed: 9.1.1 Testing ERCOT shall produce reports annually which summarize: (1) Capability test results for the applicable Resources. These results must be provided to ERCOT by the QSE for the Resource. The QSE shall provide these results to ERCOT upon completion of capability testing of the Resource. (2) Test results of Emergency Response Service (ERS) Resources by Resource and QSE; and • Test results for Load Resources. ERCOT plans to remove gray-boxing and provide the required reports next year and seeks input as to specific report content and format

14. NPRR475 EPS Metering Exception for ERS Generation • Allows transmission-connected generators providing Emergency Response Service (ERS) to be exempt from the requirements for ERCOT-Polled Settlement (EPS) Metering if their energy exports to the ERCOT System occur only during ERS deployments or tests • Requires that Transmission Service Provider (TSP) and Distribution Service Provider (DSP) metering be installed to measure any energy exported to the ERCOT Transmission Grid, and that the TDSP submit data to ERCOT for Settlement. • Approved by PRS on Sep 20, 2012 • During PRS discussion of this NPRR, comments were made that telemetry standards should be established for ERS Generators Nodal Operating Guide 3.3 Resource Entities (3) As prescribed in Protocol Sections 3.10.7.5, Telemetry Criteria, 6.5.5.2, Operational Data Requirements, and 8, Performance Monitoring, the QSE reporting for a Resource Entity shall provide operational information for generation facilities greater than 10 MW. • ERCOT is drafting an NPRR to clarify the requirement • NERC requires telemetry for generators > 10 MW

15. Disclaimer This document is provided for informational purposes only. Procurement and settlement data may vary slightly from final numbers and are not intended to be used as official ERCOT reporting.

16. Questions? ON OFF