ERCOT Updates and Recommendations August 2018

The Transmission Advisory Committee (TAC) recommended several revision requests for approval by the Board of Directors (BOD) in August 2018. These requests included updates related to fuel costs, market settlements, wind power forecasting, and more. Additionally, subcommittee updates highlighted progress on various reports and working groups within ERCOT. The overall focus was on enhancing protocols and processes within the energy market.

• ERCOT
• TAC
• Revision Requests
• Energy Market
• Subcommittee

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1. AUGUST 14, 2018 TAC UPDATE TO RMS Rebecca Reed Zerwas

2. NODAL PROTOCOL REVISION REQUESTS The Following Revision Requests Recommended by TAC for BOD Approval (All Approved at August 7th BOD): NPRR847, Exceptional Fuel Cost Included in the Mitigated Offer Caps NPRR856, Treatment of OFFQS Status in Day-Ahead Make Whole and RUC Settlements NPRR862, Updates to Address Revisions under PUCT Project 46369 NPRR873, Posting of the ERCOT Wide Intra-Hour Wind Power and Load Forecast on the MIS Public NPRR874, Change to Report for Net Allocation to Load Settlement Stability NPRR875, Clarification for the Implementation of NPRR864, RUC Modifications to Consider Market-Based Solutions NPRR877, Use of Actual Interval Data for IDR ESI IDs for Initial Settlement SCR796, Eliminate Requirement for Forward Adjustment Factors Report in the MIS Certified Are Revision Requests Left Pending at TAC: NPRR845, RMR Process and Agreement Revisions NPRR857, Creation of Direct Current Tie Operator Market Participant Role - Tabled at TAC NPRR878, ERS Obligation Report for TDSPs 2

3. SUBCOMMITTEE UPDATES PRS Report Update on 2018 Release Targets BOD approved revision requests, proposed rank and priority for pending requests WMS Report VCMRR022, Determination of Fuel Adder Price for Coal and Lignite Resources- Considered & Endorsed (BOD Approved) Discussed changes to WMS working groups Settlements Working Group formed, Emerging Technologies Working Group moved to inactive Update on ERCOT look at switchable generation ROS Report Confirmation of ROS Leadership: Tom Burke (GSEC), Chair & Boon Staples (Tenaska), Vice Chair NOGRR174, AVR and PSS Testing Requirements - Considered & Endorsed (BOD Approved) NOGRR177, Related to NPRR857, Creation of Direct Current Tie Operator Market Participant Role Tabled at TAC RRGRR017, Related to NPRR866, Mapping Registered Distributed Generation and Load Resources to Transmission Loads in the Network Operations Model - Considered & Endorsed (BOD Approved) PGRR061, Related to NPRR866, Mapping Registered Distributed Generation and Load Resources to Transmission Loads in the Network Operations Model - Considered & Endorsed (BOD Approved) PGRR062, Updates to Generation Interconnection or Change Request (GINR) Process - Considered & Endorsed (BOD Approved) RMS Report RMGRR152, Additional Alignment with NPRR778, Modifications to Date Change and Cancellation Evaluation Window - Considered & Endorsed RMGRR153, Modifications to TDSP References and Processes in the Retail Market Guide - Considered & Endorsed RMGRR154, Remove References to Lite Up Texas - Considered & Endorsed RMS Goals - Approved 3

4. ERCOT AND BOARD UPDATES Proposed Bylaws Amendments Update At TAC, ERCOT legal provided an update on proposed bylaw amendments seeking to clarify when an Affiliate relationship may arise between two or more ERCOT Members. BOD approved amendments (documents available here and here) pending corporate membership and Commission approval Board approved meeting schedule for 2019 (here) and Real-Time Market Price Correction for Certain Intervals on Operating Day July 18, 2018 BOD Approved (documents available here, here, and here) ERCOT is working on five year strategic plan requesting stakeholder input at annual segment meetings ***Next TAC meeting August 30th*** 4

5. QUESTIONS? 5