Project Priority List Update & Summary - January 19, 2016

Project Update and Summary of Project Priority List (PPL) Activity January 19, 2016

Project Update Agenda Project Portfolio Update Recent Project Implementations Upcoming Project Implementations 2016 Release Results 2017 Release Targets 2016 Project Spending Revision Request Funding Placeholder Status Priority/Rank Options for Revision Requests with Impacts p. 3-8 Appendix Project Portfolio Gantt Chart p. 9-18 Location of Project Priority List (PPL): http://www.ercot.com/services/projects/index

Recent Project Implementations 2016 December Release Week of 12/6/2016 NPRR713 Reactive Power Testing Requirements NPRR754 Revise Load Distribution Factors Report Posting Frequency NOGRR147 Reactive Power Testing Requirements SCR787 Maintain NDCRC Data For Generator Transfer Between Resource Entities SCR788 Addition of Integral ACE Feedback to GTBD Calculation Complete 2016 December Retail Release Weekend of 12/10/2016 RMGRR127 Efficiencies for Acquisition Transfer RMGRR140 Efficiencies for Acquisition Transfer Process SCR786 Retail Market Test Environment Complete 3 PUBLIC

Upcoming Project Implementations 2/1/2017 NPRR790 Addition of Phase Angle Limits to the Network Operations Model In Flight 2/13/2017 NMMS Upgrade project In Flight 2017 March Release Week of 3/7/2017 NPRR272 Definition and Participation of Quick Start Generation Resources NPRR649 Addressing Issues Surrounding High Dispatch Limit (HDL) Overrides NPRR753 Allow AMS Data Submittal Process for TDSP-Read Non-Modeled Gens NPRR764 QSE Capacity Short Calcs Based on 80% Probability of Exceedance (P80) NPRR785 Sync WGR and PVGR COPs with Short Term Wind and PV Forecasts RMGRR134 Allow AMS Data Submittal Process for TDSP-Read Non-Modeled Gens RRGRR003 Modifications to Improve Wind Forecasting RRGRR006 Clarification of Descriptions and Alignment with RARF Forms RRGRR007 Adding Solar Resource Registration Inputs RRGRR009 Adding Voltage Limit Sets, Relay Loadability, MLSE, and GMD Data In Flight Note: Projected Go-Live dates are subject to change. Please watch for market notices as the effective dates approach. 4 PUBLIC

2016 Release Results Board Approved NPRRs / SCRs / xGRRs February 2/2 2/4 April June August 8/30 9/1 September 9/26 9/30 December 12/6 12/8 4/12 4/14 6/21 6/23 NPRR588 NPRR615 NPRR686(b) NPRR419 NPRR728 NPRR515 NPRR617 NPRR700 NPRR719 NPRR742 NPRR745 VMCRR008 NPRR662 NPRR712(a) NPRR219 SCR783 NOGRR050 NOGRR143(a) NPRR713 NPRR754 NOGRR147 SCR787 SCR788 11/1 11/3 5/1 7/23 7/24 (Retail) NPRR712(b) NOGRR143(b) NPRR495 NPRR736 NPRR770 12/10 12/11 (Retail) 6/16 COPMGRR040 RMGRR126 RMGRR137 RMGRR127 RMGRR140 SCR786 EMS Upgrade EMS Upgrade Chill 3 3 7 4 9 8 APPENDIX Go-live dates can differ from Protocol effective dates Please refer to market notices for more details Red Text: New additions and target release changes Strike-Through Text: Previous target release changes (a), (b), etc. indicates multiple phases Release targets are subject to change NPRR686(b) Solar portion Project Status Codes: NS = Not Started, I = Initiation, P = Planning, E = Execution, H = On Hold 5 PUBLIC

2017 Release Targets Board Approved NPRRs / SCRs / xGRRs March 3/7 3/9 May June August 8/29 8/31 October 10/31 11/2 December 12/5 12/7 5/1 5/11 6/27 6/29 NS NPRR272 NPRR649 NPRR753 NPRR764 NPRR785 RMGRR134 RRGRR003 RRGRR006 RRGRR007 RRGRR009 SCR790 NPRR746 NPRR786 NPRR792 RMGRR134 NPRR573 NPRR714 NPRR744 NPRR758 NPRR782 NPRR789 NPRR797 NPRR801 NPRR758 NPRR775 NPRR778 SCR789 E E NS H E E P P P NS E P E E 9/16 9/17 (Retail) NS I E E E I E NS 10/2 10/3 (Off-Cycle) 11/11 11/12 (Retail) 12/9 12/10 (Retail) E 5/20 5/21 (Retail) 7/15 7/16 (Retail) E SCR777 E 2/1 NPRR790 E 2/13 NMMS Upgrade 11 4 7 3 1 1 2017 TBD Items (and point at which they became TBD ) 2014 2015 2016 2017 NOGRR084, NPRR664 None SCR781 H None APPENDIX Go-live dates can differ from Protocol effective dates Please refer to market notices for more details In-Flight Items Planned for Future Delivery CMM bundle (Planning): NPRR519, NPRR620, NPRR683, NPRR702, NPRR741, NPRR743, NPRR755, NPRR760 Red Text: New additions and target release changes Strike-Through Text: Previous target release changes (a), (b), etc. indicates multiple phases Release targets are subject to change Project Status Codes: NS = Not Started, I = Initiation, P = Planning, E = Execution, H = On Hold 6 PUBLIC

2016 Project Spending ` 30,000,000 2015 Carryover Cap Enh In-Flight Cap Enh Not Started Tech Found In-Flight Tech Found Not Started Potential Demand Total Budget 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 - Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Actual Jan-16 Actual Feb-16 Actual Mar-16 Actual Apr-16 Actual May-16 Actual Jun-16 Actual Jul-16 Actual Aug-16 Actual Sep-16 Actual Oct-16 Actual Nov-16 Forecast Dec-16 2015 Carryover 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 1,743,545 Enhancements In-Flight Not Started 703,406 737,886 617,377 464,786 610,424 584,074 590,899 737,897 1,442,856 314,988 973,368 2,260,149 Capital - - - - - - - - - - - - Total 703,406 1,441,291 2,058,668 2,523,455 3,133,879 3,717,953 4,308,852 5,046,749 6,489,605 6,804,593 7,777,961 10,038,110 In-Flight Not Started 526,124 572,408 779,655 584,946 517,189 729,687 637,526 627,043 576,590 434,546 190,437 691,469 Foundation Technical - - - - - - - - - - - - Total 526,124 1,098,532 1,878,186 2,463,133 2,980,322 3,710,009 4,347,535 4,974,578 5,551,168 5,985,714 6,176,151 6,867,620 Potential Not Started - - - - - - - - - - - - Demand Total - - - - - - - - - - - - Grand Total 2,973,075 4,283,368 5,680,400 6,730,132 7,857,746 9,171,507 10,399,931 11,764,871 13,784,317 14,533,851 15,697,656 18,649,274 2016 PPL Budget = $22.5M Potential Demand represents internal ERCOT projects that have not been fully approved 7 PUBLIC

Revision Request Funding Placeholder Status In 2016 and 2017, ERCOT forecasted $4.0M for Revision Request work Yearly Revision Request Spending Forecast Summary Project Status 2016 2017 YTD Actuals $2.57M As of 11/30/2016 Approved In-Flight / Complete $2.94M $1.38M Approved On Hold $0.00M $0.40M Approved Not Started $0.00M $0.42M Remaining Funding $1.06M $1.80M Total Allocation $4.00M $4.00M Each year, an additional $400k is held in reserve in the event the $4M allocation is insufficient 8 PUBLIC

Priority / Rank Options for Revision Requests with Impacts Options for Revision Request Description Comments Priority Rank ROS previously recommended a Rank of 2000 due to the initial target effective date of 1/1/2018 Stability Assessment for Interconnecting Generation 2017 1900 PGRR052 Revised effective date of 8/1/2017 requires an earlier project start 9 PUBLIC

Appendix 12/31/2016 Project Gantt In-flight items sorted by Project End Date On Hold projects listed separately Not Started items sorted by Project Start Date

Project Portfolio Status as of 12/31/2016 11 PUBLIC

Project Portfolio Status as of 12/31/2016 12 PUBLIC

Project Portfolio Status as of 12/31/2016 13 PUBLIC

Project Portfolio Status as of 12/31/2016 14 PUBLIC

Project Portfolio Status as of 12/31/2016 15 PUBLIC

Project Portfolio Status as of 12/31/2016 16 PUBLIC

Project Portfolio Status as of 12/31/2016 17 PUBLIC

Project Portfolio Status as of 12/31/2016 18 PUBLIC

Project Portfolio Status as of 12/31/2016 19 PUBLIC