RTC+B Task Force Update - August 14, 2024

RTC+B Task Force Update Matt Mereness RTCBTF August 14, 2024

Outline - - - - - Brief Program update: RTC+B Program Update from Board T&S Reminder of RTCBTF Review Cycle Review of Issues List Scope of RTC+B Program Today s Issues List for Discussion: - Review RTC and ESR Clarifying Revision Requests for market questions - RTC- NPRR1245 - ESR- NPRR1246, NOGRR268, PGRR118, OBDRR52 - Issue 3- RTC Simulator update (verbal update only) (Raymund Lee) - Issue 9- Explanation of Market Submission interface changes (Nathan Smith) - Issue 10- Market Readiness - Final review of Market Trials Plan - Attestation scorecard going to Board - Issue 18 Placeholder for MPs Discussion of AS Demand Curves - Heads-up on topics for September RTCBTF meeting - Issue 8- Mapping of bill determinants to extracts and reporting for developing shadow settlement - Settlements and Billing Deep-Dive (1-2 hours) (Magie Shanks) 2 2 Public

RTC+B Program Update (excerpt from June Board T&S RTC Update) ERCOT to publish go-live date before or during September 3 Public

Sequence and Potential Dates for Market Trials (dates subject to change while in Planning phase) May 2025 June 2025 July 2025 Aug 2025 Sep 2025 Oct 2025 Nov 2025 Dec 2025 QSE Attestation 9 months before Trials Each activity will have a public-facing Scorecard and exit Criteria 3-4 months 2 months 1 month Open-loop RTC SCED (QSE offers, SCED non- binding award/dispatch) RTC QSE Submission Testing (Submit COP, RT AS Offers, DAM Virtual AS, Outages for ESRs) Closed-loop SCED/LFC (QSE RTC offers and telemetry to support closed-loop frequency control test 2-3 tests of 2-4 hour durations) Transition to Go-Live Upon completion of testing, confirmation of ERCOT and market readiness for Go-Live. QSE Telemetry Tests (Individual QSE to follow UDSP and support new ramp rate and ESR telemetry) RTC QSE Telemetry Check-out (QSEs add/verify new telemetry points for UDSP, New ramp rates, ESR telemetry) Day-Ahead Market (Non-binding DAM using QSE offers for at least 2 tests) Current draft of the earliest possible dates for Market Trials and Go- Live that have been shared through TWG and the RTC+B Workshops, in support of Market Participants readiness at RTCBTF. Actual Market Trials and Go-Live milestones are to be determined and will be communicated no later than 9/30/24. 1-2 months 4 Updated 2024-05-22 Public

Plans for Meetings and Review Cycles Reminder of RTC+B Program Scope RTC Key Principles were approved to lay foundation of NPRR1007-1013 Consolidated Key Principles: https://www.ercot.com/files/docs/2020/04/01/RTC_Key_Principle_Quick_Reference.docx Library of Key Principles: https://www.ercot.com/mktrules/puctDirectives/rtCoOptimization Battery Key Topic Concepts approved to lay foundation of NPRR1014 https://www.ercot.com/mktrules/keypriorities/bes RTC State-of-Charge accounting in NPRR1204 Objective is to present concepts or issues that need to be resolved for an effective implementation. Coordinating timelines for interface requirements and testing, Providing the forum for any analysis or policy decisions (such as parameter values) Coordinating market readiness and cutover activities, Review draft Revision Requests or other artifacts necessary to successfully implement the program within the identified timeframes, and discussing other details as needed. Lessons learned from RTCTF to avoid being delayed in decisions: Meeting #1: Initial concept presented by ERCOT staff Meeting #2: Comments and alternatives presented by MPs Meeting #3: RTCTF consensus achieved or escalated to TAC for a vote to decide the matter. 5 Public

Current RTCBTF Issues List Prior to Sept meeting, ERCOT will streamline and align to key risks with program schedule. Protocol needed? No No No VCMRR NPRR Source Type Id Issue to resolve Approval Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 1 2 3 Parameters for Ancillary Service proxy offers (values for the parameters) ASDCs for use in Reliability Unit Commitment (RUC) studies (values for parameters) Framework for periodic analysis comparing RTC and the current ORDC design KP 1.1(8) Policy Policy Analysis TAC TAC No RTCTF issue Delay RTCTF issue RTCTF issue 4 Verifiable Cost Manual (Change for on-line hydro Resources per Key Principle 1.3(3)) Other TAC RTCTF issue Normal process Exisiting processes Exisiting processes No Existing processes TAC No TAC TAC TAC TAC TAC TAC 5 Additional review of transmission constraint max. shadow price values (Sec 22 protocols per NPRR1211) Policy Yes RTCTF issue Operation Procedures (e.g., removing SASM and HASL/LASL), note to include any needed discussion on triggers for initiating off-cycle SCED execution 6 Readiness No RTCTF issue 7 Business Practice Manuals (e.g., changes to COP and telemetry) Readiness No RTCTF issue 8 Mapping of bill determinants to extracts and reporting for developing shadow settlement Readiness No RTCTF issue 9 Changes to ICCP handbook, and documentation for non-ICCP market submissions Readiness No RTCTF issue 10 11 12 13 14 15 16 17 Market trials/training/annual seminar engagement (release plans/dates for market trials) Any details MPs need for designing their control systems Scaling Factor Values for RegU and RegD (ie, ramp sharing as values, dynamic or static?) How DRRS would work in an RTC paradigm Inclusion of firm load shed in the pricing run - (RTC changes to align with NPRR1081) Various protocol references need to be updated RTC SOC duration parameter discussion RUC Capacity Short Calculations with SOC Readiness Readiness Other Other Policy Other Policy Policy No No No Yes Yes Yes No NPRR RTCTF issue RTCTF issue ERCOT 2023 ERCOT 2023 ERCOT 2023 ERCOT 2023 ERCOT 2023 ERCOT 2023 18 RTCBTF 1/12/24 Review of the AS Demand Curves in the context of current policy. Other No No Normal process 19 RTCBTF 1/12/24 Emergency Price Program alignment to RTC (imbedded within NPRR1216, monitor only for RTCBTF) Policy Yes 20 RTCBTF 4/10/24 Review of the Energy and AS Offer Caps in the context of current policy. Other No No Blue is to reflect new or updated dates of review Gray is to reflect existing review schedule Green is to reflect completion 6 Public

RTC+B Clarification NPRRs ERCOT developed at clarifying Revision Requests: Clarification RTC NPRR after completing business requirements (eg, drift in baseline since 2019, discrepancies and/or small gaps found during business requirement development) Clarification Single Model NPRR, PGRR, NOGRR, OBD as an extension of NPRR1014 Single Model to clarify single model language in other areas of protocols. Note- All changes are intended to be as designed clarifications, aligned with Key Principles, and have no system impacts. Shared initial drafts with RTCBTF at July RTCBTF meeting ERCOT filed RRs at end of July to allow vetting of comments via existing PRS process and supported by RTCBTF to review (next 2-3 meetings). - RTC- NPRR1245 - ESR- NPRR1246, NOGRR268, PGRR118, OBDRR52 7 Public

Scope of RTC+B Program (Excel version posted with meeting) RTC+B Program Scope for delivery (as of 8/7/2024) Revision Request NPRR1007 NPRR1008 NPRR1009 NPRR1010 NPRR1011 NPRR1012 NPRR1013 NOGRR211 OBDRR020 NPRR1014 NPRR1204 NPRR1236 NPRR1245 NPRR1246 NOGRR268 PGRR118 OBDR052 NPRR1000 NPRR1054 NPRR1172 Status PUC appv PUC appv PUC appv PUC appv PUC appv PUC appv PUC appv BOD appv BOD appv PUC appv PUC appv PRS- in flight PRS- in flight PRS- in flight ROS- in flight PWG- in-flight TAC- in-flight PUC appv PUC appv PUC appv RTC+B Program revisions ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL ALL (no gray box) 5.7.2(2)&(4)- RUC Clawback Description RTC RTC RTC RTC RTC RTC RTC RTC- Op Guide 2 and 9 RTC- Setting Shadow Price Single Model RTC- State of Charge for SCED/RUC RTC- RUC Capacity Short RTC- Clarification Single Model- Clarification Single Model- Clarification Single Model- Clarification Single Model- Clarification Remove Dynamically Scheduled Resources Remove Oklaunion Exemption settlement S&B Portion of NPRR1172 RUC ClawBack NPRR1014 was written on top of the NPRR963 greyboxes for Set Point Deviation changes. In order to appropriately implement these changes for ESRs, need some of the language from NPRR963. Adapting requirements for Market Submission required field and locking the Energy Offer Curve for Emergency Settlements Reason Foundation Foundation Foundation Foundation Foundation Foundation Foundation Foundation Foundation Foundation Supplemental Supplemental Clarifications Clarifications Clarifications Clarifications Clarifications Efficiency Efficiency Efficiency 6.6.5.5 6.6.5.5.1 6.6.5.6 NPRR963 PUC appv Dependency for NPRR1014 4.4.9.3 6.6.9 Implementing in current system August 2024 NPRR1058 PUC appv 8 Public

Proceed with rest of meeting - Review RTC and ESR Clarifying Revision Requests if market questions - RTC- NPRR1245 - ESR- NPRR1246, NOGRR268, PGRR118, OBDRR52 Issue 3- RTC Simulator update (verbal update only) (Raymund Lee) Issue 9- Explanation of Market Submission interface changes (Nathan Smith) Issue 10- Market Readiness - Final review of Market Trials Plan - Attestation scorecard going to Board Issue 18 Placeholder for MPs Discussion of AS Demand Curves Heads-up on topics for September RTCBTF meeting Issue 8- Mapping of bill determinants to extracts and reporting for developing shadow settlement - Settlements and Billing Deep-Dive (1-2 hours) (Magie Shanks) - - - - - - - Next meeting in-person/WebEx on Wednesday September 13, 2024 9 Public