Distributed Generation Task Force Discussion

1. Distributed Generation Task Force Discussion Some brainstorming on Issue # 2007-02 from the “Retail Market Workshop to Vet Issues and Identify Gaps Related to Small Renewable Generation”

2. Retail Market Workshop Issue # 2007-02

3. How could this be accomplished: TDSP submits and ERCOT processes monthly KWH for both consumption and generation as measured at the point of interconnect for the ESI ID Generation is subtracted from the usage during the data aggregation process Resulting net usage or generation for the REP is settled using existing load profiles Non-IDR Netting

4. Texas Set Transaction Analysis Submittal of non interval monthly generation values to ERCOT Requires changes to Texas Set This would need to be included in a version release Does the request for historical usage need to include generation values? System Changes Required for an answer of yes Non-IDR Netting

5. Creation of non interval monthly generation values for inclusion in settlements Requires System Changes Does the Texas Market Link (Market Information System) display of 867 final need to be modified to include generation values? Requires System Changes Non-IDR Netting

6. Data Aggregation Analysis Loading of non interval monthly generation values in settlements Requires System Changes Subtraction of generation from load for each aggregate REP data cut Requires System Changes Non-IDR Netting

7. Settlement results: Similar to what is happening today when ESI ID usage is “netted” for the monthly consumption by the TDSP before usage is submitted to ERCOT Accounts for generation that is above the monthly usage for the ESI ID reduces the aggregate load for the Retail Electric Provider Non-IDR Netting

8. Settlement results (continued) Does not account for the generation when it actually occurred Spreads generation across all intervals of the day and night Non-IDR Netting

9. Benefits Does not require registration process for small renewable generation (less than 50 kW) Accounts for generation required by HB 3693 Non-IDR Netting

10. How could this be accomplished: TDSP submits and ERCOT processes interval data for both consumption and generation as measured at the point of interconnect for the ESI ID Generation is subtracted from the usage during the “IDR” data aggregation process Resulting net usage or generation for the REP is settled based on the actual interval data IDR Netting

11. Texas Set Transaction Analysis Submittal of interval generation values to ERCOT Functionality currently exists to submit generation values in the same TXSET transaction for an ESI ID Does the request for historical usage need to include generation values? System Changes Required for an answer of yes IDR Netting

12. Creation of ESI ID interval generation values for inclusion in settlements Functionality currently exists Data Aggregation Analysis Loading of interval generation values in settlements Requires System Changes IDR Netting

13. Data Aggregation Recognition of interval generation values from an ESI ID in settlements Requires System Changes Subtraction of generation from load for the Retail Electric Provider interval data cut Requires System Changes IDR Netting

14. Settlement results: Similar to what is happening today for TDSP read generation where usage is “netted” for the interval consumption by the TDSP before usage and generation is submitted to ERCOT Accounts for generation, by interval, that is above the usage for the ESI ID reduces the aggregate load for the Retail Electric Provider IDR Netting

15. Benefits Does not require registration process for small renewable generation (less than 50 kW) Accounts for generation in the interval that it is produced required by HB 3693 IDR Netting

16. Funding approved for a market project under the Retail Market Subcommittee for small renewable generation Rated critical All project efforts for 2008 must be cognizant of possible conflicts with resources working on the nodal effort Currently no Texas Set release scheduled for 2008 2008 Project List