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Technical Advisory Committee

Technical Advisory Committee. Presentation to the ERCOT Board of Directors June 16, 2009. 3 PRRs for Board approval 3 NPRRs for Board approval 2 OGRRs approved 3 RMGRRs approved 1 COPMGRR approved PUCT Quarterly Renewables Report Draft Texas Renewables Integration Plan

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Technical Advisory Committee

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  1. Technical Advisory Committee Presentation to the ERCOT Board of Directors June 16, 2009

  2. 3 PRRs for Board approval 3 NPRRs for Board approval 2 OGRRs approved 3 RMGRRs approved 1 COPMGRR approved PUCT Quarterly Renewables Report Draft Texas Renewables Integration Plan Update: ERCOT Planning Charter Preview: July, August, Sept. Board meetings TAC Report Summary

  3. PRR 796 Resource Plan Performance Metrics Revision PRR 802 Transmission Congestion Rights (TCR) to Congestion Revenue Rights (CRR) Refund Revision PRR 809 Out of Merit Capacity (OOMC) Startup Costs Clarification and Modification – URGENT Protocol Revision Requests

  4. PRR 796 – Resource Plan Performance Metrics Revision

  5. PRR 796 – Resource Plan Performance Metrics Revision No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

  6. PRR 802 – TCR Transition to CRR Refund Revision

  7. PRR 802 – TCR Transition to CRR Refund Revision No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability

  8. PRR 809 – OOMC Startup Costs Clarification and Modification - URGENT

  9. PRR 809 – OOMC Startup Costs Clarification and Modification - URGENT • ERCOT often receives settlement and billing disputes regarding eligibility for OOMC startup costs and the associated clawback. These settlement and billing disputes are mainly a result of a lack of understanding of the criteria used to determine startup and clawback eligibility. The criteria are currently reflected in the Charge Matrix posted on ERCOT’s website, but not in the ERCOT Protocols. Updating the Protocols to reflect the criteria documented in the Charge Matrix as well as the settlement practice for the clawback will provide the clarity needed to avoid such future settlement and billing disputes.

  10. PRR 809 – OOMC Startup Costs Clarification and Modification - URGENT • ERCOT also receives settlement and billing disputes and questions pertaining to the implementation of the “max zero” logic on the OOMC startup cost formula (PSui). PRR 676 (RPRS Solution with Nodal RUC-Type Procurement and Cost Allocation), which was approved by the ERCOT Board on 09/19/06, included this logic. However, Replacement Reserve Service (RPRS) settlement was the main focus of PRR 676 and following a market participant appeal the PUCT ruled the PRR should not be implemented. ERCOT reintroduced the “max zero” logic in PRR 809 since it was collateral damage in the PRR 676 decision and the market had previously reached agreement that Generation Resources should not be charged for providing OOMC Service.

  11. PRR 809 – OOMC Startup Costs Clarification and Modification - URGENT No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability Credit Review is Pending

  12. NPRR 141 Transmission Service Provider (TSP) Energy Storage for Reliability NPRR 172 Synchronization of Section 15 with PRR 782 Cleanup and Corrections to Terminology and Transaction Timings in Protocol Section 15, Customer Registration NPRR 173 Reduce the Minimum Quantity for Ancillary Services Offers Nodal Protocol Revision Requests

  13. NPRR 141 – TSP Energy Storage for Reliability (formerly TSP and/or DSP Energy Storage for Reliability)

  14. NPRR 141 – TSP Energy Storage for Reliability (formerly TSP and/or DSP Energy Storage for Reliability) No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability Credit Review is Pending

  15. NPRR 172 – Synchronization of Section 15 with PRR782, Clean-Up and Corrections to Terminology and Transaction Timings in Protocol Section 15, Customer Registration

  16. NPRR 172 – Synchronization of Section 15 with PRR782, Clean-Up and Corrections to Terminology and Transaction Timings in Protocol Section 15, Customer Registration No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability Credit Review is Pending

  17. NPRR173 – Reduce the Minimum Quantity for Ancillary Service Offers

  18. NPRR173 – Reduce the Minimum Quantity for Ancillary Service Offers No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/ Liability Credit Review is Pending

  19. OGRR 218 Revise System Operator Training Requirements OGRR 222 Allow Frequency Control Data Through ICCP Infrastructure Operating Guide Revisions

  20. RMGRR 072 Clarification that ESI ID Count is for Active REP of Record in the CBCI File RMGRR 073 Mass Transition of ESI ID Due to Acquisition RMGRR 074 Texas Data Transport Working Group and Market Metrics Working Group Merger Retail Market Guide Revisions

  21. COPMGRR 011 Updates to Include the Implementation of Project 30007-02 Website Enhancements for ERCOT outages. Commercial Operations Market Guide Revision

  22. PUCT Quarterly Renewables Report • Second Quarterly Report ready to file at PUCT • Covers 3 months ending April 30 • 70 MW new wind added during this period • Wind generation provided 8.2% of all energy in ERCOT from Jan. 1 to April 30 • 48,677 MW of additional wind generation in the interconnection study process • 1,150 MW new renewables with signed IAs (wind and biomass) • 5 new issues identified and added to tracking sheet • 7 issues completed on tracking sheet • 5 PRRs approved or implemented during reporting period • Wind Workshop III scheduled for June 26 – focus on telemetry requirements and nodal issues

  23. Texas Renewables Integration Plan • Policy Drivers • ERCOT-specific implementation activities (CREZ, AMI, etc.) • policy impacts on market expectations / planning needs • Market Drivers • market impacts on market expectations / planning needs • chicken and egg: market rules and new technologies • Technology Drivers • understanding capabilities and limitations • understanding interrelated nature of various technological applications with operational requirements • Resource Constraints • budget / Staff availability • EERM / Nodal

  24. Texas Renewables Integration Plan • Issues Identification • operational experience • industry engagement • Issues Development • workshops, presentations • white papers • Issues Solutions • solutions implementation (NPRRs, etc.) • updating ERCOT systems, models, operational practices • accompanying measurements (performance metrics, etc.) • follow-up activities • Issues Tracking • transparency • institutional knowledge

  25. Texas Renewables Integration Plan Issues Identification Data Gathering Technical Education Issues Refinement and Solutions Development Study Development and Execution Solutions Execution

  26. Texas Renewables Integration Plan • Next Steps • July work session with Board for substantive discussion • Further TRIP development through 3Q09 • add substantial detail to issues list • develop quarterly summaries for Board and PUCT • scheduling each required activity / project • Version 1 of TRIP presented to Board for approval 4Q09

  27. Update: ERCOT Planning Charter • In January, ERCOT Staff presented recommended changes to the ERCOT Planning Charter. TAC endorsed the proposed changes. • The Board approved the revisions except the proposal to exempt transmission projects relating to generation interconnection from ERCOT and RPG review. Treatment of such facilities was remanded to TAC for further discussion and recommendation. • The current Planning Charter language requires generation interconnection projects costing more than $15 million or requiring CCNs be reviewed by the RPG (including ERCOT independent review and Board approval as appropriate).

  28. Current Review Process

  29. Summary of stakeholder discussion • Consensus on 2 procedural changes for TSPs to raise visibility of large generation interconnection projects • Require in Generation Interconnection (GI) Procedure that the Lead TSP for the Full Interconnection Study (FIS) communicates to other TSPs when the FIS indicates that the direct interconnection facilities will cost >$50 million so that the other TSPs will know to particularly focus on the FIS • The Lead TSP for GI FIS will communicate direct generation interconnection projects >$50 million out to full RPG (no review by RPG) once generation Interconnection Agreement is signed

  30. Summary of stakeholder discussion • Support for ERCOT/RPG Review of interconnection facilities • Commission Staff testimony in Kelson CCN docket expressed need for ERCOT review of these types of CCNs • Increase transparency / awareness of significant projects • Concerns with ERCOT/RPG Review of interconnection facilities • Reliability impacts are already considered in generation interconnection study process • ERCOT and RPG review of these projects results in stakeholder judgment on the economic merits of the proposed generation • Potential for RPG review to delay generation interconnection • Additional considerations • Open access regime should be preserved in whatever process is adopted • Appropriateness of ERCOT role / recognition of ERCOT work load

  31. Planning Charter options considered • Regional Planning Group: no consensus • Reliability and Operations Subcommittee: recommended Planning Charter language proposed to the Board in January with the 2 procedural changes • Wholesale Market Subcommittee: Agreed with 2 procedural changes and agreed to revert to January Planning Charter proposal but evenly split whether to add language requiring ERCOT and/or RPG review for informational purposes when proposed direct interconnection facilities >$25 million or >$50 million

  32. Status of TAC deliberations • In addition to other identified issues, TAC discussed whether this is a policy determination best made by the PUCT rather than stakeholders and whether TAC and the Board might receive policy guidance from the PUCT soon through a final order in the Kelson CCN docket • Motion to recommend the January Planning Charter proposal with a requirement ERCOT perform economic analysis for facilities >$50 million failed: 17 Yes, 11 No, 2 Abstain • Motion to recommend the January Planning Charter proposal with requirement ERCOT perform economic analysis for facilities >$25 million when requested by PUCT Staff failed: 5 Yes, 21 No, 3 Abstain • Motion to Table passed on voice vote with 3 abstentions

  33. Preview: Future Board meetings • July: PRR 815 CSC Process Clarification • Result of PUCT Order in AEP appeal of 2009 CSC selection • Address methodology by which potential CSCs/CREs are studied • Address procedure by which CSCs/CREs are recommended and approved • August: Progress Report - NOGRR 025 Monitoring Program for QSEs, TSPs, and ERCOT • Identify performance metrics, monitoring, and compliance program necessary for Nodal Go-Live • Identify impacts to Nodal implementation project • September: 2010 CSC Recommendation

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