Settlement Discussion for ALL DG < or = 1 MW

1. Settlement Discussion for ALL DG < or = 1 MW Don Tucker on behalf of the NOIE DRG Settlements Task Force NOIE DRG Settlements TF update to COPS

2. COPS Charge to the NOIE DRG Settlements Task Force May 2009 Provide a forum for market discussions and bring recommendations to COPS on the Settlement of DRG located behind NOIE metering points with a design capacity of 50kW or greater June 2009 Continue Discussions Provide a list of Pros and Cons for identified options Option 1: Treat as generation Option 2: Treat as NOIE “load inflow” Option 3: Provide TDSP exemption from reporting July 2009 Work on drafting a PRR to make the zonal protocols equate to the nodal protocols for registration requirements to support “Option 1: Treat as Generation” for NOIE DRG = or > 50kW & < 1MW and detail an implementation plan for the PRR. NOIE DRG Settlements TF update to COPS

3. COPS Charge to the NOIE DRG Settlements Task Force August 2009 Look at the threshold for submittal of data required by section 10.2.2 and any associated issues if a recommendation to change the threshold is made. September 2009 Continue work on the Task Force recommendation to move the threshold for the distributed generation data submission requirement to 1MW and apply this to all DG, not just DRG.  October 2009 Continue Discussions NOIE DRG Settlements TF update to COPS

4. NOIE DRG Settlements Task Force Meetings June 1st – 9:30 am to 12:30 pm July 1st - 9:30 am to 12:30 pm August 3rd - 9:30 am to 12:30 pm September 4th - 9:30 am to 12:30 pm October 5th - 9:30 am to 3:30 pm October 14th - 1:30 pm to 5:00 pm November 2nd - 9:30 am to 12:00 pm Next Meeting Date - TBD NOIE DRG Settlements TF update to COPS

5. Task Force Meeting Attendance on November 2, 2009 NOIE DRG Settlements TF update to COPS

6. Threshold Trigger Point and “Automatic” Changes Threshold trigger point – DG installed capacity Zonal - No need to include Limited deployment of DG expected before Nodal go live Nodal - Apply to Load Zone Any Load Zone hits 10 MW threshold - triggers Market Action Automatic changes The registration threshold is lowered below 1 MW New threshold is based on reducing the aggregate generation to no more than 7 MW in any Load Zone (Nodal Market) ERCOT to issue a market notice that includes the new threshold for DG registration New value becomes effective 9 months after the market notice is released NOIE DRG Settlements TF update to COPS

7. Communication, Analysis & Decisions on Registration Threshold ERCOT shall Inform the appropriate TAC sub-committee (COPS) of the change in DG registration requirements at the next meeting following the market notice The appropriate TAC sub-committee (COPS) shall Analyze data and determine impact on market reliability and settlements accuracy The appropriate TAC sub-committee (COPS) may Take action if they determine the impacts do not warrant lowering the threshold for DG registration Initiate a NPRR Defer action for a month to gather additional data Take no action NOIE DRG Settlements TF update to COPS

8. TDSP Reporting Applies to unregistered DG > 50kW & <= to 1 MW that sends outflow energy to the TDSP distribution system Competitive areas Utilize existing format for DRG less than 50 kW as required in the Load Profiling Guides NOIE Areas – still under construction Data points from the Load Profiling Guides under discussion Generation Type Interconnection Agreement effective date If PV renewable generation is present total PV generation capacity in kW (DC) If Wind renewable generation is present total wind generation capacity in kW (DC) If renewable other than PV or wind is present (will need to include DG) types of units total generation capacity in kW (DC) NOIE DRG Settlements TF update to COPS

9. ERCOT Reporting Compile TDSP submitted data Unregistered DG > 50kW & <= to 1 MW Produce quarterly reports Installed capacity by Lode Zone (Nodal Market) Final reporting parameters to be defined by the Market NOIE DRG Settlements TF update to COPS

10. Other Discussion – Creating a PRR • Is there value in creating a PRR at this point in time? • If PRR is presented to COPS in January 2010 • Best case has it effective in June 2010 for normal timeline • Initial question brought to COPS in May 2009 by ERCOT was a Zonal Question • DRG with a design capacity > 50kW - Market discussions needed to provide direction • ERCOT Protocols Section 10.2.2 require TDSP to report this generation to ERCOT • ERCOT Protocols Section 16.5 does not require registration if less than 1 MW NOIE DRG Settlements TF update to COPS

11. Other Discussion – Creating a NPRR • Is there value in creating a NPRR at this point in time? • Market discussion has raised awareness on DG registration requirements in the Nodal Protocols • ERCOT Protocols (Nodal) Section 16.5 requires the Resource Entity to register each All-Inclusive Resource • “The Resource Entity shall register each All-Inclusive Resource with ERCOT through ERCOT registration.” • This removes the ambiguity in the nodal market for the question raised by ERCOT regarding the zonal market • Discussions by Task Force members seem to indicate a desire to modify the nodal market requirement in regards to registration of DG less than 1 MW NOIE DRG Settlements TF update to COPS

12. COPS Direction on Next Steps • Continue Drafting PRR language? • Draft NPRR language? • Other direction from COPS? • Next Meeting Date Options • Must verify meeting room availability • Friday November 20th • Monday December 7th – day before COPS • Tuesday December 8th – after COPS? • Wednesday December 9th – after RMS? • Friday December 11th • Other? NOIE DRG Settlements TF update to COPS

13. Questions / Discussions