Report to TACReport to TAC

July 2010July 2010

WMS in BriefWMS in Brief Voting ItemsVoting Items

SMOGRR008, Revisions for Texas Nodal SMOGRR008, Revisions for Texas Nodal Market Implementation and Market Implementation and Synchronization with PRR821 Synchronization with PRR821

Revisions will be grey-boxed until the Texas Nodal Revisions will be grey-boxed until the Texas Nodal Market Implementation Date (TNMID) where Market Implementation Date (TNMID) where appropriate. This SMOGRR also revises Section 10, appropriate. This SMOGRR also revises Section 10, Process for Settlement Metering Operating Guide Process for Settlement Metering Operating Guide Revisions, to more effectively align with the current Revisions, to more effectively align with the current stakeholder process, consistent with revisions made stakeholder process, consistent with revisions made to the Protocols pursuant to Protocol Revision to the Protocols pursuant to Protocol Revision Request (PRR) 821, Update of Section 21, Process for Request (PRR) 821, Update of Section 21, Process for Protocol Revision, and with other existing language Protocol Revision, and with other existing language in Protocol Section 21.in Protocol Section 21.

WMS unanimously voted to recommend approval of WMS unanimously voted to recommend approval of SMOGRR008 as recommended by MWG. All Market SMOGRR008 as recommended by MWG. All Market Segments were present for the vote.Segments were present for the vote.

Recommend TAC ApprovalRecommend TAC Approval

WMS in BriefWMS in Brief New Working GroupNew Working Group

Power Storage Working GroupPower Storage Working Group Brian Gedrich, ChairBrian Gedrich, Chair Praveen Kathpal, Vice-ChairPraveen Kathpal, Vice-Chair

Charter and Goals to be endorsed by Charter and Goals to be endorsed by WMS in JulyWMS in July

WMS in BriefWMS in Brief Voting Items on other parts of the Voting Items on other parts of the

TAC agendaTAC agenda NPRR 207 – Unit De-selectionNPRR 207 – Unit De-selection

WMS discussed the NPRR and the WMS discussed the NPRR and the procedures but did not vote. procedures but did not vote.

WMS members would like to see a WMS members would like to see a presentation from ERCOT Staff as to how presentation from ERCOT Staff as to how many units are being deselected/selected – many units are being deselected/selected – approximately 90 days post go-live.approximately 90 days post go-live.

NATF voted to endorse the Reliability Unit NATF voted to endorse the Reliability Unit Commitment (RUC) desk procedure relating Commitment (RUC) desk procedure relating to NPRR207 as revised by language provided to NPRR207 as revised by language provided by Luminant, Reliant Energy, and Topaz by Luminant, Reliant Energy, and Topaz Power.Power.

WMS in BriefWMS in Brief

WMS in BriefWMS in Brief Upcoming NPPRsUpcoming NPPRs

NPRR 234 - Resolution of Alignment Item NPRR 234 - Resolution of Alignment Item A32, A147, A155, A159, and A187 - Clarify A32, A147, A155, A159, and A187 - Clarify General Capacity Testing and Net General Capacity Testing and Net Dependable CapabilityDependable Capability

At the June 16, 2010 WMS meeting, WMS reviewed At the June 16, 2010 WMS meeting, WMS reviewed the QMWG recommendation and the 6/16/10 the QMWG recommendation and the 6/16/10 Luminant comments. After discussion, WMS voted to Luminant comments. After discussion, WMS voted to endorse NPRR234 as revised by WMS. The revised endorse NPRR234 as revised by WMS. The revised language reflects the language proposed by QMWG language reflects the language proposed by QMWG and the revisions proposed in the 6/16/10 Luminant and the revisions proposed in the 6/16/10 Luminant comments to paragraph (3) of Section 8.1.1.2, comments to paragraph (3) of Section 8.1.1.2, General Capacity Testing Requirements. WMS General Capacity Testing Requirements. WMS recognizes that additional minor language recognizes that additional minor language clarification may be needed in Section 8.1.1.2 as clarification may be needed in Section 8.1.1.2 as noted by ERCOT Staff.noted by ERCOT Staff.

WMS in BriefWMS in Brief Upcoming NPPRsUpcoming NPPRs

NPRR 231 - Remove RMR Units from the NPRR 231 - Remove RMR Units from the Day-Ahead MarketDay-Ahead Market

After discussion, WMS voted to recommend that RMR After discussion, WMS voted to recommend that RMR Units be available in the Day-Ahead Reliability Unit Units be available in the Day-Ahead Reliability Unit Commitment (DRUC) and Hourly Reliability Unit Commitment (DRUC) and Hourly Reliability Unit Commitment (HRUC) and for ERCOT to remove RMR Commitment (HRUC) and for ERCOT to remove RMR Units from the DAM by a workaround that does not Units from the DAM by a workaround that does not impact implementation of NPRR231 prior to the Texas impact implementation of NPRR231 prior to the Texas Nodal Market Implementation Date (TNMID).Nodal Market Implementation Date (TNMID).

WMS respectfully asked that an SME provide WMS respectfully asked that an SME provide guidance to PRS and NATF with regard to the system guidance to PRS and NATF with regard to the system impacts of removing RMR Units from the DAM; WMS impacts of removing RMR Units from the DAM; WMS did not draft language in the absence of guidance did not draft language in the absence of guidance from an SME. from an SME.

WMS in BriefWMS in Brief Upcoming NPPRsUpcoming NPPRs

NPRR 240 - Proxy Energy Offer CurveNPRR 240 - Proxy Energy Offer Curve

WMS discussed NPRR 240 at the June 16WMS discussed NPRR 240 at the June 16thth meeting meeting and again on a Webex on June 21and again on a Webex on June 21stst. WMS members . WMS members raise concerns regard the market impacts of making raise concerns regard the market impacts of making the QSE responsible for a proxy curve generated by the QSE responsible for a proxy curve generated by ERCOT for all purposes.ERCOT for all purposes.

WMS did not come to resolution and had questions WMS did not come to resolution and had questions for NATF SME’s to address regarding how reporting for NATF SME’s to address regarding how reporting could distinguish proxy bids.could distinguish proxy bids.

WMS will address this NPRR in July and urge MP and WMS will address this NPRR in July and urge MP and the IMM to file comments and alternative language the IMM to file comments and alternative language to address concerns raised at WMS and NATF.to address concerns raised at WMS and NATF.

Working GroupsWorking Groups CMWG CMWG – no report– no report DSWGDSWG – no report – no report

Draft NPRR, EILS Self-Provision Settlement Draft NPRR, EILS Self-Provision Settlement Corrections and Other Issues – to be voted on in Corrections and Other Issues – to be voted on in JulyJuly

MWGMWG SMOGRR008 – to be finalized in JuneSMOGRR008 – to be finalized in June

MCWGMCWG Nodal Market Trial IssuesNodal Market Trial Issues

VCWGVCWG – no report – no report QMWGQMWG

NPRR 234, NPRR 231NPRR 234, NPRR 231 WGR RTPP Data for Nodal HSL and METWGR RTPP Data for Nodal HSL and MET

WMS Working Group and Task Force WMS Working Group and Task Force CommentsComments

  Good practice for WG's and TF's to submit comments to Good practice for WG's and TF's to submit comments to RevisionRequest (RevisionRequest (RevisionRequest@ERCOT.COM) following meeting ) following meeting discussions regarding pending NPRR's, if there was consensus or if discussions regarding pending NPRR's, if there was consensus or if alternative perspectives could be articulated as options for alternative perspectives could be articulated as options for Subcommittee considerationSubcommittee consideration

NEW Working Group Comment form introduces a section for the NEW Working Group Comment form introduces a section for the Working Group Attendees List - so that a reviewer can better understand Working Group Attendees List - so that a reviewer can better understand if the comments reflect narrow or broad market consensus since the if the comments reflect narrow or broad market consensus since the WG's and TF's have no formal voting structure.WG's and TF's have no formal voting structure.

  Comments filed in the NPRR process will allow for more timely Comments filed in the NPRR process will allow for more timely consideration in advance of voting subcommittee and TAC meetings as consideration in advance of voting subcommittee and TAC meetings as well as enable better documentation of the stakeholder review of the well as enable better documentation of the stakeholder review of the NPRR and also enable other subcommittees and market participants to NPRR and also enable other subcommittees and market participants to comment on the WG/TF comments in advance of the reporting comment on the WG/TF comments in advance of the reporting Subcommittee review (in our case WMS). Subcommittee review (in our case WMS).

  Obviously, if the WG/TF cannot reach general consensus or agreement Obviously, if the WG/TF cannot reach general consensus or agreement on options no comments need be filedon options no comments need be filed

Other issuesOther issues NODAL Test Market IssuesNODAL Test Market Issues

DAM versus RT results – to be discussed DAM versus RT results – to be discussed in Julyin July

Proposed Revisions to the Wholesale Proposed Revisions to the Wholesale Market Subcommittee ProceduresMarket Subcommittee Procedures To be voted on in August, 2010To be voted on in August, 2010

WMS 2010 GoalsWMS 2010 GoalsItem [WMS to set prioritization]Item [WMS to set prioritization] WMS input/direction needed by WMS input/direction needed by Nodal Market TransitionNodal Market Transition On-going On-going

• Market Participant ReadinessMarket Participant Readiness• TCR to CRR Transition TCR to CRR Transition • Nodal Protocol TracebilityNodal Protocol Tracebility• Nodal Parking DeckNodal Parking Deck• Nodal Test EvaluationNodal Test Evaluation

Nodal Verifiable Cost Methodology Nodal Verifiable Cost Methodology On-going (VCWG) On-going (VCWG) Consideration of necessary Zonal Market changesConsideration of necessary Zonal Market changes Before Q2Before Q2Review of Generation Adequacy in ERCOTReview of Generation Adequacy in ERCOT Q1 (GATF)Q1 (GATF)Market Issues Related to:Market Issues Related to:

Credit issuesCredit issues On-going (MCWG)On-going (MCWG)EILSEILS On-going (DSWG)On-going (DSWG)Reliability & A/S Dispatch Impacts on Energy MarketsReliability & A/S Dispatch Impacts on Energy Markets On-goingOn-goingMarket Event EvaluationMarket Event Evaluation On-goingOn-goingAdv. meters & other demand response in A/S and Energy MarketsAdv. meters & other demand response in A/S and Energy Markets On-going (DSWG)On-going (DSWG)Wind & related renewable technology integrationWind & related renewable technology integration On-going (various WG)On-going (various WG)Criteria in Nodal for supplying A/S, Energy and Capacity MarketsCriteria in Nodal for supplying A/S, Energy and Capacity Markets On-going (WMS)On-going (WMS)Integration of Quick Start Resources into NodalIntegration of Quick Start Resources into Nodal QSTFQSTFPower Storage Devices On-going (TBD)LaaR Responsive Reserve Performance Penalty On-going (DSWG)On-going (DSWG)