TAC Report to the TAC Report to the ERCOT BoardERCOT Board

December 16, 2003December 16, 2003

December 16, 2003 2

SummarySummary

• Guides Approval NotificationGuides Approval Notification• Test Plan Timelines Revision Test Plan Timelines Revision

NotificationNotification• Five Protocol Revisions for Five Protocol Revisions for

ApprovalApproval

December 16, 2003 3

Guides ApprovalGuides Approval

• Competitive Metering GuidesCompetitive Metering Guides– Initial version approved in Initial version approved in

preparation for January 1, 2004preparation for January 1, 2004

• Operating Guide Revision 139Operating Guide Revision 139– Addresses Communications with Addresses Communications with

Black Start FacilitiesBlack Start Facilities

December 16, 2003 4

2004 Market Test Time Line2004 Market Test Time Line

Flight V1.6-0104New CRs & DNPs

Flight Notice1/6/04

11/19/04 Flight Ends

Jan Feb Apr JunMayMar AugJuly Sept Oct Nov Dec

Flight V1.6-0304New CRs

August 1, 2004 RMS Approved production rollout date for Version 2.0, including MIMO and Stacking transaction changes

200320042004

3/05/04 Flight Ends

6 Wk. Test

6 Wk. Test

3/12/04 Flight Kickoff 4/23/04 Flight Ends

0504 Flight Notice3/5/04

5/14/04 Flight Kickoff

10 Wk. Test

Flight V2.0-0904New CRs

Flight Notice7/7/04

9/10/04 Flight Kickoff

10 Wk. Test

7/23/04 Flight Ends

Flight V2.0-0504All Market Players & DNPs

NAESB Version 1.6 Phase 2 Test1/5 - 2/13

NAESB Version 1.6 Phase 3 Test2/16 - 3/26

1/23/04 Flight Kickoff

December 16, 2003 5

PRRs Recommended for PRRs Recommended for ApprovalApproval

• 436 – Enhance LaaR/BUL Ability to 436 – Enhance LaaR/BUL Ability to Participate in Balancing Energy Up Participate in Balancing Energy Up ServiceService

• 451 – Clarification of Ancillary 451 – Clarification of Ancillary Services Obligation CalculationServices Obligation Calculation

• 466 – Extension of No Market 466 – Extension of No Market SolutionSolution

• 474 – Short Pay Payment Plan474 – Short Pay Payment Plan• 475 – Unit-Specific Deployment 475 – Unit-Specific Deployment

Based on Generic CostBased on Generic Cost

December 16, 2003 6

PRR436 – Enhance LaaR/BUL PRR436 – Enhance LaaR/BUL Ability to Participate in Ability to Participate in Balancing Energy Up ServiceBalancing Energy Up Service

• Facilitates demand response through Facilitates demand response through BULBUL

• Minor computer system and business Minor computer system and business practice impact, manual workaround practice impact, manual workaround will be employed, staffing requirement will be employed, staffing requirement estimated at 0.2 FTEestimated at 0.2 FTE

• Effective upon system implementationEffective upon system implementation• TAC approved by a 26 to 0 vote with 2 TAC approved by a 26 to 0 vote with 2

abstentions abstentions

December 16, 2003 7

PRR451 – Clarification of PRR451 – Clarification of Ancillary Services Obligation Ancillary Services Obligation CalculationCalculation

• Bases A/S obligation on actual metered Bases A/S obligation on actual metered Load Ratio ShareLoad Ratio Share

• Improves accuracy of obligationImproves accuracy of obligation• Computer system impact, staffing Computer system impact, staffing

impact estimated at 0.1 FTEs, no impact estimated at 0.1 FTEs, no workaroundworkaround

• Effective upon system implementationEffective upon system implementation• TAC approved by a 21 to 2 vote with 5 TAC approved by a 21 to 2 vote with 5

abstentions abstentions

December 16, 2003 8

PRR466 – Extension of No PRR466 – Extension of No Market SolutionMarket Solution

• Extends suspension of market Extends suspension of market solution from December 31, 2003 solution from December 31, 2003 to February 1, 2005to February 1, 2005

• No impactsNo impacts• Effective January 1, 2004Effective January 1, 2004• TAC approved by a 24 to 2 vote TAC approved by a 24 to 2 vote

with 2 abstentions with 2 abstentions

December 16, 2003 9

PRR474 – Short Pay Payment PRR474 – Short Pay Payment PlanPlan

• For short-pays, after 180 days, if For short-pays, after 180 days, if payment plan implemented, ERCOT payment plan implemented, ERCOT posts the plan, the expected posts the plan, the expected payment amounts, and applicable payment amounts, and applicable invoice datesinvoice dates

• Assists QSE financial reportingAssists QSE financial reporting• Effective January 1, 2004Effective January 1, 2004• TAC approved unanimously TAC approved unanimously

December 16, 2003 10

PRR475 – Unit-Specific PRR475 – Unit-Specific Deployment Based on Deployment Based on Generic CostGeneric Cost

• Sets unit specific bid prices at generic Sets unit specific bid prices at generic cost plus zero percent as interim patch cost plus zero percent as interim patch until WMS approves a modified generic until WMS approves a modified generic cost structurecost structure

• Ensures economic deployment of units Ensures economic deployment of units for local congestion, potentially for local congestion, potentially lowering uplift amountslowering uplift amounts

• No significant impactsNo significant impacts• Effective January 1, 2004Effective January 1, 2004• TAC approved unanimouslyTAC approved unanimously

December 16, 2003 11