Technical Advisory Technical Advisory CommitteeCommittee

Presentation to the Presentation to the

ERCOT Board of DirectorsERCOT Board of Directors

June 19, 2007June 19, 2007

TAC SummaryTAC Summary

• Notice of two guide changesNotice of two guide changes• 4 PRRs for Approval4 PRRs for Approval• UpdatesUpdates

• Nodal Protocols Baseline Nodal Protocols Baseline RealignmentRealignment

• NERC Registration of Transmission NERC Registration of Transmission Operators (TOs)Operators (TOs)

Approved Guide RevisionsApproved Guide Revisions

RMGRR 052—File Naming Convention RMGRR 052—File Naming Convention for Customer Billing Contact for Customer Billing Contact Information Information UrgentUrgent

OGRR 196—Conformance with OGRR 196—Conformance with PRR705 Emergency Interruptible PRR705 Emergency Interruptible Load Service (EILS) Load Service (EILS) UrgentUrgent

PRR 709 PRR 709 – Scarcity Pricing Mechanism– Scarcity Pricing Mechanism

PurposePurpose

(ERCOT)(ERCOT)Incorporates scarcity pricing mechanism Incorporates scarcity pricing mechanism including offer caps. ERCOT Staff is currently including offer caps. ERCOT Staff is currently performing these calculations.performing these calculations.

BenefitBenefit Conforms to PUC Subst. R. 25.505(g)Conforms to PUC Subst. R. 25.505(g)

Market ImpactMarket Impact N/AN/A

System ChangeSystem Change NoNo N/AN/A

AssumptionsAssumptions N/AN/A

TAC VoteTAC Vote TAC recommended approval with one TAC recommended approval with one abstention (REP segment); all Market abstention (REP segment); all Market Segments were presentSegments were present

Effective DateEffective Date Effective July 1, 2007Effective July 1, 2007

PRR 709 PRR 709 – Scarcity Pricing Mechanism– Scarcity Pricing Mechanism

Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact

Credit Monitoring/Credit Monitoring/LiabilityLiability

BudgetBudget

StaffingStaffing

Computer SystemsComputer Systems

Business FunctionsBusiness Functions

Grid OperationsGrid Operations

ImpactImpact

PRR 710PRR 710 – Validation Tests Update – Validation Tests Update

PurposePurpose

(Reliant Energy, IPM)(Reliant Energy, IPM)Removes requirement to post exception Removes requirement to post exception reports stemming from the Load Profile Type reports stemming from the Load Profile Type and Weather Zone validation tests to the MISand Weather Zone validation tests to the MIS

BenefitBenefit Corrects current Protocol languageCorrects current Protocol language

Market ImpactMarket Impact N/AN/A

System ChangeSystem Change NoNo N/AN/A

AssumptionsAssumptions N/AN/A

TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present

Effective DateEffective Date July 1, 2007July 1, 2007

PRR 710PRR 710 – Validation Tests Update – Validation Tests Update

Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact

Credit Monitoring/Credit Monitoring/LiabilityLiability

BudgetBudget

StaffingStaffing

Computer SystemsComputer Systems

Business FunctionsBusiness Functions

Grid OperationsGrid Operations

ImpactImpact

PRR 711PRR 711 – Update of ERCOT Protocols to – Update of ERCOT Protocols to Comply With NERC Name ChangeComply With NERC Name Change

PurposePurpose

(ERCOT)(ERCOT)Updates Protocol references to NERC to Updates Protocol references to NERC to reflect name change.reflect name change.

BenefitBenefit Conforms Protocols to current NERC name.Conforms Protocols to current NERC name.

Market ImpactMarket Impact N/AN/A

System ChangeSystem Change NoNo N/AN/A

AssumptionsAssumptions N/AN/A

TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present

Effective DateEffective Date July 1, 2007July 1, 2007

PRR 711PRR 711 – Update of ERCOT Protocols to – Update of ERCOT Protocols to Comply With NERC Name ChangeComply With NERC Name Change

Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact

Credit Monitoring/Credit Monitoring/LiabilityLiability

BudgetBudget

StaffingStaffing

Computer SystemsComputer Systems

Business FunctionsBusiness Functions

Grid OperationsGrid Operations

ImpactImpact

PRR 723 PRR 723 – Conform 5.6.6.1 EECP -- – Conform 5.6.6.1 EECP -- URGENTURGENT

PurposePurpose

(ERCOT)(ERCOT)Proposes technical corrections to the Proposes technical corrections to the progression of EECP Steps in 5.6.6.1progression of EECP Steps in 5.6.6.1

BenefitBenefit Correction to the Protocols to allow ERCOT to Correction to the Protocols to allow ERCOT to proceed to Step 4 when necessary during an proceed to Step 4 when necessary during an EECP event to ensure system reliabilityEECP event to ensure system reliability

Market ImpactMarket Impact N/AN/A

System ChangeSystem Change NoNo N/AN/A

AssumptionsAssumptions N/AN/A

TAC VoteTAC Vote TAC unanimously recommended approval; all TAC unanimously recommended approval; all Market Segments were presentMarket Segments were present

Effective DateEffective Date Effective July 1, 2007Effective July 1, 2007

PRR 723 PRR 723 – Conform 5.6.6.1 EECP -- – Conform 5.6.6.1 EECP -- URGENTURGENT

Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact

Credit Monitoring/Credit Monitoring/LiabilityLiability

BudgetBudget

StaffingStaffing

Computer SystemsComputer Systems

Business FunctionsBusiness Functions

Grid OperationsGrid Operations

ImpactImpact

Nodal Protocols Baseline Nodal Protocols Baseline RealignmentRealignment

• June TAC meeting—ERCOT staff presented June TAC meeting—ERCOT staff presented outline of plan for adjustments to the nodal outline of plan for adjustments to the nodal baseline.baseline.

• Joint meeting of TPTF and PRS:Joint meeting of TPTF and PRS:• Reviewed ERCOT recommendations on each of 63 Reviewed ERCOT recommendations on each of 63

clarifications to the nodal baseline—”Baseline 1.”clarifications to the nodal baseline—”Baseline 1.”• Reviewed impacts to costs and schedule.Reviewed impacts to costs and schedule.• Discussed future changes—”Baseline 2.” Stressed Discussed future changes—”Baseline 2.” Stressed

need to accelerate evaluation of Baseline 2.need to accelerate evaluation of Baseline 2.• July TAC meeting—TPTF/PRS will present July TAC meeting—TPTF/PRS will present

recommendations to TAC for items to include in recommendations to TAC for items to include in Baseline 1.Baseline 1.

• Outstanding issue—whether NPRRs incorporated in Outstanding issue—whether NPRRs incorporated in Baseline 2 need to be accelerated. Baseline 2 need to be accelerated.

• July BOD meeting—TAC will present July BOD meeting—TAC will present recommendations for Baseline 1 changes and recommendations for Baseline 1 changes and may make recommendations on Baseline 2.may make recommendations on Baseline 2.

NERC Registration of NERC Registration of Transmission OperatorsTransmission Operators

New FERC and NERC rules require registrations of entities that New FERC and NERC rules require registrations of entities that are owners, operators, or users of the bulk power system.are owners, operators, or users of the bulk power system.

For Transmission Operators (TOPs), NERC requires registration by For Transmission Operators (TOPs), NERC requires registration by entities that operate certain transmission elements and critical entities that operate certain transmission elements and critical facilities or serve functions affecting transmission.facilities or serve functions affecting transmission.

Currently ERCOT is the only NERC-registered TOP for the ERCOT Currently ERCOT is the only NERC-registered TOP for the ERCOT Region.Region. Makes ERCOT subject to TRE enforcement actions relating to Makes ERCOT subject to TRE enforcement actions relating to

Reliability Standards.Reliability Standards. While ERCOT performs some functions defined in the NERC While ERCOT performs some functions defined in the NERC

Reliability Standards applying to TOPs, ERCOT does not conduct Reliability Standards applying to TOPs, ERCOT does not conduct certain other operations (certain other operations (e.ge.g., throwing switches).., throwing switches).

Raises the question whether other entities should register with NERC Raises the question whether other entities should register with NERC as TOPs as well.as TOPs as well.

There are a variety of options for joint and individual registration.There are a variety of options for joint and individual registration. TAC assigned the ROS to evaluate the issue and make a TAC assigned the ROS to evaluate the issue and make a

recommendation to TAC on the need for registration and any recommendation to TAC on the need for registration and any other operating agreements or Protocols.other operating agreements or Protocols.