Protocol Revision Subcommittee (PRS) Meeting s2

DRAFT Protocol Revision Subcommittee (PRS) Meeting ERCOT Austin – 7620 Metro Center Drive – Austin, Texas 78744 Thursday, October 15, 2015 – 9:30am

Attendance Members: Allen, Thresa Iberdrola Renewables Barnes, Bill Reliant Energy Retail Services Coleman, Katie Occidental Alt. Rep. for M. Trevino Day, Smith Denton Municipal Electric Detelich, David CPS Energy Via Teleconference Frazier, Amanda Luminant Greer, Clayton Morgan Stanley Hammons, Daniela CenterPoint Energy Kee, David CPS Energy Alt. Rep. for D. Detelich Lange, Clif STEC Via Teleconference Lyons, Chris Exelon Messer, Tayaun Brazos Via Teleconference Sandidge, Clint Noble Americas Turner, Lucas STEC Alt. Rep. for C. Lange Varnell, John Tenaska Power Services

Guests: Ainspan, Malcom NRG Via Teleconference Bevill, Rob NRG Retail Via Teleconference Blackburn, Don Luminant Via Teleconference Brandt, Adrianne Austin Energy Bryant, Mark PUCT Via Teleconference Cobos, Lori Talen Energy Coleman, Diana PUCT Via Teleconference Daigneault, Ralph PUCT Via Teleconference Denney, Kristi IMM Goff, Eric CEI Graham, Greg Texas Reliability Entity Via Teleconference Gross, Blake AEPSC Harvey, Julia PUCT Via Teleconference Hellinghausen, Bill EDF Energy Services Via Teleconference Hauk, Christine Garland Power and Light Via Teleconference Jackson, Natalie GSEC Jones, Randy Calpine Juricek, Mike Oncor Via Teleconference Looney, Sherry Luminant Via Teleconference Lyles, Doug BTU Via Teleconference McKeever, Debbie Oncor Via Teleconference Morris, Sandy Direct Energy Nease, Nelson Via Teleconference Pieniazek, Adrian NRG Priestley, Vanus Macquarie Via Teleconference Rehfeldt, Diana TNMP Via Teleconference Reid, Walter Wind Coalition Via Teleconference Robertson, Jennifer LCRA Scott, Doug OATI Via Teleconference Scott, Kathy CenterPoint Energy Siddiqi, Shams Crescent Power Via Teleconference Smith, Mark Chaparral Steel Townsend, Aaron Austin Energy Via Teleconference Trenary, Michelle Tenaska Via Teleconference Whittle, Brandon Stratus Energy Group Wishart, Glade CCI Via Teleconference

ERCOT Staff: Albracht, Brittney Anderson, Troy Bivens, Carrie Boren, Ann Butterfield, Lindsay Via Teleconference Fohn, Doug Gonzalez, Ino Hanson, Kevin Via Teleconference Landry, Kelly Via Teleconference Levine, Jonathan Via Teleconference Liu, Lei Maggio, David Via Teleconference Meiners, Catherine Via Teleconference Morehead, Juliana Via Teleconference Phillips, Cory Prichard, Lloyd Roberts, Randy Via Teleconference Rosel, Austin Via Teleconference Shaw, Pamela Via Teleconference Simons, Diane Via Teleconference Thompson, Chad Via Teleconference Thompson, David Tucker, Don Via Teleconference

Unless otherwise indicated, all Market Segments were present for a vote.

2015 PRS Chair John Varnell called the October 15, 2015 PRS meeting to order at 9:30 a.m.

Antitrust Admonition Mr. Varnell directed attention to the Antitrust Admonition, which was displayed. A copy of the Antitrust Guidelines was available for review.

DRAFT Minutes of the October 15, 2015 PRS Meeting /ERCOT Public Page 2 of 6 Approval of Minutes (see Key Documents) 1 September 10, 2015 Randy Jones moved to approve the September 10, 2015 PRS meeting minutes as submitted. Bill Barnes seconded the motion. The motion carried unanimously.

Technical Advisory Committee (TAC) and ERCOT Board of Directors (ERCOT Board) Reports (see Key Documents) Mr. Varnell reported the disposition of Revision Requests considered at the September 24, 2015 TAC meeting.

Project Update and Summary of Project Priority List (PPL) Activity to Date (see Key Documents) Troy Anderson reminded Market Participants that NPRR588, Clarifications for PV Generation Resources, and NPRR615, PVGR Forecasting, had been removed from the October 2015 Release, but that work continues on the items. Mr. Anderson reviewed additional changes to 2015 Releases and provided a 2015 Project spending update. Mr. Varnell suggested that a four-month rolling view of spending be presented.

Review PRS Reports, Impact Analyses, and Prioritization (see Key Documents) SCR786, Retail Market Test Environment Kathy Scott reported the Retail Market Subcommittee’s (RMS’s) endorsement of the alternative approach brought forward by ERCOT. Market Participants discussed the expected cost reductions offered should SCR786 be implemented as amended by the 10/1/15 ERCOT comments.

Amanda Frazier moved to endorse the 8/13/15 PRS Report as amended by the 10/1/15 ERCOT comments and requested a revised Impact Analysis be brought back to PRS for consideration. Mr. Barnes seconded the motion. Ms. Scott requested that the revised Impact Analysis also be presented at RMS. The motion carried with one abstention from the Independent Generator (Talen) Market Segment.

NPRR649, Addressing Issues Surrounding High Dispatch Limit (HDL) Overrides Market Participants noted the expected reduction in cost from approving the 9/30/15 ERCOT comments.

Ms. Frazier moved to endorse the 8/13/15 PRS Report as amended by the 9/30/15 ERCOT comments and requested a revised Impact Analysis be brought back to PRS for consideration. Mr. R. Jones seconded the motion. The motion carried with two abstentions from the Consumer (Occidental) and Independent Retail Electric Provider (IREP) (Direct Energy) Market Segments.

NPRR702, Flexible Accounts, Payment of Invoices, and Disposition of Interest on Cash Collateral Mr. Barnes moved to endorse and forward to TAC the 9/10/15 PRS Report as amended by the 10/8/15 ERCOT comments and the Impact Analysis for NPRR702 with a recommended priority of 2016 and a rank of 1550. Adrianne Brandt seconded the motion. Market Participants reviewed the business case noting the quantitative benefits described in the 10/8/15 ERCOT comments, and requested that NPRR702, to the extent possible, be implemented with related projects slated for 2016 for cost savings. The motion carried unanimously.

1 Key Documents referenced in these minutes may be accessed on the ERCOT website at http://www.ercot.com/calendar/2015/10/15/31862-PRS unless otherwise noted. DRAFT Minutes of the October 15, 2015 PRS Meeting /ERCOT Public Page 3 of 6 NPRR708, Clarifying ERCOT Actions During Energy Emergency Alerts Mr. Mark Smith referenced the 8/10/15 ERCOT Steel Mills comments reiterating his concern with using Physical Responsive Capability (PRC) in Energy Emergency Alert (EEA) Level 3. Ms. Frazier moved to endorse and forward to TAC the 9/10/15 PRS Report and Impact Analysis for NPRR708. Mr. Barnes seconded the motion. The motion carried with two abstentions from the Consumer (Chaparral) and Independent Generator (Calpine) Market Segments.

NPRR715, Clarification of Generator Modeling in the Market System Ms. Frazier moved to endorse and forward to TAC the 9/10/15 PRS Report and Impact Analysis for NPRR715. Eric Goff seconded the motion. Mr. R. Jones expressed concern that NPRR715 poses a fundamental change to the ERCOT market design. Market Participants discussed that ERCOT would need to hire additional staff to monitor the Updated Network Model process. Mr. R. Jones opined that with limited additional resources, ERCOT could absorb the monitoring activity in its existing scheduling process. Walter Reid noted that NPRR715 addresses current activity performed by ERCOT software. The motion carried with three abstentions from the Independent Generator (2) (Calpine, Talen) and Independent Power Marketer (IPM) (Tenaska) Market Segments.

NPRR716, Corrections to Aggregated Load and Participant Specific Generation Data Requirements NPRR726, Daily Network Operations Model PSS/E File Posting Modification NPRR729, Clarification of Metering Requirements for Resources Ms. Frazier moved to endorse and forward to TAC the respective 9/10/15 PRS Reports and Impact Analyses for NPRR716, NPRR726, and NPRR729. Chris Lyons seconded the motion. The motion carried unanimously.

NPRR728, Removal of Language Related to NPRR484, Revisions to Congestion Revenue Rights Credit Calculations and Payments, and NPRR554, Clarification of Future Credit Exposure Calculation Ms. Frazier moved to endorse and forward to TAC the 9/10/15 PRS Report as amended by the 10/5/15 Luminant comments and Impact Analysis for NPRR728. Mr. Barnes seconded the motion. The motion carried unanimously.

NPRR731, Changes to Annual Reporting Requirements for RUC Decommitment Payment Amounts Ms. Frazier moved to endorse and forward to TAC the 9/10/15 PRS Report and Impact Analysis for NPRR731. Mr. Barnes seconded the motion. The motion carried unanimously.

NPRR732, Alignment of Verifiable Cost Language within Protocols Ms. Frazier noted that NPRR732, as initially submitted, was largely administrative in nature, but that the 10/6/15 ERCOT comments provided substantive revisions allowing ERCOT to use the lower of generic costs vs. verifiable costs if a participant hasn’t updated their verifiable costs within five years.

Ms. Frazier move to endorse and forward to TAC the 9/10/15 PRS Report as amended by the 10/6/15 ERCOT comments and Impact Analysis for NPRR732. Mr. Barnes seconded the motion. The motion carried unanimously.

NPRR733, Delete Expiration of Customer Load Data Protected Information Status Ms. Frazier moved to endorse and forward to TAC the 9/10/15 PRS Report and Impact Analysis for NPRR733. Mr. Barnes seconded the motion. The motion carried unanimously.

Review of Pending Project Priorities (see Key Documents) Mr. Anderson presented target start dates for approved Revision Requests for October, and November 2015. There were no objections. DRAFT Minutes of the October 15, 2015 PRS Meeting /ERCOT Public Page 4 of 6 Revision Requests Tabled at PRS (see Key Documents) SCR785, Update RTL calculation to include Real-Time Reserve Price Adder based components NPRR562, Subsynchronous Resonance NPRR638, Revisions to Certain Price Components of EAL NPRR641, Season Definition Change for Switchable Resources Reporting Unavailable Capacity* NPRR667, Ancillary Service Redesign NPRR685, Change Criteria for Resource Opportunity Outages NPRR691, Alignment of Protocols with NERC Reliability Standard, BAL-001-TRE-1 NPRR696, Price Correction Process Following a SCED Failure NPRR697, Disclosure of Protected Information for Research and Coordination Purposes NPRR709, Revisions to Alternative Dispute Resolution Procedure Mr. Jon Levine stated that ERCOT continues to support NPRR709 as submitted. Market Participants requested that ERCOT hold an additional workshop to further discuss NPRR709.

NPRR720, Update to Settlement Stability Reporting Requirements PRS took no action on these items.

NPRR705, Provides Consistency for References to the End Date of the Generation Interconnection Process Ms. Frazier moved to recommend approval of NPRR705 as amended by the 10/12/15 Reliability and Operations Subcommittee (ROS) comments. Mr. R. Jones seconded the motion. The motion carried unanimously.

NPRR711, Increase the Interval Data Recorder Meter Mandatory Install Requirement from 700 kW/kVA to 1.5 MW/MVA Mr. Varnell yielded the chair to Mr. Lyons. Ms. Scott proposed that an additional workshop be scheduled for NPRR711. Mr. Varnell reviewed the 10/13/15 Tenaska comments. Market Participants discussed tabling NPRR711 to allow for more time to resolve outstanding issues related to changing Transmission Distribution Service Provider (TDSP) tariffs, application of 4-CP, and Load Profile assignment.

Ms. Scott moved to table NPRR711. Mr. Goff seconded the motion. The motion carried unanimously.

NPRR712, Clarification of RUC Process Mr. Barnes moved to recommend approval of NPRR712 as submitted. Mr. R. Jones seconded the motion. The motion carried unanimously.

NPRR713, Reactive Power Testing Requirements Ms. Frazier moved to recommend approval of NPRR713 as amended by the 9/14/15 NRG comments. Mr. Barnes seconded the motion. The motion carried unanimously.

NPRR719, Removal of Trigger and Requirement to Reduce the Distributed Generation (DG) Registration Threshold Market Participants discussed the 10/14/15 Commercial Operations Subcommittee (COPS) comments to NPRR719.

Mr. Barnes moved to recommend approval of NPRR719 as amended by the 10/14/15 COPS comments. Ms. Frazier seconded the motion. The motion carried unanimously.

DRAFT Minutes of the October 15, 2015 PRS Meeting /ERCOT Public Page 5 of 6 NPRR725, Modifications to CDR PUN Capacity Forecasting and PUN Net Capacity Reporting Requirements Katie Coleman moved to recommend approval of NPRR725 as submitted. Mr. R. Jones seconded the motion. The motion carried unanimously.

NPRR727, Removal of Language Related to NPRR327, State Estimator Data Redaction Methodology Mr. Barnes moved to recommend approval of NPRR727 as amended by the 10/8/15 ERCOT comments. Mr. R. Jones seconded the motion. The motion carried with one abstention from the Investor Owned Utility (IOU) (Luminant) Market Segment.

NPRR730, Elimination of the RUC Behavioral Pricing Rule Mr. R. Jones moved to recommend approval of NPRR370 as submitted. Ms. Frazier seconded the motion. The motion carried unanimously.

Review of Revision Request Language (see Key Documents) NPRR734, Digital Attestation Signature Authority Expansion Mr. Goff moved to table NPRR734. Mr. Goff requested ERCOT sponsor a workshop regarding NPRR734 to review attestation options. Mr. R. Jones seconded the motion. The motion carried unanimously.

NPRR735, Load Resource Controlled by High-Set Under-Frequency Relay Resource Parameters Ms. Frazier moved to recommend approval of NPRR375 as submitted. Ms. Coleman seconded the motion. Ms. Coleman requested that ERCOT host an informal question-and-answer session regarding implementation details associated with NPRR595, RRS Load Resource Treatment in ORDC. The motion carried unanimously.

NPRR736, Updates to the Ancillary Service Capacity Monitor Display Mr. Goff moved to recommend approval of NPRR736 as submitted. Mr. Greer seconded the motion. Market Participants discussed the availability of the data contemplated in NPRR736 from current sources, and the benefits of increased transparency in the Ancillary Service Capacity Monitor display. The motion carried unanimously.

NPRR737, Clarification of SASM Notifications Market Participants offered language revisions to increase notification times by 30 minutes.

Mr. Barnes moved to recommend approval of NPRR737 as revised by PRS. Mr. Lyons seconded the motion. The motion carried unanimously.

Adjournment Mr. Varnell adjourned the October 15, 2015 PRS meeting at 10:58 a.m.

DRAFT Minutes of the October 15, 2015 PRS Meeting /ERCOT Public Page 6 of 6