ERCOT Austin 7620 Metro Center Drive Austin, Texas 78744

DRAFT Minutes of the Technical Advisory Committee (TAC) Meeting ERCOT Austin – 7620 Metro Center Drive – Austin, Texas 78744 Thursday, August 24, 2017 – 9:30 a.m.

Attendance Members: Adair, Marshall Residential Consumer Allen, Thresa Avangrid Renewables Barnes, Bill Reliant Energy Retail Services Blakey, Eric Just Energy Brewster, Chris City of Eastland Coleman, Diana OPUC Comstock, Read Source Power & Gas English, Barksdale Austin Energy Flowers, BJ Sharyland Utilities Frazier, Amanda Luminant Generation Gaytan, Jose Denton Municipal Electric Goff, Eric Citigroup Energy Greer, Clayton Morgan Stanley Hassan, Mohsin Discount Power Hauk, Christine Garland Power and Light Alt. Rep. for Dan Bailey Hellinghausen, Bill EDF Energy Services Helton, Bob Dynegy Kee, David CPS Energy Alt. Rep. for Adrianne Brandt Martin, Collin Oncor Meehan, Colin First Solar Peters, Patrick CenterPoint Energy Alt. Rep. for Valentine Emesih Pridgeon, Marcus CMC Steel Texas Ross, Richard AEP Service Corporation Smith, Bill Air Liquide Stephenson, Randa LCRA Alt. Rep. for John Dumas Thurnher, Greg Shell Energy Turner, Lucas STEC Alt. Rep. for Clif Lange Wise, Michael Golden Spread Electric Cooperative Woitt, Wes CenterPoint Energy

The following Proxy was assigned:  Phillip Boyd to Chris Brewster

Guests: Abbott, Kristin PUCT Via Teleconference Anson, Tom SPPG Bell, Wendell TPPA Bern, Alan Oncor Bombick, Sarah LCRA Via Teleconference Boyd, Phillip City of Lewisville Via Teleconference Bruce, Mark Cratylus Advisors Bryant, Mark PUCT Via Teleconference Cantwell, Teresa LCRA Via Teleconference Carpenter, Jeremy Tenaska Power Services Via Teleconference Daigneault, Ralph IMM Donohoo, Ken EEPS Via Teleconference Downey, Marty Enchanted Rock Gray, Stan Southern Cross Transmission Gross, Blake AEP Hall, Tim Southern Power Henderson, Norris FERC Via Teleconference Henson, Martha Oncor Hudis, Gabriella Gabel Associates Via Teleconference Jones, Randy Calpine Kleckner, Tom RTO Insider Lee, Jim AEP McAninch, Vicki SMA America Via Teleconference McKeever, Debbie Oncor Moeller, Jason LCRA Via Teleconference Moore, Min LCRA Moore, Sheri CenterPoint Energy Via Teleconference Morris, Sandy Direct Energy Nease, Nelson Nelson H. Nease, PC Via Teleconference Owens, Frank Cross Texas Transmission Parquet, David Southern Cross Transmission Peters, Patrick CenterPoint Energy Powell, Christian LCRA Reedy, Steve IMM Rehfeldt, Diana TNMP Via Teleconference Reid, Walter Wind Coalition Robertson, Jennifer LCRA Sams, Bryan NRG Via Teleconference Sandidge, Clint Calpine Energy Solutions Schwertner, Ray Garland Power & Light Siddiqi, Shams Crescent Power Inc. Sithuraj, Murali Austin Energy Smith, Caitlin Jewell & Associates Thompson, David Pedernales Electric Cooperative Trenary, Michelle Tenaska Power Services Whittle, Brandon Megawatt Analytics Wittmeyer, Bob Denton Municipal Electric Whitworth, Doug Texas RE Via Teleconference Zake, Diana Lone Star Zerwas, Rebecca Reliant Energy Retail Services Via Teleconference

DRAFT Minutes of the August 24, 2017 TAC Meeting – ERCOT Public Page 2 of 6 ERCOT Staff: Albracht, Brittney Bivens, Carrie Boren, Ann Bracy, Phil Butterfield, Lindsay Via Teleconference Calderon, Rudy Via Teleconference Chang, Sean Via Teleconference Day, Betty Via Teleconference Dovalina, Julio Via Teleconference Gonzales, Ino Via Teleconference Hanson, Kevin Via Teleconference Hilton, Keely Via Teleconference Landry, Kelly Via Teleconference Magarinos, Marcelo Via Teleconference Maggio, Dave Via Teleconference Manning, Brian Via Teleconference Mele, Cheryl Morehead, Juliana Via Teleconference Phillips, Cory Roberts, Randy Via Teleconference Ruane, Mark Sanchez, Daniel Shaw, Pamela Via Teleconference Townsend, Aaron Via Teleconference

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

2017 TAC Vice Chair Bob Helton called the meeting to order at 9:30 a.m.

Antitrust Admonition Mr. Helton directed attention to the displayed Antitrust Admonition and noted that the Antitrust Guidelines are available for review on the ERCOT website.

Approval of TAC Meeting Minutes (see Key Documents) 1 July 27, 2017 Richard Ross moved to approve the July 27, 2017 TAC meeting minutes as submitted. Thresa Allen seconded the motion. The motion carried unanimously.

1 Key Documents referenced in these minutes may be accessed on the ERCOT website at: http://www.ercot.com/calendar/2017/8/24/107875-TAC

DRAFT Minutes of the August 24, 2017 TAC Meeting – ERCOT Public Page 3 of 6 TAC/TAC Subcommittee Structural and Procedural Review Mr. Helton reviewed activities of the July 27, 2017 TAC/TAC Subcommittee Structural and Procedural Review; and requested TAC Subcommittees review criteria for their respective Working Groups/Task Forces and consider their alignment with TAC Goals/Strategic Initiatives.

Protocol Revision Subcommittee (PRS) Report (see Key Documents) Martha Henson reviewed recent PRS activities and presented revision requests for TAC consideration.

Nodal Protocol Revision Request (NPRR) 829, Incorporate Real-Time Non-Modeled Telemetered Net Generation by Load Zone into the Estimate of RTL Mark Ruane stated that ERCOT Staff are in the process of reviewing the Impact Analysis associated with NPRR829, that there could be impacts that were not considered in the initial review, and that a revised Impact Analysis may be posted upon completion of the review.

Amanda Frazier moved to table NPRR829. David Kee seconded the motion. The motion carried unanimously.

NPRR836, Incorporation of Other Binding Document Forms into Protocol Section 23 Clayton Greer stated that he would prefer the Other Binding Document Forms not be incorporated into the Nodal Protocols.

Ms. Frazier moved to recommend approval of NPRR836 as recommended by PRS in the 8/11/17 PRS Report. Mr. Ross seconded the motion. The motion carried with one opposing vote from the Independent Power Marketer (IPM) (Morgan Stanley) Market Segment.

Revision Requests Previously Tabled by TAC (see Key Documents) Appeal of Nodal Operating Guide Revision Request (NOGRR) 149, Revision to Definition of Transmission Operator Market Participants reviewed the status update and request for further abatement outlined in the 8/21/17 Small Public Power Group of Texas (SPPG) comments. Some Market Participants discouraged additional tabling and instead proposed denying the appeal. Others suggested tabling the appeal of NOGRR149 until the February 2018 TAC meeting, but made clear their intent to make a final decision on whether to approve or deny the appeal at that time.

Barksdale English moved to table the appeal of NOGRR149 until the February 2018 TAC meeting. Greg Thurnher seconded the motion. The motion carried with two abstentions from the Investor Owned Utility (IOU) (Sharyland Utilities) and IPM (Morgan Stanley) Market Segments.

NPRR768, Revisions to Real-Time On-Line Reliability Deployment Price Adder Categories Bill Smith moved to recommend approval of NPRR768 as recommended by PRS in the 7/20/17 PRS Report as amended by the 8/16/17 ERCOT comments. Diana Coleman seconded the motion. Market Participants discussed the 8/16/17 ERCOT comments and capping the total adjustment for Direct Current Tie (DC Tie) imports during a Security-Constrained Economic Dispatch (SCED) interval at the amount of current maximum DC Tie import capability. Market Participants also considered proposals made in the 8/23/17 Shell Energy comments. Some Market Participants expressed concerns regarding hard-coded limits being added to the Nodal Protocols; others pointed out that the stakeholder process would allow limits to be modified as new elements enter the ERCOT system. The motion carried with two abstentions from the IOU (Sharyland Utilities) and IPM (Shell Energy) Market Segments.

DRAFT Minutes of the August 24, 2017 TAC Meeting – ERCOT Public Page 4 of 6 NPRR821, Elimination of the CRR Deration Process Market Participants discussed the 8/9/17 Morgan Stanley comments, 8/17/17 LCRA comments (Option 1 & 2), and the 8/22/17 DC Energy comments. Market Participants also considered the timeline for decisions regarding NPRR821 and its potential impact on upcoming Congestion Revenue Rights (CRR) Auctions.

Mr. English moved to recommend approval of NPRR821 as amended by the 8/22/17 DC Energy comments. Mr. Greer seconded the motion. Bill Barnes opined that the current policy for shortfalls and derations shares risk and that modifying this policy was inappropriate. Mr. Barnes added that the percentage of deration risk is very low, that suggested revisions could open the market to manipulation with little recourse for recovery of funds after that occurs, and that an ex-ante process which prevents manipulative behavior from occurring should be the preferred practice. Eric Goff suggested that it may be worthwhile for a subcommittee to review NPRR821 a second time given the abundance of new solutions proposed.

Mr. Goff moved to table NPRR821 to allow further review by the Wholesale Market Subcommittee (WMS). Greg Thurnher seconded the motion. Amanda Frazier opined that the current comments submitted to NPRR821 are all a departure from the original intent of NPRR821 and may be better submitted as separate NPRRs. Seth Cochran suggested that due to the complexity of the CRR Auction process, additional education may be beneficial in order for the market to make an informed decision. Market Participants agreed and requested ERCOT Staff provide an overview of the CRR Auction and Settlement processes, including a summation of potential impacts of different options currently proposed as comments to NPRR821.

Mr. Goff withdrew his motion to table NPRR821, and moved to remand NPRR821 to PRS. Randa Stephenson seconded the motion. The motion carried unanimously.

Reliability and Operations Subcommittee (ROS) Report (see Key Documents) Alan Bern reviewed recent ROS activities.

Commercial Operations Subcommittee (COPS) Report (see Key Documents) Michelle Trenary reviewed recent COPS activities.

Wholesale Market Subcommittee (WMS) Report (see Key Documents) David Kee reviewed recent WMS activities.

ERCOT Reports (see Key Documents) 2018 Under-Frequency Load Shedding (UFLS) Survey Results Daniel Sanchez presented the 2018 UFLS Survey results.

Other Business 2018 Meeting Schedule Mr. Helton requested TAC members review the proposed 2018 meeting schedule and be prepared to discuss any concerns at the September 28, 2017 TAC meeting.

Adjournment

DRAFT Minutes of the August 24, 2017 TAC Meeting – ERCOT Public Page 5 of 6 Mr. Helton adjourned the August 24, 2017 TAC meeting at 10:58 a.m.

DRAFT Minutes of the August 24, 2017 TAC Meeting – ERCOT Public Page 6 of 6