TAC Recommendation Report

PRR PRR Interim Solution for 15-Minute Settlement of Advanced 766 Number Title Meters Timeline Urgent Recommended Action Approval

Date of Decision August 7, 2008 9.2.6, True-Up Statement 10.3.3.1, Data Responsibilities 10.3.3.3, Method for Interfacing with MDAS 10.12.3, ERCOT Distribution of Settlement Meter Data Protocol Sections 11.2.2, Data provision and verification of Non EPS Metered Points Requiring Revision 18.2, Methodology 18.6.7, IDR Optional Removal Threshold 18.7.2, Load Profiling of ESI IDs Under Direct Load Control 19.7, Advanced Meter Interval Data Format and Submission (new) Proposed Effective Upon system implementation. Date PR80027_01: Advanced Metering – Market changes for PUCT Priority and Rank Project 34610. Assigned Priority 1 – Rank 2 This Protocol Revision Request (PRR) will support the interim settlement of all provisioned Advanced Meters using actual fifteen minute data, the same way Interval Data Recorder (IDR) meters are Revision Description settled today, until the long-term solution developed by Project 34610, Implementation Project Relating to Advanced Metering, or future rulemakings is implemented.

Allows retail Customers to more effectively respond to price signals by supporting innovating retail product offerings, such as demand Overall Market Benefit response, dynamic pricing, and time of use pricing and accelerates the timeline for the market to take advantage of the benefits of Advanced Metering Systems (AMS). Allows Customers to take advantage of new product offerings that Consumer Impact may be offered by Competitive Retailers (CRs) and gives Customers visibility into their electrical usage patterns.

Credit Impacts To be determined.

Procedural History  On 6/20/08, PRR766 was posted.  On 7/03/08, ERCOT comments were posted.  On 7/08/08, COPS comments were posted.  On 7/09/08, RMS comments were posted.  On 7/11/08, PRS granted Urgent status to PRR766 via e-mail vote.  On 7/16/08, an Impact Analysis was posted.

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 On 7/17/08, PRS considered PRR766.  On 7/22/08, a revised Impact Analysis was posted.  On 8/7/08, TAC considered PRR766. On 7/17/08, PRS unanimously voted to recommend approval of PRR766 as amended by RMS comments and endorsed the Impact PRS Decision Analysis as revised by PRS. All Market Segments were present for the vote. Summary of PRS On 7/17/08, PRS made edits to the Impact Analysis to be consistent Discussion with the language proposed by PRR766. On 8/7/08, TAC unanimously voted to recommend approval of TAC Decision PRR766 as recommended by PRS. All Market Segments were present for the vote. Summary of TAC On 8/7/08, there was no discussion. Discussion

ERCOT/Market Segment Impacts and Benefits

Quantitative Impacts and Benefits Settling Advanced Meters on a fifteen minute basis allows Retail Electric Providers (REP) 1 to design innovative products 2 Advanced Meter settlement plans will be approved and deployment will begin in 2009 3 Improved ability for market price signals to mitigate reliability events 4 All Advanced Meters must be settled using 15-minute data 5 This will not change how Non-Opt In Entities (NOIEs) submit interval data to ERCOT. Assumptions Deployment of Advanced Meters will be gradual and laid out in approved deployment 6 plans, however less than one million meters are expected by the summer of 2009. 7 No Texas Standard Electronic Transaction (TX SET) changes will be required by this PRR. 8 Provisioned Advanced Meters will be assigned a weather sensitive IDR Load Profile. Customers that enroll in retail products or purchase home area network (HAN) devices can 9 more effectively manage their energy use, and should receive individually quantifiable benefits. Impact Area Monetary Impact Market Participant’s using SCR 727, ESI ID Service and History Usage 1 Extracts, extracts for IDR data must $XX each for less than 20% of CRs use web services to retrieve interval Market Cost level data in the future. 2 Optional product development. Optional hedging and forecasting 3 changes 4 Impact Area Monetary Impact 1 Settlement accuracy End use Customers able to realize Market 2 operating efficiencies Benefit Increase portion of market that can 3 respond to price signals 4 1 Increase portion of market that can respond to price signals

Having an interim solution helps facilitate earlier development of demand response Additional 2 programs and other new time-based products. Qualitative 3 Increase portion of market that can respond to price signals Information 4 1 Other 2 Comments 3 4

Comments Received Comment Author Comment Summary ERCOT 070308 Proposed language changes. Endorsed PRR766 as amended by ERCOT comments and as COPS 070808 revised by COPS. Endorsed PRR766 as amended by COPS comments and RMS 070908 recommended that PRR766 be granted Urgent Status.

Original Sponsor Name Blake Gross Company AEP Texas Market Segment IOU

Proposed Protocol Language Revision

9.2.6 True-Up Statement

ERCOT will use all available settlement data, as described in Section 9.2, Settlement Statements, to produce the True-Up Statement for each Statement Recipient for each given Operating Day.

True-Up Statements will be issued six (6) months following the Operating Day providing at least that ERCOT has received and validated at least ninety-nine percent (99%) of the total IDR datanumber of ESI IDs with a BUSIDRRQ profile type code and that ERCOT has received and validated at least ninety percent (90%) of the IDR data from each Meter Reading Entity (MRE) representing at least twenty (20) IDR ESI IDs. If the above conditions have not been met, True- Up Statements will be issued as soon as the IDR data becomes available. If no True-Up Statement has been issued twelve (12) months after the Operating Day, a True-Up Statement will be issued. In the event that any True-Up settlement date does not fall on a Business Day, then the True-Up Statement will be issued on the following Business Day.

A True-Up Statement will reflect differences to financial records generated on the previous Statement for the given Operating Day.

10.3.3.1 Data Responsibilities

TDSPs shall be responsible for the following:

(1) Providing consumption data for each ESI ID and RID on at least a monthly basis according to the data timeliness and accuracy standards defined in this Section and in the SMOG;

(2) Providing start date, stop date, ESI ID or RID, and consumption data in kWh as well as an identifier for “estimated” reads as applicable;

(3) Submitting a single demand value for each non-IDR ESI ID that has a demand register to ERCOT if, and only if, a demand value is required for TDSP tariffs or for CR customer billing. If the CR and TDSP do not require a demand value, then the TDSP shall not submit a demand value to ERCOT even if the meter has a demand register;

(4) Validationg, Editing, and Estimationg of meter data (VEE) meter data according to the standards in this Section before submitting data to the settlement process;

(5) Calculating consumption for any unmetered services by ESI ID and submitting such data monthly to ERCOT, subject to ERCOT audit. These calculations must be made pursuant to TDSP approved tariffs; and

(6) Metering all Loads, unless the Load meets the following criteria:

(a) Energy consumption by substation Facilities and equipment for the purpose of transporting electricity (e.g., substation transformers, fans, etc.).

(b) Unmetered energy consumption represented by an ERCOT-approved Load Profile.

10.3.3.3 Method for Interfacing with MDASSubmission of Settlement Quality Meter Data to ERCOT

(1) Settlement Quality Meter dData shall be submitted to ERCOT on a periodic cycle, but no later than monthly, using:

(a) For provisioned Advanced Meters, Settlement Quality Meter Data will be submitted using Aan ERCOT specified Lodestar file format for the interval data only, which will be used for settlement. for provisioned Advanced Meters.

In addition, the monthly non-interval or total consumption values for these ESI IDs shall be provided to ERCOT and Load Serving Entities (LSEs) using the appropriate Texas Standard Electronic Transactions (TX SET) in order to effectuate the registration transactions outlined in Section 15, Customer Registration. These non-interval or total consumption values meter data exchange format, but will not be used for settlement.; and.

(b) For all other meters, Settlement Quality Meter Data will be submitted using the appropriateTthe Texas TX SET transaction. mMeter Ddata Eexchange Fformat for all other meters, including NOIE bBoundary mMeters.

(2) Each TDSP shall ensure that consumption meter data submitted to ERCOT is in intervals of:

(a)1) 15-minutes for those ESI IDs and RIDs served by IDRs; and

(2b) Monthly or on an ERCOT-approved meter reading cycle for non-IDR meters.

(3) The Settlement Quality Meter Data submitted by TDSPs must be in kWh and kVarh values (as applicable).

10.12.3 ERCOT Distribution of Settlement Quality Meter Data

ERCOT shall distribute Settlement Quality Meter Data to Market Participants via:

(1) MIS (Market Information System) Pass-Through – When a TDSP submits meter consumption data to ERCOT via a Texas Standard Electronic Transaction (TX SET) transaction, information pertaining to specific Market Participants shall be removed and automatically forwarded on to that specific Market Participant (i.e., a Competitive Retailer (CR) will automatically receive the meter consumption data and other information for the ESI ID’s that the CR represented during the meter data timeframe.).; and

(2) Whenever a TDSP submits meter data to ERCOT via an ERCOT specified Lodestar file format for Advanced Meters, upon certified request by a Market Participant, ERCOT shall make that data available to the Market Participants in a secure manner.

(23) On Request – A Market Participant may submit an electronic request via the MIS for specific meter consumption data. ERCOT will receive and validate the request and, if appropriate, automatically forward the appropriate information to the Market Participant.

11.2.2 Data provision and verification of Non EPS Metered Points

The TDSP will provide data for TDSP Metered Entities as defined in Section 10, Metering, of these Protocols.

The TDSP will provide data in accordance with the TDSP meter data responsibilities detailed in Section 10, Metering, and will conform to data formats specified in Section 19, Texas Standard Electronic Transaction. (TX SET).

ERCOT will:

(1) Provide the TDSP a notification of successful/unsuccessful data transfer for the 867 meter data transactions submitted. At the ESI ID level, the TDSP will be notified of successful and unsuccessful validations;

(2) Validate that the correct TDSP is submitting meter consumption data on an individual ESI ID basis. At the ESI ID level, the TDSP will be notified of unsuccessful validations;Any rejections from this validation will be returned to the TDSP in the format specified in Section 19, Texas SET;

(3) Provide a report to the TDSP listing each ESI ID for which ERCOT has not received consumption data for thirty-eight (38) days; and

(4) Synchronize the MDAS data with the Customer registration system on a daily basis to ensure the appropriate relationship between the ESI ID, LSE and/or Power Generation Entity, and the meter. MDAS will provide versioning to ensure ESI ID characteristic changes are time stamped.

18.2 Methodology

ERCOT will has developed Load Profiles for both non-interval metered loads and Non-Metered Loads. A Load Profiling Methodology is the fundamental basis on which Load Profiles are created. The implementation of a Load Profiling Methodology may require statistical Sampling, engineering methods, econometric modeling, or other approaches.

The following Load Profiling methods will be used:

Type of Load Load Profiling Methodology

non-interval metered adjusted static models

non-interval metered with adjusted static models and

Distributed Renewable engineering estimates Generation non-metered engineering estimates

Load Profiles will also be developed for Interval Data Recorders (IDRs) and Advanced Meters for use in settlements when actual IDR 15-minute data is not available. All Load Profiles will shall conform to the ERCOT-defined Settlement Interval length.

Adoption of a new methodology requires approval of TAC, without the necessity of complying with the procedures in Section 21, Process for Protocols Revision. TAC shall establish the implementation date for approved changes, as TAC deems appropriate, recognizing the magnitude of the impacts on Market Participants.

18.6.7 IDR Optional Removal Threshold

The CR, upon a Customer’s request or with a Customer’s authorization, may request, in accordance with PUCT rules and regulations, removal of an IDR at the Customer’s Premise unless service to the Premise is provided at transmission voltage (above 60 kV) or the meter is an Aadvanced Mmeter that was installed under a PUCT approved advanced meter deployment plan. However, once the Customer’s demand at the Premise either meets or exceeds the IDR Mandatory Installation Threshold identified in Section 18.6.1(1), the IDR will no longer qualify for removal.

The IDR Optional Removal Threshold for a Premise is established as follows:

(1) for an existing Customer with a profile type code of BUSIDRRQ, where the Load at the Premise has never not exceeded the IDR Optional Removal Threshold of one hundred and fifty (150) kW (kVA) during the most recent twelve (12) consecutive months unless the existing Customer requested or authorized installation of an IDR pursuant to Section 18.6.1(2) in which case the existing Customer may not request removal of the IDR for a period of twelve (12) consecutive months following such installation; or

(2) for a new Customer Mmove-Iin, where the request is communicated to the CR within one hundred and twenty (120) consecutive days of the Mmove-Iin provided the new Customer’s Demand at the Premise has remained below the IDR Mandatory Installation Threshold between the Mmove-Iin date and the date the request is received, and that meter readings covering at least forty five (45) consecutive days of usage at the Premise have been registered for the new Customer.

Once an IDR has been removed at a Premise by request, an IDR may not be reinstalled at that Premise for a period of twelve (12) consecutive months following such removal, unless a change in Customer(s) has taken place at that Premise during the twelve (12) month period or unless the IDR Mandatory Installation Threshold pursuant to Section 18.6.1(1) has been met. Removal or re-installation of an IDR is subject to applicable tariff charges.

18.7.2 Load Profiling of ESI IDs Under Direct Load Control

This section is reserved for future implementation of Direct Load Control

[PIP 106, PRR385, and PRR469: Current design does not provide for DLC settlement functions. When DLC Profiles are implemented, insert all of section 18.7.2 in this reserved section.]

18.7.2.1 Overview

Direct Load Control (DLC) programs require the installation of control devices on selected end- use equipment for the purposes of reducing energy consumption during Competitive Retailer selected time intervals. It is recognized that these programs may result in altered load shapes that could no longer be represented by the Load Profile models that will be used for non- controlled loads.

The Load Profiling Guides (LPG) shall be referenced for details regarding the implementation of DLC in the ERCOT market.

18.7.2.2 Market Open Methodology

For market open, the technique for profiling Premises participating in DLC programs will be the use of a representative IDR (RIDR) profile. This approach consists of implementing a statistically representative load research sample on the DLC population. The sample data is then used to develop the representative IDR (RIDR) for profiling these Premises.

18.7.2.2.1 Sample Design for the Representative IDR Profile

All samples, intended for use in developing DLC RIDR profiles, shall comply with the following rules:

Samples should be selected from the active DLC program population, in a statistically random fashion.

The final installed Sample Size shall be augmented from the original Sample Size to include a ten percent (10%) over-sampling margin.

The original Sample Size shall be determined to achieve and maintain a minimum ninety percent (90%) confidence level, and a minimum plus or minus ten percent ( 10%) accuracy, through each of the twelve (12) calendar months, and regardless of the selected sampling variable (e.g., monthly kWh, monthly peak kW).

The Sample Design shall be fully documented and made available to ERCOT, the appropriate ERCOT TAC subcommittee, and the PUCT, when requested.

The Sample Design, selection and maintenance shall adhere to the most recently published AEIC Load Research Manual.

The data processing, validation, editing, and estimation shall be performed according to Section 10.11, Validation, Editing and Estimating of Meter Data, of these Protocols.

All installed sample IDRs shall meet or exceed the ERCOT minimum specifications for IDR metering.

The sample statistical validity shall be verified every calendar year, and deficiencies shall be corrected as soon as practicable.

The anonymity of the DLC sample sites shall be maintained by all parties.

18.7.2.2.2 Roles and Responsibilities of Market Participants

The proper implementation of the RIDR methodology requires ERCOT, Competitive Retailers, TDSPs and their respective third party agents to adhere to the responsibilities in Section 18.7.2.2, Market Open Methodology.

Furthermore, ERCOT, TDSPs and their third party agents are the only Entities that shall know the location or identity of the RIDR sample sites.

18.7.2.2.3 ERCOT DLC Responsibilities

ERCOT is responsible for evaluating and approving all requests for Profile development of DLC programs. The request shall include information necessary to validate the Sample Design and verify the installation of both DLC devices and communication equipment.

ERCOT shall maintain the database used to identify the population of ESI IDs participating in all DLC programs. Furthermore, ERCOT shall facilitate the registration of DLC programs in the Data Aggregation System.

ERCOT or its designated third party agent is responsible for all Sample Design, implementation, monitoring, and validation of DLC program load research samples. ERCOT shall adhere to AEIC load research practices in maintaining the statistical validity of the sample.

ERCOT may contract with a third party agent, selected in cooperation with the CR, to install the required number of sample IDRs, when installation of IDR metering service becomes competitive.

ERCOT may contract with a third party agent, selected in cooperation with the CR, to collect and validate the sample data, in accordance to AEIC load research practices, and in accordance with Section 10.11, Validation, Editing and Estimation of Meter Data, when collection and validation of IDR data metering service becomes competitive.

ERCOT shall arrange to redeploy to an alternate location, within the DLC population, any sample IDR installed on a Premise that is no longer served by the initial Competitive Retailer, or on a Premise that no longer participates in the Competitive Retailer’s DLC program. ERCOT shall ensure that the redeployment of such sample points occurs within two (2) meter read cycles of the Customer switch date.

When ERCOT has contracted with a third party agent to collect and provide sample IDR data, that agent shall validate, edit, and estimate the sample meter data in accordance with Section 10.11, Validation Editing and Estimation of Meter Data, and transfer such data to ERCOT in an ERCOT-specified format and schedule.

The ERCOT profiling system shall use the proper RIDR when profiling Premises participating in a DLC program, during the settlement process. When actual RIDR data is not available for settlements, the DLC Program Settlement methodology as described in the Load Profiling Guides (LPG), shall be employed.

If the sample IDR data does not meet the data quality and availability standards, as detailed in the LPG, ERCOT shall provide a Settlement exception report, for Final and subsequent Settlements, to the respective CR hosting the DLC program.

ERCOT or its designated third party agent shall verify on a routine basis that the RIDR sample reflects the actual success/failure rate of the control devices in the DLC program population.

ERCOT or its designated third party agent shall verify on a routine basis that the RIDR sample reflects the actual success/failure rate of the communication equipment in the DLC program population.

ERCOT shall review existing DLC samples for compliance with the rules detailed in this Section. ERCOT may require adjustments to existing samples to meet these Protocols.

18.7.2.2.4 Competitive Retailer DLC Responsibilities

Competitive Retailers shall register their DLC programs according to the criteria specified in the LPG.

Competitive Retailers shall define their DLC programs, specify the controlled loads and describe the program’s communication and control technologies.

Competitive Retailers shall pay for the installation, maintenance, and processing related to the load research sample installed to support their DLC programs.

Competitive Retailers shall pay all costs associated with demonstrating the RIDR sample is a statistically valid representation of the DLC program population in terms of success/failure rate of the control devices and communication equipment.

Competitive Retailers may contract with a third party to administer the DLC program.

Competitive Retailers and their third party program administrator shall not attempt to discover the location or identity of sampled Premises used to develop the RIDR for their DLC programs. A Competitive Retailer shall immediately notify ERCOT if it ascertains the location of any RIDR sample points. Any violation of this provision will result in a review by ERCOT of the RIDR used for DLC programs, which could result in the suspension of the DLC profile for use in settlements. ERCOT may resettle the market for affected Settlement Intervals.

18.7.2.2.5 TDSP DLC Responsibilities

Each TDSP, or its designated third party agent, shall install the required number of sample IDRs as determined by ERCOT, and shall maintain anonymity of the DLC sample sites.

Each TDSP, or its designated third party agent, is responsible for collecting, validating, editing, and estimating the sample meter data, in accordance to AEIC Load research practices, and in accordance with Section 10.11, Validation, Editing and Estimating of Meter Data.

Each TDSP, or its designated third party agent, shall provide validated, edited and estimated interval data to ERCOT for each sample IDR within its territory, and transfer such data to ERCOT in an ERCOT-specified format and schedule.

Each TDSP, upon ERCOT request, must provide to ERCOT the raw sample interval data for any DLC program offered within its territory.

18.7.2.3 Post Market Evaluation

Starting at the first completed settlement cycle, ERCOT and the appropriate ERCOT TAC subcommittee shall review the RIDR methodology for accuracy and validity on a regular basis. They may recommend enhancements, modifications, or a complete replacement of the methodology. In particular, ERCOT and the appropriate ERCOT TAC subcommittee shall review the profiling process of DLC programs, including their impact on non-DLC standard profiles, and make recommendations in view of competitive metering.

19.7 Advanced Meter Interval Data Format and Submission

TDSPs will provide 15-minute interval data to ERCOT from provisioned Advanced Meters using an ERCOT specified Lodestar file format submitted via North American Energy Standards Board (NAESB) on at least a monthly basis.

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