Nodal Protocol/Reliability Standards Alignment Task

Force

Mission Statement

The goal of the Task Force is to review and recommend revisions to the Nodal Protocols that more accurately reflect the regulatory and corporate restructuring that has occurred due to Section 215 of the Energy Policy Act of 2005, while not altering the market operations and activities defined in current Nodal Protocols. For example, the Task Force will identify Nodal Protocol provisions that purport to restate NERC Reliability Standards and modify the Nodal Protocols to delineate the appropriate relationships of the ERCOT Independent System Operator, the Market Participants, and the Texas Regional Entity. The Task Force envisions delivering the changes on a section by section basis. The sections would be posted to a website for review by Market Participants as the process proceeds. The Task Force envisions providing notice of the changes to PRS and TPTF. The changes will be implemented through a single NPRR at the end of the process (anticipated in 4Q2008).

NPRRs Reviewed

1 – Overview 5 – Transmission Security Analysis and RUC 7 – Congestion Revenue Rights 9 – Settlement and Billing 10 – Metering 12 – Market Information System 13 – Transmission and Distribution Losses 16 – Registration and Qualification of MPs 17 – Market Monitoring and Data Collection 22 A – C - Standard Forms

TSP to Transmission Owner

• TSP in ERCOT: An Entity under the jurisdiction of the PUCT that owns or operates Transmission Facilities used for the transmission of electricity and provides transmission service in the ERCOT Transmission Grid.

• TSP in NERC: The entity that administers the transmission tariff and provides Transmission Service to Transmission Customers under applicable transmission service agreements.

• Transmission Owner in NERC: The entity that owns and maintains transmission facilities.

LSE to Customer Service Entity

• LSE in ERCOT: An Entity that provides electric service to Customers and Wholesale Customers. Load Serving Entities include Retail Electric Providers, Competitive Retailers, and Non-Opt In Entities that serve Load.

• LSE in NERC: Secures energy and transmission service (and related Interconnected Operations Services) to serve the electrical demand and energy requirements of its end use customers.

Non-Spinning Reserve

• NSR in ERCOT: A service that is provided through utilization of the portion of off-line generation capacity capable of being synchronized and ramped to a specified output level within thirty (30) minutes (or Load that is capable of being interrupted within thirty (30) minutes) and that is capable of running (or being interrupted) at a specified output level for at least one (1) hour. Non-Spinning Reserve Service (NSRS) may also be provided from unloaded on-line capacity that meets the above response requirements and that is not participating in any other activity, including ERCOT markets, self-generation and other energy transactions.

• NSR in NERC:

1. That generating reserve not connected to the system but capable of serving demand within a specified time.

2. Interruptible load that can be removed from the system in a specified time. LSE in NERC: Secures energy and transmission service (and related Interconnected Operations Services) to serve the electrical demand and energy requirements of its end use customers.

Other Examples of Terms

• DSP to Distribution Provider• Are you a QSE or a Resource QSE?• Emergency Condition and Alerts• Control Area to Interconnection• Transmission Element to Transmission Equipment

Input Needed from TPTFSection 6.4.2.2

(1) A Resource QSE representing a Resource Entity with a DSR may update the Output Schedule for a dispatch interval at any time before the SCED process for that interval.

Question

For a DSR, does the generation and load have to have the same QSE?

Where next???

Current Work

6 – Adjustment Period and Real-Time Operations

Next Sections

4 – Day-Ahead Market

17 – Market Monitoring and Data Collection