Report to TACReport to TAC

May 2010May 2010

WMS in BriefWMS in Brief Voting ItemsVoting Items

NoneNone

Voting Items on other parts of the Voting Items on other parts of the TAC agendaTAC agenda

NPRR 207NPRR 207 At the April 21, 2010 WMS meeting, WMS voted to At the April 21, 2010 WMS meeting, WMS voted to

endorse NPRR207 as amended by the 4/21/10 Topaz endorse NPRR207 as amended by the 4/21/10 Topaz comments and as revised by WMS with two abstentions comments and as revised by WMS with two abstentions from the Cooperative and Municipal Market Segments and from the Cooperative and Municipal Market Segments and one opposing from the Consumer Market Segment. one opposing from the Consumer Market Segment.

WMS also requested that Market Participants file WMS also requested that Market Participants file comments prior to this TAC meeting to address concerns comments prior to this TAC meeting to address concerns with changing bids between Reliability Unit Commitment with changing bids between Reliability Unit Commitment (RUC) Notification and the Hourly Reliability Unit (RUC) Notification and the Hourly Reliability Unit Commitment (HRUC). Commitment (HRUC).

WMS in BriefWMS in Brief Working GroupsWorking Groups

CMWGCMWG - discussed potential problems in the - discussed potential problems in the Competitive Constraint Test (CCT) toolCompetitive Constraint Test (CCT) tool

DSWGDSWG – – EILS update (ERCOT (Paul Wattles to report)EILS update (ERCOT (Paul Wattles to report)http://www.ercot.com/content/meetings/wms/keydocs/2010/0421/06_eils_annual_report_to_wms_tac_for_2009.pdfhttp://www.ercot.com/content/meetings/wms/keydocs/2010/0421/06_eils_annual_report_to_wms_tac_for_2009.pdf

QMWGQMWG http://www.ercot.com/content/meetings/wms/keydocs/2010/0421/09_qmwg_update_to_wms_1004211.ppthttp://www.ercot.com/content/meetings/wms/keydocs/2010/0421/09_qmwg_update_to_wms_1004211.ppt

Offering Reliability Must Run (RMR) Units into the Nodal Offering Reliability Must Run (RMR) Units into the Nodal Market – QMWG and staff will continue to work on a Market – QMWG and staff will continue to work on a white paper on this subject. white paper on this subject. http://www.ercot.com/content/meetings/wms/keydocs/2010/0421/09_rmr_settlement_for_wms.ppthttp://www.ercot.com/content/meetings/wms/keydocs/2010/0421/09_rmr_settlement_for_wms.ppt

PRR848, Allow ERCOT Option to Cancel RPRS Capacity PRR848, Allow ERCOT Option to Cancel RPRS Capacity Commitments – WMS voted to recommend rejection of Commitments – WMS voted to recommend rejection of PRR848 with two abstentions from the Consumer Market PRR848 with two abstentions from the Consumer Market Segment. NPRR216 the Nodal companion will continue Segment. NPRR216 the Nodal companion will continue to be reviewed by QMWGto be reviewed by QMWG

WMS in BriefWMS in Brief Working GroupsWorking Groups

QMWG (cont’)QMWG (cont’) NPRR210, Wind Forecasting Change to P50, Synchronization NPRR210, Wind Forecasting Change to P50, Synchronization

with PRR841 – WMS requested that it be sent to the QMWG to with PRR841 – WMS requested that it be sent to the QMWG to investigate any pitfalls that might occur by implementing the investigate any pitfalls that might occur by implementing the proposal that Wind-powered Generation Resources (WGRs) use proposal that Wind-powered Generation Resources (WGRs) use the P50 in the Current Operating Plan (COP) and only allow the P50 in the Current Operating Plan (COP) and only allow WGRs to sell for Reliability Unity Commitment (RUC) coverage WGRs to sell for Reliability Unity Commitment (RUC) coverage at P80 level. The WMS requested that the QMWG bring back a at P80 level. The WMS requested that the QMWG bring back a recommendation and supporting revised Protocol language.recommendation and supporting revised Protocol language.

2011 Ancillary Service Methodology2011 Ancillary Service Methodology

MCWGMCWG NPRR221, Day-Ahead Market and Real-Time Market Default NPRR221, Day-Ahead Market and Real-Time Market Default

Allocation Changes – WMS discussed NPRR221 and changed the Allocation Changes – WMS discussed NPRR221 and changed the security withholding of each short-paying Invoice Recipient from security withholding of each short-paying Invoice Recipient from five percent to 95% in paragraph (b) of Section 9.19, Partial five percent to 95% in paragraph (b) of Section 9.19, Partial Payments by Invoice Recipients . WMS voted to endorse Payments by Invoice Recipients . WMS voted to endorse NPRR221as revised by WMS. There were three abstentions from NPRR221as revised by WMS. There were three abstentions from the Independent Retail Electric Provider (REP) (2) and the Independent Retail Electric Provider (REP) (2) and Independent Power Marketer (IPM) Market Segments. Independent Power Marketer (IPM) Market Segments.

WMS in BriefWMS in Brief Working Groups and othersWorking Groups and others

2011 Project Prioritization2011 Project Prioritization VCWGVCWG

NPRR225, Standard Cost Option in Verifiable Costs – WMS discussed NPRR225, Standard Cost Option in Verifiable Costs – WMS discussed and amended recommended language from the Verifiable Cost Working and amended recommended language from the Verifiable Cost Working Group (VCWG). WMS voted to endorse NPRR225 as revised by WMS in Group (VCWG). WMS voted to endorse NPRR225 as revised by WMS in a roll call vote.a roll call vote.

NPRR091NPRR091, Scarcity Pricing and Mitigated Offer Cap During the Period , Scarcity Pricing and Mitigated Offer Cap During the Period Commencing on the Nodal Market Implementation Date and Continuing Commencing on the Nodal Market Implementation Date and Continuing for a Total of 45 Days - ERCOT staff suggested minor changes – NPPR for a Total of 45 Days - ERCOT staff suggested minor changes – NPPR subsequently tabled to address issue related to situation when the cost to subsequently tabled to address issue related to situation when the cost to run on fuel oil is greater than the system wide cap and/or the settlement run on fuel oil is greater than the system wide cap and/or the settlement point price, full compensation would require payment of difference point price, full compensation would require payment of difference between settlement point price and cost. WMS to finalize language at May between settlement point price and cost. WMS to finalize language at May meeting.meeting.

Draft PRR: Multiple Interconnections for Draft PRR: Multiple Interconnections for GeneratorsGenerators –– A Additional language requested author will work with dditional language requested author will work with market participants to add language regarding Generation Resources that market participants to add language regarding Generation Resources that utilize more than one connection point. utilize more than one connection point.

RTWG UpdateRTWG Update – Latest version of TRIP (TX Renewables Integration – Latest version of TRIP (TX Renewables Integration Plan Draft v5 with STEC Comments) presented – WMS members urged to Plan Draft v5 with STEC Comments) presented – WMS members urged to comment comment

WMS 2010 GoalsWMS 2010 GoalsItem [WMS to set prioritization]Item [WMS to set prioritization] WMS input/direction needed by WMS input/direction needed by Nodal Market TransitionNodal Market Transition On-going On-going

• Market Participant ReadinessMarket Participant Readiness• TCR to CRR Transition TCR to CRR Transition • Nodal Protocol TracebilityNodal Protocol Tracebility• Nodal Parking DeckNodal Parking Deck• Nodal Test EvaluationNodal Test Evaluation

Nodal Verifiable Cost Methodology Nodal Verifiable Cost Methodology On-going (VCWG) On-going (VCWG) Consideration of necessary Zonal Market changesConsideration of necessary Zonal Market changes Before Q2Before Q2Review of Generation Adequacy in ERCOTReview of Generation Adequacy in ERCOT Q1 (GATF)Q1 (GATF)Market Issues Related to:Market Issues Related to:

Credit issuesCredit issues On-going (MCWG)On-going (MCWG)EILSEILS On-going (DSWG)On-going (DSWG)Reliability & A/S Dispatch Impacts on Energy MarketsReliability & A/S Dispatch Impacts on Energy Markets On-goingOn-goingMarket Event EvaluationMarket Event Evaluation On-goingOn-goingAdv. meters & other demand response in A/S and Energy MarketsAdv. meters & other demand response in A/S and Energy Markets On-going (DSWG)On-going (DSWG)Wind & related renewable technology integrationWind & related renewable technology integration On-going (various WG)On-going (various WG)Criteria in Nodal for supplying A/S, Energy and Capacity MarketsCriteria in Nodal for supplying A/S, Energy and Capacity Markets On-going (WMS)On-going (WMS)Integration of Quick Start Resources into NodalIntegration of Quick Start Resources into Nodal QSTFQSTFPower Storage Devices On-going (TBD)LaaR Responsive Reserve Performance Penalty On-going (DSWG)On-going (DSWG)