Report to TAC October 2008. In Brief 2010 CREs 2010 CREs Working Group Reports Working Group Reports MCWG MCWG QMWG QMWG VCWG VCWG Task Forces Task Forces

Report to TACReport to TAC

October 2008October 2008

In BriefIn Brief 2010 CREs2010 CREs Working Group ReportsWorking Group Reports

MCWGMCWG QMWG QMWG VCWGVCWG

Task ForcesTask Forces GATFGATF QSTFQSTF MIGMIGTFTF

Other ActivitiesOther Activities

2010 Closely Related Elements 2010 Closely Related Elements (CRE)(CRE)

On September 1, 2009, PRR 816 became effective.On September 1, 2009, PRR 816 became effective.

PRR 816 establishes a set of four criteria for determining PRR 816 establishes a set of four criteria for determining if a candidate contingency/limiting element pair qualify if a candidate contingency/limiting element pair qualify as a CREas a CRE

Power Transfer Distribution Factor (PTDF) Power Transfer Distribution Factor (PTDF) ThresholdThreshold

Determine the weighted average PTDF between the Terminal Zones of the candidate Determine the weighted average PTDF between the Terminal Zones of the candidate CRE by calculating the Shift Factor difference between the source and sink zonesCRE by calculating the Shift Factor difference between the source and sink zones

Generation Concentration Generation Concentration Determine the concentration of effective generation responsive to the constraint on Determine the concentration of effective generation responsive to the constraint on

both the incremental and decremental sides of the constraintboth the incremental and decremental sides of the constraint

Boundary Generation Resources Boundary Generation Resources Determine the impact error due to Boundary Generation ResourcesDetermine the impact error due to Boundary Generation Resources

CRE Correlation to CSC CRE Correlation to CSC Determine the correlation of the CRE to its designated CSC by calculating the percentage error in Determine the correlation of the CRE to its designated CSC by calculating the percentage error in

deployment deployment


WMS Votes on September 21WMS Votes on September 21stst Motion to approve CRE’s as discussed (following Motion to approve CRE’s as discussed (following

pages) pages) Motion to amend the motion to exclude Trading Motion to amend the motion to exclude Trading

House to Lake CreekHouse to Lake Creek Two in favor to amend (IOU and Consumer)Two in favor to amend (IOU and Consumer) 14 opposed (2 from phone)14 opposed (2 from phone) 1 abstains (IOU)1 abstains (IOU) Motion to amend failsMotion to amend fails

Original motion to Approve retains Trading House Original motion to Approve retains Trading House to Lake Creekto Lake Creek

16 in favor (one from phone)16 in favor (one from phone) 1 abstain Co-op (from phone)1 abstain Co-op (from phone) 0 oppose0 oppose CarriesCarries


WMS Email Vote on September 25WMS Email Vote on September 25thth PRR784, Delete Use of Boundary Generation Resources PRR784, Delete Use of Boundary Generation Resources

to Resolve CRE Congestion (effective March 17, 2009), is to Resolve CRE Congestion (effective March 17, 2009), is inconsistent with Protocol Section 7.2, CSC Zone inconsistent with Protocol Section 7.2, CSC Zone Determination Process, currently includes associated Determination Process, currently includes associated Boundary Generation Resources for review and approvalBoundary Generation Resources for review and approval

In an effort to comply with the requirement in Protocol In an effort to comply with the requirement in Protocol Section 7.2, an email vote of the WMS was held.Section 7.2, an email vote of the WMS was held.

WMS recommends (one abstention - IOU) to TAC that WMS recommends (one abstention - IOU) to TAC that that given the intent of PRR784 to remove the language that given the intent of PRR784 to remove the language regarding resolution of Congestion on a CRE by regarding resolution of Congestion on a CRE by Boundary Generation Resources, that there is no list of Boundary Generation Resources, that there is no list of associated Boundary Generation Resources for ERCOT associated Boundary Generation Resources for ERCOT Board review and approval in relation to the 2010 CREs.Board review and approval in relation to the 2010 CREs.


To Bus To Bus NameFrom Bus

From Bus Name2009 CRE Existing?

2010 CRE Selection ReasonCSC/ CRE

CSC_4 - North to Houston44645 Singleton 44500 O'Brien Yes CSC44645 Singleton 45500 TH Wharton 345 Yes CSC40600 Roans Prairie 45972 Kuykendahl Yes Passed Protocols Section 7.2.3 criteria. CRE46500 Tomball 45971 Kuykendahl Yes Passed Protocols Section 7.2.3 criteria. CRE45971 Kuykendahl_45005 40900 King_345A Yes Passed Protocols Section 7.2.3 criteria. CRE45972 Kuykendahl_755010 40900 King_345A Yes Passed Protocols Section 7.2.3 criteria. CRE

967Gibbons Creek 44645 Singleton#1 Yes Passed Protocols Section 7.2.3 criteria. CRE967Gibbons Creek 44645 Singleton#2 Yes Passed Protocols Section 7.2.3 criteria. CRE

44645 Singleton 46500 Tomball Yes Passed Protocols Section 7.2.3 criteria. CRE46290 Rothwood 40900 King_345A New Improved Operational control. CRE46290 Rothwood 45971 Kuykendahl New Improved Operational control. CRE

3390 Jewett #1 44645 Singleton Yes Passed Protocols Section 7.2.3 criteria. CRE3391 Jewett #2 44645 Singleton Yes Passed Protocols Section 7.2.3 criteria. CRE

CSC_2 & 3 - South to North & North to South3409 Lake Creek 3414 Temple Switch Yes CSC3405 Tradinghouse 3412 Temple Pecan Creek Yes CSC3405 Tradinghouse 3409 Lake Creek #1 Yes Improved Operational control. CRE

3405Tradinghouse

3402Lake Creek #2 Yes Improved Operational control. CRE

3415 Temple Switch 3420 Temple Pecan Creek Yes Passed Protocols Section 7.2.3 criteria. CRE3593 Springvalley 3594 McGregor New Passed Protocols Section 7.2.3 criteria. CRE3593 Springvalley 13591 Cotton Belt New Passed Protocols Section 7.2.3 criteria. CRE3591 Waco Woodway 3592 Waco ATCO Yes Passed Protocols Section 7.2.3 criteria. CRE3592 Waco ATCO 13591 Cotton Belt Yes Passed Protocols Section 7.2.3 criteria. CRE3436 Waco West 3591 Waco Woodway Yes Passed Protocols Section 7.2.3 criteria. CRE


25 CREs recommended for 201025 CREs recommended for 2010 20 Passed the new Protocol Section 7.2.3 20 Passed the new Protocol Section 7.2.3

criteria in PRR816 criteria in PRR816 5 provide ERCOT with improved operational 5 provide ERCOT with improved operational

control control

To Bus

To Bus NameFrom Bus

From Bus Name2009 CRE Existing?

2010 CRE Selection ReasonCSC/CRE

CSC_1 & 5 - West to North & North to West1442 Cook Field 1430 Graham New CSC1422 Bowman 1430 Graham New CSC1048 Tonkawa 1430 Graham New CSC1422 Bowman 1429 Jacksboro New CSC

1435 Long Creek 1430 Graham New CSC

1440 Comanche 6444 San Angelo Red Creek New CSC1422 Bowman 1425 Fisher Road Yes Passed Protocols Section 7.2.3 criteria. CRE1439 Long Creek 1442 Cook Field Yes Passed Protocols Section 7.2.3 criteria. CRE1371 Murry 1431 Graham Yes Passed Protocols Section 7.2.3 criteria. CRE1371 Murry 6169 Paint Creek Yes Passed Protocols Section 7.2.3 criteria. CRE1441 Comanche Switch 1650 Comanche Peak Yes Passed Protocols Section 7.2.3 criteria. CRE1425 Fisher Road 6100 Oklaunion Yes Improved Operational Control. CRE


WMS RecommendationWMS RecommendationApprove 25 CRE’s as Approve 25 CRE’s as

recommended by WMS (recommended by WMS (with no with no list of associated Boundary list of associated Boundary

Generation Resources)Generation Resources)

Working Group ReportsWorking Group ReportsMCWGMCWG

Review options NPRR147, DAM Review options NPRR147, DAM Short Pay FundShort Pay Fund

Discuss Options 1, 2, and 3Discuss Options 1, 2, and 3 Three options identified – still under

discussion The options would allocate losses based

on activity (No. 1), $ amounts (No.2), or MWs (No.3).

MCWG directed to bring back a recommendation in October

Working Group ReportsWorking Group ReportsQMWGQMWG

WGRPP Forecast Error Update WGRPP Forecast Error Update

Mean Actual Estimated Output

Mean Absolute MW Error

(Abs(Estimated Output - Scaled

STWPF))

Mean Absolute Percent Error

(Output in Denominator) - (Abs(Estimated Output - Scaled

STWPF)/Estimated Output) *

Mean Absolute Percent Error (Capacity in

Denominator) - (Abs(Estimated Output -

Scaled STWPF)/Total Name Plate WGR Capacity)

1907.63 762.24 78.86% 9.20%2652.52 1019.03 70.99% 12.30%1535.19 633.85 82.79% 7.65%

All Hours

Off-Peak Hours (1-6,23,24)

On-Peak Hours (7-22)

JULY 2009


WGRPP Forecast Error Update WGRPP Forecast Error Update


OGRR226, Generation Resource OGRR226, Generation Resource Response Time RequirementResponse Time Requirement At its August 13, 2009 meeting, ROS requested input At its August 13, 2009 meeting, ROS requested input

from the QMWG regarding the language related to from the QMWG regarding the language related to the Generation Resource staffing requirement and the Generation Resource staffing requirement and the language issues in paragraph (2)(b) of Section the language issues in paragraph (2)(b) of Section 3.1.4.9 in regards to a possible inadvertent removal 3.1.4.9 in regards to a possible inadvertent removal of Private Use Networks. of Private Use Networks.

On September 14, 2009, QMWG discussed the On September 14, 2009, QMWG discussed the OGRR226 and recommended adoption of the OWG OGRR226 and recommended adoption of the OWG Recommendation Report.Recommendation Report.

After discussion, WMS unanimously voted to endorse After discussion, WMS unanimously voted to endorse OGRR226 as reflected in the 9/15/09 OWG OGRR226 as reflected in the 9/15/09 OWG Recommendation Report.Recommendation Report.


Ancillary Service Procurement Ancillary Service Procurement Methodology RecommendationsMethodology Recommendations WMS endorsed the concept of using WMS endorsed the concept of using

NSRS to help resolve Load forecast NSRS to help resolve Load forecast biasbias

Motion carried with 3 abstentionsMotion carried with 3 abstentions QMWG will continue to work on new QMWG will continue to work on new

methodologies. No resolution yet.methodologies. No resolution yet.

Working Group ReportsWorking Group ReportsVCWGVCWG

WMS discussed at length the growing WMS discussed at length the growing complexities of Verifiable Costs and opened a complexities of Verifiable Costs and opened a dialogue regarding potential to reconsider dialogue regarding potential to reconsider Generic Costs for Resources in NodalGeneric Costs for Resources in Nodal

WMS did not have a solution to the issueWMS did not have a solution to the issue. Due . Due to the interest of several market participants to to the interest of several market participants to look at Generic Costs and comments by the IMM look at Generic Costs and comments by the IMM regarding potential need to establish regarding potential need to establish benchmarks ; WMS Chair asked market benchmarks ; WMS Chair asked market participants to consider the issue and make participants to consider the issue and make recommendations to WMS at upcoming recommendations to WMS at upcoming meetings.meetings.


FOP Verifiable Cost DisputesFOP Verifiable Cost Disputes issued referred back to VCWGissued referred back to VCWG

NPRR174NPRR174, FIP Modifications in , FIP Modifications in Verifiable Startup and Minimum Verifiable Startup and Minimum Energy Cost and Recovery of Energy Cost and Recovery of Exceptional Fuel Costs During RUC Exceptional Fuel Costs During RUC Intervals – see separate slide deck Intervals – see separate slide deck for TAC item #6 - for TAC item #6 - Revision Requests Revision Requests Tabled at TACTabled at TAC


Verifiable Cost ManualVerifiable Cost Manual1.1. Changes to rules for QSEs vs Resources Changes to rules for QSEs vs Resources

filing VC costs.filing VC costs. If the Resource Entity submits VC, ERCOT will share the If the Resource Entity submits VC, ERCOT will share the

final approved VC results with the QSE.final approved VC results with the QSE. This will allow ERCOT to send to all QSEs their approved This will allow ERCOT to send to all QSEs their approved

VC results via extracts.VC results via extracts. CHANGE NOT MADE DUE TO QUESTIONS REGARDING CHANGE NOT MADE DUE TO QUESTIONS REGARDING

CONFIDENTIALITY IF EXTRACT RELEASED TO QSE CONFIDENTIALITY IF EXTRACT RELEASED TO QSE

Nodal Verifiable Cost Affidavit DocumentNodal Verifiable Cost Affidavit Document recommend waiting until the extracts issue is recommend waiting until the extracts issue is

resolved, since this is signed by both QSE and resolved, since this is signed by both QSE and RE.RE.


Verifiable Cost ManualVerifiable Cost Manual2.2. Time table for calculating and posting emission costs.Time table for calculating and posting emission costs.

The effective period will be the 3rd Tuesday of each month through the 3rd Monday of the The effective period will be the 3rd Tuesday of each month through the 3rd Monday of the following month.following month.

3.3. Time table for calculating and posting the cost of Reference Resources for PPA Time table for calculating and posting the cost of Reference Resources for PPA (same as emission above).(same as emission above).

4.4. Determining cost for PPAs without a Reference Resource for Hot or Determining cost for PPAs without a Reference Resource for Hot or Intermediate start types.Intermediate start types.

Cost of a hot start = Cost of cold start x 0.5Cost of a hot start = Cost of cold start x 0.5 Cost of a cold start = Cost of cold start x 0.7Cost of a cold start = Cost of cold start x 0.7

5.5. Changed startup fuel requirements for seasonal costs.Changed startup fuel requirements for seasonal costs. Fuel consumption rates to be the lesser of the last 3 starts or every start within the past three Fuel consumption rates to be the lesser of the last 3 starts or every start within the past three

years for each season.years for each season. Current requirement is for last 10 start or every start within the past three years for each Current requirement is for last 10 start or every start within the past three years for each

season.season.

6.6. Procedures for establishing verifiable O&M costs with insufficient historical Procedures for establishing verifiable O&M costs with insufficient historical data (approved by WMS in August).data (approved by WMS in August).

7.7. Updated methodologies for determining VC as described in Appendix 1A and Updated methodologies for determining VC as described in Appendix 1A and 1B.1B.

CHANGES #2-8 and minor administrative corrections APPROVED CHANGES #2-8 and minor administrative corrections APPROVED


NPRR168, Change the Definition of NPRR168, Change the Definition of "Start-up" and Include the Fuel from "Start-up" and Include the Fuel from Breaker Close to LSL in Startup Costs Breaker Close to LSL in Startup Costs Proposal for Calculating Proxy Heat RateProposal for Calculating Proxy Heat Rate

WMS endorses the concept for new off-peak WMS endorses the concept for new off-peak Proxy Heat Rate, VCWG to recommend Proxy Heat Rate, VCWG to recommend appropriate off-peak hours to WMS, VC appropriate off-peak hours to WMS, VC manual will be revised to include language to manual will be revised to include language to revisit data 90 days after nodal implementation.revisit data 90 days after nodal implementation.

One abstention (REP) and One Opposed (Muni) One abstention (REP) and One Opposed (Muni) … Motion Carries… Motion Carries

Active Task ForcesActive Task Forces Generation Adequacy Task ForceGeneration Adequacy Task Force

Adrian Pieniazek and Dan Woodfin, Co-ChairsAdrian Pieniazek and Dan Woodfin, Co-Chairs CharterCharter

Re-examine the reserve margin calculation and submit a final report to TAC by the Re-examine the reserve margin calculation and submit a final report to TAC by the January 2010 meeting with recommendations on making the calculations more accurate January 2010 meeting with recommendations on making the calculations more accurate using the current and anticipated mix of the various technologies available in the region.using the current and anticipated mix of the various technologies available in the region.

GATF GoalsGATF Goals Review all the findings and recommendations from the previous GATF reports dated May Review all the findings and recommendations from the previous GATF reports dated May

23, 2005 and March 7, 2007.23, 2005 and March 7, 2007. Definition of Firm Load review NERC definitionsDefinition of Firm Load review NERC definitions Definitions for Available Resources (summer dependable capability, DC ties, switchable resources, wind, planned Definitions for Available Resources (summer dependable capability, DC ties, switchable resources, wind, planned

generation with SGIA or letter, mothballs, demand side, less retirements)generation with SGIA or letter, mothballs, demand side, less retirements)

CDR ReviewCDR Review Recommendation for EILSRecommendation for EILS Recommendations for new technologies (solar, storage, etc.)Recommendations for new technologies (solar, storage, etc.) Recommendation for new LOLP study (GATF input into assumptions, data sources, Recommendation for new LOLP study (GATF input into assumptions, data sources,

results, etc.).results, etc.). Complete a draft report by the December 2009 WMS meeting that provides ERCOT Complete a draft report by the December 2009 WMS meeting that provides ERCOT

planning with recommendations on the inputs to use in the LOLP study (LOLP scheduled planning with recommendations on the inputs to use in the LOLP study (LOLP scheduled for completion in 1st quarter of 2010.) (Possible presentation from Dan on LOLP) (Attach for completion in 1st quarter of 2010.) (Possible presentation from Dan on LOLP) (Attach two ERCOT reports to email notes)two ERCOT reports to email notes)

Complete a final report for consideration and vote at the January 2010 TAC meeting.Complete a final report for consideration and vote at the January 2010 TAC meeting.

Active Task ForcesActive Task Forces Quick Start Task ForceQuick Start Task Force

Seth Cochrane and Tom Jackson, Co-ChairsSeth Cochrane and Tom Jackson, Co-Chairs CHARTERCHARTER

The Quick Start Task Force (QSTF) is a WMS Task Force formed to The Quick Start Task Force (QSTF) is a WMS Task Force formed to address issues related to Generation Resources capable of address issues related to Generation Resources capable of synchronously interconnecting to the ERCOT System in less than synchronously interconnecting to the ERCOT System in less than thirty minutes (30) in the Texas Nodal Market.thirty minutes (30) in the Texas Nodal Market.

GOALSGOALS The purpose of the QSTF is to develop, review and suggest The purpose of the QSTF is to develop, review and suggest

appropriate revisions to the ERCOT Nodal Protocols and ERCOT appropriate revisions to the ERCOT Nodal Protocols and ERCOT procedures to ensure Generation Resources capable of procedures to ensure Generation Resources capable of synchronously interconnecting to the ERCOT System in less than synchronously interconnecting to the ERCOT System in less than thirty (30) minutes: contribute to ERCOT System reliability and thirty (30) minutes: contribute to ERCOT System reliability and

market-based solutions.market-based solutions. Develop Issue list related to Quick Start Units are currently treated in the Develop Issue list related to Quick Start Units are currently treated in the

ERCOT Market(s). ERCOT Market(s). Develop potential ways in which Quick Start Units may participate in Develop potential ways in which Quick Start Units may participate in

ERCOT Market(s) including a review of comparable marketsERCOT Market(s) including a review of comparable markets Solution Creation and PrioritizationSolution Creation and Prioritization Recommendations to WMSRecommendations to WMS

Active Task ForcesActive Task Forces Joint ROS/WMS Multiple Interconnection Joint ROS/WMS Multiple Interconnection

of Generation Task Force (MIG TF)of Generation Task Force (MIG TF) Leadership for WMSLeadership for WMS Bob Wittmeyer endorsed by WMSBob Wittmeyer endorsed by WMS

Other WMS activityOther WMS activity PRR828PRR828, Remove QSE SCE Performance , Remove QSE SCE Performance

Exemption for QSEs with only Uncontrollable Exemption for QSEs with only Uncontrollable Renewable Resources On-lineRenewable Resources On-line

•WMS considered PRR 828. After discussion. WMS voted to recommend that PRS reject PRR828 via roll call vote. There were three opposing votes from the Cooperative, Municipal, and Independent Generator Market Segments and 11 abstentions from the Cooperative (2), Municipal (1), Investor Owned Utility (IOU) (2), Independent Generator (2), Consumer (1), Independent Retail Electric Provider (IREP) (1), and Independent Power Marketer (IPM) (2) Market Segments. All Market Segments were present for the vote.

RMR Exit Strategy CriteriaRMR Exit Strategy Criteria WMS to prepare whitepaper to address RMR Exit

Strategy Criteria

RPRS DecommitmentRPRS Decommitment assigned to QMWG

WMS 2009 GoalsWMS 2009 GoalsItemItem

WMS WMS input/direction input/direction

needed byneeded by

Nodal Market TransitionNodal Market Transition On-goingOn-going

Nodal Verifiable Cost MethodologyNodal Verifiable Cost Methodology On-going (VCWG)On-going (VCWG)

Approved Zonal PRRs – Analysis and Approved Zonal PRRs – Analysis and PrioritizationPrioritization Q1-Q2Q1-Q2

Consideration of timely, economic Consideration of timely, economic improvements to Zonal Marketimprovements to Zonal Market Before Q4Before Q4

Determine CSCs for 2010Determine CSCs for 2010 Q3 (CMWG)Q3 (CMWG)

Market Issues Related to:Market Issues Related to:

Credit issuesCredit issues On-going (MCWG)On-going (MCWG)

EILS and AS MarketsEILS and AS Markets On-goingOn-going

Integrating advanced meters & other demand Integrating advanced meters & other demand response into Ancillary Service Marketsresponse into Ancillary Service Markets On-going (DSWG)On-going (DSWG)

Wind & related renewable technology integrationWind & related renewable technology integration On-going On-going (QMWG/RTWG)(QMWG/RTWG)

Documents

Report to TAC October 2008. In Brief 2010 CREs 2010 CREs Working Group Reports Working Group Reports MCWG MCWG QMWG QMWG VCWG VCWG Task Forces Task Forces