Report to TACReport to TAC

May 2008May 2008

In BriefIn Brief Working Group ReportsWorking Group Reports

CMWGCMWG DSWGDSWG MCWGMCWG QMWG - QMWG - VCWGVCWG

Revision RequestsRevision Requests PRR 800PRR 800

Working Group ReportsWorking Group ReportsCMWGCMWG

Business Process for Adjusting TTC for TCR Business Process for Adjusting TTC for TCR Auctions – Related to Auctions – Related to PRR801PRR801, Manual TCR , Manual TCR Adjustments Adjustments CWMG is drafting the iterative process to try to CWMG is drafting the iterative process to try to

improve the choice of outages for inclusion in TCR improve the choice of outages for inclusion in TCR model and will send out for reviewmodel and will send out for review

Use Nodal Protocol Language for Guidance on Use Nodal Protocol Language for Guidance on How to Include OutagesHow to Include Outages

CMWG support for ERCOT goal of making each CMWG support for ERCOT goal of making each month revenue neutralmonth revenue neutral

Metric Development Re: Metric Development Re: NOGRR025NOGRR025, , Monitoring Programs for QSEs, TSPs, and Monitoring Programs for QSEs, TSPs, and ERCOT ERCOT CWMG items completed with no metrics requiredCWMG items completed with no metrics required

Working Group ReportsWorking Group ReportsCMWGCMWG

CREs Notices/AttributesCREs Notices/Attributes CMWG working with ERCOT to get better CMWG working with ERCOT to get better

understanding of the notice provisions for understanding of the notice provisions for adding and removing CRE’s and the impact of adding and removing CRE’s and the impact of the temporary CRE’s on the market related to the temporary CRE’s on the market related to outagesoutages

NPRR147NPRR147, DAM Short Pay Changes, DAM Short Pay Changes Issue is back in hands of Credit Work GroupsIssue is back in hands of Credit Work Groups

CMWG will meet next Monday (5/11/09). CMWG will meet next Monday (5/11/09).

Working Group ReportsWorking Group ReportsDSWGDSWG

TRE LSE Registration Issues for Demand TRE LSE Registration Issues for Demand ResponseResponse Registration requirements still not finalized Registration requirements still not finalized

Subgroup Report on EILS ProgramSubgroup Report on EILS Program Full report deferred to May meetingFull report deferred to May meeting EILS Baselines addition of two baselines in the EILS Baselines addition of two baselines in the

future may increase participation in future – future may increase participation in future – EILS declining participation leveled off.EILS declining participation leveled off.

Next Meeting - June 5Next Meeting - June 5thth

Working Group ReportsWorking Group ReportsMCWGMCWG

NPRR147NPRR147, DAM Short Pay Changes , DAM Short Pay Changes Consensus with stakeholders that the existing nodal Protocols uplifting CRR Consensus with stakeholders that the existing nodal Protocols uplifting CRR

shortfalls to the DAM need to be changedshortfalls to the DAM need to be changed Concern that the existing nodal Protocols for CRR shortfalls could lead to Concern that the existing nodal Protocols for CRR shortfalls could lead to

participants avoiding the DAMparticipants avoiding the DAM NPRR 147 attempts to remedy the concerns raised with lack of participation NPRR 147 attempts to remedy the concerns raised with lack of participation

in the DAM by modifying the approved nodal shortfall methodology for in the DAM by modifying the approved nodal shortfall methodology for CRR’sCRR’s

Issues – shortfall funding and uplift allocationIssues – shortfall funding and uplift allocation

MCWG to develop three NPRRs for WMS considerationMCWG to develop three NPRRs for WMS consideration

Working Group ReportsWorking Group ReportsMCWGMCWG

CCRO Task Force on Short-term Credit CCRO Task Force on Short-term Credit MarketsMarkets Perform bottom up review of existing Perform bottom up review of existing

creditworthiness standards (after CCRO Best creditworthiness standards (after CCRO Best Practices efforts)Practices efforts)

Future Items to Consider: Future Items to Consider: Review of Nodal DAM Credit Requirements; of Review of Nodal DAM Credit Requirements; of

Creditworthiness Standard; and of Reduction in Credit Creditworthiness Standard; and of Reduction in Credit Requirements for PRR568Requirements for PRR568

Next Meeting - May 08, 2009Next Meeting - May 08, 2009 9:30 AM - 11:30 AM - three NPRR147’s drafted for review9:30 AM - 11:30 AM - three NPRR147’s drafted for review

Working Group ReportsWorking Group ReportsQMWGQMWG

Update on Update on PRR776PRR776 Implementation Implementation WMS agreed that PRR 776 language, as approved, needed no WMS agreed that PRR 776 language, as approved, needed no

changes; however concerns related to the Market Bulletin and changes; however concerns related to the Market Bulletin and proposed implementation potentially taking capacity out of the proposed implementation potentially taking capacity out of the A/S market and creating price dispersions due to treatment of A/S market and creating price dispersions due to treatment of virtual units.virtual units.

WMS Vote: Request QMWG to review the ERCOT WMS Vote: Request QMWG to review the ERCOT implementation of PRR776. WMS requests QMWG to identify implementation of PRR776. WMS requests QMWG to identify one or more reasonable solutions that will make the supply of one or more reasonable solutions that will make the supply of BES/NSRS more flexible and conflict less with the use of BES/NSRS more flexible and conflict less with the use of capacity from virtual units for the provision of other A/S. capacity from virtual units for the provision of other A/S. The The current implementation schedule shall be maintained and work current implementation schedule shall be maintained and work shall be in parallel.shall be in parallel.

Motion carried with 3 abstentionsMotion carried with 3 abstentions

Working Group ReportsWorking Group ReportsQMWGQMWG

Working Group ReportsWorking Group ReportsQMWGQMWG

Testing Requirements Update – Related Testing Requirements Update – Related to to PRR803PRR803, Revised Implementation , Revised Implementation Approach for Approach for PRR 601PRR 601 WMS approved: Draft OGRR – Quick Start WMS approved: Draft OGRR – Quick Start

Units Qualification Ramp Period (Possible Units Qualification Ramp Period (Possible Vote)Vote)

This OGRR changes the balancing energy ramp This OGRR changes the balancing energy ramp period used for qualification of Quick Start Units period used for qualification of Quick Start Units to 14 minutes to align with PRR803.to 14 minutes to align with PRR803.

Adds 2 minutes to the test period.Adds 2 minutes to the test period.

Working Group ReportsWorking Group ReportsQMWGQMWG

OGRR222OGRR222, Allow Frequency Control Data , Allow Frequency Control Data Through ICCP InfrastructureThrough ICCP Infrastructure OGRR revises the required communication technology for OGRR revises the required communication technology for

QSE frequency control data from RTU-only to RTU or ICCP. QSE frequency control data from RTU-only to RTU or ICCP. WMS endorsed. WMS endorsed.

WGR only QSE Scheduling Metric – next WMSWGR only QSE Scheduling Metric – next WMS Metric Development Re: Metric Development Re: NOGRR025NOGRR025, Monitoring , Monitoring

Programs for QSEs, TSPs, and ERCOTPrograms for QSEs, TSPs, and ERCOT Item 6 assigned to QMWGItem 6 assigned to QMWG

Next Meeting - May 12, 2009 9:30 AM - 3:30 PM Next Meeting - May 12, 2009 9:30 AM - 3:30 PM

Working Group ReportsWorking Group ReportsVCWGVCWG

NPRR168NPRR168, Verifiable Cost Generation , Verifiable Cost Generation CorrectionsCorrections White paper to be presented to WMS in MayWhite paper to be presented to WMS in May

Draft NPRR for RUC CancellationsDraft NPRR for RUC Cancellations MP still commenting on draft languageMP still commenting on draft language

Draft NPRR: FIP Modification in Verifiable Draft NPRR: FIP Modification in Verifiable Startup: Establishing Value for “Y” Startup: Establishing Value for “Y” NPRR will be submitted with Y not set as WMS NPRR will be submitted with Y not set as WMS

could not come to consensus on value for the could not come to consensus on value for the deadbanddeadband

MP should comment on the NPRR when it is filedMP should comment on the NPRR when it is filed

Other WMS activityOther WMS activity PRR800PRR800, QSE Day Ahead Metric , QSE Day Ahead Metric

In March, WMS considered PRR 800. WMS In March, WMS considered PRR 800. WMS voted to recommend that PRS continue to voted to recommend that PRS continue to defer action on this PRR until the Texas defer action on this PRR until the Texas Regional Entity (TRE) has submitted Regional Entity (TRE) has submitted comments and to request that ERCOT comments and to request that ERCOT provide a statement of the benefits provide a statement of the benefits associated with this PRR.associated with this PRR.

In April, WMS voted to In April, WMS voted to endorse Protocol endorse Protocol Revision Request (PRR) 800 as Revision Request (PRR) 800 as submittedsubmitted. There were two abstentions . There were two abstentions from the Investor Owned Utility (IOU) and from the Investor Owned Utility (IOU) and Municipal Market Segments.Municipal Market Segments.

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 On-going (VCWG)(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)