Congestion Revenue Rights Market Trials Call 19 February

Congestion Revenue Rights Market Trials Call 19 February, 2010

ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

Agenda Topics: I. Market Trials Roadmap II. Documents Posted Since Last CRR Market Call III. Market Results! IV. Known issues V. Successful CRR Qualifications as of 4 pm yesterday VI. Amber Participants VII. Red Participants VIII. Upcoming Activities IX. Questions/Comments X. FAQ Slide 3

Market Trials 2010 Roadmap http: //nodal. ercot. com 4

Documents Added Since Last Market Call All Documents Found at http: //nodal. ercot. com/readiness/markettrials/crr/index. h tml • Congestion Revenue Rights Market Trials Handbook v 1. 3 • CRR Qualification Dashboard: 02/12/2010 • CRR Known Issues Compiled 02/12/2010

MARKET RESULTS! You can pick up your results -via the application -via the MIS website

Known Issues - Fixed: validated and ready for deployment (03/05/2010 6: 00 PM) • 0. 1 MW Error in awarded MW • Some MW Flow values are not equal to Limit in Binding Constraint download file • A resource that has been identified as "Restricted" cannot be requested in a "Buy" trade in the bilateral market. • When entering nominations via the GUI, the numeric keypad does not properly function. • The phone number in a bilateral trade contact information is limited to 20 characters. The error message for going over 20 characters is vague.

Known Issues - New • Market Results Private Download file for Allocations does not contain all required information • Market Results Public Download Bids and Offers file for Auctions shows awarded MW instead of bidded MW

Known Issues – In Progress • Awarded PTP CRR is. 1 MW less than bid for Obligation but clearing price is above bid price • Performance Test (2 Issues) • Inactive link in MIS Applications tab for Counterparty • Not able to sell (offer) OBL PCRR past 1 st month • Lock Time for self-imposed credit for an Account Holder is at 12: 00: 01 am; but 5: 00 pm for Counterparty • Not all settlement points from the Network Model database were mapped to the CRR Model • Invoices do not currently render when clicked on. 9

Known Issues - Closed • Monitored Lines and Transformers contains no data • JAN 2010 CRR Monthly Network Model report file (11204) does not contain all the required network files. • Portfolio upload - Portfolio Editor becomes unusable when uploading a "targeted" bid portfolio containing a valid source/sink that is not biddable for that specific auction. • The slack bus in the March published models does not have a generator. See Known Issues list: http: //nodal. ercot. com/readiness/markettrials/crr/ 10

Successful CRR Qualifications As of 1600 CPT Thursday 60 Congratulations! Slide 11

Successful CRR Qualifications as of 1600 CPT yesterday

Amber Participants (Have made contact with ERCOT re: CRRAH Qualification as of 1000 CPT Today)

Red Participants (No record of contact regarding Qualification)

Upcoming CRR Market Trial Activities • Monday, 22 Feb (or earlier) » ERCOT to post results of 2010 April Allocation » ERCOT to post network model for 2010 April Monthly Auction • Friday, 26 Feb » ERCOT to post 2010 April Monthly Auction Notice

Open Question Time Questions? Slide 16

Will the CRR be settled at the Day Ahead SPP or Day Ahead LMP? SPP 3/15/2018 17

Will ERCOT post CRR Trades on MIS? Not on the MIS page directly, although the posted ownership will reflect any cleared trades. 3/15/2018 18

What process should I follow to cancel a CRR account? Send an NCI to mppappl@ercot. com requesting to cancel the account. They will initiate an updated SFA for you that removes the account. 3/15/2018 19

We had a question based on the content in the CRR MUI User Handbook, Section 2. 14: “The Residual Credit Limit (CP ACL minus CP Market Credit Limit) becomes the available credit limit for Day-Ahead Market (DAM) activity and will be sent to the respective system. ” After the auction clears and awards are posted, is the credit amount that was previously allocated to an auction and not completely consumed (amount allocated to auction – amount awarded in Auction > 0) automatically released to the QSE for DAM activities? Or does the CRR CP log into the CRR CP portal to release the credit? The credit that you have “locked” for the CRR auction will be automatically released by the CRR system when you receive your invoice. You do not need to go back into the CRR system to modify the credit for any market that has been posted. 3/15/2018 20

If bidding is to occur on t, t+ 1, and t+2 where t = current day… and invoices to be received by CRR AH on t + 3? Let’s take the April auction from the market trials handbook for an example. You can log in as a counterparty and post credit to the April Auction from the notice date (2/26) until the lock date (3/8). Prior to the lock date, this credit is not subtracted from the amount available for the DAM. At the lock date at ~5 pm the credit assigned to the crr market is subtracted from your available credit for the DAM. It remains associated with the crr market until you get invoiced on 3/16. At that point your invoice amount will be accounted for in the total credit calculation, but the amount assigned to the crr market will no longer be taken out of the DAM credit. Hence, your funds will be available for the next day’s DAM. The windows may vary slightly in length from month to month due to holidays, etc. 3/15/2018 21

If the CRRAH is permitted to submit a portfolio beginning 3/18 - 00: 01 CPT and the Lock Date is 17: 00 CPT, is there any limitations in the protocols or in the CRR Market system whereby once the CRRAH begins submission, say at 09: 00 CPT, the CRRCP or CRRAH is barred from altering the CRRAH Market Credit Limit after 09: 00 CPT? The short answer is no – lock date and time has no bearing on the bid submission process in the CRR application per se. The Counterparty will be able to modify credit until 5: 00 PM CPT on the lock date – in the example, that would be Monday, 3/8. The Counterparty has approximately 10 days in which to allocate credit to the market before the credit locks (from the Market Notice Date up to and including the Market Lock Date). The associated Account Holders may also modify their own self-imposed credit limit during this same period – up to and including what the Counterparty has allocated to the market. At 5: 00 pm CPT on Monday, 3/8, neither the Counterparty nor the Account Holder will be able to modify their credit limits any further for the locked market. The Counterparty is done with their work with the CRR application at this point. The Account Holder’s work just begins, however. Submitting portfolios is not linked to the credit until the market closes. Hence, the Account Holder may begin creating/uploading/modifying/retracting/ submitting the portfolio bids from 00: 01 CPT on Monday, 3/8 until 23: 59 CPT on Thursday, 3/11 – regardless of what the Counterparty is doing (has done) with the credit. 3/15/2018 22

Is a CRRAH Monthly Auction Bid/Offer window is 4 business days? Most Bid/Offer Windows for Monthly and Annual will be four days in duration, including the day it opens and the day the bid window closes. 3/15/2018 23

What is the definition of a Business Day? Business Days are defined as follows: • Business Day • Monday through Friday, excluding observed holidays listed below: – (a) New Year’s Day; – (b) Memorial Day; – (c) Independence Day; – (d) Labor Day; – (e) Thanksgiving Thursday and Friday; and – (f) Two days at Christmas, as designated from time to time by the ERCOT CEO. • Business Hours • 0800 to 1700 Central Prevailing Time (CPT) on Business Days. 3/15/2018 24

How many business days does it take to clear bids/offers in a Monthly auction? There may be differences from month to month regarding auction timelines, depending on holidays and type of auction (monthly, annual). The general case is 5 business days because the auction engine takes up to 40 hours to execute the optimizations for a monthly auction and much longer for an annual auction (up to 80 hours). The market operators will then have some due diligence in checking the logs and the results before actually posting the market results. To be safe, ensure that you check the market calendar and market notices carefully for each auction and derive your timelines for your activities from what Ercot publishes. 3/15/2018 25

What is the “CRR Auction Lock Date”? Lock date can be set between the open and close dates of a submission period, and represents the cut-off date after when the counter-parties (and their account holders ) cannot change their CRR credit limits. 3/15/2018 26

If I pick up a CRR in an auction –say CRR 1234 which is on-peak, January, from A to B. Can I trade that for a period of time less than a month? Specifically, if I find another CRR Account Holder that wants to buy my CRR from the 15 th of a month through the 23 rd, can we enter that as the start and stop time in the CRR registration system and have the settlement $$ flow to me from the 1 st to the 14 th, to the buyer from the 15 th through the 23 rd, . and then back to me from 24 th to the end of the month? Yes. A CRR Account Holder wishing to trade a CRR can modify either the number of CRRs (MW) or the effective days of the CRR. The CRR Account Holder may not modify the following: • Source • Sink • Time-Of-Use Block • Hedge Type For more information on the CRR Bilateral Market, please refer to Section 2. 16 of the CRR MUI User Handbook. 3/15/2018 27

If we submit our PCRR nominations, and change our minds about one or more of the submissions, can we change those values as long as the nomination window is still open? Yes. You may upload a new nomination file or change the submissions in the MUI so long as the window is still open. Please remember to click the Re-Calculate and Save buttons at the lower left-hand section of the Cap & Refund/Baseload window after making any changes to commit those changes to the system. 3/15/2018 28

If we choose the refund option, do we still have a choice of option or obligation…. or will that stay 100 under the %Option column on the spreadsheet? Are Baseloads the same? Yes, you choose obligation vs. option based on what you enter in the %Option column. If you choose for example 75% option, then 75% will be option and the remaining 25% is obligation. (note: the default is 100% option). Baseloads operate the same way. 3/15/2018 29

Is the CRR_ID equivalent to an ERCOT assigned Award ID? The CRR_ID in the posted results is the “PREAWARD” CRR_ID – and it will become the “STANDARD” CRR_ID when the invoice has been paid. The BID_ID for BUY bids is just a number that is generated and used by the system to keep track of each bid in the system. The BID_ID for SELL bids is the CRR_ID that is owned by an Account Holder that is being offered for sale. 3/15/2018 30

In the CRR Qualification Portfolio xml file, the Bid ID field is blank, which leads us to ask: 1. Is it possible for the CRRAH to assign their own Bid IDs? Or should this field always be null, as ERCOT assigns the Bid ID? 2. If a Bid ID is awarded, does it then also become the Award ID (Bid ID = Award ID)? Or are they different? The private auction results we have from EDS 7. 3 show they are different. Is this true for Market Trials and Go Live? The BID_ID for BUY bids is just a number that is generated and used by the system to keep track of each bid in the system. If you fill in this field for a BUY, the bid will be rejected. The BID_ID for SELL bids is the CRR_ID that is owned by an Account Holder that is being offered for sale. If you don’t fill in this field for a SELL, the bid will be rejected. Therefore, a BID_ID that is a SELL will have a new CRR_ID if it is successfully bought. 3/15/2018 31

Why does the list of qualified participants as of 1/22 shows 31 names, but the list of closed bilaterals in the CRR web site shows only 9 distinct participants? Bilateral trades get “cleaned” from that display after seven days, so the closed ones are just the trades from the past week. 3/15/2018 32