ERCOT Updates: DSWG Meeting, Procurement Details, Suspensions, Fee Schedule & Ownership Changes

Demand Side Working Group (DSWG) January 26, 2024 ERCOT staff

Dec23Mar24 Procurement ERS Time Period TP 1 ERS10 NWS MW 15.859 ERS10 WS MW 0.0 ERS30 NWS MW 1049.2052 ERS30 WS MW 0.8 Total MW 1065.8642 15.874 1058.5752 1074.4492 TP 2 0.0 15.821 1065.2507 1081.0717 TP 3 0.0 15.682 1074.5928 0.8 1091.0748 TP 4 0.0 16.11 1029.4542 1045.5642 TP 5 0.0 16.27 987.5026 1003.7726 TP 6 0.0 16.519 793.2696 809.7886 TP 7 0.0 16.465 991.5169 1007.9819 TP 8 0.0 Points of Interest Highest offered MWs since inception (TPs 1-5) Fourth highest procured MW (TP4) First time MW values procured to the 4thdecimal point. QSE submitted it this way our code didn t catch it, so we had to procure and report like this. Please don t do it. Messes with our code. Second time we have had a QSE fat finger a value. Offers are binding, we cannot correct after the fact. Please review your offers carefully. 2 PUBLIC

Suspensions and Reinstatements Suspensions for 4 or more Test failures began with the DecMar24 STC (look back) 105 ESI IDs (16 resources) were suspended beginning December 1 for 6 months. Approximately 150 ESI IDS sitting on 3 failures. Take Action. Suspensions for Availability and Events will begin will the DecMar24 SCT evaluations. When do suspension letters go out? After every test evaluation is completed. At settlement time. How do ESI IDs get reinstated? First reinstatement cycle is March 25-26 for suspended ESI IDs trying to get into JunSep24 (first SCT they are eligible to offer). Suspended ESI IDs can not start the reinstatement process until they complete the suspension period. Reinstatements will not be done off cycle. 3 PUBLIC

New ERCOT Fee Schedule The ERCOT Fee Schedule is posted on the Current Protocols Nodal webpage Implemented in the Resource Integration & Ongoing Operations (RIOO) application on December 20, 2023 Fee to register a new Settlement Only Distribution Generator (SODG) dropped from $5,000 to $2,300 But, there is now a $2,300 fee charged if the SODG name plate rating is increased by 1 MW or more, accumulated over a rolling 12-month period New fee of $500 to register a Load Resource (LR); no previous fee for LRs $500 fee any time the High Reasonability Limit (HRL) of an LR is increased by 20% or more (not an accumulated change) $500 fee to change an existing LR registration between Controllable LR (CLR) and non- Controllable LR Requires stopping existing LR and registering a new LR with a unique dispatch asset code (DAC) Different set of operational parameters and telemetry requirements All fees are collected in RIOO during the submission process 4 PUBLIC

Resource Entity/Ownership Changes ERCOT will be adding the ability for the RE/owner of an existing LR or SODG to change to another RE within the RIOO application While this will update the RIOO database, there will still be modeling changes and the associated new QSE partnership must be established The new QSE may need to set up telemetry depending on what type of Resource it will operate RE change submissions will have to be completed at least 45 days prior to the coordinated production load date (PLD), which will align with a scheduled model load as listed on the current Production Load Schedule QSE changes will still be handled outside of RIOO by the ERCOT Registration team There will be no fee charged for RE/owner changes The current target for implementing this new capability in RIOO is Q2 2024, but this is still being determined 5 PUBLIC

Historical Process for Resource Entity/QSE Ownership Changes Load Resources: the historical process has been to stop the existing LR and register a new LR under the new Resource Entity The new LR was assigned a unique DAC and all modeling and telemetry were completed as required for a brand new LR QSE changes were handled by the ERCOT Registration team and did not require updates to the LR registration in RIOO, unless the RE was also changed SODGs: the historical process has been like the stop/start process for LRs A unique site code was required for newly registered SODGs Given the new registration fees, this process is no longer appropriate However, REs can still use the stop/start method if they would like to create new, unique DACs for LRs or site codes for SODGs (appropriate fees would be charged) 6 PUBLIC

Temporary Process for Resource Entity/QSE Ownership Changes Until the RIOO update is implemented, Demand Integration will work with the REs to coordinate a manual change of RE/QSE so no registration fees will be charged The current and new RE must coordinate the change with the Demand Integration team (ERCOTLRandSODG@ercot.com), including the following information: Current RE and QSE names and DUNS numbers New RE and QSE names and DUNS numbers List of Resources to be transferred Load Resource DACs or SODG site codes Transfer date (must be a posted model load date using the 45+ day requirement) The ownership change request can be completed through emails, with an approval from each RE; or a change request can be submitted by the current RE in RIOO, including the transfer info in the comment field of the change request Demand Integration will submit any necessary modeling changes and will work with the Registration and RIOO teams to update ERCOT systems and databases 7 PUBLIC

Temporary Process for Resource Entity/QSE Ownership Changes Load Resources with Ancillary Services If the transfer includes LRs that are qualified to provide Ancillary Services (AS), the AS qualifications will remain with the LRs, provided that the new QSE is already qualified to provide the same services On the day of the transfer, Demand Integration will verify that ERCOT is receiving the necessary telemetry data from the new operating QSE If any issues are found, the QSE will be contacted to address If the new QSE is not qualified to provide any of the existing AS services to be transferred, the qualification for that service will be removed for each LR The QSE can schedule an AS qualification test with Demand Integration 8 PUBLIC