Proxy AS Offer Price Floor Creation Process

Proxy AS Offer Price Floor: Refresher on AS Offer Structure and Proxy AS Offer Creation under RTC Zhengguo Chu RTCBTF September 13, 2024

Acronyms Ancillary Service (AS) Controllable Load Resource (CLR) Day-Ahead Market (DAM) ERCOT Contingency Reserve Service (ECRS) Energy Offer Curve (EOC) Energy Storage Resource (ESR) High Sustained Limit (HSL) Maximum Power Consumption (MPC) Net Power Consumption (NPC) Non-Controllable Load Resource (NCLR) Nodal Protocol Revision Request (NPRR) Non-Spinning Reserve Service (Non-Spin) Qualified Scheduling Entity (QSE) Real-Time Co-optimization (RTC) Regulation Down Service (Reg-Down) Regulation Up Service (Reg-Up) Responsive Reserve Service (RRS) 2 PUBLIC

Background To refresh the RTC AS Offer structure and proxy offer creation process and help the discussion on the development of proxy AS Offer floor. Similar material was presented in 2019 during RTCTF meetings based on RTC Key Principle 1.3 - AS Offer Structure and Proxy Offer Creation. RTC NPRRs were approved in 2020 NPRR1008, 1009 and 1010 language on Section 6.5.7.3.(5) describes the RTC proxy AS Offer creation process. Disclaimer: This presentation is used for discussion only and is not intended to be a substitute for the ERCOT Protocols, as amended from time to time. If any conflict exists between this presentation and the ERCOT Protocols, the ERCOT Protocols shall control in all respects. 3 PUBLIC

Ancillary Service (AS) Framework Last Edited on 08/02/2024 Generators, energy storage or Controllable Load Resources (CLRs) respond within 5 seconds to ERCOT LFC instructions. FRRS providers respond within 60 cycles of either its receipt of ERCOT instruction or at 59.91 Hz; 65 MW maximum for FRRS-Up, 35 MW maximum for FRRS-Down. FRRS will be removed with RTC. REGULATION SERVICE (REG) 55 MW to 1110 MW* FFR RESPONSIVE RESERVE SERVICE (RRS) Triggered at 59.85 Hz and full response in 15 cycles. Once deployed, expected to sustain response for up to 15 mins. Once recalled, restore within 15 mins. Maximum 450 MW of RRS may be provided by FFR PFR PFR capable capacity reserved on generators, energy storage or Controllable Load Resources (CLR). Minimum 1,150 MW must be provided by resources capable of PFR. Load Resources with under frequency relay (UFR) Triggered at 59.70 Hz and full response in 30 cycles or deployed manually during emergency conditions Once deployed, sustain response until recalled. Once recalled, restore within 3 hours Beyond the minimum PFR, up to 60% of total RRS can come from Load Resources on UFR or FFR Fast Frequency Response (FFR) Load Resources on Under Frequency Relay (UFR) Overall AS: 5,873 to 10,729 MW** Primary Frequency Response (PFR) 2,300 to 3,178 MW* SCED Dispatchable On-Line or offline capacity that can respond within 10 minutes. Dispatched by SCED This ECRS capacity can be released to SCED to aid in recovering frequency following large unit trip or when there is insufficient capability to meet the forecasted 10-minute net load ramp Load Resources excluding controllable Up to 50% of ECRS capacity can come from Load Resources with or without UFR Deployed autonomously due to frequency or manually during emergency conditions Once deployed, must respond within 10 minutes. Sustain until recalled. Restoration within 3 hours ERCOT CONTINGENCY RESERVE SERVICE (ECRS) SCED Dispatchable Load Resources excluding controllable 889 MW to 3,007 MW* Capacity from generators, energy storage and Load Resources that can respond within 30 minutes. Load Resources that are not controllable and don t have a UFR or with UFR disabled can provide Non-Spin. On-Line Non-Spin capacity (energy offer floor of $75/MWh) is dispatched by SCED; Offline capacity and capacity from load resources that are not controllable is dispatched by Operator instruction Minimum 1,430 MW must be provided by SCED dispatchable Resources NON-SPINNING RESERVE SERVICE (NON-SPIN) 1,430 MW to 4,482 MW* *Quantities in are from 2024 Ancillary Service Methodology posted here.. For Discussion Purposes Only. The intent of this slide is to represent Ancillary Service (AS) Framework. Protocol language prevails to the extent of any inconsistency with this one-page summary. 4 PUBLIC

RTC AS Offer Structure RTC will utilize the AS Offer structure that is in place with the full implementation of NPRR863. The AS Offer submission window will be consistent with the current EOC submission window, which is the end of operating period. Proxy AS Offers will NOT be created for Resources for use in the DAM. Proxy AS Offer creation process will be used in both SCED and RUC. 5 PUBLIC

RTC Proxy AS Offer Creation - MW The proxy AS Offer shall be a linked AS Offer across all AS products for which a Resource is qualified to provide. Generations: Proxy AS Offer MW = HSL Energy Storage Resources: Proxy AS Offer MW = HSL LSL Load Resources: Proxy AS Offer MW = MPC 6 PUBLIC

RTC Proxy AS Offer Creation - Price For Resources that are not RUC-committed, the price in the proxy AS Offer shall be set to: (i) For Reg-Up and RRS, the maximum of: (A) The proxy AS Offer price floor for Reg-Up or RRS, respectively; (B) The Resource s highest submitted AS Offer price for Reg-Up or RRS, respectively; (C) The Resource s highest AS Offer price for ECRS (submitted or proxy); or (D) The Resource s highest AS Offer price for Non-Spin (submitted or proxy). (ii) For ECRS, the maximum of: (A) The proxy AS Offer price floor for ECRS; (B) The Resource s highest submitted AS Offer price for ECRS; or (C) The Resource s highest AS Offer price for Non-Spin (submitted or proxy). (iii) For Non-Spin, the maximum of: (A) The proxy AS Offer price floor for Non-Spin; or (B) The Resource s highest submitted AS Offer price for Non-Spin. (iv) For Reg-Down, the maximum of: (A) The proxy AS Offer price floor for Reg-Down; or (B) The Resource s highest submitted AS Offer price for Reg-Down. ERCOT systems shall be designed to allow for proxy AS Offer price floors to differ when the same AS product can be provided by either On-Line or Off-Line Resources, and/or an AS product has sub-types. 7 PUBLIC

RTC Proxy AS Offer Creation - Price For RUC-committed Resources: (i) If a RUC-committed Resource does not have an AS Offer for an AS product that the Resource is qualified to provide, ERCOT shall create an AS Offer for that AS product at a value of $250/MWh for the full operating range of the Resource up to its telemetered HSL. (ii) For each AS product for which a RUC-committed Resource has an AS Offer, the AS Offer used by SCED for that AS product across the full operating range of the Resource up to its telemetered HSL shall be the maximum of: (A) The Resource s highest submitted AS Offer price; or (B) $250/MWh. 8 PUBLIC

On-Line Upward AS Offer Structure AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MWh) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) ASMW1 RegUpPrice1 RRSPFRPrice1 RRSFFRPrice1 RRSUFRPrice1 ECRSPrice1 ONNSPrice1 ASMW2 RegUpPrice2 RRSPFRPrice2 RRSFFRPrice2 RRSUFRPrice2 ECRSPrice2 ONNSPrice2 ASMW3 RegUpPrice3 RRSPFRPrice3 RRSFFRPrice3 RRSUFRPrice3 ECRSPrice3 ONNSPrice3 ASMW4 RegUpPrice4 RRSPFRPrice4 RRSFFRPrice4 RRSUFRPrice4 ECRSPrice4 ONNSPrice4 ASMW5 RegUpPrice5 RRSPFRPrice5 RRSFFRPrice5 RRSUFRPrice5 ECRSPrice5 ONNSPrice5 Same setup for: On-Line RegDn AS Offer Off-Line ECRS and Non-Spin AS Offers 9 PUBLIC

Proxy AS Offer for Generation On-Line Upward AS Products RTC will create a new linked proxy offer for On-Line upward AS Products Add an additional segment MW ProxyASMW equal to HSL If AS Offer does not exist, ProxyASMW will be the first segment If AS Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for each qualified AS product ONLY The proxy AS Offer price will be empty for non-qualified AS product AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MWh) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) ASMW1 RegUpPrice1 RRSPFRPrice1 ECRSPrice1 ONNSPrice1 ASMW2 RegUpPrice2 RRSPFRPrice2 ECRSPrice2 ONNSPrice2 ASMW3 RegUpPrice3 RRSPFRPrice3 ECRSPrice3 ONNSPrice3 ASMW4 RegUpPrice4 RRSPFRPrice4 ECRSPrice4 ONNSPrice4 ASMW5 RegUpPrice5 RRSPFRPrice5 ECRSPrice5 ONNSPrice5 ProxyASMW ProxyRegUpPrice ProxyRRSPFRPr ice ProxyECRSPrice ProxyONNSPrice 10 PUBLIC

Proxy AS Offer for Generation Reg-Down RTC will create a new proxy offer for Reg-Down only when the Resource is qualified for Reg-Down (similar logic as On-Line upward AS products) Add a new segment MW ProxyASMW equal to HSL If Reg-Down Offer does not exist, ProxyASMW will be the first segment If Reg-Down Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for Reg-Down AS Offer MW (up to 5 per Resource) RegDn Price ($/MW/h) ASMW1 RegDnPrice1 ASMW2 RegDnPrice2 ASMW3 RegDnPrice3 ASMW4 RegDnPrice4 ASMW5 RegDnPrice5 ProxyASMW ProxyRegDnPrice 11 PUBLIC

Proxy AS Offer for Generation Off-Line Non-Spin RTC will create a new proxy Offer for Off-Line Non-Spin for Resource with telemetry Resource Status OFF and qualified to provide Off-Line Non-Spin Add a new segment MW ProxyASMW equal to HSL If Off-Line Non-Spin Offer does not exist, ProxyASMW will be the first segment If Off-Line Non-Spin Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for Off-Line Non-Spin AS Offer MW (up to 5 per Resource) Off-Line Non-Spin Price ($/MW/h) ASMW1 OFFNSPrice1 ASMW2 OFFNSPrice2 ASMW3 OFFNSPrice3 ASMW4 OFFNSPrice4 ASMW5 OFFNSPrice5 ProxyASMW ProxyOFFNSPrice 12 PUBLIC

Example 1a: Generation - No On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a Generation Resource with 100 MW HSL and no AS Offers submitted AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 100 FloorRegUpprice FloorRRSPFRprice FloorECRSprice FloorONNSprice 13 PUBLIC

Example 1b: Generation - No On-Line Upward AS Offers for OFFQS Example illustrates creation of proxy On-Line upward AS Offers for a OFFQS Resource with 100 MW HSL and no AS Offers submitted AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 100 FloorECRSprice FloorONNSprice 14 PUBLIC

Example 1c: Generation - On-Line Upward AS Offers for All AS Products Example illustrates extension of On-Line upward AS Offers for a Resource (not committed by RUC) with 100 MW HSL and only 20 MW of AS Offers submitted AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MWh) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 20 15 10 5 1 100 15 10 5 1 Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. 15 PUBLIC

Example 1d: Generation - On-Line Upward AS Offers for Some AS Products Example illustrates creation of proxy On-Line upward AS Offers for a Resource (not committed by RUC) with 100 MW HSL and only 20 MW of offer for RegUp submitted AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 20 15 100 15 FloorRRSPFRprice FloorECRSprice FloorONNSprice Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. 16 PUBLIC

Example 1e: Generation - Multi-Segment On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a Resource (not committed by RUC) with 100 MW HSL and 3 segments submitted Submitted ECRS Offer Price is less than that of REGUP or RRSPFR AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 16 100 23 FloorONNSprice 18 16 AS Proxy MW: HSL = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 16, N/A) = 23 RRSPFR Proxy Offer price = Max(FloorRRSPFR, RRSPFR Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 16, N/A) = 18 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 16, N/A) = 16 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for Generation. 17 PUBLIC

Example 1f: Generation - Multi-Segment On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a Resource (not committed by RUC) with 100 MW HSL and 3 segments submitted Submitted ECRS Offer Price is greater than that of RRSPFR but less than REGUP Offer Prices AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 20 100 23 FloorONNSprice 20 20 AS Proxy MW: HSL = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 20, N/A) = 23 RRSPFR proxy offer price = Max(FloorRRSPFR, RRSPRF Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 20, N/A) = 20 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 20, N/A) = 20 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for Generation. 18 PUBLIC

Example 1g: Generation - RUC Committed Resources Example illustrates creation of proxy On-Line upward AS Offers for a RUC committed Resource with 100 MW HSL and did not submit AS offer AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non-Spin Price ($/MW/h) 100 250 250 250 250 AS Proxy MW: HSL = 100MW AS Proxy Price: RUC Offer Floor = $250/MWh Note: No RRSFFR and RRSUFR for Generation 19 PUBLIC

Example 1h: Generation - RUC Committed Resources Example illustrates creation of proxy On-Line upward AS Offers for a RUC committed Resource with 100 MW HSL and 3 segments submitted AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 18 15 500 30 200 17 10 200 16 AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 250 250 500 30 250 500 10 250 500 100 500 250 250 250 AS Proxy MW: HSL = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(RUC Offer Floor, REGUP Offer Prices, ECRS, ONNS) = Max(250, 500, 16, N/A) = 500 RRSPFR Proxy Offer price = Max(RUC Offer Floor, RRSPRF Offer Prices, ECRS, ONNS) = Max(250, 18, 16, N/A) = 250 ECRS Proxy Offer Price = Max(RUC Offer Floor, ECRS Offer Prices, ONNS) = Max(250, 16, N/A) = 250 ONNS Proxy Offer Price = Max(RUC Offer Floor, ONNS Offer Prices) = Max(250, N/A) = 250 Note: REGUP Prices for submitted AS MWs are also set to $500/MWh in this case. No RRSFFR and RRSUFR for Generation. 20 PUBLIC

Example 1i: Generation - RUC Committed Resources Example illustrates creation of proxy On-Line upward AS Offers for a RUC committed Resource with 100 MW HSL and 3 segments submitted AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 200 18 15 30 200 17 10 200 500 AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 250 250 500 30 250 250 10 250 500 100 500 250 500 500 AS Proxy MW: HSL = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(RUC Offer Floor, REGUP Offer Prices, ECRS, ONNS) = Max(250, 200, 500, N/A) = 500 RRSPFR Proxy Offer price = Max(RUC Offer Floor, RRSPRF Offer Prices, ECRS, ONNS) = Max(250, 18, 500, N/A) = 500 ECRS Proxy Offer Price = Max(RUC Offer Floor, ECRS Offer Prices, ONNS) = Max(250, 500, N/A) = 500 ONNS Proxy Offer Price = Max(RUC Offer Floor, ONNS Offer Prices) = Max(250, N/A) = 250 Note: ECRS Price for submitted 1st AS MW is also set to $500/MWh in this case. No RRSFFR and RRSUFR for Generation. 21 PUBLIC

Proxy AS Offer for ESR RTC will create a new linked proxy offer for On-Line upward AS Products Add an additional segment MW ProxyASMW equal to (HSL LSL) If AS Offer does not exist, ProxyASMW will be the first segment If AS Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for each qualified AS product ONLY The proxy AS Offer price will be empty for non-qualified AS product AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) ASMW1 RegUpPrice1 RRSPFRPrice1 RRSFFRPrice1 ECRSPrice1 ONNSPrice1 ASMW2 RegUpPrice2 RRSPFRPrice2 RRSFFRPrice2 ECRSPrice2 ONNSPrice2 ASMW3 RegUpPrice3 RRSPFRPrice3 RRSFFRPrice3 ECRSPrice3 ONNSPrice3 ASMW4 RegUpPrice4 RRSPFRPrice4 RRSFFRPrice4 ECRSPrice4 ONNSPrice4 ASMW5 RegUpPrice5 RRSPFRPrice5 RRSFFRPrice5 ECRSPrice5 ONNSPrice5 ProxyASMW ProxyRegUpPr ice ProxyRRSPF RPrice ProxyRRSFFRP rice ProxyECRSPri ce ProxyONNSPri ce RTC will create a proxy offer for Reg-Down only when the ESR is qualified for Reg-Down. The process is similar as that for Generation. 22 PUBLIC

Example 2a: ESR - No On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for an ESR with 100 MW HSL and -100MW LSL. No AS Offer was submitted. The proxy AS offer will be created for all qualified AS products only. AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 200 FloorRegUpprice FloorRRSPFRprice FloorRRSFFRprice FloorECRSprice FloorONNSprice AS Proxy MW: HSL LSL = 100 (-100) = 200MW AS Proxy Price: AS proxy offer floor for each corresponding AS type or subtype Note: Different RRS subtypes can have different offer floor values. 23 PUBLIC

Example 2b: ESR - Multi-Segment On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for an ESR with 100 MW HSL and -100MW LSL and 3 segments submitted Submitted ECRS Offer Price is less than that of REGUP or RRSPFR AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 16 200 23 18 16 16 FloorONNSprice AS Proxy MW: HSL LSL = 100 (-100) = 200MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 18, FloorONNS) = 23 RRSPFR Proxy Offer price = Max(FloorRRSPFR, RRSPFR Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 16, FloorONNS) = 18 RRSFFR Proxy Offer price = Max(FloorRRSFFR, RRSFFR Offer Prices, ECRS, ONNS) = Max(FloorRRSFFR, N/A,16, FloorONNS) = 16 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 16, N/A) = 16 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for Generation. 24 PUBLIC

Example 2c: ESR - Multi-Segment On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for an ESR with 100 MW HSL and -100MW LSL and 3 segments submitted Submitted ECRS Offer Price is greater than that of RRSPFR but less than REGUP Offer Prices AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 20 200 23 FloorONNSprice 20 20 20 AS Proxy MW: HSL LSL = 100 (-100) = 200MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 20, FloorONNS) = 23 RRSPFR Proxy Offer price = Max(FloorRRSPFR, RRSPFR Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 20, FloorONNS) = 20 RRSFFR Proxy Offer price = Max(FloorRRSFFR, RRSFFR Offer Prices, ECRS, ONNS) = Max(FloorRRSFFR, N/A,20, FloorONNS) = 20 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 20, N/A) = 20 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for Generation. 25 PUBLIC

Proxy AS Offer for CLR RTC will create a new linked proxy offer for On-Line upward AS Products Add an additional segment MW ProxyASMW equal to MPC If AS Offer does not exist, ProxyASMW will be the first segment If AS Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for each qualified AS product ONLY The proxy AS Offer price will be empty for non-qualified AS product AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) ASMW1 RegUpPrice1 RRSPFRPrice1 ECRSPrice1 ONNSPrice1 ASMW2 RegUpPrice2 RRSPFRPrice2 ECRSPrice2 ONNSPrice2 ASMW3 RegUpPrice3 RRSPFRPrice3 ECRSPrice3 ONNSPrice3 ASMW4 RegUpPrice4 RRSPFRPrice4 ECRSPrice4 ONNSPrice4 ASMW5 RegUpPrice5 RRSPFRPrice5 ECRSPrice5 ONNSPrice5 ProxyASMW ProxyRegUpPr ice ProxyRRSPF RPrice ProxyECRSPri ce ProxyONNSPri ce RTC will create a proxy offer for Reg-Down only when the CLR is qualified for Reg-Down. The process is similar as that for Generation and ESR. 26 PUBLIC

Example 3a: CLR - No On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a CLR with 100 MW MPC and no AS Offers submitted. The proxy AS offer will be created for all qualified AS products only. AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 100 FloorRegUpprice FloorRRSPFRprice FloorECRSprice FloorONNSprice 27 PUBLIC

Example 3b: CLR - On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a CLR with 100 MW MPC and 3 segments submitted. Submitted ECRS Offer Price is less than that of REGUP or RRSPFR AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 16 100 23 18 16 FloorONNSprice AS Proxy MW: MPC = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 16, N/A) = 23 RRSPFR Proxy Offer price = Max(FloorRRSPFR, RRSPFR Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 16, N/A) = 18 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 16, N/A) = 16 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for CLR. 28 PUBLIC

Example 3c: CLR - On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a CLR with 100 MW MPC and 3 segments submitted. Submitted ECRS Offer Price is greater than that of RRSPFR but less than REGUP Offer Prices AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non- Spin Price ($/MW/h) 20 22 18 15 30 23 17 10 21 20 100 23 FloorONNSprice 20 20 AS Proxy MW: MPC = 100MW AS Proxy Price: RegUP Proxy Offer Price = Max(FloorREGUP, REGUP Offer Prices, ECRS, ONNS) = Max(FloorREGUP, 23, 20, N/A) = 23 RRSPFR Proxy Offer price = Max(FloorRRSPFR, RRSPFR Offer Prices, ECRS, ONNS) = Max(FloorRRSPFR, 18, 20, N/A) = 20 ECRS Proxy Offer Price = Max(FloorECRS, ECRS Offer Prices, ONNS) = Max(FloorECRS, 20, N/A) = 20 ONNS Proxy Offer Price = Max(FloorONNS, ONNS Offer Prices) = Max(FloorONNS, N/A) = FloorONNS Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. No RRSFFR and RRSUFR for CLR. 29 PUBLIC

Proxy AS Offer for NCLR RTC will create a new linked proxy offer for On-Line upward AS Products Add an additional segment MW ProxyASMW equal to MPC If AS Offer does not exist, ProxyASMW will be the first segment If AS Offer exists, ProxyASMW will be an additional segment Add proxy AS Offer price for each qualified AS product ONLY The proxy AS Offer price will be empty for non-qualified AS product RRSFFR and RRSUFR/ECRS qualification are mutually exclusive If NCLR is qualified for RRSFFR AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non-Spin Price ($/MW/h) ASMW1 RRSFFRPrice1 ONNSPrice1 ASMW2 RRSFFRPrice2 ONNSPrice2 ASMW3 RRSFFRPrice3 ONNSPrice3 ASMW4 RRSFFRPrice4 ONNSPrice4 ASMW5 RRSFFRPrice5 ONNSPrice5 ProxyASMW ProxyRRSFFRPrice ProxyONNSPrice If NCLR is qualified for RRSUFR/ECRS AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MWh) ECRS Price ($/MW/h) On-Line Non-Spin Price ($/MW/h) ASMW1 RRSUFRPrice1 ECRSPrice1 ONNSPrice1 ASMW2 RRSUFRPrice2 ECRSPrice2 ONNSPrice2 ASMW3 RRSUFRPrice3 ECRSPrice3 ONNSPrice3 ASMW4 RRSUFRPrice4 ECRSPrice4 ONNSPrice4 ASMW5 RRSUFRPrice5 ECRSPrice5 ONNSPrice5 ProxyASMW ProxyRRSUFRPrice ProxyECRSPrice ProxyONNSPrice Note: ONNS cannot be awarded at the same time with other AS for NCLR, SCED will determine which side to award. 30 PUBLIC

Example 4a: NCLR - No On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a NCLR with 100 MW MPC and no AS Offers submitted. The proxy AS offer will be created for all qualified AS products only. If NCLR is qualified for RRSFFR: AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 100 FloorRRSFFRprice FloorONNSprice If NCLR is qualified for RRSUFR/ECRS: AS Offer MW RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) Non-Spin Price ($/MW/h) 100 FloorRRSUFRprice FloorECRSprice FloorONNSprice 31 PUBLIC

Example 4b: NCLR - On-Line Upward AS Offers Example illustrates creation of proxy On-Line upward AS Offers for a NCLR with 100 MW MPC and 3 segments submitted The proxy AS offer will be created for all qualified AS products only. If NCLR is qualified for RRSFFR: AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non-Spin Price ($/MW/h) 20 18 30 17 10 15 100 18 FloorONNSprice If NCLR is qualified for RRSUFR/ECRS: AS Offer MW (up to 5 per Resource) RegUp Price ($/MW/h) RRSPFR Price ($/MW/h) RRSFFR Price ($/MW/h) RRSUFR Price ($/MW/h) ECRS Price ($/MW/h) On-Line Non-Spin Price ($/MW/h) 20 18 30 17 10 15 100 18 FloorECRSprice FloorONNSprice Note: Assume AS Proxy Offer Floors are less than submitted AS offer prices. 32 PUBLIC

Questions 33 PUBLIC