Common Industry Terms Defined

Retail Load usage data that has been adjusted for UFE and transmission and/or distribution losses.

The Adjustment Period for any given Operating Hour is the time period following the close of the Day-Ahead market and extending up to each Operating Period.

An Advanced Meter reads your usage in more detail than a conventional meter. The Advanced Meter communicates usage information via radio frequency back to the local utility for monitoring and billing purposes, called telemeter, so your meter does not need to physically be read by a technician.

The second of four possible levels of communication issued by ERCOT in anticipation of a possible emergency condition detailed in Section 5.6.

1. An Entity who directly or indirectly owns or holds at least five percent of the voting securities of another Entity; or
2. An Entity in a chain of successive ownership of at least five percent of the voting securities of another Entity; or
3. An Entity that has at least five percent of its voting securities owned or controlled, directly or indirectly, by another Entity; or
4. An Entity that has at least five percent of its voting securities owned or controlled, directly or indirectly, by an Entity who directly or indirectly owns or controls at least five percent of the voting securities of another Entity or an Entity in a chain of successive ownership of at least five percent of the voting securities of another Entity; or
5. A person who is an officer or director of another entity or of a corporation in a chain of successive ownership of at least five percent of the voting securities of an Entity; or
6. An Entity that actually exercises substantial influence or control over the policies and actions of another Entity; or
7. Any other Entity determined by the PUCT to be an Affiliate.

The third of four possible levels of communication issued by ERCOT in anticipation of a possible emergency condition detailed in Section 5.6, Emergency and Short Supply Operation.

Procedures, outlined in Section 20 of these Protocols, for settling disputes by means other than litigation.

Advanced Metering System

A report prepared at least annually by ERCOT, as required by the PUCT rules, regarding the status of the ERCOT System including identification of ERCOT System existing and potential Congestion, which includes identification of current and recommended construction of Transmission Facilities.

American National Standards Institute

Ancillary Services

Area Transmission Constraints

A device used on Generation Resources to automatically maintain a voltage set point.

An hourly representation of availability of RMR, Synchronous Condenser and/or Black Start Resources submitted to ERCOT by Entities with RMR, Synchronous Condenser and/or Black Start Resources by 0600 in the Day Ahead Period.

The ratio of the total consumption divided by the number of days the consumption covered. (ADU = Monthly kWh/# of days).

An Energy and Ancillary Service schedule submitted to ERCOT by a Qualified Scheduling Entity that consists of projected interval Obligations and projected interval Supply, and that includes Qualified Scheduling Entity Obligations for Transmission and Distribution Losses. A Balanced Schedule must have aggregate Supply equal to aggregate Obligations, by Settlement Interval.

Balancing Energy represents the change in zonal energy output or demand determined by ERCOT to be needed to ensure secure operation of ERCOT Transmission Grid, and supplied by ERCOT through deployment of bid Resources to meet Load variations not covered by Regulation Service.

Balancing Energy Services

Bids received for Ancillary Services organized from lowest price to highest price bid for the same service and time interval.

A transfer scheme which isolates a group of loads from the Control Area in which they normally are served and subsequently interconnects them with an adjacent Control Area. Such transfer schemes involve either transferring loads normally in ERCOT to a Non-ERCOT Control Area or transferring loads normally in Non-ERCOT Control Areas to the ERCOT Control Area. Block Load Transfers specifically exclude transfers of load between ERCOT and Non-ERCOT Control Areas that occur behind a retail settlement meter.

A certificate issued by ERCOT stating that the Metering Facilities referred to in the certificate satisfy the certification criteria for Metering Facilities contained in these Protocols.

A redundant revenue quality meter, which produces equal or better accuracy than the primary revenue quality meter, connected at the same metering point, which must be certified in accordance with the ERCOT Protocols.

Commonly used for Computer Information Systems or Customer Information System.

Transmission model developed by ERCOT that arranges groups of Generation Resource and Load busses into Congestion Zones that have similar impacts on Commercially Significant Constraints.

Municipally Owned Utility or an Electric Cooperative that offers Customer Choice and sells electric energy at retail in the restructured electric power market in Texas; or a Retail Electric Provider (REP) as defined in 25.5 of the PUCT Substantive rules.

The situation that exists when requests for power transfers across a Transmission Facility element or set of elements, when netted, exceed the transfer capability of such elements.

An arrangement between the owner or controller of a leased Premise and a CR wherein the CR provides service to the leased Premise between tenants so that the Premise does not experience discontinuation of electric service during vacancy.

An electrical system, bound by interconnect (tie line) metering and telemetry, which continuously regulates, through automatic generation control, its generation and interchange schedules to match its system Load, regulates frequency, and meets all applicable Control Area requirements.

An individual or set of individuals responsible for monitoring and control operation of the Control Area.

Competitive Retailer

Customer Relationship Management. Customer Relationship Management Software, or CRM Software, is a large class of software programs essentially designed to help businesses manage their customer information.

Commercially Significant Constraint

A percentage based on the number of times a specific resource is used to resolve a localized problem where a Market Solution does not exist.

An Entity that purchases electricity for its own consumption.

The freedom of a retail Customer to purchase electric services, either individually or on an aggregated basis with other retail Customers, from the provider or providers of the Customer's choice and to choose among various fuel types, energy efficiency programs, and renewable power suppliers.

The database maintained by the Registration Agent containing information identifying each Premise, including current and previous Competitive Retailers serving the Premise.

Day Ahead

Data Aggregation System

The process of netting, grouping and summing Load consumption data, applying appropriate profiles, Transmission Loss Factors, and Distribution Loss Factors and calculating and allocating UFE to determine each QSE and/or Load Serving Entities responsibility by Settlement Interval by Congestion Zone and by other prescribed aggregation determinants.

The database and communication system that will collect meter data from TDSPs and directly polled meters in ERCOT. The system will perform aggregation functions to the Load data in order to satisfy certain objectives such as providing TDSPs with Load share data to use in billing Competitive Retailers, assigning QSE Load responsibility, and assisting Competitive Retailers and QSEs in their settlement responsibilities. The data will also be compiled along Congestion and weather zones.

An integrated normalized data structure of all the target source systems' transactions. The population of the data archive will be an extraction of data from the transaction systems without transforming the data. The Data Archive will be used to populate the Data Warehouse.

De-normalized data stored in a schema, physically optimized to handle high volumes of data and concurrent user access, and is generally lightly indexed.

Direct current

A plan by ERCOT containing the hours and levels of operation that an RMR Unit, including Synchronous Condenser Unit, is instructed to operate.

Instantaneous or integrated power consumption

Any non-synchronous transmission interconnections between ERCOT and non-ERCOT electric power systems.

Controlling select end-use equipment (e.g. A/C, water heaters) for purposes of reducing energy consumption during select periods.

Specific command(s) issued by ERCOT to QSEs or TDSPs during the course of operating the ERCOT System.

The ratio of the Distribution Service Provider's estimated Distribution Losses to the total amount of energy deemed consumed (IDR plus profiled consumption) on the Distribution Service Provider's system.

The difference between the energy delivered to the Distribution System and the energy consumed by Loads connected to the Distribution System.

An Entity that owns and maintains a Distribution System for the delivery of energy from the ERCOT Transmission Grid to the Customer.

That portion of an electric delivery system operating at under 60 kilovolts (kV) that provides electric service to Customers or Wholesale Customers.

Distribution Loss Factor

Disconnect for Non-Payment

Down Regulation Services

A unique nine-digit common company identifier used in electronic commerce transactions. Number issued by Dun & Bradstreet.

A Real Time telemetered signal to ERCOT derived from an actual metered Load that represents an energy Obligation and Resource in a QSE schedule, as further described in Section 4, Scheduling.

Electronic Data Interchange

1. A corporation organized under Chapter 161, Texas Utilities Code, or a predecessor statute to Chapter 161 and operating under that chapter;
2. A corporation organized as an electric cooperative in a state other than Texas that has obtained a certificate of authority to conduct affairs in the State of Texas; or
3. A successor to an electronic cooperative created before June 1, 1999, in accordance with a conversion plan approved by a vote of the members of the electric cooperative, regardless of whether the successor later purchases, acquires, merges with, or consolidates with other electric cooperatives.

A Texas nonprofit corporation that has been certified by the PUCT as the Independent Organization, as defined in §39.151 of PURA, for the ERCOT Region.

The basic identifier assigned to each Service Delivery Point used in the registration and settlement systems managed by ERCOT or another Independent Organization.

A Transmission and/or Distribution Service Provider (for all uses of its Transmission System) or any electric utility, municipally owned utility, Electric Cooperative, Power Generation Company, Competitive Retailer, Retail Electric Provider, federal power marketing agency, exempt wholesale generator, qualifying facility, power marketer, or other person whom the Public Utility Commission of Texas has determined to be an Eligible Transmission Service Customer.

That operating condition where the safety or reliability of the ERCOT System is compromised or threatened, as determined by ERCOT.

A plan which provides an orderly, predetermined procedure for maximizing use of available Resources and, only if necessary, curtailing demand during electric system emergencies while providing for the maximum possible continuity of service and maintaining the integrity of the ERCOT System.

The fourth of four possible levels of communication issued by ERCOT in anticipation of a possible Emergency Condition detailed in Section 5.6.

The condition wherein ERCOT experiences an insufficient amount of bids in any Ancillary Services market, as described in Section 6.

Energy Management System

Energy Provider

ERCOT Polled Settlement Meter

Electric Reliability Council of Texas

The Board of Directors of the Electric Reliability Council of Texas.

Any member of ERCOT that is a member in good standing in accordance with the ERCOT Bylaws.

Any one of the following entities that meets the requirements of Section 10.2.3, ERCOT Polled Settlement Meters:

1. Any Generation connected directly to the transmission system;
2. Any Generation equal to or over 10MW;
3. Any Generation participating in any ancillary service market;
4. Non-opt-in Cooperatives and Municipality points of delivery over 10MW; or
5. Direct-Current ties (or interchanges with other control areas outside of ERCOT).

Additionally ERCOT will directly poll any generator or non-opt-in utility metering point at the request of the entity if the entity meets all requirements and certifications associated with EPS metering.

Meter Any meter polled by ERCOT as defined in Section 10 for use in the financial settlement of the Market.

The geographic area under the jurisdiction of the PUCT that is served by TDSPs that are not synchronously interconnected with electric utilities outside the state of Texas.

Schedule of fees charged by ERCOT for various services provided to designated Entities, in accordance with these Protocols and/or as approved by the ERCOT Board, and as posted on the MIS.

The interconnected combination of generation, transmission, and distribution components in the ERCOT Region.

The sum of all HVDC interconnections and Generation Resources metered at the point of its interconnection with the ERCOT System at any given point in time.

All of those Transmission Facilities which are within the ERCOT Region.

Electric Service Identifier

Federal Energy Regulatory Commission

Those schedules ERCOT deems valid following the close of the Day Ahead period.

A positive (+) value, in megawatts per 0.1Hz, to represent response of a QSE's Resources to a deviation in frequency from scheduled frequency.

File Transfer Protocol

An electronically-published index that reflects the price of fuel as determined by a fuel industry organization using available market information.

Owner or controller of a Generation Resource used for generating electricity and electrically connected to the ERCOT System.

Facilities that produce energy and that are owned or operated by a Generation Entity.

Any of the practices, methods, and acts engaged in or approved by a significant portion of the electric industry during the relevant time period, or any of the practices, methods, and acts that, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety, and expedition. Good utility practice is not intended to be limited to the optimum practice, method, or act, to the exclusion of all others, but rather is intended to include acceptable practices, methods, and acts generally accepted in the region.

The generated output power at the terminals of the generator.

The maximum net dependable capability of a Resource at any point in time.

Interval Data Recorder

The kW level at which the installation of interval data recorders are required for settlement purposes as set forth in Protocols Section 18.6.1, Interval Data Recorder Installation and Use in Settlement.

An account maintained by ERCOT to track any differences between deemed meter readings at the DC Ties, based on schedules, and the actual metered values at the DC Tie meters.

See Settlement Statement

An agreement that sets forth requirements for physical connection between an Eligible Transmission Service Customer and Transmission and/or Distribution Service Providers.

Any Energy and Ancillary Services scheduled to or from other QSEs or ERCOT.

Metering Device that is capable of recording Load usage in each Settlement Interval in accordance with Section 9, Settlement and Section 10, Metering

• Settlement Invoice - A notice for payment or credit due rendered by ERCOT based on data contained in Initial, Final, True-Up or any Resettlement Statements.
• TCR Invoice - An invoice issued to a successful bidder based on a final round of a TCR auction.

Market Participants that receive an Invoice from ERCOT.

Investor Owned Utilities

Independent Power Producers

Independent System Operator

The amount of electric power delivered at any specified point or points on a system.

A representation of the energy usage of a group of Customers, showing the demand variation on an hourly or sub-hourly basis.

A classification of a group of Customers having similar energy usage patterns and that are assigned the same Load Profile.

The set of processes used for the development and creation of Load Profiles.

The fundamental basis on which Load Profiles are created. The implementation of a Load Profiling Methodology may require statistical sampling, engineering methods, econometric modeling, or other approaches.

A QSE's ratio of Adjusted Metered Load to total ERCOT Adjusted Metered Load related to the appropriate interval.

An Entity that provides electric service to Customers and Wholesale Customers. Load Serving Entities include Retail Electric Providers, Competitive Retailers, and Non-Opt In Entities that serve Load.

Any Congestion that cannot be resolved by deployment of Balancing Energy Service by Congestion Zone.

The code representing the physical location of a Premise.

The minimum net capability of a Resource at any point in time.

Load Research Sampling

Load Serving Entity

The highest price associated with a Congestion Zone for a Settlement Interval for Ancillary Service capacity awarded in each Ancillary Services capacity procurement run by ERCOT. There will be a separate Market Clearing Price for Capacity for each Ancillary Services capacity market.

The highest price associated with a Congestion Zone for a Settlement Interval for Balancing Energy deployed during the Settlement Interval.

Plan developed by ERCOT that addresses training, testing, qualification, and registration of Market Participants for participation in the Customer Choice Pilot, as well as the conversion to single Control Area operations.

An electronic communications interface established and maintained by ERCOT that provides a communications link to Market Participants, including secure access by and communications to individual Market Participants regarding information linked to each individual Market Participant.

An Entity that engages in any activity that is in whole or in part the subject of these Protocols, regardless of whether such Entity has executed an Agreement with ERCOT.

The Segments defined in Article 2 of the ERCOT Bylaws. The segments are:

• Independent REPs,
• Independent Generators,
• Independent Power Marketers,
• Investor Owned Utilities,
• Municipals,
• Cooperatives, and
• Consumers.

The immediate cessation of service by a CR to all ESI IDs served by the CR.

Market Clearing Price

Market Clearing Price for Capacity

Market Clearing Price for Energy

The ranking of Resources as a direct function of the monetary bid from those resources.

The ERCOT-to-QSE communications system used to send Real-Time notices and Dispatch Instructions to the QSEs.

The system to obtain revenue quality meter data from ERCOT Polled Settlement meters and Settlement Quality Meter Data from the TDSP for settlement and to populate the Meter Data Aggregation System and ERCOT Data Archive.

The format for submitting meter data to, or receiving data from, ERCOT Settlement Agent.

The format for requesting Settlement Quality Meter Data from the ERCOT Settlement Agent.

Meters, instrument transformers, secondary circuitry, secondary devices, meter data servers, related communication Facilities and other related local equipment intended to supply ERCOT settlement quality data.

The fee charged to a QSE that fails to correct a mismatched schedule in a timely manner.

Municipally Owned Utility

A utility owned, operated, and controlled by a municipality or by a nonprofit corporation, the directors of which are appointed by one or more municipalities.

North American Energy Standards Board

North American Electric Reliability Corporation

Maximum sustainable capability of a Generation Resource as demonstrated by performance testing.

Gross generation minus station auxiliaries or other internal unit power requirements metered at or adjusted to the point of interconnection at the Common Switchyard.

Renewable energy generators placed in service on or after September 1, 1999. A New Facility includes the incremental capacity and associated energy from an existing Renewable Facility through repowering activities undertaken on or after September 1, 1999.

In the nodal market, the grid will consist of more than 4,000 nodes, replacing today’s Congestion Management Zones. The Texas Nodal design is expected to improve price signals, improve dispatch efficiencies and direct assignment of local congestion. The Texas Nodal Program exists to facilitate the transition from a zonal to a nodal market, and affects many business processes and systems, including: a day-ahead market (DAM), reliability unit commitment (RUC), real-time or security constrained economic dispatch (SCED) and congestion revenue rights (CRRs).

Non Opt-In Entity

Load that is not required to be metered by applicable distribution or transmission tariff.

An Electric Cooperative or Municipally Owned Utility that does not offer Customer Choice.

A service that is provided through utilization of the portion of off-line generation capacity capable of being synchronized and ramped to a specified output level within thirty (30) minutes (or Load that is capable of being interrupted within thirty (30) minutes) and that is capable of running (or being interrupted) at a specified output level for at least one (1) hour. Non-Spinning Reserve Service (NSRS) may also be provided from unloaded on-line capacity that meets the above response requirements and that is not participating in any other activity, including ERCOT markets, self-generation and other energy transactions.

The national organization that develops and enforces reliability standards; monitors the bulk power system; assesses future adequacy; audits owners, operators and users for preparedness; and educates and trains industry personnel.

Sending of information by an Entity to Market Participants, ERCOT, or others, as called for in these Protocols. Notice or notification may be sent by electronic mail, facsimile transmission, or U.S. mail.

Total Obligations scheduled by a QSE that are comprised of energy Obligations and Ancillary Services Obligations where: Energy Obligations = Load + losses + energy sales + energy exports; and Ancillary Services Obligations = ERCOT allocated Ancillary Services Obligations (which may be self-arranged) + Ancillary Services sales (to ERCOT or to other QSEs)

Also known as, Software as a Service (SaaS) or Application Service Provider (ASP) software, On-Demand software is software delivered via the Internet as opposed to the traditional way of buying servers, installing software, and having to maintain both.

Resources that are synchronously interconnected to the ERCOT System.

Out of Merit Order

Out of Merit Capacity

Out of Merit Energy

The first of four possible levels of communication issued by ERCOT in anticipation of a possible emergency condition detailed in Section 5.6, Emergency and Short Supply Operation.

The actual day, including hours ending 0100 to 2400, during which energy is flowing.

Guidelines approved by the ERCOT Board describing the reliability standards for ERCOT.

A two-hour period comprised of the Operating Hour and the hour preceding the Operating Hour.

A plan developed by ERCOT to operate the ERCOT System in Real Time.

Anticipated or actual security violation or overload of a transmission element, based on actual network topology.

The transmission model based on actual network topology of the ERCOT System.

Capacity provided by a Resource selected by ERCOT outside the bidding process to resolve a reliability or security event when no Market Solution exists.

Energy provided by a Resource selected by ERCOT outside the bidding process to resolve a reliability or security event when no Market Solution exists.

The selection of Resources for Ancillary Services that would otherwise not be selected to operate because of their place (or absence) in the bidding process for that service.

Removal of a Facility from service to perform maintenance, construction or repair on the Facility for a specified duration.

Forced Outage
A component failure or other condition that requires that the equipment be removed from service immediately or up to and including the next weekend.

Maintenance Outage
Removing Transmission Facility or Resource Facility equipment from service to perform work on specific Facility components that could be postponed past the very next weekend. Such work is required to prevent a potential Forced Outage and that could not be postponed until the next Planned Outage.

Planned Outage
Any major or minor Transmission Facility or Resource Facility equipment maintenance that is planned and scheduled in advance as submitted to ERCOT.

Can either mean (a) the greatest amount of electricity your household used during a certain day or (b) the time(s) of the day that customers of a utility generally use the most electricity. Energy demand is high during on-peak hours and low during off-peak hours.

Power Generation Company

Power Marketer

The pro rata allocation of charges (or payments), which spreads to designated, Entities based on a pro rata share (of actual or estimated consumption).

An Entity registered by the PUCT that:

1. generates electricity that is intended to be sold at wholesale;
2. does not own a transmission or distribution Facility in this state other than an essential interconnecting Facility, a Facility not dedicated to public use, or a Facility otherwise excluded from the PURA definition of "electric utility"; and
3. does not have a certificated service area, although its affiliated electric utility or transmission and distribution utility may have a certificated service area.

An Entity that:

1. Becomes an owner or controller of electric energy in this state for the purpose of buying and selling the electric energy at wholesale;
2. Does not own generation, transmission, or distribution Facilities in this state;
3. Does not have a certificated service area; and
4. Has been granted authority by the Federal Energy Regulatory Commission to sell electric energy at market-based rates or has registered as a power marketer.

A website where you can learn about electric competition in Texas and obtain information to help you make informed decisions about your electricity service and Retail Electric Provider.

A Service Delivery Point or combination of Service Delivery Points that are assigned a single Electric Service Identifier (ESI ID) for purposes of settlement and registration.

Prepaying for your electricity is similar in concept to prepaying for cellular phone service. In effect, you pre-buy your electricity before you use it. There are several methods commonly used, but each requires that you provide additional payments as you consume what has been prepaid.

The bundled rate a Retail Electric Provider that is affiliated with an Entity required to unbundle its electric services, and offer Customer Choice, must charge to residential and small commercial Customers upon initiation of Customer Choice, as further described in Section 39.202 of PURA and PUCT rules.

The ERCOT approved, revenue-quality meter connected at an ERCOT approved interconnection point.

Any previous agreement between an Entity, its Affiliate(s) or its predecessor(s) in interest and ERCOT regarding performance under the ERCOT Protocols.

See Load Profile Class

The entity approved by the PUCT that is responsible for carrying out the administrative responsibilities related to the Renewable Energy Credit Program as set forth in PUCT Substantive Rule 25.173(g).

A written proposal submitted by an Entity to ERCOT describing a proposal for the installation of additional Metering Facilities.

Any information compiled by a Market Participant on a Customer in the normal course of Market Participant's business that makes possible the identification of any individual Customer by matching such information with the Customer's name, address, account number, type of classification service, historical electricity usage, expected patterns of use, types of Facilities used in providing service, individual contract terms and conditions, price, current charges, billing records, or any other information that a Customer has expressly requested not be disclosed. Information that is redacted or organized in such a way as to make it impossible to identify the Customer to whom the information relates does not constitute Proprietary Customer Information.

That information protected from disclosure as described in Section 1, Overview.

Plan developed by ERCOT that identifies any known differences between the ERCOT market operations system, power operations system, and settlement systems and these Protocols, and specifies a plan to conform such systems to these Protocols.

The designated Competitive Retailer as defined in the PUCT Substantive Rules for default Customer service, and as further described in Section 15.1, Customer Switch of Competitive Retailer.

Public Utility Commission of Texas

Public Utility Regulatory Act, Title II, Texas Utility Code

Public Utility Regulatory Policy Act

Qualified Scheduling Entity

The person designated by the QSE to communicate with ERCOT on a 24-hour basis.

A Market Participant that is qualified by ERCOT in accordance with Section 16, Qualification of Qualified Scheduling Entities and Registration of Market Participants, to submit Balanced Schedules and Ancillary Services bids and settle payments with ERCOT.

A qualifying cogenerator or qualifying small power producer according to regulatory qualification criteria as defined in PURA.

The product of voltage and the out-of-phase component of alternating current. Reactive Power, usually measured in megavolt-amperes reactive, is produced by capacitors, overexcited generators and other capacitive devices and is absorbed by reactors, underexcited generators and other inductive devices.

That reactive capability required to meet sudden loss of generation, Load or transmission capacity and maintain voltage within desired limits.

The current instant in time.

Renewable Energy Credit

The Renewable Energy Credit trading program, as described in Section 14, Renewable Energy Credit Trading Program, and PUCT Subst. R. 25.173.

Entity that is registered with ERCOT to participate in the competitive market administered by ERCOT within the ERCOT Region. Registered Market Participants include those using statewide systems administered by ERCOT and may be non-ERCOT participants.

Minimum amount of time the ERCOT registration system requires to process transactions. This period begins when ERCOT receives a registration transaction request and continues until the completion of the transaction.

A service that is used to control the power output of Generation Resources in response to a change in system frequency so as to maintain the target system frequency within predetermined limits.

A Generation Resource unit operated under the terms of an annual Agreement with ERCOT that would not otherwise be operated except that they are necessary to provide voltage support, stability or management of localized transmission constraints under first contingency criteria where Market Solutions do not exist.

Predetermined operator actions to maintain ERCOT Transmission Grid reliability during a defined adverse operating condition.

Certificates issued to a power company which utilizes environmentally friendly methods to generate electricity.

Retail Electric Provider

A service that is procured from Generation Resource units planned to be off-line and Load acting as a Resource that are available for interruption during the period of requirement.

The technique for profiling premises participating in special pricing programs which consists of implementing a statistically representative Load research sample on the program population. The sample data is then used to develop the representative IDR (RIDR) for profiling these premises.

Facilities or Load capable of providing or reducing the need for electrical energy or providing Ancillary Services to the ERCOT System, as described in Section 6, Ancillary Services. This includes Generation Resources and Loads acting as Resources.

A Market Participant that owns or controls a Resource.

A unique identifier assigned to each Resource used in the registration and settlements systems managed by ERCOT.

A plan provided by a QSE to ERCOT indicating the forecast state of Generation Resources or individual Loads each acting as a Resource, including information on availability, limits and forecast generation or Load of each Resource.

The controlled and orderly transfer of eligible resources from one QSE to another in accordance with Section 4, Scheduling.

Responsive Reserve consists of the daily operating reserves that are intended to help restore the frequency of the interconnected transmission system within the first few minutes of an event that causes a significant deviation from the standard frequency.

A person that sells electric energy to retail Customers in this state. As provided in PURA §31.002(17), a Retail Electric Provider may not own or operate generation assets. As provided in PURA §39.353(b), a Retail Electric Provider is not an Aggregator.

For ERCOT Metered Entities, a meter that is in compliance with the Protocols and the Operating Guides. For TDSP Metered Entities, a meter that is in compliance with Local Regulatory Authority approved meter standards or the Protocols and the Operating Guides.

Regulation Service

Reliability Must-Run

Retail Market Subcommittee

Replacement Reserve Service

Responsive Reserve Obligation

Responsive Reserve Service

Software as a Service

The processes by which ERCOT determines the appropriate requirements for a sample of Customer Premises which requirements will be used to create a Load Profile.

The process of selecting a subset of a population of Customers that statistically represents the entire population.

Senate Bill 7

Supervisory Control And Data Acquisition

The difference in the QSE's actual Resource output and its base power schedule plus instructed Ancillary Services.

The process through which schedules for energy and Ancillary Services are submitted by QSEs to ERCOT as further described in Section 4, Scheduling.

Winter months are December, January, and February; Spring months are March, April, and May; Summer months are June, July, and August; Fall months are September, October, and November.

The process of dividing a population into a number of sub-sets, according to certain parameters, for the purpose of creating Load Profiles for sub-sets of the population.

The parameter chosen as the basis for Segmentation.

Resources used for Ancillary Services designated by a QSE for use by ERCOT for meeting the ERCOT allocated portion of the Ancillary Services Obligations of a QSE. These Resources may not be included in the ERCOT Ancillary Services market.

The street address associated with an ESIID as recorded in the Registration Database. This address shall conform to United States Postal Service Publication 28.

The specific point on the TDSP's system where electricity flows from the TDSP to a Load.

A listing of ERCOT fees and charges to Market Participants, posted on the Market Information System.

A filing by a QSE to ERCOT as part of the QSE's certification process, as defined in Section 16, Qualification of Qualified Scheduling Entities and Registration of Market Participants.

Standard Electronic Transaction

As defined in Section 9.1.2, Settlement Calendar.

The time period for which a Market Service is deployed and financially settled. For example, the currently defined settlement interval for the Balancing Energy Market Service is 15 minutes.

See Invoice

Generation and end-use consumption meters used for allocation of ERCOT charges and wholesale and retail settlements.

Data that has been edited, validated, and is appropriate for ERCOT Settlement Agent to use for settlement and billing purposes.

A statement issued by ERCOT reflecting a breakdown of administrative, miscellaneous, and market charges for the applicable Market Services, as further described in Section 9.2, Settlement Statement.

Initial Statement
The first iteration of a Settlement Statement issued for a particular Operating Day, as further described in Section 9.2.1, Initial Statement

Final Statement
The statement issued at the end of the forty-fifth (45th) calendar day following the Operating Day, as described in 9.2.2, Final Statements.

Resettlement Statement
The statement using corrected settlement data, in accordance with Section 9.2.3, Resettlement Statement.

True-Up Statement
The statement issued six (6) months following the Operating Day, as further described in Section 9.2.4, True-Up Statement.

The cost of an operation to effect a one (1) MW change in a constraint.

A measure of the flow of a unit injection of the power on the transmission element from a particular bus to a fixed reference bus.

Site Specific Shift Factor
The actual Shift Factor for a particular bus.

Zonal Shift Factor
The average Shift Factor for all busses in a particular zone.

Conventions for Reactive Power

• GeneratorLagging power factor operating condition is when volt-ampere reactive (VAR) flow is out of the Generation Resource unit (overexcited generator) and into the transmission system and is considered to be positive (+) flow, i.e., in the same direction as megawatt power flow. The generator is producing megavolt-amperes reactive. Leading power factor operating condition means that VAR flow is into the Generation Resource unit (underexcited generator) and out of the transmission system and is considered to be negative (-) flow, i.e., in the opposite direction as megawatt power flow. The generator is absorbing megavolt-amperes reactive.
• Transmission Line Terminal
  VAR flow out of the bus and into the line is considered to be positive (+) flow. VAR flow into the bus and out of the line is considered to be negative (-) flow.
• Capacitor
  Produces reactive power (VAR source) for voltage control and causes the system power factor to move towards a leading condition.
• Reactor
  Absorbs reactive power (VAR sink) for voltage control and causes the system power factor to move towards a lagging condition.

A different term used to refer to an advanced meter.

Southwest Power Pool

Non-Spinning Reserve Service

Total supply scheduled by a QSE that is comprised of Energy Supply and Ancillary Services Supply where:

Energy Supply = Resources + energy purchases + energy imports; and

Ancillary Services Supply = Resources + Ancillary Services purchases (including purchases through ERCOT) + Ancillary Services imports

A unit operated under the terms of an annual Agreement with ERCOT that is only capable of supplying Volt Amperes Reactive (VAR) that would not otherwise be operated except that it is necessary to provide voltage support under first contingency criteria where Market Solutions do not exist.

The fund established by the PUCT to provide funding for Customer education programs, programs to assist low-income electric Customers; and the property tax replacement mechanism provided by Section 39.601 of PURA.

ERCOT's accounting fund from which payments for resolving Congestion are disbursed and to which ERCOT credits Congestion-related receipts from QSE's representing Loads.

An Entity supervising the collective Transmission Facilities of a power region that is charged with coordination of market transactions, system-wide transmission planning, and network reliability.

Transmission Losses & Distribution Losses

Technical Advisory Committee

Transmission Congestion Right

The CSC for which Transmission Congestion Rights are auctioned and awarded.

Transmission and/or Distribution Service Provider

Any Entity that meets the requirements of Section 10.2.2, TDSP Metered Entities.

A subcommittee in the ERCOT governance structure reporting to the Board of Directors as defined by the ERCOT bylaws.

Texas Retail Market Testing is an end-to-end test of the retail commercial processes that occur in the Texas market. Any competitive retailer (CR) or transmission/distribution service provider (TDSP) intending to participate in the Texas retail market must successfully certify its commercial applications through a market test flight.

Texas Standard Electronic Transaction procedures, set forth in Section 19, Texas SET, used to transmit information pertaining to the Customer Registration Database. Record and Data Element Definitions are provided in the data dictionary in Protocols Section 19.

A programmable electronic device capable of measuring and recording electric energy in pre-specified time periods. For Load Profiling purposes Time of Use Metering does not include IDRs.

A schedule identifying the Time of Use period associated with each Settlement Interval. These schedules may include on-peak, off-peak, and shoulder periods.

Transmission Loss Factor

The total energy Obligation for a Qualified Scheduling Entity during a Settlement Interval, including the energy from the Balanced Schedule and integrated energy of instructed Ancillary Services.

The maximum power that may be transferred across a transmission corridor while maintaining reliability of the ERCOT System.

A batch, transactional interface intended to provide reliable exchange of high volume, standardized transactions between Market Participants and ERCOT using the Texas SET procedures in Section 19, Texas SET.

The monthly ratio of the aggregate Competitive Retailer's four (4) coincident peak demand over the monthly aggregate Competitive Retailer's coincident peak demand, as further described in Section 9.8, Transmission Billing Determinant Calculation.

Use of the TDSP's Transmission Facilities for which the TDSP is allowed to charge for the use through tariff rates approved by the PUCT.

An Entity that owns or operates for compensation in this state equipment or Facilities to transmit and/or distribute electricity, and whose rates for Transmission Service, distribution service, or both is set by a Governmental Authority.

Key parameters and formula components required by a TDSP in determining the billing charges for the use of its Transmission Facilities and/or distribution Facilities.

A financial hedge against the cost of 1 MW flowing across a particular Commercially Significant Constraint, in a single direction, for 1 hour.

The following Facilities are deemed to be Transmission Facilities:

1. Power lines, substation, and associated Facilities, operated at 60 kV or above, including radial lines operated at or above 60 kV.
2. Substation Facilities on the high side of the transformer, in a substation where power is transformed from a voltage higher than 60 kV to a voltage lower than 60 kV or is transformed from a voltage lower than 60 kV to a voltage higher than 60 kV.
3. The direct current interconnections with the Southwest Power Pool (SPP), Western System Coordinating Council (WSCC), Comision Federal de Electricidad, or other interconnections.

The fraction of ERCOT Load (forecast or actual) that is considered to constitute the ERCOT Transmission Grid losses in the Settlement Interval. Transmission Loss Factors are computed by ERCOT and are based on a linear interpolation (extrapolation) of the calculated losses in the off-peak and on-peak seasonal ERCOT base cases.

Difference between energy input into the ERCOT Transmission Grid and the energy taken out of the ERCOT Transmission Grid.

Commercial use of Transmission Facilities.

See Settlement Statement

Transmission Service Provider

The 24-hour period beginning the instant after 2400 48 hours before the Operating Day.

Unaccounted For Energy

The difference between total metered Load each Settlement Period, adjusted for applicable Distribution Losses and Transmission Losses, and total ERCOT System net generation.

A condition occurring whenever the total metered resources of a QSE for a Settlement Interval are different from the total of the scheduled resources plus any Resource deployments instructed by ERCOT.

A factor used to reduce the total payments made to a Resource for Uninstructed Deviations. The Uninstructed Factor could change by interval, in accordance with Section 6.8.1.14.2, Determining the Uninstructed Factor.

The process of allocating costs to QSEs based on Loads and exports within the ERCOT Region.

Up Regulation Services

See Load Profile

A predetermined distribution of desired nominal voltage set points across the ERCOT System.

A service that is required to maintain transmission and distribution voltages on the ERCOT Transmission Grid within acceptable limits.

Service

A geographic region in which climatological characteristics are similar for all areas within such region.

Western Electric Coordinating Council

Non-Opt-in entities receiving service at wholesale points of delivery from an LSE other than themselves.

Congestion that can be resolved by deployment of Balancing Energy Services by Congestion Zones, including CSCs and any Operational Constraints underlying or essentially parallel to CSCs.