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.

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.

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.

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 the 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.

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

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

Down Regulation Services

A unique nine-digit common company identifier used in electronic commerce transactions.

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

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 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.

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.