The ERCOT Market Summit 2022 Schedule of Events

The ERCOT market is going through some huge changes and restructuring with a whole new organization of new decision-makers. These new changes will have a immense impact on every market in the state of Texas.

The 2022 ERCOT Market Summit will train guests on the impacts of changes in the past and those coming in the future. Policymakers will come together with utilities, renewable developers, IPPs, retail energy providers, end-use customers, financiers, and traders to explore the ever-changing needs of commercial, industrial and retail customers.



Day 1 - February 24, 2022

7:00-7:50 am Registration & Networking Breakfast

7:50-8:00 am Welcome & Introduction by the Summit Chair

Juliana Sersen, Partner, BAKER BOTTS L.L.P.

Dealing with the Impacts of SB3 and Market Restructuring

8:00-8:30 am Keynote Presentation: Policy Implementation and Regulatory Directions at the PUCT

Peter Lake, Chairman, PUCT

8:30-9:00 am Keynote Presentation: ERCOT Response to SB3 and Increasing Reliability

9:00-9:45 am Panel: Impacts of Market Changes to Enhance Reliability

In an effort to chart a path to increased reliability, ERCOT released a 60-point Roadmap to

Increased Reliability, and the PUCT has likewise initiated “once in a generation” moves to

enhance reliability. These includes both existing and new initiatives, including:

• Realigning incentives related to how the state's power grid procures resources

• Changing how generators are paid for producing electricity

• ERCOT taking a more aggressive operating approach to acquire reserves

• Adding new “new financial products” to reward reliability or allocate costs differently

• Performing unannounced testing of generation resources

• Addressing transmission constraints in Rio Grande Valley

Many of these changes will be initiated by February, as well as possible legislation affecting

renewables and other energy infrastructure at the federal level. This panel will explore the

impact of these and other changes introduced in response to the events caused by Winter Storm

Uri:

• What is the predicted cost of ERCOT adders?

• Will working with the ORDC formula be enough?

• What impacts might changing transmission cost allocation rules have on wind and solar

project economics?

Moderator:

Emil J. Barth, Partner, BAKER BOTTS L.L.P.

Panelists:

Erika Bierschbach, Vice President, Energy Market Operations & Resource Planning, AUSTIN

ENERGY

Randa Stephenson, Senior Vice President, Wholesale Markets, LCRA

Resmi Surendran, Vice President, Regulatory Policy, SHELL ENERGY NORTH AMERICA

9:45-10:15 am Networking Break

10:15-11:00 am Panel: Responding to Weatherization Requirements

The draft weatherization rules go beyond mandating installation of new equipment, but will

include costs for non-performance that could have been paid by load in the past. This panel will

examine what was initiated in the November filing mandated by SB3, and its potential financial

and operational impacts.

• What is in the new rules?

• Renewable vs storage vs gas assets, what does it looks like from their perspective?

• How and when might weatherization be implemented?

• Are the required installations feasible, and at what cost?

• How will the availability rules work, and what will the impacts be on the wholesale

market?

Panelists:

Ned Bonskowski, Senior Director of Texas Regulatory Policy, VISTRA CORP.

Barksdale English, Director, Division of Compliance & Enforcement, PUBLIC UTILITY

COMMISSION OF TEXAS (PUCT)

Senior Representative, AVANGRID RENEWABLES

11:00-11:45 am Panel: Market Impacts of Redefining Ancillary Services

Lost to some degree in the coverage of overall energy prices last February was the extreme cost

of ancillary services in the crisis. Prices at times reached $20,000 for services that normally might

have been $15. As a result, some substantial changes are anticipated in the definition of ancillary

services to be provided, and the establishment of price caps on them. This panel will explore the

potential changes to ancillary services in ERCOT, and their market impacts.

• What is the current state of affairs, and how are the changes being negotiated?

• How could price caps change the nature of this sometimes-lucrative market?

• What new ancillary services and reliability services might be in the offing?

• How are ERCOT unilateral ancillary service demand increases in summer of 2021

affecting the overall market?

Moderator:

Juliana Sersen, Partner, BAKER BOTTS L.L.P.

Panelists:

Jeff Billo, Director of Forecasting and Ancillary Services, ERCOT

Eric Blakey, Director, Regulatory and Governmental Affairs, JUST ENERGY

Bob Helton, Senior Director, Regulatory Affairs, ENGIE

Katie Rich, Regulatory & Market Advocacy Manager, GOLDEN SPREAD ELECTRIC COOP

Resmi Surendran, Vice President, Regulatory Policy, SHELL ENERGY NORTH AMERICA

11:45 am-1:15 pm Group Luncheon

Perspectives on Policy and Market Changes and Challenges

1:15-2:00 pm Panel: Renewable Energy Provider Perspectives on Market Changes

The prospects for renewable energy development in ERCOT has never been so uncertain.

Renewable energy providers were in many cases particularly impacted by high power prices last

February, in some cases seeing several years of equity evaporate in the course of one week. The

changes to market rules could increase operating costs and create pricing uncertainty, while

supply chain issue continue to plague construction costs. On the other hand, over 6 Gw of solar in

the interconnection queue could drastically change the price curve. This panel will examine:

• How are developers handling pricing uncertainty?

• Will ERCOT see the advent of a California-style duck curve?

• Wind assets lost a lot of money in the freeze. Have they recovered? What does this

mean for wind in Texas?

• Are they still seeing impacts from steel, copper and other commodity price increases?

• Are tariffs and trade restrictions having an impact on supply chains and costs?

Moderator:

Kyle Hayes, Special Counsel, BAKER BOTTS L.L.P.

Panelists:

Mike Danielson, Vice President, BAYWA R.E. SOLAR PROJECTS

Chris Fallon, President, DUKE ENERGY SUSTAINABLE SOLUTIONS

Mike Kelly, Senior Vice President, TRI GLOBAL ENERGY

Vitaly Lee, Head of Development, Q CELLS USA CORP.

Dan Rodriguez, Director, Origination, NATIONAL GRID RENEWABLES

2:00-2:45 pm Panel: The Future of Thermal Assets in Texas

Thermal assets have been in a long decline in the ERCOT market as renewables’ bids lowered

marginal prices. Lower efficiency coal plants have increasingly gone inactive and

decommissioned, while the pipeline for additions of new gas units dried up. However, many of

the envisioned market reforms to address reliability issues are aimed at increasing the amount

and availability of dispatchable generation units.

This panel will explore:

• The prospects for thermal generation going forward.

• Is this a renewal, or just a temporary blip for these assets in overall competition?

• Will envisioned changes to the ORDC provide a long-term boost to the economic

performance of thermal generation units?

• Will plans for LNG export drive gas prices up?

• Will the closures of coal-fired units continue if gas prices increase substantially?

Panelists:

Jennifer S. Hsia, Managing Senior Counsel, NRG ENERGY, INC.

Michele Richmond, Executive Director, TEXAS COMPETITIVE POWER ADVOCATES (TCPA)

Colby Rodriguez, Chief Commercial Officer, TEXGEN POWER

Brandon Whittle, Director, Strategic Origination, CALPINE CORPORATION

2:45-3:30 pm Panel: LSE & REP Perspectives on ERCOT Market Reforms

The fallout from the freeze of 2021 will in some ways impact the relationship between

customers, LSEs, REPs and the wholesale ERCOT market players for years to come. Existing

customers will be paying the costs of energy provided for years going forward, while new types

of sophisticated C&I customers could drive substantive changes. LSEs and REPs will have to

manage the risk accompanying changing demand and new market rules, while maintaining

reliable power.

This panel will explore:

• How are they planning to manage default charges and short pay situations?

• How could cost allocation between retail and wholesale market parties for grid services

change going forward?

• How are they planning to serve crypto miners, data centers and other sophisticated C&I

customers?

• Will power supply agreements be adjusted via change of law clauses?

Moderator:

Stephanie Kroger, Counsel, EVERSHEDS SUTHERLAND (US) LLP

Panelists:

Erika Bierschbach, Vice President, Energy Market Operations & Resource Planning, AUSTIN

ENERGY

Joshua Chambers, Vice President, Supply, APG&E

Frank McGovern, President, CLEARVIEW ENERGY

3:30-4:00 pm Networking Break

Focus on Infrastructure Developments

3:30-4:10 pm Panel: Transmission and Interconnection Issues: Will the Needs be Met?

The impacts of transmission congestion continue to grow in ERCOT, putting in jeopardy the

ability to reliably and affordably power the high-growth Rio Grande Valley and deliver renewable

energy from the Panhandle and West Texas to load centers. It is now perhaps the most

important factor to consider in siting both wind and solar projects in Texas. The ongoing

economic and operational difficulties imposed by the rise in congestion are creating winners and

losers among generation owners, often creating “renewables cannibalization” and extreme basis

risk. At the same time, proposals to build significant amounts of new transmission have failed to

advance.

This panel will discuss:

• Where are the economic effects of transmission congestion being seen the most?

• How is congestion affecting power delivery, curtailments and basis risk?

• How is transmission access affecting siting decisions for utility-scale solar and other

assets?

• Could utility-owned storage help increase transmission and distribution reliability?

Panelists:

Joey Alexander, AMPACIMON

John Bernecker, PE, Manager, Transmission Planning Assessment, ERCOT

Ann Coultas, Senior Manager, Regulatory Affairs, ENEL NORTH AMERICA, INC.

Kip M. Fox, President, ELECTRIC TRANSMISSION TEXAS

Brad Schwarz, Director of System Planning, HUNT POWER TO HUNT UTILITY SERVICES

4:10-4:15 pm Networking Reception Welcome Remarks by: Senior Representative, Q CELLS USA CORP.

4:15-5:00 pm Panel: Storage in ERCOT

The value of energy storage was proven in the Big Freeze, providing a vital role in providing

ancillary and balancing services. As a result, the installed storage assets in ERCOT got massive

payouts, and a large wave of storage projects has entered the interconnection queue. However,

it isn’t at all clear how sustainable standalone storage projects might be financially without

extreme volatility seen then. A lot of rule changes governing storage are anticipated as part of

the current review of the ERCOT market.

This panel will explore the future role of storage in the ERCOT market, including:

• What progress is being made on rule changes to support storage in ERCOT?

• How quickly and easily are storage projects advancing in the interconnection queue?

• Will adding storage to solar projects be used by developers as a way to load shift and

avoid the worst impacts of the coming duck curve?

• Are LSEs actively contracting storage to enhance distribution reliability?

• Are LSEs embracing storage as a way to manage load?

• When will storage begin replacing peakers in ERCOT?

• Can the combined revenue stream dispatch platform of ancillary services (most of the

time) arbitraged against energy arbitrage (when viable) really justify the cost of

stationary storage-only projects?

Moderator:

John J. Leonti, Partner, TROUTMAN PEPPER

Panelists:

Paul Choi, EVP and Head of Origination, BROAD REACH POWER

Cody Guidry, Director, Business Development, STEM

Ian Haley, ERCOT Regulatory Policy, VISTRA CORP

Chris McKissack, CEO, GLIDEPATH

5:00-6:00 pm Networking Reception Sponsored by: Q CELLS USA CORP.

Day 2 - February 25, 2022

7:20-8:20 am Registration & Networking Breakfast

8:20-8:30 am Welcome & Introduction by the Summit Chair

Juliana Sersen, Partner, BAKER BOTTS L.L.P.

Contractual, Project Finance and Development Pipeline Impacts

8:30-9:30 am Panel Discussion: Development Market Outlook in ERCOT

A huge wave of solar projects is cresting in ERCOT: as of September 2021, developers had

100.3GW of solar capacity in the queue vs 42.4GW of utility-scale battery storage, 22.5GW of

wind, 13.5GW of natural gas. However, it isn’t clear what the future portends. Transmission

congestion is affecting the ability to deliver power from some of the most resource-rich areas,

while the increase of solar on the system is already having impacts on the power price curve.

This panel will explore the drivers and challenges for utility-scale renewable development in ERCOT,

including:

• How is the development community tackling the Texas market?

• What do corporate commitments to decarbonization mean for the ERCOT market

project pipeline?

• What impacts might the runaway trajectory of ERCOT REC prices from $.5/MWh to over

$6/MWh in 2 years have on portfolio planning?

• Will Texas state policies developed to support investments in carbon-intensive fossil

industries and plants affect renewable project deployments?

• How is transmission congestion affecting the value of new builds and existing projects?

• How are power prices affecting project economics?

• What strategic remedies may be used to deal with basis risk and other uncertainties?

• How much solar is really likely to come on the system in the next 3 years?

• What are the prospects for wind development in 2022 and 2023?

Moderator:

Carl J. Fleming, Partner, MCDERMOTT WILL & EMERY LLP

Panelists:

Michael Hoadley, Texas Region Leader, UKA GROUP

Claudia J. Morrow, Senior Vice President, Corporate Development, VISTRA CORP

Josh Teigiser, Vice President of Business Development - Solar & Storage, ORIGIS ENERGY

9:30-10:00 am Networking Break

10:00-11:00 am Panel: Hedge Markets Post-Freeze

Hedge markets were, to put it politely, blown to smithereens by Winter Storm Uri. As a result,

are fixed or floating swaps dead? If so, what might take their places to achieve offtakes? How

will volatility be managed without those tools?

This panel will explore the state of risk management and trading in the ERCOT market.

• How will risk be addressed going forward?

• Can you finance a fixed hedge?

• Can insurance fill the gaps?

• Are there any new tools emerging?

• Can storage provide an answer?

• Will there be enough capacity in the market to “gamma squeeze” volatility situations in

the future?

Moderator:

Matthew Berend, Managing Partner, AB POWER ADVISORS

Panelists:

Alex Deng, Director of Business Development, KWH ANALYTICS

Daniel Miller, Managing Director – Power & Energy Group, CIT BANK

Brandon Wax, Executive Director, Commodities, J.P. MORGAN

11:00 am-12:00 pm Panel: Impacts on Project Finance in ERCOT

The events of last February, the ensuing financial fallout on market participants, and the changes

in policy are impacting pricing, project costs, and risk assessment. How are financiers’

perceptions of project viability and risk changing?

This panel will discuss what will be needed to finance projects in ERCOT going forward.

• How are bankruptcy proceedings affecting their willingness to finance projects in

ERCOT?

• What will be needed for a project to be bankable going forward?

• Could ESG concerns affect the financeability of thermal projects?

• Are other markets now becoming more attractive to do business in than ERCOT?

Panelists:

Jay Chang, Managing Director, CCA GROUP LLC

Carl Cho, Director, Power Industry Specialist, CITI (invited)

Thanasis Iatrou, CEO, CAPROCK RENEWABLES

Rubiao Song, Managing Director - Energy Investments, J.P. MORGAN

12:00 pm Summit adjourns