John DumasDirector of Wholesale Market Operations

RATFMarch 24, 2014

Comparison of the Operating Reserve Demand Curve Augmentations

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• Impact on Peaker Net Margin (PNM) on 1/6/2014 and 3/3/2014(in $/MW-year):

Impact on ORDC with various proposals

Scenario 1/6/2014 PNM (in $/MW-year)

3/3/2014 PNM (in $/MW-year)

Original Ps 2,158.52 644.71

Ps with additional conservative approach (i.e. 1 Standard Deviation added to

error distribution Pns)

5,953.63 3,510.95

Ps with additional conservative approach

(i.e. 500 MW added to

error distribution Pns)

3,129.38 1,314.77

Ps with RUC HSL pulled 3,127.62 6,609.93

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Original Ps PNM $2,158.52/MW-yearPs with SD added $5,953.63/MW-yearPS with 500 MW added $3,129.38/MW-year

4

Original Ps PNM $2,158.52 /MW-yearPs with RUC HSL pulled $3,127.62 /MW-year

5

Original Ps PNM $644.71/MW-yearPs with SD added $3,510.95/MW-yearPS with 500 MW added $1,314.77/MW-year

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Original Ps PNM $644.71/MW-yearPs with RUC HSL pulled $6,609.93/MW-year

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HSL of RUC Capacity from 1/1/2014 to 3/4/2014Sum of COP hsl Column LabelsRow Labels 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2401/06/2014 00:00:00 315 315 315 315 315 315 315 315 315 315 315 315 315 315 315 315 31501/23/2014 00:00:00 96 19201/24/2014 00:00:00 261 261 419 419 419 96 96 96 96 4801/28/2014 00:00:00 165 165 165 165 165 165 165 914 914 749 749 979 979 979 979 979 979 979 979 979 97901/30/2014 00:00:00 504 496 49001/31/2014 00:00:00 720 720 720 720 720 720 720 720 718 714 710 70302/01/2014 00:00:00 328 328 327 327 327 327 327 327 326 325 324 322 321 320 319 319 319 320 322 323 324 325 326 32602/02/2014 00:00:00 343 343 343 343 343 343 343 343 341 339 337 333 330 328 327 327 1039 1371 2394 2395 2399 2211 1665 71802/03/2014 00:00:00 525 525 525 525 772 770 767 766 764 764 764 764 765 765 765 766 766 52502/06/2014 00:00:00 59 59 321 321 310 310 310 310 310 310 310 322 322 322 322 322 322 322 322 322 322 322 728 72802/07/2014 00:00:00 728 728 728 728 728 728 667 667 667 667 406 540 54102/08/2014 00:00:00 559 559 559 559 558 46 46 45 45 553 560 556 1288 1275 1268 1265 1262 1266 1273 1277 1286 1294 24302/10/2014 00:00:00 502 50202/11/2014 00:00:00 373 875 875 87502/13/2014 00:00:00 242 712 1427 1423 1433 1435 1422 1429 1437 24202/14/2014 00:00:00 243 242 240 238 235 232 229 227 226 233 234 226 228 230 232 234 570 57202/15/2014 00:00:00 342 343 344 346 347 348 351 348 346 343 344 341 338 336 335 334 335 336 337 339 341 341 340 34002/16/2014 00:00:00 334 334 334 334 335 334 335 334 334 334 332 331 329 327 327 325 327 328 330 331 332 333 334 33402/17/2014 00:00:00 340 339 339 341 339 340 339 338 336 333 332 330 329 328 327 326 326 326 328 330 331 333 334 33602/18/2014 00:00:00 333 333 333 334 333 333 333 332 331 330 330 327 333 33402/19/2014 00:00:00 336 336 336 336 336 336 837 819 818 817 816 813 812 811 812 810 812 813 815 816 332 334 334 33402/20/2014 00:00:00 334 334 333 332 332 331 331 331 330 329 327 368 406 405 97 97 98 98 99 57 58 338 34002/21/2014 00:00:00 334 336 339 342 344 337 339 339 339 337 345 343 341 340 340 340 340 340 341 342 342 343 339 34002/22/2014 00:00:00 344 345 345 345 345 345 344 343 342 339 338 336 334 333 333 331 332 332 333 333 333 333 334 33402/23/2014 00:00:00 325 326 326 326 326 327 328 327 327 326 325 323 322 322 321 321 321 322 324 324 324 324 325 32502/24/2014 00:00:00 325 325 326 326 326 32602/25/2014 00:00:00 328 328 328 328 328 327 327 326 326 325 324 323 322 322 321 320 321 322 323 323 325 325 327 32702/26/2014 00:00:00 325 326 326 326 32602/27/2014 00:00:00 342 343 343 34502/28/2014 00:00:00 343 344 341 34103/01/2014 00:00:00 328 328 329 330 329 329 328 328 326 325 324 321 320 319 318 318 319 320 321 321 322 322 323 32303/02/2014 00:00:00 324 324 324 323 323 323 323 323 323 323 322 320 319 319 318 150 150 150 150 387 389 390 242 24303/03/2014 00:00:00 750 750 1486 1508 1508 1508 1508 1508 1508 866.9 867.1 867 867.2 845.6 846.1 846.3 846.1 845.8 845.2 80903/04/2014 00:00:00 59 59 59 59 59 59 59 59 59 59 59 59

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PNM impact by Day for 1/1/14 to 3/4/14 (1 SD Adder)

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PNM impact by Day for 1/1/14 to 3/4/14 (500 MW Adder)

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PNM impact by Day for 1/1/14 to 3/4/14 (RUC HSL Adder)