NOTICE DATE: October 24, 2025

NOTICE TYPE: M-A102425-01 General

SHORT DESCRIPTION: Aggregate Distributed Energy Resource (ADER) Pilot Project: Adjustments to Limits of Participation

INTENDED AUDIENCE: All Market Participants

DAYS AFFECTED: October 24, 2025

LONG DESCRIPTION: Under the Phase 3 Governing Document of the Aggregate Distributed Energy Resource (ADER) Pilot Project, approved by the ERCOT Board of Directors on June 24, 2025, ERCOT was granted the authority to "...increase any of the imposed participation limits..." associated with the Pilot "If ADER participation is approaching either the system-wide limits or [Qualified Scheduling Entity] QSE limits in the Governing Document..."  Given the observed and anticipated increases in participation and capacity in recent months, ERCOT is exercising this authority to increase the following limits:

• The Total Registered System-Wide Capacity Limit of all ADERs in the Pilot will be increased from 160 MW to 200 MW
• The Total Registered System-Wide Limit of all ADERs providing Non-Spinning Reserve Service (Non-Spin) will be increased from 80 MW to 100 MW
• The Total Registered System-Wide Limit of all ADERs providing ERCOT Contingency Reserve Service (ECRS) will be increased from 80 MW to 100 MW
• The registration percentage limit applied to any QSE in respect of the above limits will be increased from 20% to 50%

The increase in the above limits will support continued development and growth of Resource capacity in the Pilot while accounting for administrative requirements and internal resourcing constraints.  These limits will take effect from October 24, 2025 and will be reflected in red-line updates to the Phase 3 Governing Document.  A communication to the Wholesale Market Subcommittee (WMS) advising of the same will also be issued and ERCOT staff will be available at the next meeting of WMS to support discussion and answer any questions.

CONTACT: If you have any questions, please contact your ERCOT Account Manager. You may also call the general ERCOT Client Services phone number at (512) 248-3900 or contact ERCOT Client Services via email at ClientServices@ercot.com.

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dg