NOTICE DATE: January 4, 2023

NOTICE TYPE: M-A010423-01 General

SHORT DESCRIPTION: Board Member Zin Smati resigns from ERCOT Board of Directors

INTENDED AUDIENCE: All Market Participants and Corporate Members

DAYS AFFECTED: December 29, 2022 and Ongoing

LONG DESCRIPTION: On December 29, 2022, Board Member Zin Smati resigned from the ERCOT Board of Directors – effective immediately. Mr. Smati became ineligible as an ERCOT Board Member when another company (Boralex, Inc.) in which he is a Board member acquired 50% ownership in five Texas wind farms. Three of these wind farms (Longhorn Wind Project LLC, Spinning Spur Wind Three LLC and TX Hereford Wind LLC) are ERCOT Market Participants and therefore affiliates of Boralex, Inc.

Once this transaction occurred on December 29, 2022, the conflict provision in Public Utility Regulatory Act (PURA) 39.151(g-3) was triggered, which states the following:

A person does not qualify for selection as a member of the governing body of an independent organization for the ERCOT power region if the person has a fiduciary duty or assets in the electricity market for that region.

Further, the Ethics Agreement for Directors prohibits any direct business relationship with any Market Participant or its Affiliates. Mr. Smati indicated that he planned to remain on the Boralex board and therefore resigned his position to address the conflict. Mr. Smati fully disclosed in a timely manner all applicable information to ERCOT in evaluation of this conflict.

Pursuant to Section 4.5(d) of the ERCOT Bylaws, the Board Chair has notified the ERCOT Board Selection Committee of the Selected Director vacancy on the ERCOT Board. The ERCOT Board Selection Committee shall retain an outside consulting firm to help with the selection.

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 [log in to unmask].

If you are receiving email from a public ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.