1. Protocol Revision Subcommittee Presentation to the ERCOT Technical Advisory Committee May 7, 2009

2. PRS Summary 3 PRRs for Approval 3 PRRs for Approval 4 NPRRs for Approval 4 NPRRs for Approval 2 Withdrawal Notices 2 Withdrawal Notices Current Discussions Current Discussions Status of Post-”Go-Live” NPRRs Status of Post-”Go-Live” NPRRs

3. Revision Requests Unanimously Recommended for Approval with No Impacts

4. PRR 796 – Resource Plan Performance Metrics Revision Purpose (FPL Energy) Provides that ERCOT shall determine a QSEs Resource Plan Performance under normal operating conditions by removing periods of abnormal or unusual events and which does not have a passing score Benefit Allows scoring flexibility when metric violations are caused by Forced Outages Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval; all Market Segments were present Effective Date July 1, 2009

5. PRR 796 – Resource Plan Performance Metrics Revision Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

6. PRR 802 – TCR Transition to CRR Refund Revision Purpose(ERCOT) Provides flexibility in the event monthly Transmission Congestion Rights (TCRs) are awarded and require refund for the subsequent month after Nodal Go-Live Benefit Transparency of TCR to CRR transition activities Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval; all Market Segments were present Effective Date July 1, 2009

7. PRR 802 – TCR Transition to CRR Refund Revision Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

8. NPRR 157– Extending Black Start Service Bid Timeline Purpose(ROS) Changes the Black Start Service bids from a 1-year period to a 2- year period (companion was PRR780) Benefit Gives Transmission Operators and Market Participants more time to prepare and train their system operators Market Impact Allows more time to train system operators System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval; all Market Segments were present Effective Date ERCOT believes NPRR 157 is needed for “go-live”; effective upon Nodal implementation; no impact to schedule

9. NPRR 157– Extending Black Start Service Bid Timeline Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

10. NPRR 163– Removal of Late Fee Language Purpose(ERCOT) Eliminates conflicting language by removing the concept of late fees calculated on all delinquent accounts; states that late fees are only calculated on delinquent DAM, RTM and RTM uplift amounts Benefit Removes conflicting language Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval; all Market Segments were present Effective Date ERCOT believes NPRR 163 is needed for “go-live”; effective upon Nodal implementation; no impact to schedule

11. NPRR 163– Removal of Late Fee Language Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

12. NPRR 166– Timing for Required Black Start Unit Load Carrying Test Purpose(ERCOT) Synchronizes the Nodal Protocols for PRR 785, Timing for Required Black Start Unit Load Carrying Test (BOD Approved 3/09); changes test from once every six years to once every five years Benefit Reduces risk of NERC compliance violation Market Impact More frequent load carrying tests System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval; all Market Segments were present Effective Date ERCOT believes NPRR 166 is needed for “go-live”; effective upon Nodal implementation; no impact to schedule

13. NPRR 166– Timing for Required Black Start Unit Load Carrying Test Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

14. NPRR 167– Options for Filing Verifiable Costs – QSEs or Resources Purpose (Verifiable Cost WG) Allows either QSEs or Resource Entities to file verifiable costs Benefit Eliminates confidentiality issues associated with Resource- specific verifiable cost data Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS unanimously recommended approval as amended by WMS; all Market Segments were present Effective Date ERCOT has no opinion on whether NPRR 167 is needed for “go- live”; no Nodal impacts

15. NPRR 167– Options for Filing Verifiable Costs – QSEs or Resources Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

16. Revision Requests Not Unanimously Recommended for Approval with Impacts

17. PRR 800 – QSE Day-Ahead Metric -- URGENT Purpose(ERCOT) Re-defines the Day Ahead metric for QSEs with and without WGRs to ensure that both categories of QSE schedule enough capacity in the Day Ahead to meet their planned energy schedules plus A/S obligations; removes WGR QSE exemption established by PRR 777, WGR QSE Metric Correction Benefit Establishes an appropriate Day Ahead metric for all QSEs Market Impact N/A System Change No ERCOT source systems will not be modified or impacted by this PRR. Assumptions ERCOT will develop a reporting solution which will query and report data from source systems. PRS Vote PRS recommended approval as amended by CPS Energy; one abstention from IPM; all Market Segments were present Effective Date Upon system implementation

18. PRR 800 – QSE Day-Ahead Metric -- URGENT Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact Less than $50K (project required)

19. PRR/NPRR Summary Revision Requests Unanimously Recommended for Approval with No Impacts Revision Requests Unanimously Recommended for Approval with No Impacts PRR 796 – Resource Plan Performance Metrics Revision PRR 796 – Resource Plan Performance Metrics Revision PRR 802 – TCR Transition to CRR Refund Revision PRR 802 – TCR Transition to CRR Refund Revision NPRR 157 – Extending Black Start Service Bid Timeline NPRR 157 – Extending Black Start Service Bid Timeline NPRR 163 – Removal of Late Fee Language NPRR 163 – Removal of Late Fee Language NPRR 166 – Timing for Required Black Start Unit Load Carrying Test NPRR 166 – Timing for Required Black Start Unit Load Carrying Test NPRR 167 – Options for Filing Verifiable Costs – QSEs or Resources NPRR 167 – Options for Filing Verifiable Costs – QSEs or Resources Revision Requests Not Unanimously Recommended for Approval with Impacts Revision Requests Not Unanimously Recommended for Approval with Impacts PRR 800 – QSE Day-Ahead Metric -- URGENT PRR 800 – QSE Day-Ahead Metric -- URGENT

20. Withdrawals SCR 750 – Upgrade ERCOT’s Systems so Users can Upgrade to Internet Explorer 7.0 and Beyond SCR 750 – Upgrade ERCOT’s Systems so Users can Upgrade to Internet Explorer 7.0 and Beyond NPRR 151 – Clarification of a Generator Output Breaker in the Outage Scheduler NPRR 151 – Clarification of a Generator Output Breaker in the Outage Scheduler

21. PRS Discussion Update Status of Post-”Go-Live” NPRRs Status of Post-”Go-Live” NPRRs PRS discussed basic framework for combining NPRRs into releases and distributed proposal in the TAC packet PRS discussed basic framework for combining NPRRs into releases and distributed proposal in the TAC packet After PRS approves NPRR, they will suggest a rank on the Nodal tab of the Project Prioritization List (PPL) – Parking Deck After PRS approves NPRR, they will suggest a rank on the Nodal tab of the Project Prioritization List (PPL) – Parking Deck Only Stakeholder Approved Items will be on Parking Deck Only Stakeholder Approved Items will be on Parking Deck Utilize current infrastructure of the stakeholder process Utilize current infrastructure of the stakeholder process PRS sends approved NPRRs to TAC with rank PRS sends approved NPRRs to TAC with rank TAC sends to BOD TAC sends to BOD If BOD approves NPRR, language added to Nodal Protocols as a grey-box If BOD approves NPRR, language added to Nodal Protocols as a grey-box Approved rank will be tracked in PPL Approved rank will be tracked in PPL