1. Credit Work Group Update April 4, 2008

2. General  Credit Work Group met on Friday, March 7  Received Ethics Training from ERCOT Legal staff  Reviewed Credit Scoring Model used by OW  Proposed an additional metric and changes to weightings that will be considered once YE data is available and results are reviewed  Discussed approach to address ‘Credit Risk Appetite’ Statement  Set next meeting  Discussed upcoming Financial Statements due  Reviewed CRR weighting factors strawman for Nodal go-live  CWG Chair and / or ERCOT staff met with RMS (March 12 th) and WMS (March 19 th ) to familiarize them with the OW results generally and to determine how they would like to participate with the developing a Credit Risk Appetite Statement  WMS and RMS agreed to participate with CWG  The tentative timeline attached came out of those discussions and is set in Austin to ensure interested individuals can participate in the meetings

3. Tentative timeline for developing Credit Risk Appetite statement  Friday, April 18 th – ERCOT staff distribute Credit Risk Appetite statement “strawman”  Friday, April 25 th – CWG meeting at the Met Center (Rm 206)  Review assumptions used in OW model  Work on CRA statement  Wednesday, April 30 th – ERCOT staff distribute revised CRA statement draft  Wednesday, May 7 th – Comments due on CRA statement draft and assumptions used in OW model  Friday, May 9 th – ERCOT staff distribute comments  Tuesday, May 13 th or Thursday, May 15 th –CWG meeting in Austin (Met Center?)  Consider comments received  Continue work on CRA statement  Friday, May 16 th or Monday, May 19 th – ERCOT staff distribute revised CRA statement draft

4. Tentative timeline for developing Credit Risk Appetite statement (continued)  Wednesday, May 21st – Final comments due on CRA statement draft  Thursday, May 22 nd - ERCOT staff distribute final comments  Monday, May 26 th – Memorial Day holiday  Wednesday, May 28 th or Friday, May 30 th – CWG meeting in Austin (Met Center?)  Consider any final changes from comments  Vote on proposed CRA statement  Wednesday, June 4 th (special meeting?) or Thursday, June 5 th – present proposed CRA statement at TAC  Tuesday, June 10 th – include in mail out to F&A  Tuesday, June 17 th – F&A to review draft CRA statement