1. Nodal Education Initial Staff Concepts 11/30/05

2. Agenda Integrated Approach Roadmap and Processes Curriculum Development ERCOT Education Advisory Council MP Content Advisors Education Requirements Timeline Scenario TPTF Input Next Steps

3. ERCOT Market Education Education Mission Facilitate knowledge transfer of Market Concepts and tasks for ERCOT and Market Participant to support successful transition to the Nodal Market.

4. Market Education An Integrated Approach

5. Proposed Development, Delivery and Reporting

6. Proposed Curriculum Development A = Approval R = Responsible C = Contribute

7. Proposed Education Advisory Council Responsibilities –Cross functional coordination –Review Testing/Readiness criteria –Course timeline/sequencing –Review Course curriculums and content ERCOT Members (6) –Chair – Market Education –Wholesale Client Relations, Retail Client Relations, Market Operations, System Operations, Human Relations

8. Market Participant Content Advisors MP SMEs provide course content review and recommendations to ERCOT Voluntary, yet consistent, participation Representation - Market function by Segment (including large and small entities) Adhoc Conference calls - face to face meetings as needed

9. Market Participant Content Advisors Sample Member Matrix

10. ERCOT Education Strategy Change existing attitude Early involvement Encourages business process analysis End-user focus Contributes to Market success EDUCATE EARLY

11. Education Requirements (per Nodal Transition Plan) One of four tracks for Market Readiness (Page 5) Conduct training for Market Participants and ERCOT (Page 7) Develop basic training information for Interested Parties (Page 7) After Protocol approval (Page 8) : –How the nodal market will function

12. Education Requirements After nodal system specifications (Page 8): –Develop training program for both Market and ERCOT roles Synchronize with System Testing and Nodal market Implementation Leverage current delivery systems (WebEx) Mandatory, highly recommended, recommended Repeatable Running inventory of training progress and aggregate by MP (Page 8) –Learning Management System ERCOT may require MPs to complete certain training modules to participate (Page 8) TPTF will review course curriculums for completeness and applicability (Page 8)

13. Sample Module Abstract

14. Proposed Education Development Roadmap (Pilot 3 Courses) Analyze Needs DesignDevelopmentImplementationEvaluation Deliverables Business Goals Audience Analysis Learning Objectives Design DocumentTraining Materials Instructor Guides Participant Guides Assessment Tools Completed Courses Completed Evaluations Feedback/Input ERCOT Specific Objectives Define a process that identifies and prioritizes training needs Select three courses to test and validate the process Assemble the ERCOT Advisory Council Establish goals with market participants Develop timeline Begin to define ERCOT curriculums Decide on the most effective methods to deliver courses to market participants Identify approach for evaluating training Develop a common look- and-feel of training materials Create course materials Plan and communicate schedules for pilot sessions Begin development of templates/forms for future courses Validate process through Pilot Test Develop understanding for administrative needs and processes Deliver training and collect feedback Begin gathering of evaluation data (Levels 1 thru 3) Validate evaluation processes Evaluate pilot courses Refine templates/forms to support future development Investigate additional delivery methods and LMS requirements Gather additional evaluation data (non- participant) 2 weeks 2 monthsX weeks1 week

15. Nodal Timeline

16. Example Timeline (Network Model Management System) DRAFT

17. Seeking Input Regarding Market Participant Content Advisor matrix “How the Nodal Market will function”? –LMP 101 vs. ERCOT Nodal –Outsource LMP 101 Q1 2006 Recommend 3 Nodal Courses to pilot during Q2 2006 –How ERCOT’s Nodal Market Will Function –Market Timeline –Network Operations Model Change Requests (NOMCR) –Current Operating Plan –Others

18. TPTF Future Input Curriculum review Readiness criteria –Minimum requirements –Testing –Reporting Market Participants “test for knowledge” rather than take required courses? Ongoing readiness criteria for existing and new MPs

19. Next Steps Confirm approach –Establish EAC –Establish MPCA –Determine interim solution for LMP 101 –Begin “Analyzing Needs” for 3 Nodal Pilot courses

20. Pamela Dautel 512-248-3955 pdautel@ercot.com QUESTIONS? NODAL Education Richard Gruber 512-248-3986 rgruber@ercot.com