1. http://nodal.ercot.com 1 Market Trials QSE Qualifications Weekly Update January 22, 2010

2. http://nodal.ercot.com 2 Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

3. http://nodal.ercot.com 3 Agenda Antitrust Admonition Environment Report –Planned / unplanned outages –Known Issues FAQ Standing Reports and Updates –General reminders / updates –Nodal telemetry outreach update –Readiness outreach update Qualification Status Question and Answers / General Discussion ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline

4. QSE Qualification Call Overview: Market Trials 2010 Roadmap http://nodal.ercot.com 4

5. http://nodal.ercot.com 5 Day-to-day operations summary: Planned / Unplanned Outages of EDS Planned Outages –Note that today and this weekend ERCOT will be taking the system offline to upload the CIM/Network Model file –Additionally ERCOT will be submitting SCED offers for Sunday to test RTM functionality –Notices will be turned off, but offers will remain in system Unplanned Outages –01/19/10 9:40 A.M – 9:50 A.M Market Manager application was bounced for data synchronization. Service availability may have been briefly interrupted during this timeframe. –01/19/10 3:00 P.M - 3:10 P.M Market Manager application was bounced for data synchronization. Service availability may have been briefly interrupted during this period. –01/21/10 5:10 P.M – 5:20 P.M Market Manager application was bounced for data synchronization. Service availability may have been briefly interrupted during this timeframe.

6. http://nodal.ercot.com 6 Environment Report: Known Issues ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml

7. http://nodal.ercot.com 7 FAQ Question: For Private Use Networks, should the LRL be 0 or the Units LSL? In zonal these are scheduled as a net tie line with a LSL of 0. In Nodal should it be the units actual LSL? Answer: The Resource Asset Registration Form (RARF) Low Reasonability Limit must be set to zero and High Reasonability Limit set to the physical generator high reasonability limit.

8. http://nodal.ercot.com 8 Standing reports and updates: General Reminders / Updates Upcoming EIS Functionality Changes –getReports Currently, the getReports will return all report type’s URLs from the provided date to current date This design is being reviewed for performance impacts and will be changed to limit the report’s URLs returned ERCOT is collecting performance data on these and will review what design changes are necessary based on this data ERCOT will provide an update and open discussion on this topic at the February NATF Outage Scheduler weekly conference calls are now taking place every Thursday @ 10 am http://www.ercot.com/committees/nodal/mt/os/index http://www.ercot.com/committees/nodal/mt/os/index Reminder: Phase 3 Kick Off and MRS #2 will be held on 1/28 –Details: http://www.ercot.com/calendar/2010/01/20100128-EDShttp://www.ercot.com/calendar/2010/01/20100128-EDS –RSVPs should be sent to kdecuir@ercot.comkdecuir@ercot.com –Deadline for RSVP is today EOB

9. 15 January 2010 Outreach Program Overview Market Call

10. Outreach Program Overview Confirmed Scheduled Site Visits APX (January 19 th ) Occidental (January 20 th ) Tenaska Power (January 26 th ) Optim Energy (January 27 th ) E.ON (February 9 th ) Nextera (February 11 th ) Wind Panel (February 16 th ): Hosted by Horizon Wind Retail Panel (February 17 th ): Hosted by StarTex Tri-Eagle Energy (February 18 th ) XTEND Energy (March 3 rd ) Brazos (March 10 th ) 15 January 2010 Market Call

11. Outreach Program Overview Market Participant “Menu” Topics: All materials are available on the Nodal Readiness Center. (http://nodal.ercot.com/readiness/outreach/index.html)http://nodal.ercot.com/readiness/outreach/index.html Nodal Program Update (mandatory) – (75 min) Readiness Center and Readiness Scorecard – (45 min) Day-Ahead Market Implementation – (60 min) Congestion Revenue Rights (CRR) Auction Implementation – (60 min) Reliability Unit Commitment Implementation – (60 min) Telemetry & Load Frequency Control (LFC) – (30 min) Real Time Market Processes & Systems – (60 min) Nodal Settlement and Billing Processes – (60 min) Reports and Data Extracts – (30 min) 15 January 2010Market Call

12. Outreach Program Overview 15 January 2010 Market Call Any questions please contact Nodal Outreach at NodalMarketTransition@ercot.com NodalMarketTransition@ercot.com

13. http://nodal.ercot.com 13 Qualification Update 4 more business days until qualification activities close and LMP analysis begins –QSEs with generation that have not qualified should contact ERCOT ASAP markettrials@ercot.com with any issues they are encounteringmarkettrials@ercot.com –Reminder that supported hours close on 1/28/2010 @ 6pm 107 QSEs of 287 have completed MMS submission qualification Reminder: Starting Feb 1, 2010 QSEs with resources will start submitting Offer Curves (or Output Schedules) and 7 days of COPs in support of initial LMP analysis –RT dashboard on submittals will be posted every Friday starting Feb 5 th, 2010 –Additionally, during this period we will be working with QSEs that did not complete qualification

14. http://nodal.ercot.com 14 Nodal Telemetry Outreach Update Notes & Reminders: ERCOT’s goal is to have all Nodal telemetry completed by Feb 1, 2010 The next series of point lists identifying outstanding nodal points for SCED will be distributed following the JAN 22 database load The next Telemetry Dashboard publication is scheduled for JAN 29 and will reflect telemetry status as of the JAN 22 nodal database load and will include measurements for both State Estimator and SCED Update on State Estimator Telemetry: STATUS# QSERs JAN 5JAN 13JAN 21JAN 29 * (estimated status at next scheduled dashboard posting) 100%28304042 >=80% but <100%0000 <80%4000 In Review141664

15. http://nodal.ercot.com 15 Nodal Telemetry Outreach Update Data Quality Effort ERCOT is now working with QSEs to address quality issues (see JAN 18 Market Notice) A SCED Telemetry Report is being run daily at ERCOT to identify issues in Real-Time telemetry The Market Trials team is working directly with QSE nodal ICCP contacts to correct issues identified in the SCED Telemetry Report QSE Nodal Transition Project Managers are being copied on emails when quality issues are communicated ERCOT is requesting that ICCP contacts respond to quality issues within 24 hours

16. http://nodal.ercot.com 16 Nodal Telemetry Outreach Update Common Data Quality Issues: During JAN 18 – 21, common quality issues included: Telemetry that remains to be mapped at ERCOT Incorrect Resource Status Generation>HSL; Generation<LSL Negative Ancillary Service values (primarily for Responsive and Non- Spinning Reserve) Stale telemetry values Data Quality Inquiries Welcome: QSEs that have yet to receive a data-quality outreach from ERCOT may still have quality issues that need to be addressed. QSEs may inquire about any issues reflected in the daily SCED Telemetry Report by submitting an email to markettrials@ercot.com (please include “SCED Telemetry Report” in the subject line). markettrials@ercot.com As common telemetry-quality issues continue to be reported, ERCOT will work to identify a tracking mechanism to support progress indicators and/or scorecard metrics.

17. http://nodal.ercot.com 17 Q&A Q&A / Open Forum

18. http://nodal.ercot.com 18 Appendix

19. http://nodal.ercot.com 19 URLS and EMAIL ADDRESS FOR SUPPORT URLs for access the Nodal Production systems –MIS: https://mis.ercot.com/pps/tibco/mis/https://mis.ercot.com/pps/tibco/mis/ –Market Manager: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS: https://misapi.ercot.com/2007-08/Nodal/eEDS/EWShttps://misapi.ercot.com/2007-08/Nodal/eEDS/EWS Reminder: Market Trials email address change: ERCOT asks that MPs use the markettrials@ercot.com email address for questions from this point forwardmarkettrials@ercot.com –This will begin the phasing out of eds2@ercot.com, eds3@ercot.com and eds4@ercot.com email addresses.eds2@ercot.comeds3@ercot.com eds4@ercot.com –A centralized address will no longer require MPs to “guess” which email address to use for their questions –We have implemented a more effective method of routing and responding to emails using this address –The old eds emails can continue to be used until 2009 hold over efforts are completed (such as telemetry outreach)

20. http://nodal.ercot.com 20 Market Trials Handbooks –ERCOT will release the following Handbooks In December Real Time Market / LFC covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html Outage Scheduler covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/os/index.htmlhttp://nodal.ercot.com/readiness/markettrials/os/index.html CRR covering release Phase 3.0 http://nodal.ercot.com/readiness/markettrials/crr/index.htmlhttp://nodal.ercot.com/readiness/markettrials/crr/index.html Settlements / COMs covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/coms/index.htmlhttp://nodal.ercot.com/readiness/markettrials/coms/index.html Day Ahead Market (note that this contains only reference data to the 2.1 qualification as there is no Phase 3.0 scope) http://nodal.ercot.com/readiness/markettrials/dam/index.htmlhttp://nodal.ercot.com/readiness/markettrials/dam/index.html –The Phase 4.0 release of the Market Trials Handbooks will occur in early February. –The Phase 5.0 release of the Market Trials Handbooks will occur in March

21. http://nodal.ercot.com 21 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010