1 Nodal Stabilization Market Call December 02, :30 PM

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 General Updates / Reminders

General Reminders / Updates REMINDER: Market Calls this weekend –ERCOT will host 1 Market Call this weekend –Call will take place Saturday morning at 10:30 AM –ERCOT will resume twice-daily calls on Monday 12/6 and Tuesday 12/7 –After 12/7, Daily calls will stop and ERCOT will hold Market calls twice a week on Monday and Friday –As issues arise, ERCOT may add Market calls or adjust call schedules This will be communicated via a Market notice and on the preceding call REMINDER: Friday Market Call tomorrow at 9AM 4

5 Credit / Treasury

CMM Credit Reports –Posting of some December 2 nd Credit Reports delayed Credit Reports for CPs with alphas A - Se were posted around 11:45 am - within Protocol timelines As the result of a system issue, Credit Reports for CPs with alphas Se - Z weren’t posted until around 3:15 –Researching root cause –OD December 1 data in AIL report is incomplete Impacts OD Dec 1 st only and fix is in process (look up settlement point activation dates – for credit calculations) –OD Dec 2 nd forward should not be impacted From review of AIL, ADTE and current ACLs, ERCOT does not expect this to impact a CPs ability to participate in the DAM on Friday. –AIL is a “reasonableness check” on ADTE and ADTE currently exceeds AIL for most CPs 6

FAQs CMM credit adjustments – due to the transition from Zonal to Nodal, several adjustments are currently being used. Common adjustments include: –OIA adjustment – includes prepayments made for Zonal invoices –OUT adjustment – provides a net benefit to CPs representing load for an estimate of TCR and CRR revenues for November and December. The LRS from October was used. –UDAA adjustment – a multiple of 5 is applied to the UDAA for Dec 1-3 to ramp up to the DALE extrapolation. This will not be reflected on Credit Reports beginning Dec 4 th. –DALE adjustment – for Dec 4-6 (through Monday) – DALE will be discounted by 25% until two invoices can be used to calculate DALE 7

8 Questions?

Appendix 9

Approach for establishing the initial exposure in CMM 10

Approach for establishing the initial exposure in CMM 11