Role of Account Management at ERCOT Market Engagement and Readiness (MER) Training Update TPTF Meeting June 26 th, 2007 Market Education

Page 2, June 26, 2007 TPTF Update Agenda –Training Development ◦Progress report ◦New Releases ◦Upcoming courses –Training Delivery ◦Progress Report ◦Scheduled Training – Training Readiness reporting – Training Curriculum changes

Page 3, June 26, 2007 TPTF Update Training Development – Progress Report CourseLengthInitiated Training Sub- Group Review Beta Course Class Room TrainingWeb-Based Training Due DateStatusDue DateStatus ERCOT Nodal 101: The Basics1 - DayDoneFeb-07 Economics of LMP1 - DayDoneN/A Transition To Nodal Markets1 - DayN/A May-07 Load Serving Entity Days June - 07Jul-0750% Basic Training Program5 - DaysAug – 07Sept – 07*90%Oct-0720% NOIE QSE Operations1 - DayJuly – 07Aug – 0720%Sept-070% Network Model Management2 - DaysJuly-07Oct-07Nov %Dec-070% Generation DaysJuly 07Sep-07Oct %Nov-070% Market Settlement daysJuly 07Oct -07Nov %Dec-070% *(6 consecutive sessions to accommodate shift work for system operators)

Page 4, June 26, 2007 TPTF Update Training Development – New Releases Load Serving Entity 201 –LSEs (Retail Electric Providers and Non Opt-In Entities) –Agenda ◦Nodal 101 review for LSEs ◦LSEs in the ERCOT market ◦Nodal Pricing ◦Tools (Trades, DAM, CRRs) ◦Load Related Settlements) –First session – June 27 th in Austin –July and August being scheduled in Dallas and Houston Transition to Nodal Markets and Startup Testing

Page 5, June 26, 2007 TPTF Update Training Development – New Releases Transition to Nodal Markets and Startup Testing –All Market Participants –Agenda ◦Introduction to the transition plan »Transition Plan Principles »Management of the Transition Plan »Transition Plan Tracks ◦System Testing and Nodal market Implementation »EDS Release Testing »EDS 1 – Data and Telemetry »EDS 2 – Phase Functions »EDS 3 – Real Time Markets »EDS-4 – Day-Ahead markets ◦Market Readiness ◦Transition Communication Plan –Web-Based Training Module –Available via the Learning Management System Transition To Nodal markets

Page 6, June 26, 2007 TPTF Update Training Development – Upcoming Courses CourseLengthDelivery Date Basic Training Program5 - DaysSept -07* (6 consecutive sessions) NOIE QSE Operations1 – DayAug-07 Generation DaysOct-07 CRRs, PCRRs and Supply Hedging1 - DayOct-07 Market Settlements 3012 – DaysNov-07 Network Model Management2 - DaysNov-07 Transmission 1012 ½ – DaysFeb-08 Generation DayFeb-08 ERCOT 101 for Wind Generation1 - DayMar-08 Generation DayMar-08 Market Information Systems1 - DayMar-08

Page 7, June 26, 2007 TPTF Update Training Delivery – Progress Report CourseDeliveryNo. of sessions AttendeesTests (Passed) MPERCOTTotalMPERCOTTotal ERCOT Nodal 101: The Basics Instructor Led / / / % ERCOT Nodal 101: The Basics WebN/A N/A ERCOT Nodal 101: Exam Only WebN/A 184/190110/ /304 97% Economics of LMPInstructor Led N/A

Page 8, June 26, 2007 TPTF Update Training Delivery – Scheduled Training ERCOT Nodal 101: The Basics DateLocationEnrollments July 9, 2007Suez EnergySuez Energy (Houston) 68/75 July 10, 2007Suez EnergySuez Energy (Houston) 48/75 July 31, 2007CPS EnergyCPS Energy (San Antonio) 39/60 August 14, 2007NRG EnergyNRG Energy (Houston) 13/50 August 15, 2007NRG EnergyNRG Energy (Houston) 9/50 The Economics of LMP July 16, 2007ERCOT AustinERCOT Austin (Austin) 32/40 July 18, 2007Tenaska Power Services Co.Tenaska Power Services Co. (Arlington) 20/40 July 19, 2007Suez EnergySuez Energy (Houston) 25/40 July 20, 2007Suez EnergySuez Energy (Houston) 14/40 Load Serving Entity 201 June 27-28, 2007WYNDAM Garden HotelWYNDAM Garden Hotel (Austin) 55/45 July 26-27, 2007Stream EnergyStream Energy (Dallas) Tentative August 22-23, 2007Suez EnergySuez Energy (Houston) Tentative

Page 9, June 26, 2007 TPTF Update Training Readiness Reporting TPTF has recommended readiness targets by course –Example: Basic Training Program ◦At least two operators from each operating shift Market Participants have two training goals –Overall training goals –Minimum training goals for readiness Readiness Reporting process – Accountable executives report readiness targets – ERCOT provides reports to Accountable Executives ◦Total number of attendees by course ◦List of attendees ◦Exam results – Accountable Executives determine when readiness targets are met

Page 10, June 26, 2007 TPTF Update Training Curriculum Changes Market Participant user interface training –Training to be developed ◦Market Management System (MMS) ◦Outage Scheduler (OS) ◦Congestion Revenue Rights (CRR) –Options being considered ◦Instructor Led »Incorporate with related course »Separate user interface training ◦Web-Based Training (Likely option) ◦Both Will return to TPTF with analysis, recommendation and curriculum document changes

Page 11, June 26, 2007 TPTF Update Questions Questions ?? Market Training ERCOT Nodal Market Transition