August 10, 2010 COPS Nodal EILS Update Mandy Bauld

2 Topic Refresher Earlier this year ERCOT brought options regarding the methodology to invoice the EILS payments and charges in Nodal –Options: Miscellaneous Invoice vs. Miscellaneous Debit/Credit line item on a settlement statement –Decision: Use the Miscellaneous Debit/Credit functionality (PUCT requirement to put it on a statement for an Op Day) –Take-Away: ERCOT continue to evaluate possibilities of a more robust solution (that doesn’t require system change) and the possibility of getting EILS data into the settlement extracts

3 Follow-Up on ERCOT Take-Away ERCOT has confirmed a data-driven approach that, without system change, will enable the following: –Inclusion of charge types specific to the EILS Payment and the EILS Charge on a settlement statement (instead of as a Miscellaneous Debit or Credit line item) –Inclusion of key EILS Payment and Charge bill determinants in the settlements extracts Note: due to the nature of the EILS process, this option is still a manual work-around and therefore there are limitations –Not all of the data elements can be provided; focus remains on the key bill determinants which show QSE’s payment/charge amounts, QSE’s time period LRS, and market totals. Note: to accomplish this data driven approach, ERCOT needs to used slightly modified bill determinants than what currently show in Protocols

4 Follow-Up on ERCOT Take-Away Proposed solution – bill determinants: Bill DeterminantDescriptionDetails EILPAMTEILS Payment AmountBy QSE and Time Period Scalar (no interval breakdown) In RTM CODE EILPAMTQSETOTEILS Payment Amount QSE TotalBy QSE Feeds the statement (display in RTM Energy section) Scalar In RTM CODE EILCAMTEILS Charge AmountBy QSE and Time Period Scalar (no interval breakdown) In RTM CODE EILCAMTQSETOTEILS Charge Amount QSE TotalBy QSE Feeds the statement (display in RTM Energy section) Scalar In RTM CODE EILSLTOTEILS Load TotalTotal by Time Period Scalar In RTM MODE EILPAMTTOTEILS Payment Amount ERCOT TotalTotal by Time Period Scalar In RTM MODE EILSLRSEILS Load Ratio ShareBy QSE by Time Period Scalar In RTM CODE

5 Next Steps Request COPS preference of this option vs. use of Miscellaneous Debit / Credit functionality Request to take the topic to SEWG to provide more details on the bill determinants and an example Utilize this approach in upcoming market trials –Use Feb May 2010 contract period data Update the Charge Type Matrix to include EILS settlement –Reflect the bill determinants which will be used by the settlement statements and sent in extracts ERCOT file an NPRR to address the bill determinant names –Existing Nodal EILS bill determinants do not follow the standards that have been used across other charge type areas (i.e., they look “zonal” not “nodal”) –Update Section (listing of RTM settlement charge types) to include the EILS charge types