Lead from the front Texas Nodal 1 Registration Market Call Oct 31, 2008

Lead from the front Texas Nodal 2 Agenda Antitrust Admonition Updates and Progress Special Topics Common Issues Q&A / Open Forum

Lead from the front Texas Nodal 3 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.

Lead from the front Texas Nodal 4 Updates and Progress RARF Metrics Overall –RARF’s not yet received: 2 (unchanged) –Status for the past week: Wrapping up Iteration 1 (ended 10/28) –Dashboard on readiness center will reflect the scorecard updates for iteration 1. Note that QSE roll-up will be on the scorecard. –Dashboard is posted by 7pm every Friday Preparing for Iteration 2 (starts 11/03) (see slide 5) RARF’s Accepted for Iteration one: 82 (35%) RARF’s left to correct: 150 –92 RARF’s returned, but still contain errors –16 RARF’s have not been revised and sent to ERCOT for iteration 1 –2 RARF’s have never been sent to ERCOT –40 Load RARF’s are in progress with the resource entities (these were sent later than generation RARF’s) Most of the corrections are very minor! Current production quality metric = 97% (Up 1% from last week) 3% of the issues are now spread across 64% of the RARFs

Lead from the front Texas Nodal 5 Updates and Progress Where are we at? Iteration 2 Kick-Off –Final Business rules added into the audit report process These will be included in the iteration 2 audit reports In some cases MP’s may receive an audit report with new issues as a result –Re-running Audit Reports for iteration 2 All MP’s will receive an audit report for iteration 2 by EOB 11/3 Audit reports with no issues will not be sent (these MP’s will be marked green on the dashboard) Audit reports with only warnings will be sent to MP’s for review – no action is required –Account Manager’s will be reaching out to all QSE’s with remaining issues

Lead from the front Texas Nodal 6 Updates and Progress Red Amber Green rules (review) –10/28 marks the close of iteration 1 –Market Participants will turn RED on MP11 if: No RARF has been received by ERCOT An updated RARF has not been received by ERCOT addressing issues reported in the initial Audit report –Market Participants will turn AMBER on MP11 if: ERCOT received an updated RARF, but all issues were not addressed –Market Participants will turn GREEN on MP11 if: ERCOT received an updated RARF addressing all issues on the initial audit report

Lead from the front Texas Nodal 7 Special Topics Fractional value support for the following fields on the Operational Parameters Tab: –ERCOT MMS will support 1 decimal point on these fields, however they will be rounded as illustrated below. Note that a warning will be produced on the audit report for 1 decimal; an error on > 2 decimals: Minimum On Line Time Minimum Off Line Time Max On Line Time Hot-to-Intermediate Time Intermediate-to-Cold Time –ERCOT MMS will also support 1 decimal point on these fields. They will not be rounded, however they will produce an error if > 1 decimal: Hot Start Time Intermediate Start Time Cold Start Time RARF ValueDatabase ValueApplied Value *error

Lead from the front Texas Nodal 8 Q&A Q&A / Open Forum