Protocol Revision Subcommittee Presentation to the ERCOT Technical Advisory Committee May 8, 2008

PRS Summary 3 PRRs for Approval 3 PRRs for Approval 2 NPRRs for Approval 2 NPRRs for Approval 3 Withdrawal Notices 3 Withdrawal Notices Unfunded Projects List Update Unfunded Projects List Update

PRR 720 – Texas Regional Entity Fee Methodology Revision Purpose(ERCOT) Changes how ERCOT issues invoices to collect the Texas Regional Entity (TRE) Fee. Benefit Provides for off-line collection of the TRE Fee Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS recommended approval unanimously; all Market Segments were present Effective Date January 1, 2009

PRR 720 – Texas Regional Entity Fee Methodology Revision Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact 1 additional FTE required

PRR 753 – PRR Appeals Process Purpose(ERCOT) Provides a more structured process for parties to appeal PRS/TAC decisions by including timelines for appealing decisions (accommodates “Urgent” timelines) Benefit A structured and transparent appeals process creates predictability for all parties and ensures due process Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS recommended approval with 1 abstention; all Market Segments were present Effective Date July 1, 2008

PRR 753 – PRR Appeals Process Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact

PRR 756 – Distributed Renewable Generation Modification -- URGENT Purpose (Direct Energy for Profiling WG) Allows the Load Profiling & Data Aggregation methodology to better represent the output of DRG Resources with a capacity less than 50 kW Benefit Complies with HB 3693; allows for settlement of DRG Resources with a capacity less than 50 kW Market Impact Minimal until the population of DRG Resources becomes significant System Change Yes Net C/B $(1.3) MM; grouped with existing system project; Critical/Priority 2 Assumptions Complies with HB 3693; better represents DRG Resources <50 kW; supports settlement infrastructure for distributed renewable energy PRS Vote PRS recommended approval unanimously; all Market Segments were present Effective Date January 1, 2009

PRR 756 – Distributed Renewable Generation Modification -- URGENT Item Reviewed Description NoImpact Credit Monitoring/ Liability Budget Staffing Computer Systems Business Functions Grid Operations Impact $500K to $1 MM; grouped into existing Project 80028; Lodestar/Paperfree DRG Resources <50 kW settled with load profiles

NPRR 108– Fuel Oil Price (FOP) Clarification Purpose(ERCOT) Clarifies that the 5¢ adder is charged by the gallon; removes language referencing the FOP for days when Platts Oilgram Price Report is not published Benefit Accurate definition for the meaning and use of the term Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS recommended approval unanimously; all Market Segments were present Effective Date Upon Texas Nodal implementation; no impact to nodal budget or implementation

NPRR 112 – Emergency Base Point Price Deviation Purpose(ERCOT) Clarifies the calculation of emergency base point price per QSE per Resource per Interval. Benefit Provides consistency in the Energy Offer Curve extension methodology between MMS and Settlements; reduces the charge for emergency power increases. Market Impact N/A System Change NoN/A AssumptionsN/A PRS Vote PRS recommended approval with 3 abstentions; all Market Segments were present Effective Date Upon Texas Nodal implementation; no impact to nodal budget or implementation

PRR/NPRR Summary Revision Requests Recommended for Approval Revision Requests Recommended for Approval PRR 720 – Texas Regional Entity Fee Methodology Revision PRR 720 – Texas Regional Entity Fee Methodology Revision PRR 753 – PRR Appeals Process PRR 753 – PRR Appeals Process PRR 756 – Distributed Renewable Generation Modification -- URGENT PRR 756 – Distributed Renewable Generation Modification -- URGENT NPRR 108 – Fuel Oil Price (FOP) Clarification NPRR 108 – Fuel Oil Price (FOP) Clarification NPRR 112 – Emergency Base Point Price Deviation NPRR 112 – Emergency Base Point Price Deviation

PRR Withdrawals PRS accepted NPRR withdrawal requests for the following: PRS accepted NPRR withdrawal requests for the following: NPRR 104 – Corrections & Clarifications for Real Time Settlements and Ancillary Service Net Obligations NPRR 104 – Corrections & Clarifications for Real Time Settlements and Ancillary Service Net Obligations NPRR 116 – Addition of Commercially Traded Points to Settlement Point List NPRR 116 – Addition of Commercially Traded Points to Settlement Point List NPRR 125 – Creation of a New Trading Hub at Venus Switching Station NPRR 125 – Creation of a New Trading Hub at Venus Switching Station

Unfunded Project List Report PRS reports there are no unfunded projects at this time PRS reports there are no unfunded projects at this time Protocol Section 21.9 requires quarterly reporting to the ERCOT Board regarding projects on the “Unfunded Project List” Protocol Section 21.9 requires quarterly reporting to the ERCOT Board regarding projects on the “Unfunded Project List” Unfunded Projects will be listed on a separate PPL tab Unfunded Projects will be listed on a separate PPL tab