Congestion Revenue Rights Market Trials Kickoff

Agenda Topics: I.Overview of CRR Market Trials Phase 3.0 II.Entry Criteria (including System Requirements) III.CRR Qualification IV.Allocations/Auctions in CRR Market Trials 3.0 V.ERCOT And Market Participant Activities VI.Highly Recommended Training VII.Dashboard/Metrics VIII.Supplemental Materials IX.System Demonstration (CRR MUI) Slide 2

Overview CRR Market Trials Phase 3.0 Perform CRR Account Holder Qualification Run Allocations/Auctions with “First 6 months” data scenario NOIEs nominate for allocations each month Follow Nodal Protocol timelines when possible Compressed timeline for first allocation/auction Integrated with Settlements and Billing (auction invoices/payment confirmation) Network Model Management System Slide 3

ERCOT Entry Criteria Integration testing for functionality exposed in Market Trials Phase 3 completed to ERCOT satisfaction with all market-relevant defects published to market participants via the known issues list. CRR Auction Application performance testing for functionality exposed in Market Trials Phase 3 completed with results deemed as acceptable by CRR business owner. Slide 4

Market Participant Entry Criteria Registered as CRR Account Holder Met all CRR system requirements a) Internet Explorer 6 b) Must have a CRRAH (CRR Account Holder) Digital Certificate installed with appropriate roles assigned (USA certificates were issued Nov 16 and are available for download) c) Must have a CP (Counterparty) Digital Certificate with appropriate roles assigned d) Sun Java 1.5 JRE and IE Plug-in (or more recent version) e) Keyhole Markup Language (KML) viewer (e.g. Google Earth) (for phase 4.0) Slide 5

Counterparty vs. CRR Account Holder certificates Two types of digital certificates needed for CRR Counterparty –assigns credit CRRAH –submits bids/offers –views results –performs bilateral trades –can further limit any credit assigned by Counterparty, but can’t increase

CRR Qualification CRR Qualification from 1/4/2010-1/29/2010 Qualification Activities (all below activities must be completed) Log-in and access the CRR system Download a CRR Network Model Upload a bid/offer portfolio Edit a bid/offer portfolio Complete a bilateral trade Slide 7

Allocations/Auctions in CRR Market Trials 3.0 Auctions/Allocations for March & April 2010 Allocation for May Allocation for Balance of Year (June – Dec 2010) (note: Auctions for May, Balance of Year in Phase 4.0) Slide 8

Market Participant Activities Qualify Submit Credit (Using Counterparty Certificate) Submit Bid/offer portfolio View/verify postings Bilaterally trade Slide 9

ERCOT Activities Create Models Run Qualification Run Auctions Post Notices/Results/Invoices Slide 10

Highly Recommended Training CRR MUI Training Available on LMS ( Nodal Market Training CRR Market User Interface Training Will answer many questions regarding the mechanics of the CRR User Interface Slide 11

Dashboard Slide 12 Dashboard will be posted on CRR section of Market Trials/Readiness Center

Scorecard/Metrics Slide 13 Phase 3.0 CRR Metrics MP15-B CRR Connectivity Qualification Measures MP’s ability to connect to, download from, and upload to ERCOT’s CRR application. CRR3 Operation of Monthly CRR Auction and Allocation Measures MP’s participation in monthly auctions throughout Market Trials. CO8 Verify CRR Auction Invoices Measures ERCOT ability to produce accurate CRR Auction Invoices

Scorecard/Metrics Slide 14 Phase 3.0 CRR Metrics MP15-B CRR Connectivity Qualification Measures MP’s ability to connect to, download from, and upload to ERCOT’s CRR application. CRR3 Operation of Monthly CRR Auction and Allocation Measures MP’s participation in monthly auctions throughout Market Trials. CO8 Verify CRR Auction Invoices Measures ERCOT ability to produce accurate CRR Auction Invoices

Supplemental Materials Slide 15 DescriptionLocationVersion CRR Known Issues Listhttp://nodal.ercot.com/readi ness/markettrials/crr/index. html N/A ERCOT Market Information List (EMIL) ness/reports/index.html N/A CRR Requirements Dochttp://nodal.ercot.com/docs /pd/crr/index.html#req 4.4 CRR - Market User Interface User Manual ness/markettrials/crr/index. html 1.0 CRR - Explan of Mkt Sub. Retrieval Items ness/markettrials/crr/index. html.12 CRR MUI Traininghttps:// om/lms/default.asp N/A

Demonstration of MUI Questions? Slide 16