1. Commercial Operations Sub-Committee Update to TAC January 8, 2009 Lee Starr, BTU

2. Hope Parrish provided COPS the following Updates: MO Projects Financial Overview –Identified 2008 project Prioritization – PUCT, Market & ERCOT MO projects – Listing activity above and below the “cut line” –Identified all projects committed to deliver in 2008 that were achieved –Reviewed MO 2009 PPL approved by PRS (Current + 2008 carryover + projects deferred due to Nodal delay) Nodal COMS Updates –Settlements & Billing, and Data Aggregation update –Registration and Disputes update –Credit Monitoring and Mgmt Update –COMS Remaining Software Release Schedule –Commercial Systems Extracts Update –Readiness Center Posting Location(s)

3. CCWG Continues developing nodal Sections in the COPMG: –Reviewed draft of new Section 12, Renewable Energy Credits. (Section has been sent to Market Rules for review) 2008 Market Participant Survey ( Website satisfaction ) –Developed a list of recommended improvements for the “ERCOT.com” website to assist ERCOT in understanding website satisfaction survey results. –Website Improvement Recommendations listed with COPS 12.08.08 materials (pages 2 & 3 of report)

4. DEWG / SDAWG Normal report on ERCOT issues: –Slight decline in number of issues, most recently centered around Lodestar Upgrade, though no major issues. Followed up on the ERCOT stabilization efforts: –Identified projects to watch for in 2009 that address common flaws in the current systems around reports and extracts that need to be maintained until Nodal replacement is implemented. Worked with ERCOT to resolve EILS Settlement Issue : –PRR786, submitted to target ERCOT to use the most recent Load Ratio Share (Final Settlement Version) and so a resettlement using the most current load (True-up Settlement Version) –Following discussion and review, COPS voted unanimously to recommend support of PRR786 with changes suggested to PRS.

5. Updated PWG 2008 Goals Ranked by Target Date

6. COPS 2008 Accomplishments COPS 2008 Accomplishments Actively participated in review of Nodal Settlement Statements and Invoice presentation format. Recommended changes to TRE Billing and the ERO assessment fee. Monitored closely and provided support to matters as they related to: –Advanced Metering technologies & implementation –Changes necessary to comply with PUCT Rules for Small Distributed Generation –PRRs, NPRRs, Extracts, and Data as they relate to issues affecting Settlement

7. COPS -Working Group Accomplishments CCWG: –Update COPMG and incorporate Nodal material COPMGRR 007 – Organizational Structure COPMGRR 008 – Market Notice Communication Process for Outages and Processing Impacts Section 12, Renewable Energy Credits – Currently Under Review –Reviewed COPS Meeting Procedures – Recommended cleanup and language changes –Performed communications review of Extracts and Reports Service Level Agreement –Provided feedback for RMS regarding the ERCOT Market Survey – “Website Satisfaction”

8. DEWG/SDAWG: –Completed the Data Extracts and Reports Service Level Agreement –Developed in conjunction with ERCOT a reporting format to follow and summarize issues with Data Extracts and Reports –Tracked all ERCOT Extract and Report issues and conducted post mortem analysis on each item with help from ERCOT staff –Worked with ERCOT to define the scope and projects for 2009 related to System Stability which is required to stabilize current Extracts and Report Environments in light of the Nodal delay –Resolved through submittal of PRR 786 the EILS settlement issue –Reviewed the issue of Mismatched schedules due to system dropping market participant transactions and brought awareness to ERCOT on the difficulties in settling under this scenario with counterparties –Followed the development of Nodal COMS which is the design for Nodal Market Extracts and Reports

9. PWG PWG Distributed Renewable Generation (DRG) Load Profiles built (LPGRR027, PRR736, PRR755 withdrawn and PRR756, LPGRR030, LPGRR031 approved) Round 2 sample load research meters installed by July 31, 2008 Time of Use Language revised (LPGRR029 and PRR756) UFE 2007 Report and Hurricane UFE discussions Impact report of Hurricane Ike and Edouard Settlement Accuracy Analysis Annual Validation 2008 PRR790 Load Profile ID Annual Validation Change Request PRR789 Removal of Grey Box Language LPGRR032 to support 15-minute interim solution for settlement with advanced meters

10. Questions ?