1. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 1 Day-Ahead Mini Market Mini Market Walk Through for Day-Ahead Energy and Day- Ahead Make Whole Calculations

2. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 2 Day-Ahead Energy AGI (Acronym Guide Index) DAES – Day-Ahead Energy Sale DAEP – Day-Ahead Energy Purchase DASPP – Day-Ahead Settlement Point Price DAESAMT – Day-Ahead Energy Sale Amount DAESAMTQSETOT – Day-Ahead Energy Sale Amount QSE Total DAESAMTTOT – Day-Ahead Energy Sale Amount Total DAESBILLAMT – Day-Ahead Energy Sale Bill Amount DAEPAMT – Day-Ahead Energy Purchase Amount DAEPAMTQSETOT – Day-Ahead Energy Purchase Amount QSE Total DAEPAMTTOT – Day-Ahead Energy Purchase Amount Total DAEPBILLAMT – Day-Ahead Energy Purchase Bill Amount RTOBL – Real Time Obligation Amount DAOBLPR – Day-Ahead Obligation Price DARTOBLAMT – Day-Ahead Real Time Obligation Amount DARTOBLAMTQSETOT – Day-Ahead Real Time Obligation Amount QSE Total DARTOBLAMTTOT – Day-Ahead Real Time Obligation Amount Total DARTOBLBILLAMT – Day-Ahead Real Time Obligation Bill Amount DACONGRENT – Day-Ahead Congestion Rent

3. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 3 Day-Ahead Energy Sale

4. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 4 Day-Ahead Energy Sale Amount DAESAMT is the payment to a QSE for the cleared energy offers at a particular settlement point for the hour. Where DASPP is the Day-Ahead Settlement Point Price Where DAES is the Day-Ahead Energy Sale DAESAMT_ _ = (-1) * DASPP_ * DAES_ _

5. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 5 Day-Ahead Energy Amount QSE Total DAESAMTQSETOT is the sum of all the DAESAMTs for a particular QSE for that hour. DAESAMTQSETOT_ =DAESAMT_ _

6. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 6 Day-Ahead Energy Sale Amount Total  DAESAMTTOT is the sum of the payments to all QSEs for cleared DAM energy offers for the hour. This is used in the CRR DAM Congestion Rent calculation. DAESAMTTOT = DAESAMTQSETOT_

7. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 7 Day-Ahead Energy Sale Bill Amount DAESBILLAMT is the difference in the amounts that are calculated by two consecutive settlement runs (i.e. DAM resettlement vs. DAM settlement runs) for the summation of DAESAMTQSETOT for a QSE, for an Operating Day. DAESBILLAMT = DAESAMTQSETOT_ (this run) – DAESAMTQSETOT_ (last run) *Note QSE 3 and QSE 10 are the only examples that will be walked through on the spreadsheet today.

8. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 8 Day-Ahead Energy Purchase

9. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 9 Day-Ahead Energy Purchase Amount DAEPAMT is the charge to a QSE for the cleared energy bids at a particular settlement point for the hour. DAEPAMT_ _ =DASPP_ * DAEP_ _ Where DASPP is the Day-Ahead Settlement Point Price Where DAEP is the Day-Ahead Energy Purchase

10. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 10 Day-Ahead Energy Purchase Amount QSE Total DAEPAMTQSETOT is the sum of all the DAEPAMTs for a particular QSE for that hour. DAEPAMTQSETOT_ = DAEPAMT_ _

11. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 11 Day-Ahead Energy Purchase Amount Total DAEPAMTTOT is the sum of the charges to all QSEs for cleared DAM energy bids for the hour. This is used in the CRR DAM Congestion Rent calculation. DAEPAMTTOT = DAEPAMTQSETOT_

12. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 12 Day-Ahead Energy Purchase Bill Amount DAEPBILLAMT is the difference in the amounts that are calculated by two consecutive settlement runs (i.e. DAM resettlement vs. DAM settlement runs) for the summation of DAEPAMTQSETOT for a QSE, for an Operating Day. DAEPBILLAMT = DAEPAMTQSETOT_ (this run) – DAEPAMTQSETOT_ (last run)

13. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 13 Day-Ahead Real Time Obligation Amount

14. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 14 Day-Ahead Real-Time Obligation Amount DARTOBLAMT is the charge or payment to a QSE for a PTP Obligation Bid cleared in the DAM with the source and the sink, for the hour. DARTOBLAMT_ _ _ = DAOBLPR_ _ * RTOBL_ _ _ Where DAOBLPR = DAOPR_ – DAOPR_

15. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 15 Day-Ahead Real-Time Obligation Amount QSE Total DARTOBLAMTQSETOT is the net total charge or payment to a QSE for all its PTP Obligation Bids cleared in the DAM for the hour. DARTOBLAMTQSETOT_ = DARTOBLAMT_ _ _

16. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 16 Day-Ahead Real-Time Obligation Amount DARTOBLAMTTOT is the net total charge or payment to all QSEs for cleared PTP Obligation Bids in the DAM for the hour. DARTOBLAMTTOT = DARTOBLAMTQSETOT _

17. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 17 Day-Ahead Real-Time Obligation Bill Amount DARTOBLBILLAMT is the difference in the amounts that are calculated by two consecutive settlement runs (i.e. DAM resettlement vs. DAM settlement runs) for the summation of DARTOBLQSETOT for a QSE, for an Operating Day. DARTOBLBILLAMT = DAEPAMTQSETOT_ (this run) – DAEPAMTQSETOT_ (last run)

18. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 18 Day-Ahead Energy Revenue

19. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 19 Day-Ahead Energy Revenue DAEREV is the revenue received in the DAM for the Resource at the Resource Node Settlement Point represented by the QSE, based on the DAM Settlement Point Price, for the hour. DAEREV_ _ _ = (-1) * DASPP_ * DAESR_ _ _

20. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 20 RMR Day-Ahead Energy Revenue Total RMRDAEREVTOT is the total of the Day- Ahead Energy Revenue for all RMR Units only for each hour in the Operating Day. RMRDAEREVTOT =DAEREV_ _ _

21. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 21 Day-Ahead Congestion Rent DAMCONGRENT is calculated as the net of the Day-Ahead Energy Charge, Day-Ahead Energy Payment, Day-Ahead Energy Revenue to RMR Units, and the Settlement for PTP Obligations Bought in the DAM. The Congestion Rent value is a component used by CRR Balancing Account Settlements to determine if CRR Owners should be partially paid or paid in full. Additionally, if the CRR Owners are paid in full and there is a surplus, the surplus will go to the Balancing Account. DACONGRENT = DAESAMTTOT + RMRDAEREVTOT + DAEPAMTTOT + DARTOBLAMTTOT

22. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 22 Day-Ahead Make Whole AGI (Acronym Guide Index) DAMCOMMITFLAG – DAM-Committed Resource Flag SUFLAG – Startup Eligibility Flag DAMWENEFLAG – Day-Ahead Make-Whole Eligibility Flag DAESR – Day-Ahead Energy Sale from Resource DAEREV – Day-Ahead Energy Revenue DASUO – Day-Ahead Startup Offer DASTARTTYPE – Day-Ahead Start Type DAMEO – Day-Ahead Minimum Energy Offer DALSL – Day-Ahead Lowest Sustainable Limit DAAIEC – Day-Ahead Average Incremental Energy Cost PCRUR – Procured Capacity for Reg-Up MCPCRU – Market Clearing Price of Capacity for Reg-Up PCRDR – Procured Capacity for Reg-Down MCPCRD – Market Clearing Price of Capacity for Reg-Down PCRRR – Procured Capacity for Responsive Reserve MCPCRR – Market Clearing Price for Capacity for Responsive Reserve PCNSR – Procured Capacity for Non-Spin MCPCNS – Market Clearing Price of Capacity for Non-Spin DAMGCOST – Day-Ahead Market Guaranteed Amount DAASREV – Day-Ahead Ancillary Service Revenue DAMWAMT – Day-Ahead Make-Whole Amount DAMWAMTQSETOT – Day-Ahead Make-Whole Payment QSE Total DAMWAMTTOT – Day-Ahead Make-Whole Payment Total DAMWBILLAMT – Day-Ahead Make-Whole Payment Bill Amount **DAMWAMTRMR – Day-Ahead Make-Whole Payment RMR Unit Offset **NPRR72 to remove this and replace with DAMWRMRREV

23. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 23

24. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 24 Day Ahead Ancillary Service Revenue DAASREV is the revenue received in the DAM for the resource represented by the QSE based on the Market Clearing Price of Capacity for each Ancillary Service in the DAM. DAASREV_ _ = ((-1) * MCPCRU_ * PCRUR_ _ _ ) + ((-1) * MCPCRD_ * PCRDR_ _ _ ) + ((-1) * MCPCRR_ * PCRRR_ _ _ ) + ((-1) * MCPCNS_ * PCNSR_ _ _ )

25. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 25 Day Ahead Guaranteed Cost DAMGCOST is the sum of the startup cost and the operating energy costs of the DAM-committed Resource at the Resource Node Settlement Point represented by the QSE, for the DAM-commitment period. DAMGCOST_ _ _ = DASUO_ _ _ _ if and only if DAMSUFLAG_ _ _ = 1 for the first hour of the commitment (otherwise DASUO is not included when calculating DAMGCOST) + (DAMWENEFLAG_ _ _ h * DAMEO_ _ _ h * DALSL _ _ _ h ) + ( DAMWENEFLAG_ _ _ h * DAAIEC_ _ _ h * (DAESR_ _ _ h - DALSL _ _ _ h )) Additional Comments: DAMGCOST will exist in an hourly data cut. The DAMGCOST value calculated for a commitment period will exist only in the first hour of the commitment period. All other hourly intervals within the commitment period will contain a value of zero (0).

26. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 26 Day-Ahead Make Whole Payment DAMWAMT is the payment to the QSE to make-whole the Startup Cost. DAMWAMT_ _ _ h = (-1) * Max (0, DAMGCOST_ _ _ + DAEREV_ _ _ h + DAASREV_ _ h ) * DAESR_ _ _ h / ( DAESR_ _ _ h )

27. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 27 Day-Ahead Make-Whole QSE Payment Total per QSE DAMWAMTQSETOT is the total of the Day- Ahead Make-Whole Payments to a QSE for the DAM-committed non-RMR Generation Resources for the hour. DAMWAMTQSETOT_ = DAMWAMT_ _ _

28. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 28 Day-Ahead Make Whole Payment Amount Total DAMWAMTTOT is the total of the Day-Ahead Make-Whole Payments to all QSEs for all DAM- committed non-RMR Resources for the hour. DAMWAMTTOT = DAMWAMT_ _ _ Note that the DAMWAMTTOT uses the DAMWAMT calc instead of the QSETOT because a QSE could have both RMR and NON-RMR units.

29. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 29 RMR Day-Ahead Make-Whole Revenue Total RMRDAMREVTOT is the total of the RMR Day- Ahead Make-Whole Revenue for all DAM- committed RMR Units only for the hour. RMRDAMWREVTOT= DAMWAMT_ _ _

30. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 30 Day-Ahead Make-Whole Payment Bill Amount DAMWBILLAMT is the difference in the amounts that are calculated by two consecutive settlement runs (i.e. DAM resettlement vs. DAM settlement runs) for the summation of the DAMWAMTQSETOT for a QSE, for an operating day. DAMWBILLAMT = DAMWAMTQSETOT_ (this run) – DAMWAMTQSETOT_ (last run)

31. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 31

32. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 32 Day-Ahead Energy Purchase Ratio Share DAERS is the ratio of the QSE’s total amount of energy represented by its cleared DAM Energy Bids and PTP Obligation Bids, to the total amount of energy represented by all QSEs’ cleared DAM Energy Bids and PTP Obligation Bids, for the hour. DAERS_ =DAE_ / DAETOT Where DAE is the QSE’s total amount of energy Where DAETOT is the total amount of energy represented by all cleared bids. DAE_ =DAEP_ _ +RTOBL_ _ _ DAETOT = DAE _

33. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 33 Day Ahead Make-Whole Charge LADAMWAMT is the allocated charge to the QSE to make whole all eligible DAM committed Resources for the hour. LADAMWAMT_ = (-1) * (DAMWAMTTOT + RMRDAMWREVTOT) * DAERS _

34. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 34 Day-Ahead Make-Whole Charge Bill-Amount LADAMWBILLAMT is the difference in the amounts that are calculated by two consecutive settlement runs (i.e. Resettlement and original runs) for the summation of LADAMWAMT for a QSE, for an Operating Day. LADAMWBILLAMT = LADAMWAMT_ (this run) – LADAMWAMT_ (last run)