1. http://nodal.ercot.com 1 Market Trials Update NATF January 5, 2010

2. http://nodal.ercot.com 2 Agenda General Reminders / Updates Market Trials Roadmap / Update –Qualification Activities –Nodal Telemetry Outreach Known Issues 90 Day Look Ahead

3. General Reminders / Updates Weekly Market Call Changes – January 2010 –09:00 AM – 10:00 AM - QSE Qualification Call http://www.ercot.com/committees/nodal/mt/qse/index http://www.ercot.com/committees/nodal/mt/qse/index –10:30 AM – 11:30 AM – CRR Account Holder Call http://www.ercot.com/committees/nodal/mt/crr/index http://www.ercot.com/committees/nodal/mt/crr/index ERCOT has published the Market Trials Phase 3 Handbooks –Real Time Market / LFC covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html –Outage Scheduler covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/os/index.htmlhttp://nodal.ercot.com/readiness/markettrials/os/index.html –CRR covering release Phase 3.0 http://nodal.ercot.com/readiness/markettrials/crr/index.htmlhttp://nodal.ercot.com/readiness/markettrials/crr/index.html –Settlements / COMs covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/coms/index.htmlhttp://nodal.ercot.com/readiness/markettrials/coms/index.html –Day Ahead Market (note that this contains only reference data to the 2.1 qualification as there is no Phase 3.0 scope) http://nodal.ercot.com/readiness/markettrials/dam/index.htmlhttp://nodal.ercot.com/readiness/markettrials/dam/index.html http://nodal.ercot.com 3

4. General Reminders / Updates URLs for access the Nodal Production systems –MIS: https://mis.ercot.com/pps/tibco/mis/https://mis.ercot.com/pps/tibco/mis/ –Market Manager: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS: https://misapi.ercot.com/2007-08/Nodal/eEDS/EWShttps://misapi.ercot.com/2007-08/Nodal/eEDS/EWS Market Trials Phase 3 Kick Off / MRS 2 –ERCOT will host these on Jan. 28 th, starting at 9am –Location is the Austin Met center as well as via WebEx –Details are posted at www.ercot.com/calendar/2010/01/20100128-EDS/www.ercot.com/calendar/2010/01/20100128-EDS/ Reminder: Market Trials email address change: ERCOT asks that MPs use the markettrials@ercot.com email address for questions from this point forward markettrials@ercot.com –This will begin the phasing out of eds2@ercot.com, eds3@ercot.com and eds4@ercot.com email addresses.eds2@ercot.comeds3@ercot.comeds4@ercot.com –A centralized address will no longer require MPs to “guess” which email address to use for their questions –We have implemented a more effective method of routing and responding to emails using this address –The old eds emails can continue to be used until 2009 hold over efforts are completed (such as telemetry outreach) http://nodal.ercot.com 4

5. General Reminders / Updates Environment Availability for January 2010 –The Nodal Production Environment will be available Monday – Thursday from 8am – 6pm –Outside of these hours, ERCOT will be executing performance testing and patch migrations based on testing results –For those MPs that provided ERCOT test certificates, there will be test notifications sent to your listeners during these internal ERCOT tests –ERCOT transactions will be limited to using Sundays as trade dates –MPs should avoid Sunday for submitting qualification transactions Please note that only functionality that pertains to the CRR and QSE qualification activities has been validated and is supported –Other features (such as reports and other MIS functionality) may be present in the environment but may have issues –ERCOT is still in the process of validating features to be released for Market Trials Phase 3 http://nodal.ercot.com 5

6. Market Trials 2010 Roadmap http://nodal.ercot.com 6

7. Market Trials Roadmap / Update – Qualification Activities ERCOT Opened the Nodal Production environment: –MMS on 12/30/2009 –CRR on 1/4/2010 Mandatory qualification activities will continue through Jan 28 ERCOT has identified 45 QSEs that did not participate in qualification activities in 2007 and 2008 and will require a formal qualification conference call –All of these QSEs have been contacted; 22 have responded and scheduled a qualification call –The schedule of calls may be confirmed at http://nodal.ercot.com/readiness/markettrials/connectivity/index.html http://nodal.ercot.com/readiness/markettrials/connectivity/index.html –Currently no QSEs that did participate in the 2007 / 2008 qualifications have requested an optional qualification call (requests can be sent to markettrials@ercot.com) markettrials@ercot.com 36 QSEs have completed qualification out of 287 –A dash board is posted every Friday of QSEs that have completed qualification (note those QSEs that qualified last week will be posted this Friday) http://nodal.ercot.com/readiness/markettrials/connectivity/index.htmlhttp://nodal.ercot.com/readiness/markettrials/connectivity/index.html http://nodal.ercot.com 7

8. Market Trials Roadmap / Update – Telemetry Outreach In 2009, the Market was able to largely close the gap on State Estimator required telemetry that was missing Jan 2010 begins –Required SCED oriented telemetry outreach –All missing telemetry is required to be resolved by Feb 1, 2010 –Telemetry quality ERCOT will also begin to roll telemetry quality issues into the telemetry outreach effort It is important that QSEs take this time to proactively research issues in parallel with ERCOT’s outreach effort Feb 2010 –Prior to Feb ERCOT will be evaluating LMPs in Nodal Production by implementing manual replacements for bad/missing telemetry (to replicate constraints in zonal) and by submitting “canned” offers to MMS –In Feb, ERCOT will remove all manual replacements and the market will begin submitting offer curves –It is imperative to have nearly all telemetry issues resolved in early Feb to meet the 6 month LMP posting start date, March 1. http://nodal.ercot.com 8

9. Known Issues ERCOT released the Nodal Production environment early on December 29, 2009 During this early release period it was discovered that resource data was corrupted, placing some resources under the wrong QSE During the period of time, QSEs were able to view Operational Parameters of resources not in their portfolio via the Resource Parameters Interface ERCOT has reviewed the transaction data and confirmed that 1 QSE accessed this interface during the time in question –The environment was immediately shut down until resolved –ERCOT Legal will notify impacted QSEs –ERCOT Legal will file a notice of protocol violation with the Commission Root cause: A tool used to load data into the lower development environments was erroneously pointed at the Nodal Production environment Corrective Action: –Development data loader separate from Production data loader –Improved verification process –Back up of environment DB prior to data load process http://nodal.ercot.com 9

10. 2010: January Market Activities JanFebMarAprMayJuneJulyAug Targeted Activities for January 2010 ERCOT Publishes Market Trials Handbooks for Phase 3 SCED/RTM submission qualification DAM submission qualification CRR Account Holders submission qualification Functional Area Real-Time Market Congestion Revenue Rights Day-Ahead Market Reliability Unit Commitment Outage Scheduler COMS/Settlements Network Modeling Nodal Reports 5 January 2010 Technical Advisory Committee

11. 2010: February Market Activities Targeted Activities for February 2010 ERCOT Publishes Market Trials Handbooks for Phase 4 ERCOT posts CRR Network Model QSEs submit SCED offers and Real-Time submissions daily ERCOT executes SCED and posts results/reports on MIS/ICCP ERCOT notifications are active ERCOT executes Monthly Allocation & CRR Auction and posts results ERCOT posts CRR Auction Invoices QSE/TSP begins Outage Scheduler submission qualification Reports supporting RTM, CRR, Outage Scheduler JanFebMarAprMayJuneJulyAug Functional Area Real-Time Market Congestion Revenue Rights Day-Ahead Market Reliability Unit Commitment Outage Scheduler COMS/Settlements Network Modeling Nodal Reports 5 January 2010 Technical Advisory Committee

12. 2010: March Market Activities Functional Area Real-Time Market Congestion Revenue Rights Day-Ahead Market Reliability Unit Commitment Outage Scheduler COMS/Settlements Network Modeling Nodal Reports Targeted Activities for March 2010 ERCOT Publishes Market Trials Handbooks for Phase 5 ERCOT executes Monthly CRR Auction CRR bilateral trading tested Individual QSE LFC begins (include Emergency Base Point and Non-Spin deployments) Initial DST Test (short day for Mar 14) CIM/Network Model loading process operational for bi-weekly loads ERCOT posts CRR network model for multi-month auction JanFebMarAprMayJuneJulyAug 5 January 2010 Technical Advisory Committee

13. http://nodal.ercot.com 13 Q&A Q&A / Open Forum