1. Real Time Revenue Neutrality CSWG 2/27/2012 Jim Galvin

2. 2 QMWG met to discuss the events of November 24 and 30 where outages and congestion events created significant negative pricing at certain settlement points Settlements for Revenue Neutrality were significant on these two days –Revenue Neutrality tracked at $0.73/MWh, normalized (excluding Nov 24, 30) $0.21 ERCOT staff provide information as to how the price can clear at extreme negative values Board approved price corrections for November 24; however, November 30 prices were not under investigation Driver of high Revenue Neutrality on both days are PTP Obligations settled in Real Time with no Imbalance offset Update on Revenue Neutrality

3. 3 RENA Calculation Meeting Title (optional)Date

4. 4 Global “TOT” bill determinants available in the RT MODE Extract CRROUTPUTINTERVAL/CRROUTPUTHEADER and RTMOUTPUTINTERVAL/RTMOUTPUTHEADER tables contain determinants necessary to review inputs into Revenue Neutrality equation Combined Charter- CSWG MODE Extract RTMOUTPUTINTERVAL/HEADERCRROUTPUTINTERVAL/HEADER Determinant IDRecorderDeterminant IDRecorder 6608RTDCIMPAMTTOT6860RTOPTRAMTTOT 6655RTDCEXPAMTTOT6850RTOPTAMTTOT 6594BLTRAMTTOT6845RTOBLAMTTOT 6639RTEIAMTTOT 6660RTCCAMTTOT 6590RMRDAESRTVTOT

5. 5 November 30 HE 12 HE12 RTOBLAMTTOT($1,495,965.97) RTOPTAMTTOT($286,052.49) RTOPTRAMTTOT$0.00 INT045INT046INT047INT048 RTCCAMTTOT$27,581.06$27,580.97$10,160.39$17,639.80 RTDCEXPAMTTOT$310.35$309.75$1,091.25$1,013.65 BLTRAMTTOT$0.00 RTDCIMPAMTTOT($178.50)($177.60)($174.08)($172.88) RTEIAMTTOT$97,910.66$68,851.53$11,322.86$27,884.62 RTOBLAMTTOT($373,991.49) RTOPTAMTTOT($71,513.12) RENA Total $1,491,064.63$319,881.05$348,939.97$423,104.20$399,139.43

6. 6 RENA on November 30 driven by RT PTP Obligations/Options with no offset in Real Time Energy Imbalance Prices for the day are relatively mild with the exception of extreme negative resource price (-$3000 and lower) for congestion event While high uplift to load for this day, load are entitled to CRR Auction funds and clearing of Balancing Account November 24 and 30 represent the top 2 days for Revenue Neutrality exposure –Other days show impact due to significantly low negative prices Observations

7. 7 Top 6 Revenue Neutrality Days Meeting Title (optional)Date Trade DateTot Market Revenue NeutralityMinimum RTSPPBLTRAMTTOTRTCCAMTTOTRTDCEXPAMTTOTRTDCIMPAMTTOTRTEIAMTTOTRTOBLAMTTOTRTOPTAMTTOTRTOPTRAMTTOT 11/30/2011 0:00$6,629,638.18($3,221.14)$0.00$542,682.94($331,494.58)($67,719.69)$1,398,285.83($6,936,502.07)($1,234,484.67)($405.94) 11/24/2011 0:00$5,377,825.54($3,270.06)$0.00$736,651.88$0.00($14,659.84)$1,947,257.82($6,407,077.65)($1,639,997.63)($0.12) 09/13/2011 0:00$3,600,279.71($2,315.43)$0.00($61,200.68)$78,934.67($758,364.41)$17,708,027.31($17,441,836.39)($3,118,321.47)($7,518.74) 09/07/2011 0:00$3,564,438.91($736.46)$0.00$138,881.22$29,058.19($261,476.17)$7,065,509.20($8,867,336.27)($1,664,516.56)($4,558.52) 04/14/2011 0:00$2,608,680.99($96.95)$0.00$58,530.13$0.00($501,392.70)$1,594,859.39($3,349,466.49)($409,425.33)($1,785.99) 12/06/2011 0:00$2,215,020.61($2,463.78)$0.00$36,955.41$58,932.94($850,404.15)$5,645,048.46($6,126,722.35)($977,298.65)($1,532.27) Legend BLTRAMTTOT Block Load Transfer Payments RTCCAMTTOT Real Time Congestion Costs for Self Schedules RTDCEXPAMTTOTReal Time DC Tie Exports RTDCIMPAMTTOTReal Time DC Tie Imports RTEIAMTTOT Net Real Time Energy Imbalance (all settlement points) RTOBLAMTTOTReal Time Obligations RTOPTAMTTOTReal Time Options RTOPTRAMTTOT Real Time Options w/ Refund

8. 8 Questions? Meeting Title (optional)Date