1. Market Trials Congestion Revenue Rights
Weekly Update
August 27, 2010 1

2. Antitrust Admonition ANTITRUST ADMONITION
ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.
DISCLAIMER
All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure. 2

3. Anti-trust Admonition Environment Report Planned / unplanned outages
Agenda
Anti-trust Admonition
Environment Report
Planned / unplanned outages
Known Issues
Standing Reports and Updates
Future activities
Question and Answers / General Discussion
FAQ
ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline 3

4. Market Trials 2010 Roadmap 4

5. Day-to-day operations summary: Planned / Unplanned Outages of EDS
Next Thursday, 9/2, from 3:00pm until 10:00pm
Unplanned Outages
None 5

6. Vendor has fixed the issue in the software, and it is being tested now
Known Issues
Topology Processor (software that creates the PSS/E file from the Network data) does not export the outages to CRR’s PSS/E file
Vendor has fixed the issue in the software, and it is being tested now
CRR team has a workaround by using the TCR PSS/E file with outages and augmenting it for the CRR application

7. Standing Reports and Updates: General reminders / updates
September Auction Market Trials Activities
2010 September Monthly Auction
2010 September Auction Market Results Posted on Friday, 8/27 by 2am
2010 September Auction Market Results visible in CRR application on Friday, 8/27 by 8am
2010 September Auction Market Invoices Posted on Monday, 8/30
2010 September Auction release of CRR Credit Exposure on Monday, 8/30 at 4:45pm
October Auction Market Trials Activities – NEW
Schedule being planned now
Purpose is to use the outages and equipment updates provided by the TDSP’s due on 9/1
NOIE’s must have their paperwork submitted to Ercot by Wednesday, 9/8, at 5:00pm
** Market Trials Handbook has been updated with these new dates 7

8. Q&A
Q&A / Open Forum 8

9. How will new Market Participants get Qualified for future CRR markets?
Your Wholesale Client Services Representative will continue to walk you through the Registration Process after Texas Nodal Implementation, just as they have done during Market Trials.
The cutoff date of 8/13 for the December 2010 auction was to allow enough time (i.e., two months) for Legal, Registration, Credit, and CRR to complete their qualification activities.  While this is the only market with a specified “cut-off” date, two months is an adequate timeframe to expect for the registration, qualification and credit approval to be completed.

10. The behavior of 24 Hour bids in the CRR Monthly Auctions
24 hour bids can be entered into CRR Monthly auctions
The auction engine treats a 24 hour bid as a single bid across the three time of use network models (Peak WD, Peak WE, Off-peak)
Single MW amount
Single $/MW-hr bid price (not to exceed)
If the Bid Price is higher than the weighted (by number of hours) average of the three times of use clearing prices(Peak WD, Peak WE, Off-peak) then the CRR bid will be awarded fully (assuming there is no active budget constraint).
If the Bid Price is lower than the weighted average of the three times of use clearing prices then the CRR bid will not be awarded.
If the Bid Price is equal to the weighted average of the three times of use clearing prices then the CRR bid will be awarded at some level between 0 and 100%, but the same in each time of use..

11. 24 Hour Example in Monthly Market
24 hour CRR bid for February 2013 Monthly Auction
28 x 8 = 224 Off-peak hours
8 x 16 = 128 PeakWE hours
20 x 16 = 320 PeakWD hours
28 x 24 = 672 total hours
For a certain path prices are as follows
Off-peak 2$/MW-hr (arbitrary number for this example)
PeakWE 3$/MW-hr (arbitrary number for this example)
PeakWD 8$/MW-hr (arbitrary number for this example)
24 hour = (224x x x8)/672 = $5.048/MW-hr
Note that a 24 hr bid of $6/MW-hr would be fully awarded in each time of use even though it was less than the clearing price in the PeakWD time of use.
Also note that a 24 hr bid of $4/MW-hr would not be awarded at all, even though it was more than the clearing price in the Off-peak and PeakWE times of use.

12. The behavior of 24 Hour bids in the CRR Annual Auctions
24 hour bids can be entered into CRR Annual auctions
The auction engine treats a 24 hour bid as a short cut for entering three separate bids in the three time of use network models (Peak WD, Peak WE, Off-peak)
If the Bid Price is higher than the clearing price in a given time of use (Peak WD, Peak WE, Off-peak) then the CRR bid will be awarded fully in that time of use (assuming there is no active budget constraint).
If the Bid Price is lower than the clearing price in a given time of use then the CRR bid will be not be awarded in that time of use.
If the Bid Price is equal to the clearing price in a given time of use then the CRR bid will be awarded at some level between 0 and 100% in that time of use.

13. 24 Hour Example in Annual Market
24 hour CRR bid for February 2013 in 2012/2013 Annual Auction
For a certain path prices are as follows
Off-peak 2$/MW-hr (arbitrary number for this example)
PeakWE 3$/MW-hr (arbitrary number for this example)
PeakWD 8$/MW-hr (arbitrary number for this example)
Note that a 24 hr bid of $6/MW-hr would be fully awarded in PeakWE and Off-peak, but not awarded in PeakWD
Also note that a 24 hr bid of $4/MW-hr would also be fully awarded in PeakWE and Off-peak, but not awarded in PeakWD

14. What is the CRR Schedule of Activities from now until Go-Live?
Day
Date
Activity
Comments
Wednesday
9/1/2010
ERCOT posts CRR Activity Calendar to MIS
9/8/2010
NOIE’s must have proof of ownership in to ERCOT by 5:00pm CPT
Thursday
9/23/2010
ERCOT CRR Group begins validation of Generation Resource Capacity of approved ownership for Generation Resources or Long-Term Contractual Agreements
Monday
10/1/2010
ERCOT initializes and validates CRR Production Database static data, Market Participant data, Time of Use data, Calendar Period data, system parameters, etc.
 Wednesday
10/13/2010
ERCOT CRR team prepares contracts and entitlements for 2010 December Allocation and loads into CRR system
10/14/2010
ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2010 December Monthly CRR Auction 1
 Tuesday
10/19/2010 
PCRR Nomination for the 2010 December Monthly CRR Allocation must be received by ERCOT at 17:00:00 CPT 2
15 Business Days prior to the opening of the auction Section (c)(i)
Tuesday
10/26/2010
ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly CRR Auction 3
10 Business Days prior to the opening of the auction Section (c)(i)
ERCOT shall post CRR Network Model for the 2010 December Monthly CRR Auction 4
Post no later than 10 Business days before the auction Section (1)(i)(i)
Friday
10/29/2010
ERCOT shall post the 2010 December Monthly CRR Auction Notice 5
Not less than 10 days before each monthly CRR auction Section (1)
11/5/2010
ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 January Monthly CRR Auction
5 Days from acceptance date

15. What is the CRR Schedule of Activities from now until Go-Live?
Day
Date
Activity
Comments
Monday
11/8/2010
CRR Auction Lock Date for 2010 December Monthly CRR Auction at 17:00:00 CPT 6
Lock Date
Section (1)
Tuesday
11/9/2010
CRR Auction Bid Window Opens at 00:00:01 CPT for the 2010 December Monthly CRR Auction 7
Thursday
11/11/2010
CRR Auction Bid Window Closes at 23:59:59 CPT for the 2010 December Monthly CRR Auction 8
Friday
11/12/2010
ERCOT starts the Execution of the Auction Engine for the 2010 December Monthly CRR Auction 9
Auction Engine Starts
PCRR Nomination for the 2011 January Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2
15 Business Days prior to the opening of the auction Section (c)(i)
11/15/2010
ERCOT posts 2010 December Monthly CRR Auction results to Market at 01:00:00 CPT
ERCOT creates Common Download files for CRR Auction Results by 8:00am CPT 10
Post Auction Results Section (1)
ERCOT sends auction results at 01:55:00 CPT to Settlements & Billing and Credit for 2010 December Monthly CRR Auction 11
11/16/2010
CRR releases the Locked Auction Funds for 2010 December Monthly CRR Auction at 17:15:00 CPT 12
ERCOT releases locked auction funded
Settlement & Billing creates a 2011 January CRR Auction Invoice and sends in out electronically prior to 23:59:59 CPT 13
S&B issues invoices Section 9.8(1)
11/19/2010
2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14
Invoices due Section 9.9.1(1)
ERCOT shall allocate PCRRs to NOIEs for the 2011 January Monthly CRR Auction 3
10 Business Days prior to the opening of the auction Section (c)(i)
ERCOT shall post CRR Network Model for the 2011 January Monthly CRR Auction 4
Post no later than 10 Business days before the auction Section (1)(i)(i)
11/22/2010
ERCOT due to pay out to CRR Account Holders that are owed from 2010 December Monthly CRR Auction 15
Money owed to CRR AH paid Section 9.9.2(1)

16. What is the CRR Schedule of Activities from now until Go-Live?
Day
Date
Activity
Comments
Friday
11/19/2010
2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14
Invoices due Section 9.9.1(1)
Wednesday
11/24/2010
ERCOT shall post the 2011 January Monthly CRR Auction Notice 5
Not less than 10 days before each monthly CRR auction Section (1)
Tuesday
11/30/2010
CRR sends Daily Ownership Data to MMS at 1:55am for 12/1//2010 Day Ahead Market
12/1/2010
Go Live Date
12/3/2010
ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 February Monthly CRR Auction 1
Monday
12/6/2010
CRR Auction Lock Date for 2011 January Monthly Auction Closes at 17:00:00 CPT 6
Lock Date Section (1)
12/7/2010
CRR Auction Bid Window Opens at 00:00:01CPT for the 2011 January Monthly Auction 7
ERCOT shall post CRR ownership as of 11/30/2010
Section
Thursday
12/9/2010
CRR Auction Bid Window Closes at 23:59:59 CPT for the 2011 January Monthly CRR Auction 8
12/10/2010
ERCOT starts the Execution of the Auction Engine for the 2011 January Monthly CRR Auction 9
PCRR Nomination for the 2011 February Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2
15 Business Days prior to the opening of the auction Section (c)(i)