1. TEXAS NODAL (ERCOT REVISIONS)
Board of Directors
Austin, Texas
July 15, 2003

2. Process Overview PUCT Board of Directors Facilitation Team MOD TAC
Oversight, Direction & Protocol Approval
MOD
Advice / Updates
Board of Directors
Timely Compliance with PUCT Order
TAC
Review of
Recommendations
And Protocols
ERCOT EC
Allocation of
Resources
And Funding
Facilitation Team
Implement Board Directives
Coordination Group
MINORITY
POSITIONS
MOD
Guidance
Concept
Groups
Concept
Groups
Concept
Groups
Concept
Groups
Stakeholders
Policy and Technical Direction
(via Representative Voting Structure)

3. Resources Facilitation Team Coordination Group Concept Groups
Chair: Independent Facilitator
Vice Chair: Jim Galvin
TAC Sponsor:
TAC Chair
ERCOT Sponsor:
VP Market Ops
Concept Groups
System
Operations
Chair: Ind Facilitator
Vice Chair: Kent Saathoff
Node/Zone
Design
Chair: Ind Facilitator
Vice Chair: Bill Bojorquez
Market
Operations
Chair: Ind Facilitator
Vice Chair: Ken Ragsdale
Forward Markets &
Market Mitigation
Chair: Ind Facilitator
Vice Chair: Rich Gruber
ERCOT Staff
Program Management, Meeting Coordination, Communications/Coordination/Website,
Market Design Documentation, Protocol Update & Development, Systems Implementation & Migration

4. Roles and Responsibilities
ERCOT Board:
- Approval of design and protocols
- Approve and/or select facilitators/experts as needed
- Rule on disputes and appeals
- Provide guidance to MPs and ERCOT staff on financial parameters
- Direct oversight of all phases

5. Roles and Responsibilities
Technical Advisory Committee:
- Co-Sponsor facilitation process with ERCOT
- Review minority positions
- Present briefing materials for ERCOT Board on minority positions
- Advise ERCOT staff during implementation phases

6. Roles and Responsibilities
Coordination Group:
- Chair facilitation process
- Propose solutions to remove “seams”
- Plan/coordinate stakeholder education activities about nodal markets
- Request engagement of economic experts
- Oversee Concept Group activities
- Oversee communications with stakeholders, e.g., website
- Consolidate and present Concept Group recommendations to Board
- Report monthly status to Board and TAC
- Report status to PUCT as requested

7. Roles and Responsibilities
Concept Groups:
- Chair participative process
- Coordinate development of work plans and schedules
- Track and follow up on schedules, issues, and assignments
- Establish agendas and provide notice of meetings
- Organize flow of issues consideration and discussion
- Gather white papers, diagrams or other materials as necessary
- Coordinate development of straw dogs
- Ensure and administer Phase I and II voting on all issues
- Present recommendations to Coordination Group
- Report weekly status to Coordination Group

8. Roles and Responsibilities
Standing TAC subcommittees:
- Primary focus on on-going market operations during Phases I and II
- Provide advice as necessary during Phases I and II
- Coordinate with ERCOT staff during the implementation phases

9. Roles and Responsibilities
ERCOT Staff:
- Co-Sponsor facilitation process with TAC
- Continue to operate and fine tune existing market
- Maintain website with agendas, straw dogs, minutes, issue resolutions, etc.
- Provide advice as necessary during Phases I and II
- Provide logistical and staff support
- Develop cost estimates of alternatives upon request of Facilitation Team
- Prepare design and protocols filings for PUCT consideration
- Lead responsibility for implementation phases

10. Roles and Responsibilities
Market Participants:
- Development of straw dogs
- Participate actively
- Only corporate members may vote
- Right to appeal minority position(s) through TAC

11. Roles and Responsibilities
Market Oversight Division:
- Actively participate in all facilitation activities
- Advise PUCT on Phase I and Phase ii developments
- Ensure compliance with PUCT rules and orders

12. Roles and Responsibilities
Public Utility Commission:
- Resolve appeals from the Board
- Resolve disputes arising from Board decisions
- Monitor progress and provide feedback
- Final approval of protocols

13. Summary of Revised ERCOT Proposal
ERCOT agrees with TAC that independent facilitator will Chair the Coordination and Concept Groups (with ERCOT as Vice Chair)
ERCOT largely agrees with TAC’s proposed Roles and Responsibilities and has incorporated them in this revised proposal
Exceptions not incorporated are:
Direct TAC oversight of Phases I and II (Direct Board oversight)
TAC presents design proposals and protocols to Board for approval (Coordination Group performs this function)
All meeting attendees may vote (Only corporate members may vote)