1. Nodal Program Update to Cops 05-11-2010
Jim Galvin

2. Program Status
97% of all QSEs are qualified, remaining non- qualified are working with ERCOT or are new QSEs in 30-day grace period
Market Trials have entered Phase 5 (on schedule) with full functionality testing of the following:
DAM, RTM and ongoing analysis of LMPs
DRUC, HRUC and SASM
Settlements functionality including Initial Settlement for DAM, RTM and CRRs
Invoices for DAM, RTM and CRRs
Data Extracts for DAM, RTM and CRRs

3. Market Trials
Phase 5 full functionality currently running two operating days per week, expect ramping up to 3 days per week and eventually to 5 days per week
One week delay in converting to 3-days per week as reported in the market calls on May 7, 2010
Participation remains strong across all market participants
Weekly calls are provided for updates on market trial results and Q&A

4. Market Trials- Highlights
CRR-
3 monthly CRR Auctions conducted and invoiced
DAM-
9 DAM markets run with DRUC, HRUC and SASM
“Guardrails” being relaxed weekly allowing for more robust testing
RTM results settled on protocol timeline
Settlements-
Statements and invoices for DAM and RTM are being posted in accordance with ERCOT settlement timeline
Full Extracts available for each settlement run

5. Market Trials- DAM Issues
Bid and Offer submittals cannot handle special characters
Higher AS prices have been less frequent, previous high prices for AS were driven by insufficiency of AS bids submitted relative to the obligation to purchase the appropriate MW of AS service
Issue with mapping of multiple Load Resources mapped to a single load point item will be resolved soon
Overall, prices are coming more in line and participation remains high as testing becomes less constrained

6. Market Trials- RUC Issues
RUC has been over-committing resources
ERCOT has not approved RUC commitments that are not operationally sound
Some RUC commitments have allowed for entities to test the communication and update of COP process
Issues causing over-commitment-
$0 Start and $0 Minimum Energy for “Offline” status resources
Missing COPs or COPs with incorrect data
Shift Factor configuration settings
Ratings, impedances and breaker status
Commitments have provided the opportunity to demonstrate settlement functionalities

7. Market Trials- RTM Issues
RTM Settlement results will not be fully indicative of expected results
Bids and Offers into the DAM may not reflect ERCOT real time Zonal results
Resources awarded Energy Offers may appear to have significant Base Point Deviation settlements as results in Zonal market may skew Nodal trial results
RT Energy Imbalance references differences between DA positions and RT metered Gen/Load, not like balancing energy settlement in Zonal
Testing of settlement functionality is complete and provides excellent experience in Nodal settlement processes

8. Market Trials- Statements and Invoices
Statements and Invoices available through the secured TML with access available to xml version or html version
Statement summary view is effective with drill down to more detail capabilities
Statements detail settlement values in dollars on statements, no longer billable quantities
Statements and invoices are being created and posted in accordance with Settlement Calendar

9. Market Trials- Extracts
Extracts available through secured TML
MODE and CODE extracts provided in csv files
Extracts have added features with additional columns that have provided much improved information on determinants such as interval count, min, max and totals
Previous identifiers in recorders that in zonal were delimited by “underscore” now have their own fields
Qty, Amt, Bill QTY and Bill Amt determinants no longer provided, however, no current indications that any charge type cannot be shadowed

10. Market Trials- Upcoming Items
Credit constraints will be added to DAM participation, market participants can test credit constraints, provide desired credit limits to ERCOT for simulation
LFC Testing will take place between May 19-21, transitioning resource entities to Nodal control for two hour period
LFC Test is financially binding in Zonal, consult PRR 748 for settlement methodology
Ramping up to 5x operating days per week with fewer guardrails

11. Questions?