1. Cutover Market Call
November 29, :30 PM 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. General Updates / Reminders3

4. Cut-Over Update – Go-Live Sequence of Events
Action
Comments
11/15/2010 – 11/29/2010
ERCOT Initiates “Soft Launch” to Nodal Market Go-Live
ERCOT will run non-binding DAM, RUC daily per Nodal protocol timelines. RTM will remain Open Loop, but continue to publish base points and LMPs. Note that credit will be set high on 11/15
11/15/2010
Credit posts ACLs and TPEs for non-binding DAM
For Operating Day 11/15 credit will be manually set to high limits
11/16/2010
First Credit Operating Day 11/16
Credit reflects actual limits
11/17/2010
Market now able to submit transactions for first Nodal Operating Day (T-14d)
12/01 Operating Day open for Market submissions
11/24/2010
QSEs with Resources required to submit 7 days of rolling COPs
12/01 required on 11/23
11/28/2010 2:00 PM –
11/28/2010 3:00 PM
Generation and Frequency Control switched to Nodal systems for final LFC test
QSEs will begin following Nodal base points
Settlements will continue to be Zonal
11/30/ :59:59 PM
QSEs remain on Nodal Control while settling Zonally during the LFC test
11/29/2010
Last Non- Binding DAM for operating day 11/30 4

5. Cut-Over Update – Go-Live Sequence of Events (11/30/2010)
Time
Action
Comments
up to 10:00
Bids and Offer submission
 QSE submit bids and offers
10:00
Close DAM
Execute Dam Clearing Process
13:30
Approve DAM results
Day Ahead results posted to MIS
13:30-14:30
Submit Post DAM COP updates
14:30
Close for RUC
Begin Execution of DRUC
16:00
Approve DRUC Results
Post DRUC Results
18:00
HRUC Begins Hourly Runs 5

6. Phase 2 Validation reports and process
Special Topics
Phase 2 Validation reports and process
Phase 2 validation re-evaluates all submitted transactions at 7 am in the day-ahead with updated information, such as AS Obligation, CRR ownership, credit limits, FIP/FOP for TPO caps, etc.
If there is a validation error, ERCOT will cancel the transaction
ERCOT sends a notice that a Phase 2 report is available for a particular transaction type, and notification containing the cancellation for the transaction.
You can query for the Phase 2 report via web services or on the Reports page of the Market Manager in order to view the reason for the cancellation.
If applicable, correct and resubmit prior to 10 am
Note that submissions are locked out during the Phase 2 process, which starts around 7 am and is currently taking about 5-10 minutes to complete.
Error message says that ‘submissions are not allowed during Phase 2 validation’ 6

7. Phase 2 Validation reports and process
Special Topics
Phase 2 Validation reports and process 7

8. Phase 2 Validation reports and process
Special Topics
Phase 2 Validation reports and process 8

9. Phase 2 Validation reports and process
Special Topics
Phase 2 Validation reports and process 9

10. Verifiable Costs Special Topics
If you exceed the verifiable cost cap when submitting a TPO, the message returned will indicate the cap value that is in the market system

11. FAQ
Q: Can I self-commit my resource a partial day and submit startup costs for other hours? A: No. For example, if you attempt to self-commit hours 7-22, but submit startup/min energy offers for hours 1-6, 23-24, the offer is accepted structured this way, but hours 7-22 are not considered self-committed by the DAM and the clearing behavior will reflect a non- self-committed offer. Meaning, if there is no overlap with the LSL/HSL in the COP in the energy offer curve, that makes the energy offer curve invalid for use in the DAM. If there is an online AS Offer for the same resource, the QSE can be awarded energy at LSL in conjunction with the AS Offer. Note that this can cause a QSE to be awarded above the submitted energy offer curve. Q: Can I self-commit my share of a JOU if the other owners submit startup costs? A: No. Similar to the answer above, the energy offer curve will be accepted, but will be invalid for award by DAM if there is no overlap with the HSL/LSL in the COP. If the offer is invalid, the physical resource cannot be awarded. In this scenario, all owners have to self-commit or all owners have to submit full TPOs to be awarded.

12. Questions