1. COMS/Settlements/Credit
Weekly Update
June 25, 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 Standing Reports and Updates
Agenda
Anti-trust Admonition
Standing Reports and Updates
Operating Day Settlement Reports
Week in Review/General Reminders
Next Week’s Activities
Environment Report
Known Issues
Credit
Question and Answers / General Discussion
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. DAM Settlement Overview for June 16
Statement and Invoice Overview
153 Statements/Invoices posted to QSEs
53 Statements/Invoices posted to CRRAHs
1 QSEs received Statements/Invoices for $0 (Not due to earlier closed issue)
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 4

5. DAM Settlement Overview for June 17
Statement and Invoice Overview
163 Statements/Invoices posted to QSEs
53 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 5

6. DAM Settlement Overview for June 18
Statement and Invoice Overview
159 Statements/Invoices posted to QSEs
53 Statements/Invoices posted to CRRAHs
1 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 6

7. DAM Settlement Overview for June 19
Statement and Invoice Overview
158 Statements/Invoices posted to QSEs
42 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 7

8. DAM Settlement Overview for June 22
Statement and Invoice Overview
152 Statements/Invoices posted to QSEs
53 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 8

9. DAM Settlement Overview for June 23
Statement and Invoice Overview
159 Statements/Invoices posted to QSEs
53 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were derated
CRR Owners were fully funded (i.e. there were no Short Fall Charges)
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 9

10. RTM Settlement Overview for June 8
Statement Overview
196 Statements posted to QSEs
3 Statements posted to CRRAHs
6 QSEs received Statements for $0 (This is not due to the closed issue. There were drivers for calculations, but the outputs were zero)
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

11. RTM Settlement Overview for June 9
Statement Overview
151 Statements posted to QSEs
53 Statements posted to CRRAHs
3 and CRRAHs QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

12. RTM Settlement Overview for June 10
Statement Overview
201 Statements posted to QSEs
3 Statements posted to CRRAHs
7 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

13. RTM Settlement Overview for June 11
Statement Overview
200 Statements posted to QSEs
3 Statements posted to CRRAHs
3 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

14. RTM Settlement Overview for June 15
Statement Overview
XXXStatements posted to QSEs
XStatements posted to CRRAHs
XQSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

15. Charge Type Tracker
Below are the Day Ahead Market charge types that have been executed at least once during Market Trials (17 of 19 executed)

16. Charge Type Tracker
Below are the Real-Time Market charge types that have been executed at least once during Market Trials (30 of 45 executed)
** We are currently planning to have all charge types executed by the end of July**

17. Update to Settlement Charge Type Tracker
Planned Settlement dates for charge types not yet executed in Market Trials
**Any updates to these dates will be communicated at the Friday Settlements Market Trials Call

18. Stats on RTM Charge Types in Market Trials

19. Stats on DAM Charge Types in Market Trials

20. Nodal Dispute Update
System will handle both MIS submitted disputes and API submitted disputes
The Nodal Dispute form is already available. The (“Submit Nodal Dispute” is available on TML)
The API dispute submission has been tested but is not yet turned on in the Nodal test environment
ERCOT anticipates both MIS and API processes should be turned on for MPs to test prior to the 168 Hour test.
ERCOT will not use submitted Nodal disputes to track Market Trials issues, but Client Services will close the feedback loop by responding to disputes with the appropriate statuses

21. No Unsupported Operating Dates included
Week in Review
RTM Invoice (Posted 6-24)
No Unsupported Operating Dates included
Initials Included 6/4, 6/5, 6/8, 6/9, 6/10
Finals Included 5/25, 5/26, 5/27, 5/28, 5/29
True-Ups Included 5/1
July CRR Auction Invoices
44 Invoices Issues
$44,880, in total auction revenue
Invoice Payment Timeline update NPRR 221
Due to passing of NPRR 221, the DAM Invoice due date will be update to the third Bank Business Day after the DAM Invoice date
Updates will be reflected in Lodestar and published in the Settlements Calendar Extract

22. Next Week’s Activities
Operating Days for next week that will be settled
6-29 SASM for failure to provide and AS un-deliverability
6-30 SASM only if needed
7-1 SASM only if needed
7-2 SASM only if needed
7-3 SASM only if needed

23. Environment Report-Known Issues
COMS New Known Issues
The Nodal SID Extract for 6/22 posted 9 minutes late (00:09 on 6-23)
COMS Closed Issues
No new closed issues
Reminder: ERCOT will post known issues every Friday to the readiness center at:

24. Credit and Treasury Weekly Update June 25, 2010

25. ACL and TPE Summary Reports were posted around 8:30 am
Week in Review
Posted Credit Reports
ACL and TPE Summary Reports were posted around 8:30 am
Remaining Credit Reports were posted around 9:30 am
Sent ACLs each business day
ERCOT adjusted ACLs or credit limits as needed to ensure adequate credit limits for DAM
Final Nodal Credit training session was held on June 24th

26. Credit exposures should reflect market participant activity
Week in Review
Credit exposures
Credit exposures should reflect market participant activity
There remain a few exceptions, which are listed on the Known Issues list
Extrapolation of high historical activity forward continue to impact exposure calculations for CPs with ongoing activity in Real Time
Still see a significant amount of CP activity in the RT market

27. Volume by Counter-Party by Day

28. Next Week
ERCOT
Plan to begin posting Aggregate Incremental Liability (AIL) report on Monday, June 28th and will be posting this with the other Credit Reports from now on
Occasionally, some operating day’s real time estimates are missing due to delayed jobs. If this happens, the corresponding forward day’s estimates would also be missing (known issue).
Beginning, Wednesday, June 30, ERCOT will no longer override the ACL or adjust credit limits
ERCOT will send collateral calls if exposure exceeds collateral
Note: If ERCOT sends a collateral call, the CP will likely not be able to bid in the DAM until additional e-collateral is received
Will continue to review exposure calculations for reasonableness
Will do credit approvals of CRR Bilateral Trades as received

29. Counter-Parties Next week
Since ERCOT will no longer override ACLs, CPs should review Credit Reports, consider a) their exposure and b) upcoming DAM activity and send e-collateral as needed
CPs that have set their e-collateral at a high level should request a “refund” of e-collateral to adjust it down consistent with exposure and begin managing in a more normal way
Continue to review the Credit Report calculations to confirm they reflect their MT5 activity
To obtain more realistic exposure calculations, CPs should begin functioning in MT5 as you might after Go-Live
For QSEs representing Load, use Energy Trades or DAM rather than RT to meet your load requirements.
For all, use more realistic estimates in your market activity (bids/offers in DAM, etc)

30. Next Week - Schedule of activity
Date
Meeting Title (optional)

31. Tentative timeline for First Priority Security Interest document
Other topics
Tentative timeline for First Priority Security Interest document
July 1, 2010 – ERCOT circulates initial draft to CPs.
July 19, 2010 – Comments back from CPs.
August 2, 2010 – ERCOT circulates second draft to CPs.
August 17, 2010 – ERCOT reviews document with F&A.
September 21, 2010 – Final review and possible approval by F&A and ERCOT Board.
NPRR 206 and “e” factors
NPRR 206 with 1/0/1 – expected early next week
“e” factors – planned - August 1
Training on NPRR 206 and “e” factors in August

32. New Known Issues
Some of the Real Time and DAM Statements are not being transferred from S&B to CMM. This is impacting the following calculations
ADTE
AIL
DALE
Root cause is being investigated, the calculations will self correct once the statement issue is fixed.

33. Closed Known Issues
Real time estimates for Aggregate Incremental Liability (AIL) are delayed by up to two days – Jobs caught up and issue self corrected
Note: Known Issues can be reviewed at :