1. COMS/Settlements/Credit
Weekly Update
August 13, 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 Settlements Standing Reports and Updates
Agenda
Anti-trust Admonition
Settlements Standing Reports and Updates
Operating Day Settlement Reports
Week in Review/General Reminders
Next Week’s Activities
Settlements 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 August 5
Statement and Invoice Overview
161 Statements/Invoices posted to QSEs
62 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were not derated
There were no CRR Shortfall Charges
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 4

5. DAM Settlement Overview for August 10
Statement and Invoice Overview
162 Statements/Invoices posted to QSEs
62 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were not derated
There were no CRR Shortfall Charges
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 5

6. DAM Settlement Overview for August 11
Statement and Invoice Overview
163 Statements/Invoices posted to QSEs
62 Statements/Invoices posted to CRRAHs
0 QSEs received Statements/Invoices for $0
CRR Overview
CRRs were not derated
There were no CRR Shortfall Charges
General Reminders/Updates
Submit any questions/issues about statements, invoices, extracts or calculations to 6

7. RTM Settlement Overview for July 28
Statement Overview
205 Statements posted to QSEs
3 Statements posted to CRRAHs
8 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to 7

8. RTM Settlement Overview for July 29
Statement Overview
199 Statements posted to QSEs
2 Statements posted to CRRAHs
1 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to 8

9. RTM Settlement Overview for July 30
Statement Overview
194 Statements posted to QSEs
2 Statements posted to CRRAHs
2 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to 9

10. RTM Settlement Overview for July 31
Statement Overview
186 Statements posted to QSEs
1 Statements posted to CRRAHs
2 QSEs received Statements for $0
General Reminders
Submit any questions/issues about statements, invoices, extracts or calculations to

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

12. Charge Type Tracker
Below are the Day Ahead Market charge types that have been executed at least once during Market Trials (18 of 19 executed)

13. Charge Type Tracker
All Real-Time Market charge types have been executed at least once during Market Trials (45 of 45 executed)

14. RTM Invoices (Posted 8-12) RTM Initials 7/23, 7/24, 7/27, 7/28, 7/29
Week in Review
RTM Invoices (Posted 8-12)
No Unsupported Operating Dates
RTM Initials 7/23, 7/24, 7/27, 7/28, 7/29
RTM Finals 7/13, 7/14, 7/15, 7/16, 7/17
RTM Trueups 6/15, 6/16, 6/17, 6/18, 6/19
CRR Annual Auction Invoices (Posted 8-12)
CARD Initial Invoices for July (Posted 8-11)
Balancing Account Invoices for July (Posted 8-11)

15. Next Week’s Activities
Operating Days for next week that will be settled
8-16 though 8-21 (DAM and RTM)
LFC Test will take place on 8-19 and 8-20
Reminder, effective August 9, actual verifiable cost submissions will replace test data in the Market Trials Environment
SASM and RUC Decommitment operational scenarios will be tested next Tuesday, 8-17
RUC Simulation
If you want to receive a RUC Commitment or Decommitment to coincide with a Zonal self commitment or RPRS commitment, send the request to
A Nodal EILS Settlement will be performed

16. SEWG Shadow Settlements Series
On behalf of SEWG leadership, there will be a series of WebEx meetings to drill down into charge types from a shadow settlements perspective
Meetings will be held on the following dates
August 26
September 1
September 9
September 16
Look for more details on the SEWG page on ercot.com

17. Environment Report-Known Issues
COMS New Known Issues
ERCOT posted a corrupt XML file in the Public Reference Data Extract posting at 8:25 am this morning 8/13/2010.  The issue was due to a malformed tag in the FLOWGATECALC table.  The posted CSV file was unaffected and remains posted and correct.  The affected XML file was pulled from the MIS at approximately 10:20 am this morning and ERCOT is rerunning the XML file currently and expects to repost this XML version this afternoon.  This was a result of a fix that went in to add the missing FLOWGATECALC table to PRDE.  To mitigate any others issues as a result of the fix for PRDE, ERCOT has retested all PRDE files and have updated the FULETYPECAT and CRRSETLEPOINT XML files as well.      
COMS Closed Issues
When a RTMGNM record has zero values for the entire day, it is driving the REIAMT calculation even though no other drivers exist. This will create Zero dollar statements if a QSE has no other activity.
On non contiguous commitments if a resource goes off line prior to the end of the first commitment and comes on for next commitment, the resource is not being defined as start-up eligible
Reminder: ERCOT will post known issues every Friday to the readiness center at:

18. Open Forum
Any Questions???

19. Credit and Treasury Weekly Update August 13, 2010
Market Trials - Friday call

20. Posted Credit Reports and sent ACLs each business day AIL Report
Week in Review
Posted Credit Reports and sent ACLs each business day
AIL Report
Data lags on 8/9, 8/10, and 8/11
Data received for 8/9 the load and generation volumes were not correct
The data lag has been cleared and the 8/9 volume issues have been corrected
For the DAM run on August 13 for operating day August 14, ERCOT used ACLs from August 11
Due to high Real Time prices on 8/10 and 8/11 (impacts the AIL)
Due to high prices in Real Time, ACLs sent on August 13 (today) for the weekend reflects an adjustment to the AIL exposures as follows:
For the completed and not settled days, exposure was reduced by 50 %
For the forward days, exposure was reduced by 80%
Market Trials - Friday call

21. Credit exposures reflect market participant activity in Market Trials
Week in Review
Credit exposures
Credit exposures reflect market participant activity in Market Trials
There remain a few exceptions, which are listed on the Known Issues list
The ADTE component of the EAL continues to be adjusted to reflect recent Zonal activity
While this establishes a more moderate level of exposure, it may not be predictive and will not alleviate the impact of unusual RT activity on the AIL Component
The adjustment will remain in effect through September 30 unless a CP requests a different ADTE
For a CP to get a solid idea of how credit will work in Nodal, they should try to operate (as much as possible) as they intend to in Nodal (including using Energy Trades along with DAM, etc)
ERCOT will work with CPs to further adjust their ADTE to reflect projected activity as needed

22. NPRR 206 and “e” factors training
Week in Review
Initial “e” Factor update
“e” Factor changes went into effect on Monday, August 9th for the DAM run for operating day August 10th
Since only a few CPs saw changes in their “e” factors in the first set, ERCOT allowed CPs to make a one time change between bi-weekly resets and indicate a specific “e” factor
Change was effective for DAM runs beginning Wednesday (8/11)
notification sent
19 specific ‘e1’ and ‘e2’ requests were made
The next biweekly reset will be based on CP data
NPRR 206 and “e” factors training
Completed on August 10 (Austin Met Center & via web-ex)
Training material
Market Trials - Friday call

23. Week in Review
Market Trials - Friday call

24. Will send ACLs for DAM and CRR Auction Will not override ACLs
Next Week
ERCOT
Will send ACLs for DAM and CRR Auction
Will not override ACLs
Will send collateral calls if exposure exceeds credit limit
If ERCOT sends a collateral call, the CP will likely not be able to bid in DAM until additional e-collateral is received
Counter-Parties
Since ERCOT no longer overrides ACLs, CPs should review Credit Reports and consider
a) their exposure and
b) upcoming DAM, CRR Auction and any LFC test
c) that the ACL report indicates the total ACL and does not reflect any credit limit held for the CRR auction
Market Trials - Friday call

25. Next Week - Schedule of activity
Market Trials - Friday call

26. Tentative timeline for First Priority Security Interest document
Other topics
Tentative timeline for First Priority Security Interest document
July 1, 2010 – ERCOT circulated initial draft to CPs.
July 19, 2010 – Comments back from CPs.
August 6, 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.
“e” Factors
Next biweekly “e” factor reset is planned for the DAM run on Friday, August 20th for operating day Saturday, August 21st with notices sent by 9:00 am on Wednesday, August 18th
Market Trials - Friday call

27. Other topics – “e” factors
Alternative or Favorable treatment
CPs should notify ERCOT of their desire to receive the “alternative” or “favorable” treatment in Market Trials
by sending an to with “Credit – “e” factors – favorable treatment requested” in the subject line
Finally, if CPs do not believe their DAM activity in Market Trials in July and August is indicative of their projected activity after “Go Live”, they may request ERCOT to set their “e” - factors to reflect their anticipated activity
By sending an to with “Credit – “e” factor – specific “e” factors requested” in the subject line and the e factors requested in the body of the
Any “override” will be effective until the next bi-weekly reset (e.g. must be requested again or factors will be reset based on data)
Note: Request for favorable or specific treatment should be sent by Monday, August 16th for the August 18th reset.
Market Trials - Friday call

28. “e” Factors – Bi-weekly Process - Market Trials

29. “e” Factors – Bi-weekly Process – Preliminary Cutover Schedule

30. Timeline for release of CRR collateral Day 0 - CRR Auction complete
Other topics
Timeline for release of CRR collateral
Day CRR Auction complete
Day 0 – Post CRR Auction results for CRRAHs
Day 0 – Send CRR Auction data to S&B
Day 1 – CRR Auction Invoice generated
Day 1 – CRR Auction Invoice included in Credit calculation (TPE)
Day 1 – CRR budget released in CRR application
Timeline reflects planned activities. Credit staff work with CRR and S&B staff to try to ensure that CRR budget is released timely; and that there are no “overlaps” and no “gaps”

31. New Known Issues
No new known issues
Note: Known Issues can be reviewed at :