1. Lead from the front Texas Nodal http://nodal.ercot.com 1 TPTF Update for TAC February 5, 2009 Joel Mickey jmickey@ercot.com jmickey@ercot.com

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 Agenda: ItemDescriptionPurpose 1. Meeting SummarySummary of recent TPTF activitiesFor Review 2. Vote SummarySummary of recent TPTF VotesFor Review

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 Meeting Summary:  TPTF met three times since the previous TAC Meeting:  January 7, 2009 January 7, 2009  This meeting was dedicated entirely to a review of the Nodal Program Schedule  January 12 – 14, 2009 January 12 – 14, 2009  This meeting included reviews of the Nodal Program Schedule on both Jan 12 th and Jan 14 th  January 26 – 27, 2009 January 26 – 27, 2009  This meeting included a final review of the Nodal Program Schedule on Jan 26 th

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 Meeting Summary – January 7, 2009:  On January 7, 2009, TPTF participated in a dedicated Nodal Schedule Review:Nodal Schedule Review  During this Nodal Schedule Review, TPTF provided feedback regarding additional market-facing activities and milestones to be incorporated into the nodal program schedule.  Representatives from the ERCOT nodal program incorporated TPTF feedback into the disposition spreadsheet of comments/action-items being tracked by the nodal PMO.  Following input from ERCOT SMEs, the spreadsheet and nodal schedule were discussed again during the January 12 – 14, 2009 TPTF meeting.

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 Meeting Summary – January 12 – 14, 2009: On January 12 – 14, TPTF discussed:  Nodal Program Scope Freeze and Feasibility Issues affecting change items not scoped in the current nodal program schedule, including:  NPRR164, Resubmitting AS Offers in SASM: NPRR164  Based upon cost and schedule impacts, TPTF endorsed a final essentiality status of “Nodal Approved Post Go-Live” by way of roll-call vote with 91.7% in favor. One opposing vote was recorded for the Cooperative Market Segment. The Consumer Market Segment was not represented for the vote.  NPRR169, Clarify the Calculation and Posting of LMPs for the Load Zone and LMPs for each Hub: NPRR169  Because ERCOT and vendor resources are currently engaged with the release of MMS5, the cost and schedule impacts for implementing NPRR169 remain to be assessed.  TPTF requested that NPRR169 be tabled at TPTF and that TPTF be provided with the opportunity to resume its consideration of NPRR169 once the formal IA becomes available in Q3 2009.  SCR752, Nodal: Allow QSEs to Enter Outages for All Assets: SCR752  Based upon the cost and schedule impacts, TPTF endorsed withdrawing SCR752 by way of roll-call vote with 100% in favor and four abstentions from the Cooperative (1), IOU (1), and Independent Generator (2) Market Segments. The Consumer Market Segment was not represented for the vote.

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 Meeting Summary – January 12 – 14, 2009: On January 12 – 14, TPTF discussed (continued):  NPRR Updates:  NPRR165, Synchronizing Section 1, Overview, with PRR697, Posting Requirement Changes: NPRR165  TPTF tabled NPRR165 pending a formal TPTF Review and an ERCOT Legal review to ensure that Section 1 language does not conflict with PUC rule posting requirements or approved language in NPRR102, Implementation of Public Utility Commission (PUC) Subst. R. 25.505(f), Publication of Resource and Load InformationNPRR102  NPRR167, Options for Filing Verifiable Costs - QSEs or Resources: NPRR167  On January 27, 2009, TPTF endorsed NPRR167 as “Needed for Go-Live” based on the Preliminary ERCOT Impact Analysis, which indicates no system, budget, or schedule impacts for nodal Go-Live. The endorsement carried by roll- call vote with 100% in favor and seven abstentions from the IREP (6) and IPM (1) Market Segments. The Consumer Market Segment was not represented for the vote.  NPRR168, Verifiable Costs General Corrections: NPRR168  TPTF tabled NPRR168 and assigned it to the QRWG for further review of settlement formulas affected by NPRR168 to ensure that no significant overpays or underpays will occur if NPRR168 is approved

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 Meeting Summary – January 12 – 14, 2009: On January 12 – 14, TPTF discussed (continued):  Nodal Program Schedule Review:  On January 12 and January 14, 2009, TPTF continued its review of the nodal program schedule and provided additional feedback to be included in the disposition spreadsheet of comments/activities  General Discussions and Updates:  Discussion of Wind-Generation Issues in the Nodal Market:  TPTF discussed potential Base-Point compliance and settlement issues that may affect WGRs in the nodal market  Market Participants volunteered to work offline to discuss the issues in more detail and to consider possible Nodal Protocol changes that may be needed  Discussion of the Nodal Protocol Transition Plan:Nodal Protocol Transition Plan  TPTF requested that the Quick Response Working Group (QRWG) assume responsibility for reviewing the Nodal Protocol Transition Plan in preparation for aligning the protocol effective dates with the new nodal program schedule  A QRWG discussion to discuss the Nodal Protocol Transition Plan is scheduled at the ERCOT Met Center on February 3, 2009February 3, 2009

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 Meeting Summary – January 12 – 14, 2009: On January 12 – 14, TPTF discussed (continued):  General Discussions and Updates (continued):  Change Process Update  ERCOT Readiness & Transition Update  Early Delivery Systems Update:  Discussed telemetry clean-up efforts, Focused Input Testing (FIT), and the need to raise awareness to TAC regarding outstanding submissions of meteorological data needed from Wind Resources (more detailed information at end of presentation)  ERCOT Nodal ICCP Communication Handbook Update:  TPTF received an overview of recent revisions for the handbook in preparation for additional TPTF discussion on January 26 th  Update on Modeling Approach for EPS Meters with Loss Compensation:  TPTF received an update on the modeling approach for EPS Meters with Loss Compensation as referred to TPTF by WMS to create visibility and raise awareness  Update on the Market Analyst Interface (MAI) Change-Request:  TPTF received an update on the MAI and requested that the MAI functionality be incorporated into an existing requirements document

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 Meeting Summary – January 26 – 27, 2009: On January 26 – 27, TPTF discussed:  Nodal Program Schedule Review:  On January 26, 2009, TPTF discussed progress to date for incorporating market feedback into the revised nodal program schedule and endorsed the following motion:  Consistent with reviews conducted during January 2009, the TPTF acknowledges:  its commitment to working with the ERCOT Nodal Project Team to achieve market implementation no later than December 2010;  ERCOT’s responsiveness to the schedule related issues raised during TPTF discussions; and,  the improvements represented by the resulting additions and updates ERCOT has included in its nodal implementation schedule to address TPTF issues identified during its review.  Therefore, TPTF finds that the ERCOT nodal schedule, as updated, represents, with reasonable certainty, an achievable progression of Market Participant tasks and activities consistent with a December 2010 Texas nodal Market Implementation Date. TPTF recommends that TAC forward to the Board TPTF’s findings as it deems appropriate.  This endorsement carried by unanimous roll-call vote. The Consumer Market Segment was not represented for the vote.

10. Lead from the front Texas Nodal http://nodal.ercot.com 10 Meeting Summary – January 26 – 27, 2009: On January 26 – 27, TPTF discussed (continued):  General Updates:  Update on the ERCOT Nodal ICCP Communication Handbook:  TPTF received an update on v2.05 of the handbook  The handbook will be reviewed with the NDSWG to vet additional clarifications and true-ups based on recent market comments; the handbook is tentatively scheduled for a TPTF endorsement in the March 2009 timeframe  EDS Update:  TPTF received an update on the current telemetry process, as well as the recent progress that has been made in the areas of telemetry support, telemetry reporting, telemetry issue resolution, and State Estimator tuning  TPTF discussed current dashboard status for QSE/TSP/WGR telemetry issues  TPTF discussed the overall approach for transitioning from RTU to ICCP  Nodal Protocol/Reliability Standards Alignment (NPRSA) Task Force Update:  TPTF received an update on recent NPRSA activities, including efforts to identify Nodal Protocol terminology that may need to be aligned with NERC. It was noted that additional discussions will be held with ERCOT and stakeholder groups to evaluate the benefit of moving forward with the NPRSA protocol reviews and the proposed alignment effort  QRWG Update:  Received update on potential process-based solutions recommended by QRWG to address RUC commitment issues for Resources

11. Lead from the front Texas Nodal http://nodal.ercot.com 11 Meeting Summary – January 26 – 27, 2009: On January 26 – 27, TPTF discussed (continued):  Review of Business Processes/Procedures:  TPTF reviewed the disposition of comments for RUC Operating Procedure  TPTF discussed follow-up clarifications to the December 2009 TPTF discussion of the current RUC implementation  Discussion of the Future of TPTF:  Market Participants discussed the future of TPTF and drafted a proposal describing how TPTF’s future role and structure might be reshaped to support the nodal market transition  Market Participants requested that the draft proposal be circulated to the TPTF email exploder to provide a period of comment before it is forwarded to TAC for consideration during the February 2009 TAC meeting

12. Lead from the front Texas Nodal Vote Summary – January 12 – 14, 2009: Vote ItemSector ForAgainstAbstention On January 12, 2009, TPTF endorsed waiving notice to vote on the final disposition of NPRR164, Resubmitting AS Offers in SASM, with regard to implementation status. Please see voting spreadsheet for details Cooperative ■ LCRA Municipal ■ Investor Owned Utility ■ AEP Independent Generator ■ Consumer Independent REP ■ Independent Power Marketer ■ Note: the votes in this summary are available for pick-up from the Jan 12 -14 TPTF Meeting Page.Meeting Page http://nodal.ercot.com 12 Vote ItemSector ForAgainstAbstention On January 12, 2009, TPTF endorsed assigning a final essentiality status to NPRR164 as “Nodal Approved Post Go-Live.” Please see voting spreadsheet for details Cooperative ■■ Municipal ■ Investor Owned Utility ■ Independent Generator ■ Consumer Independent REP ■ Independent Power Marketer ■.

13. Lead from the front Texas Nodal Vote Summary – January 12 – 14, 2009: Vote ItemSector ForAgainstAbstention On January 12, 2009, TPTF endorsed waiving notice for vote on SCR752, Allow QSEs to Enter Outages for All Assets. Please see voting spreadsheet for details Cooperative ■ Municipal ■ Investor Owned Utility ■ Independent Generator ■ Consumer Independent REP ■ Independent Power Marketer ■ Note: the votes in this summary are available for pick-up from the Jan 12 -14 TPTF Meeting Page.Meeting Page http://nodal.ercot.com 13 Vote ItemSector ForAgainstAbstention On January 12, 2009, TPTF endorsed withdrawing SCR752. Please see voting spreadsheet for details Cooperative LCRA Municipal ■ Investor Owned Utility ■ AEP Independent Generator ■ NRG, Suez Consumer Independent REP ■ Independent Power Marketer ■

14. Lead from the front Texas Nodal Vote Summary – January 12 – 14, 2009: Vote ItemSector ForAgainstAbstention On January 13, 2009, TPTF endorsed NPRR167, Options for Filing Verifiable Costs - QSEs or Resources, with an essentiality status as “Needed for Go-Live” based on the Preliminary ERCOT Impact Analysis which indicates no system, budget, or schedule impacts for Go-Live. Please see voting spreadsheet for details Cooperative ■ Municipal ■ Investor Owned Utility ■ Independent Generator ■ Consumer Independent REP StarTex Power, Accent Energy, Cirro Group, Green Mountain Energy, Direct Energy, Stream Energy Independent Power Marketer ■ Reliant Energy Note: the vote in this summary is available for pick-up from the Jan 12 -14 TPTF Meeting Page.Meeting Page http://nodal.ercot.com 14

15. Lead from the front Texas Nodal Vote Summary – January 26 – 27, 2009: Vote ItemSector ForAgainstAbstention On January 26, 2009, TPTF endorsed that that the ERCOT nodal schedule, as updated, represents, with reasonable certainty, an achievable progression of Market Participant tasks and activities consistent with a December 2010 TNMID and recommended that TAC forward to the Board TPTF’s findings as TAC deems appropriate. Please see voting spreadsheet for details Cooperative ■ Municipal ■ Investor Owned Utility ■ Independent Generator ■ Consumer Independent REP ■ Independent Power Marketer ■ Note: the vote in this summary is available for pick-up from the Jan 26 – 27 TPTF Meeting Page.Meeting Page http://nodal.ercot.com 15

16. Lead from the front Texas Nodal Wind Telemetry Metric 21 Update Metric definition MP-21 adopted by TAC Oct 2, 2008

17. Lead from the front Texas Nodal Wind Telemetry Metric 21 Update Timeline: –August 2008- Letter sent from ERCOT Operations to Resource Entities with due date of 10/31/08 for sending Met data –November 2008- MP-21 scoring and posting began –January 20 2008- the scores are reflected on the next few slides reflecting Red/Amber/Green score as: Green- all wind meteorological (Met) data being received by ERCOT Amber- missing Met data, but new windfarm was not sent the ERCOT Operations letter in 2008 Red- missing Met data, and received the August 2008 letter Nodal Scorecard: –Bi-Weekly update of scorecard: http://scorecard.ercot.comhttp://scorecard.ercot.com

18. Lead from the front Texas Nodal Nodal Scorecard and Wind Telemetry Specific link to Resource Entity metrics is: http://scorecard.ercot.com/mp/resource_sheet

19. Lead from the front Texas Nodal Wind Telemetry as of Jan 20,2009 (slide 1 of 3) Bi-weekly nodal readiness posting at http://nodal.ercot.com/readiness/eds1/documents/index.htmlhttp://nodal.ercot.com/readiness/eds1/documents/index.html

20. Lead from the front Texas Nodal Wind Telemetry as of Jan 20,2009 (slide 2 of 3)

21. Lead from the front Texas Nodal Wind Telemetry as of Jan 20,2009 (slide 3 of 3)

22. Lead from the front Texas Nodal http://nodal.ercot.com 22 Questions