1. http://nodal.ercot.com 1 Market Trials Real Time Market / LFC Weekly Update February 12, 2010

2. http://nodal.ercot.com 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.

3. http://nodal.ercot.com 3 Agenda Antitrust Admonition Real Time Market / LFC Call Overview –Scope of call –Standing agenda items Environment Report –Planned / unplanned outages –Known Issues FAQ Standing Reports and Updates –General reminders / updates –Readiness outreach update –Qualification update Qualification Status Phase 3 RTM / LFC Update 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

4. QSE Qualification Call Overview: Market Trials 2010 Roadmap http://nodal.ercot.com 4

5. http://nodal.ercot.com 5 Day-to-day operations summary: Planned / Unplanned Outages of EDS Planned Outages –N/A Unplanned Outages –02/09/10 – 02/09/10 8:00 A.M – 9.30 A.M Service availability was interrupted on the Market Manager system as bid submission status was not being reported. –02/10/10 – 02/10/10 3:00 P.M – 3.30 P.M Service availability was interrupted on the Market Manager system as bid submission status was not being reported.

6. http://nodal.ercot.com 6 Environment Report: Known Issues ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml Note that known issues will be posted to each functional area going forward (e.g. RTM / LFC issues will post to the RTM / LFC section of the readiness center)

7. Known Issues http://nodal.ercot.com New Known Issues MMS Issues Issue with the two-hour notification the SCED_TWOHR_FAIL notification The notification which checks for missing Energy Offer Curves (EOCs) and Output Schedules (OS) for online Resources contains an error such that when a COP is submitted by a different user than the one that entered the EOC/OS, a message is incorrectly issued two hours prior to the start of the Operating Hour stating that the EOC/OS is missing. As a result, QSEs may receive this notification in error for hours in which an EOC/OS actually does exist. MMS UI Issue COP cannot be submitted with ONREG status on the Market Manager. When COPs containing a Resource status of ONREG are submitted on the MMS UI, the UI is sending the ONREG status incorrectly as ON.

8. http://nodal.ercot.com 8 FAQ Question: Does a company representing multiple QSEs and Sub QSEs need to test each? Answer: Yes, each QSE and Sub QSE need to be testing and qualified. Question: Should an entity use different digital certificates for API entries and User Interface (UI) entries? Answer: The API certificates can be used for both environments. Digital Certificates that do not have the API checkbox selected can only be used in the UI environment.

9. http://nodal.ercot.com 9 Standing reports and updates: General Reminders / Updates FIP/FOP –Fuel Index Price for next week will be $5.44 –Fuel Oil Price will be $13.50 for next week As part of the 3.0 release Alerts and Notifications were implemented –Update: Many participants are receiving DSR Load telemetry missing alerts –ERCOT is working on disabling this notification as it is not working properly Reminder: Handbooks for Phase 4 will be published to the market on 2/15/2010 –ERCOT is in the final approval process –We are still on track to deliver these on 2/15/2010 –Upcoming Market Notice for date / time of the MRS 3 / Market Trials Phase 4 kick-off (yes, we’re already there!) 3/25/2010 Market notice will detail the location and webex info.

10. Active MP Metrics (as of 2/11/2010) 2/2/2010 GREEN AMBER Submissions complete Submissions not complete, but actively working with ERCOT RED Submissions not complete, participation not adequate Metric Name Current Score (as of 2/1/2010) Applies to Weight Green % Yellow % Red %Not Scored %Primary CriteriaNotes MP3 Market Submissions Connectivity Qualification GreenQSERs Generatio n Ratio Share97.2%2.8%0.0% Successful submission of RT and DAM transactions (275 total entities included sub-QSEs). 79/86 QSERS Qualified (including sub-QSEs). AmberQSEs Even weighting88.9%5.8%1.1%4.2% 168/189 QSEs qualified (including sub-QSEs). Below 95% threshold for overall GREEN. MP6 QSER and TSP Compliance with the Nodal Protocols Section 3.10.7.5 Telemetry Criteria GreenQSERs Generatio n Ratio Share87.7%0.6%0.0%11.7% 100% expected State Estimator telemetry submitted. 42/45 QSERs completed. 3492/3500 SE points provided (99.1%). GreenQSERs Generatio n Ratio Share87.7%0.0%0.6%11.7% 100% expected SCED telemetry submitted. 42/45 QSERs completed. 7621/7633 SCED points provided (99%). GreenTSPs Ownershi p Ratio Share83.4%0.0%0.2%16.4% 100% expected TSP telemetry per ICCP Handbook submitted 15/20 TSPs completed. 12600/12956 TSP CB and LD points provided (94.9%) MP11 Resource RegistrationGreenREs Registere d MW Capacity Ratio Share97.9%1.3%0.8%0.0% RARF validated, Decision Making Authority form submitted, and GENMAP validated MP15-A Real-time Market Daily ParticipationGreenQSERs Generatio n Ratio Share9.8%0.0% 90.2% Weekly average of daily SCED submissions (energy offer curves and/or 13/86 QSERs above 95% weekly average for SCED submissions. AMBER/RED scores light up 2/24/2010. MP20 MP ability to submit Outages - Connectivity Test GreenQSERs Generatio n Ratio Share30%0.0% 70% Successful submission of OS transactions 13/86 QSERS qualified. AMBER/RED scores light up 4/7/2010 after OS window closes. GreenTSPs Ownershi p Ratio Share6%0% 94%1/20 TDSPs qualified.

11. Outreach Program Overview Confirmed Scheduled Site Visits Wind Panel (February 16 th ): Hosted by Horizon Wind Retail Panel (February 17 th ): Hosted by StarTex Tri-Eagle Energy (February 18 th ) NEXTera (February 26 th ) XTEND Energy (March 3 rd ) Brazos (March 10 th ) Shell (March 11 th ) Formosa (March 16 th ) Westar (March 18 th ) Market Call 12 February 2010

12. Outreach Program Overview Market Participant “Menu” Topics: All materials are available on the Nodal Readiness Center. (http://nodal.ercot.com/readiness/outreach/index.html)http://nodal.ercot.com/readiness/outreach/index.html Nodal Program Update (mandatory) – (75 min) Readiness Center and Readiness Scorecard – (45 min) Day-Ahead Market Implementation – (60 min) Congestion Revenue Rights (CRR) Auction Implementation – (60 min) Reliability Unit Commitment Implementation – (60 min) Telemetry & Load Frequency Control (LFC) – (30 min) Real Time Market Processes & Systems – (60 min) Nodal Settlement and Billing Processes – (60 min) Reports and Data Extracts – (30 min) Credit Monitoring and Management – (45 minutes) Market Call 12 February 2010

13. Outreach Program Overview Outreach Site Visits continue through March 2010 EntityDate LOWER COLORADO RIVER AUTHORITY9-Oct CALPINE CORP14-Oct AUSTIN ENERGY20-Oct CITY OF GARLAND21-Oct GDF SUEZ ENERGY MARKETING29-Oct ANP FUNDING3-Nov LUMINANT ENERGY5-Nov INVENERGY WIND DEVELOPMENT10-Nov EXELON11-Nov AMERICAN ELECTRIC POWER SERVICE12-Nov CONSTELLATION ENERGY17-Nov PSEG ENERGY RESOURCES18-Nov J ARON19-Nov FULCRUM POWER2-Dec EAGLE ENERGY PARTNERS I LP3-Dec STEC9-Dec BP ENERGY COMPANY10-Dec ConfirmedCompleted EntityDate NRG TEXAS POWER15-Dec DIRECT ENERGY LP5-Jan CPS ENERGY6-Jan BTU (Bryan Texas Utilities) SERVICES13-Jan DIRECT ENERGY14-Jan APX19-Jan OCCIDENTAL20-Jan TENASKA POWER SERVICES26-Jan OPTIM ENERGY27-Jan E.ON9-Feb WIND PANEL (Houston)16-Feb RETAIL PANEL (Houston)17-Feb TRI-EAGLE ENERGY18-Feb NEXTEra26-Feb XTEND ENERGY LP3-Mar TOPAZ POWER MANAGEMENT9-Mar BRAZOS ELECTRIC10-Mar SHELL ENERGY11-Mar FORMOSA UTILITY VENTURE16-Mar Westar18-Mar Market Call 12 February 2010

14. http://nodal.ercot.com 14 Qualification Update QSEs with Resources and Load and Load Only –86 TOTAL –79 QUALIFIED representing 97.18% of the generation –5 QSEs with Resource remain to be qualified –2 new entrants to the market –Note that the total numbers are in flux as QSEs enter and leave the market QSE without Resources –189 TOTAL –168 QUALIFIED –13 QSEs without Resources remain to be qualified –8 new entrants to the market I repeat: GREAT JOB!

15. 12/26/2015 http://nodal.ercot.com 15 Real Time Market / LFC Update

16. SCED Week 2 –SCED is behaving as expected given offer curves and telemetry in place –Great improvement in LMP’s from last week with less $2250 intervals when we run out of offer curves –Some nodal constraints were entered and prices behaved according to expectations –The dashboard is available and we will continue to work with QSE’s to fix any issues with submission problems http://nodal.ercot.com/readiness/markettrials/rtm/index.h tml http://nodal.ercot.com/readiness/markettrials/rtm/index.h tml http://nodal.ercot.com

17. Real Time Market / LFC Update SCED Week 1SCED Week 2 http://nodal.ercot.com Real Time Market / LFC Update The lack of offer curves was apparent with the amount of time the LMP’s were at $2250 during Week 1. During Week 2 offer curve submissions clearly demonstrate better LMP’s and hitting $2250 mainly during morning peaks.

18. Weekly – 2/4 to 2/11 COPTPOOS AMERICAN ELECTRIC POWER SERVICE CORP84%56% ANP FUNDING I LLC85%56% BARTON CHAPEL WIND LLC100% BP ENERGY COMPANY 50%100% BRAZOS ELECTRIC POWER CO OP INC (QSE)100% BTU QSE SERVICES INC100% BULL CREEK WIND LLC 88%38% CALPINE POWER MANAGEMENT LP80% CITY OF AUSTIN DBA AUSTIN ENERGY (QSE)100%81% CITY OF GARLAND (QSE)92%96% CITY OF SAN ANTONIO CITY PUBLIC SERVICE (QSE)96%90% CONSTELLATION ENERGY COMMODITIES GROUP INC (QSE)89%56% DIRECT ENERGY LP100% DUKE ENERGY OHIO INC 13%6% EAGLE ENERGY PARTNERS I LP (QSE)19%16% EC AND R QSE LLC 45%41% EDISON MISSION MARKETING AND TRADING INC100%50% EXELON GENERATION COMPANY LLC85%90% FORMOSA UTILITY VENTURE LTD (QSE)27%24% FPL ENERGY POWER MARKETING99%96% FULCRUM POWER SERVICES LP16%14% GDF SUEZ ENERGY MARKETING NA INC 100% INVENERGY CAMP SPRINGS41% Real Time Market / LFC Update

19. Weekly – 2/4 to 2/11 COPTPOOS IPA TRADING LLC (SQ1) 100%13% J ARON AND COMPANY (SQ1)13% LOWER COLORADO RIVER AUTHORITY (QSE)88%85% LUMINANT ENERGY COMPANY LLC (QSE)98%96% MORGAN STANLEY CAPITAL GROUP INC 100% MPOWER2 LLC 88%75% NRG TEXAS LP (QSE)87% OCCIDENTAL POWER SERVICES INC88% OPTIM ENERGY MARKETING, LLC 100%99% PSEG ENERGY RESOURCES AND TRADE LLC 25%38% RELIANT ENERGY POWER SUPPLY LLC100% RIO NOGALES POWER PROJECT LP (QSE)100% SHELL ENERGY NORTH AMERICA (US) LP 100%97% SHERBINO I WIND FARM LLC 13% SILVER STAR I POWER PARTNERS LLC 13% SOUTH TEXAS ELECTRIC CO OP INC (QSE)100% SWEETWATER WIND 5 LLC 100% TENASKA POWER SERVICES CO 94%99% TEXAS GULF WIND LLC 100%88% Real Time Market / LFC Update

20. http://nodal.ercot.com LFC Notes Individual QSE tests for LFC begin MAR 1 Two QSE test windows have been scheduled An LFC calendar will be posted to the Readiness Center the week of FEB 15 to communicate the running roster of test windows—the LFC calendar is due to be completed by FEB 26 ERCOT is seeking a volunteer QSE to test early on FEB 18 Details of the Individual QSE tests will be provided in the updated Real-Time Market/LFC Market Trials Handbook ERCOT plans to host a focused LFC call at the end of February to set expectations with the Market and to answer questions Please contact markettrials@ercot.com with any feedback or questions you would like to have incorporated into the focused LFC callmarkettrials@ercot.com

21. 12/26/2015 http://nodal.ercot.com 21 Nodal Telemetry Outreach (NTO) Update

22. http://nodal.ercot.com 22 Nodal Telemetry Outreach Update QSE Telemetry Dashboard The new QSE Telemetry Dashboard is available on the Readiness Center 11 http://nodal.ercot.com/readiness/markettrials/rtm/index.html http://nodal.ercot.com/readiness/markettrials/rtm/index.html Current statistics indicate that 20 points remain to be completed: 8 points remain for State Estimator (~99% completion) 12 points remain for SCED (~99% completion) TSP Telemetry Dashboard The TSP Telemetry Dashboard will deploy to the Readiness Center overnight at http://nodal.ercot.com/readiness/markettrials/rtm/index.html http://nodal.ercot.com/readiness/markettrials/rtm/index.html Current statistics indicate: 356 CB and LD points remain to be completed (~93% completion) 992 Disconnect points remain to be completed (~90% completion) ICCP points for CLRs/LRs On FEB 3, ERCOT began the telemetry outreach to resolve nodal ICCP points with QSEs that have Controllable/Non-Controllable Load Resources Since Feb 3, ERCOT has received over 500 ICCP points 64 points remain to be resolved (~94% completion)

23. http://nodal.ercot.com 23 Nodal Telemetry Outreach Update ICCP Deadlines ICCP Service Requests must be submitted by FEB 22 to be included in the MAR 17 nodal database load ICCP Service Requests must be submitted by MAR 8 to make the APR 1 nodal database load

24. http://nodal.ercot.com 24 Nodal Telemetry Outreach Update State Estimator Daily Statistics MonthDayConvergence Excluding Solved w/ Mismatch Convergence Including Solved w/ Mismatch FEB181.5%84.6% FEB297.3%97.7% FEB335.2%94.4% FEB461.7%99.3% FEB583.1% FEB693.4% FEB789.8% FEB885.3%93.0% FEB997.3%100% FEB1098.1%100%

25. http://nodal.ercot.com 25 Nodal Telemetry Outreach Update

26. http://nodal.ercot.com 26 Q&A Q&A / Open Forum

27. http://nodal.ercot.com 27 Appendix

28. http://nodal.ercot.com 28 URLS and EMAIL ADDRESS FOR SUPPORT URLs for access the Nodal Production systems –MIS: https://mis.ercot.com/pps/tibco/mis/https://mis.ercot.com/pps/tibco/mis/ –Market Manager: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS: https://misapi.ercot.com/2007-08/Nodal/eEDS/EWShttps://misapi.ercot.com/2007-08/Nodal/eEDS/EWS Reminder: Market Trials email address change: ERCOT asks that MPs use the markettrials@ercot.com email address for questions from this point forwardmarkettrials@ercot.com –This will begin the phasing out of eds2@ercot.com, eds3@ercot.com and eds4@ercot.com email addresses.eds2@ercot.comeds3@ercot.com eds4@ercot.com –A centralized address will no longer require MPs to “guess” which email address to use for their questions –We have implemented a more effective method of routing and responding to emails using this address –The old eds emails can continue to be used until 2009 hold over efforts are completed (such as telemetry outreach)

29. http://nodal.ercot.com 29 Market Trials Handbooks –ERCOT will release the following Handbooks In December Real Time Market / LFC covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html Outage Scheduler covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/os/index.htmlhttp://nodal.ercot.com/readiness/markettrials/os/index.html CRR covering release Phase 3.0 http://nodal.ercot.com/readiness/markettrials/crr/index.htmlhttp://nodal.ercot.com/readiness/markettrials/crr/index.html Settlements / COMs covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/coms/index.htmlhttp://nodal.ercot.com/readiness/markettrials/coms/index.html Day Ahead Market (note that this contains only reference data to the 2.1 qualification as there is no Phase 3.0 scope) http://nodal.ercot.com/readiness/markettrials/dam/index.htmlhttp://nodal.ercot.com/readiness/markettrials/dam/index.html –The Phase 4.0 release of the Market Trials Handbooks will occur in early February. –The Phase 5.0 release of the Market Trials Handbooks will occur in March

30. http://nodal.ercot.com 30 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010