1. Market Credit Working Group update to the Wholesale Market Subcommittee 09/02/2015 1

2. MCWG update to WMS Joint meeting of MCWG and CWG on Wednesday, August 19 8 NPRRs reviewed for credit impacts – All NPRRs had no credit impact 2

3. MCWG update to WMS Minimum Current Exposure as a Floor MCWG continued discussion on objectives of MCE Entities that over-hedge will have an MCE of near zero MCWG discussed whether to cap hedges at 100% of load – Inclusive of 20% reduction of net energy purchases ERCOT is preparing a draft NPRR for consideration at the September MCWG 3

4. MCWG update to WMS Development of a Market Risk Appetite Goal – Market Participant Survey to be developed to collect: Demographic data (segment, size, unsecured/secured) Views of collateral posting levels, maximum posting tolerance Views of default uplift risk And more – MCWG will discuss survey questions and format – Provide feedback to Don Meek or Bill Barnes or show up in person (preferred) Emergency Letter of Credit Concept 4

5. MCWG update to WMS Modifications to NPRR638 to use Forward Price Data Continued discussion on proposals to utilize forward price data in the calculation of TPE CWG/MCWG will continue to evaluate forward price data vendors and how to incorporate this data into forward credit exposure estimation Genscape on the September agenda Capacity Forecast Model Update Summer 2015 results to be reviewed at Sept MCWG 5