1. Lead from the front Texas Nodal http://nodal.ercot.com 1 High-Level Overview of draft NPRR implementing PUCT Rule 25.505 Posting Requirements January 8, 2008 Matt Mereness mmereness@ercot.com mmereness@ercot.com

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 PUCT 25.505 Posting Requirements History of Rulemaking and impacts to PUCT Rule 25.505: - PUCT 31972 was adopted in August 10, 2006 - Court appeal filed and emergency stay put into place to not disclose all data - PUCT 33490 adopted August 16, 2007 changed postings - September 21, 2007 Court Stay removed and all of 25.505 in effect for zonal and forthcoming nodal systems (Zonal reporting has been implemented. Zonal PRRs are 697 and 752. PRR697 re- structured portions of Section1, and as such will be taken up as a separate NPRR) Steps to incorporate into nodal protocols (and ERCOT systems) - In November and December 2007, ERCOT worked with small group from Commission Staff, Independent Market Monitor, and MPs to draft NPRR to effectuate the disclosures in nodal. - Purpose today is to introduce high level overview of this requirement - Plan to complete draft NPRR and release by Jan 11 for TPTF/Market comments and detailed discussion to occur at Jan 21-23 meeting.

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 PUCT 25.505 Posting Requirements NPRR to incorporate PUCT Rule 25.505 (f) into protocols PUC Substantive Rule text: (f)Publication of resource and load information in ERCOT markets. To increase the transparency of the ERCOT-administered markets, ERCOT shall post at a publicly accessible location on its website, beginning no later than October 1, 2006, the information required pursuant to this subsection, unless a different date is specified by a paragraph of this subsection. (1) The following information in aggregated form, for each settlement interval and for each area where available, shall be posted two calendar days after the day for which the information is accumulated. (A) Quantities and prices of offers for energy and each type of ancillary capacity service, in the form of supply curves. (B) Self-arranged energy and ancillary capacity services, for each type of service. (C) Actual resource output. (D) Load and resource output for all entities that dynamically schedule their resources. (E) During the operation of the market under a zonal market design, scheduled load and actual load. During the operation of the market under a nodal market design, firm scheduled load, scheduled load with “up to” limits on congestion charges, and actual load.

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 PUCT 25.505 Posting Requirements PUC Substantive Rule text (continued): (2) During the operation of the market under a nodal market design, the following day-ahead market information in aggregate form shall be posted two calendar days after the day for which the information is accumulated: load bids, including virtual loads, in the form of day- ahead bid curves, and cleared load. (3) The following information in entity-specific form, for each settlement interval, shall be posted as specified below. (A) During the operation of the market under a zonal market design: (i) Portfolio offer curves for balancing energy and for each type of ancillary service, for each area where available, shall be posted 60 days after the day for which the information is accumulated beginning September 1, 2007, except that, for the highest-priced offer selected or dispatched by ERCOT for each interval after January 12, 2007, ERCOT shall post the offer price and the name of the entity submitting the offer 48 hours after the day for which the information is accumulated. In the event of interzonal congestion, ERCOT shall post, separately for each zone, the offer price and the name of the entity submitting the highest-priced offer selected or dispatched. (ii) If the market clearing price for energy (MCPE) or the market clearing price for capacity (MCPC) exceeds the event trigger during any interval, the portion of every market participant’s price-quantity offer pair for balancing energy service and each other ancillary service that is at or above the event trigger for that service and that interval shall be posted seven (7) days after the day for which the offer is submitted. ERCOT shall implement the requirements of this clause by September 1, 2007.

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 PUCT 25.505 Posting Requirements PUC Substantive Rule text (continued): (iii) Other offer-specific information for each type of service and for each area where available shall be posted 90 days after the day for which the information is accumulated beginning March 1, 2007. Effective March 1, 2008, this information shall be posted 60 days after the day the information was accumulated. The information subject to this disclosure requirement is as follows: (I) final energy schedules for each QSE; (II) final ancillary services schedules for each QSE; (III) resource plans for each QSE representing a resource; (IV) actual output from each resource; and (V) all dispatch instructions from ERCOT for balancing energy and ancillary services. (iv) The information posted shall include the names of the resources in the portfolio that were committed, the name of the entity submitting the information, the name of the entity controlling each resource in the portfolio.

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 PUCT 25.505 Posting Requirements PUC Substantive Rule text (continued): (B) Two months after the start of operation of the market under a nodal market design: (i) Offer curves (prices and quantities) for each type of ancillary service and for energy at each settlement point in the real time market, shall be posted 60 days after the day for which the information is accumulated except that, for the highest-priced offer selected or dispatched for each interval on an ERCOT-wide basis, ERCOT shall post the offer price and the name of the entity submitting the offer 48 hours after the day for which the information is accumulated. (ii) If the MCPE or the MCPC exceeds the event trigger during any interval, the portion of every market participant’s price-quantity offer pairs for balancing energy service and each other ancillary service that is at or above the event trigger for that service and that interval shall be posted seven (7) days after the day for which the offer is submitted. (iii) Other resource-specific information, as well as self-arranged energy and ancillary capacity services, and actual resource output, for each type of service and for each resource at each settlement point shall be posted 60 days after the day for which the information is accumulated. (iv) The posted information shall be linked to the name of the resource (or identified as a virtual offer), the name of the entity submitting the information, and the name of the entity controlling the resource. If there are multiple offers for the resource, ERCOT shall post the specified information for each offer for the resource, including the name of the entity submitting the offer and the name of the entity controlling the resource.

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 PUCT 25.505 Posting Requirements PUC Substantive Rule text (continued): (C) The load and generation resource output for each zone, for each entity that dynamically schedules its resources, shall be posted 90 days after the day for which the information is accumulated beginning March 1, 2007. Effective March 1, 2008, the information required by this subparagraph shall be posted 60 days after the day for which the information is accumulated. (D) ERCOT shall use §25.502(e) of this title (relating to Pricing Safeguards in Markets Operated by the Electric Reliability Council of Texas) as a basis for determining the control of a resource and shall include this information in its market operations data system.

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 PUCT 25.505 Posting Requirements 25.505(f)(1): Aggregated Energy and Ancillary Services offer curves Real-time Energy Offers: Propose separate postings of - Resource Energy Offers, - Resources without Energy Offer Curves (Output Schedules, DSR & non-DSR), - Wind Resource Energy Offer Curves

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 PUCT 25.505 Posting Requirements 25.505(f)(1): Aggregated Energy and Ancillary Services offer curves Real-time Energy Offers: Propose separate postings of - Resource Energy Offers, - Resources without Energy Offer Curves (Output Schedules, DSR & non-DSR), - Wind Resource Energy Offer Curves

10. Lead from the front Texas Nodal http://nodal.ercot.com 10 PUCT 25.505 Posting Requirements 25.505(f)(1): Aggregated Energy and Ancillary Services offer curves Real-time Energy Offers: Propose separate postings of - Resource Energy Offers, - Resources without Energy Offer Curves (Output Schedules, DSR & non-DSR), - Wind Resource Energy Offer Curves

11. Lead from the front Texas Nodal http://nodal.ercot.com 11 PUCT 25.505 Posting Requirements 25.505(f)(1): Aggregated Energy and Ancillary Services offer curves Day Ahead Market Energy Offers:

12. Lead from the front Texas Nodal http://nodal.ercot.com 12 PUCT 25.505 Posting Requirements 25.505(f)(1): Aggregated Energy and Ancillary Services offer curves Ancillary Service Offers: - Regulation- combined Generation and Controllable Load (CLR) offer stack - Responsive- separate disclosure of the Gen/CLR and UFR offer stacks for 1150MW limit. - Non-Spin- all Gen and Load Resources combined in posting

13. Lead from the front Texas Nodal http://nodal.ercot.com 13 PUCT 25.505 Posting Requirements 25.505(f)(2): Aggregated DAM bid curves DAM Load bid curve:

14. Lead from the front Texas Nodal http://nodal.ercot.com 14 PUCT 25.505 Posting Requirements Additional considerations during comment period: Posting by 10MW increments for energy data: Question: Is this an appropriate balance of detail? Posting by area versus system-wide: Question: Interpretation is to proceed as system-wide disclosure, rather than by Load Zone (or a 2003 CMZ proxy) 25.505(f)(1)(E): Load information “During the operation of the market under a nodal market design, firm scheduled load, scheduled load with “up to” limits on congestion charges, and actual load.” Question: What does the disclosure of “firm scheduled load” look like in the nodal market? And does “up-to” limit imply bids for PtP Obligations? 25.505(f)(3)(A)(iii): Other Resource-specific information… Question of interpretation- consider as interpreted to mean: Resource Status, HSL, HASL, HDL, LDL, LASL, LSL, any text reason entered for the HSL being greater than or less than the Resource’s Net Dependable Capability, actual net MW telemetry used in SCED and the Ancillary Service Resource Responsibility for each Ancillary Service

15. Lead from the front Texas Nodal http://nodal.ercot.com 15 PUCT 25.505 Posting Requirements Next steps: Submit draft NPRR for review and comments through the TPTF Review mailbox by January 11 for market comments. TPTF detailed discussion and consideration at January 21-23 meeting