1. TAC Update April 7, 2011

2. 2 Update Nodal Protocol Revision Requests (NPRRs) (Vote): –NPRR306, Revisions to Protected Information to Include Black Start Documents Considered CEII – Unanimously Approved – all segments were represented –NPRR310, Expand Output Schedule Acceptable Range to Include HSL and LSL Unanimously Approved as recommended by PRS with same rank and priority– all segments were represented –NPRR316, Negative Self-Arranged Ancillary Services – Urgent Approved –NPRR320, Minimum PTP Option Bid and Settlement (Formerly “Minimum PTP Options Bids and CRR Auction Fees”) – Urgent Motion to approve NPRR320 as revised by the 3/29/11 ERCOT comments and as amended by TAC. Roll-call vote was requested: Motions passed 21 For - 8 No votes –NPRR329, Correct Security Classification Changes for Extracts/Reports – Urgent Approved –NPRR331, Addition of the Balance of the Year PCRR Allocation – Urgent Approved –NPRR335, TSP Request for Interval Data – Urgent Approved with ERCOT comments –NPRR339, Modifications to Heuristic Rules to Determine LMP at De-energized Electrical Bus and Treatment of CRR Offers at De-energized Settlement Points – Urgent Unanimously Approved – all segments were represented –NPRR341, Remove Ancillary Service Offers from SASM that do not Meet the Lead Time – Urgent Unanimously Approved – all segments were represented –NPRR342, Notification and Actions to Address Outcomes inconsistent with Efficient Operations of the ERCOT Market – Urgent (Possible Vote) 4 hours of discussion, edits and clarifications to the redlined document approved by PRS, TAC conducted a roll- call vote to address the Motion to approve NPRR342 as amended by TAC Motion passes 20 For, 4 Abstentions and 6 No votes –NPRR343- CRR Bid and PTP Obligation Bid Criteria Change – Urgent: Motion to approve with ERCOT’s comments and as amended by TAC – Unanimously Approved 2

3. 3 Update Retail Market Subcommittee Report* –RMGRR098, Addition of Market Synchronization Reports (Vote) Unanimously Approved – all segments were represented –Revised RMS Procedures (Vote) Unanimously Approved – all segments were represented –Revised recommendations on NPRR294 approved by RMS TAC voted to waive notice – waiver was Approved TAC Unanimously Approved RMS recommended changes to NPRR294 to remove 814_01 from Level 4 since this was a correction because 814_01 transactions were already included in the Level 1 processing. –TAC and RMS recommendation will go before the ERCOT Board for their April 19, 2011 meeting consideration. 3

4. 4 Update Reliability Operations Subcommittee –Revised ROS Procedures (Vote) Unanimously approved by TAC –NOGRR054, Change in Facilitator for the Annual Operations Training Seminar (Vote) There are several cost benefits that would be avoiding by turning this responsibility over to ERCOT and to prevent this responsibility from going to 3rd party vendor. NOGRR054 was Unanimously Approved by TAC –NOGRR055, Deletion of an Invalid Reference to a Non- Existent NERC Term (Vote) NOGRR055 was Unanimously Approved by TAC –NOGRR062, Require Voltage Ride-Through Capability for IRRs (Vote) NOGRR062 was Unanimously Approved by TAC –PGRR004, Synchronization with NPRR291, Reduce the Comment Period for NPRRs and SCRs (Vote) –PGRR004 was Unanimously Approved by TAC 4

5. 5 Update Wholesale Market Subcommittee Report* –Consider Recommending Resettlement or Giving Further Direction to WMS for System Lambda Pricing of Dead Buses (Possible Vote) This item died due to lack of a motion for a TAC recommendation to the Board. –Valley Import – Proposed New Maximum Shadow Price (Vote) Motion was to remand this back to WMS for more discussion and bring a recommendation back to TAC for next month’s meeting. –Motion was unanimously approved to remand back to WMS for additional discussion because there are numerous questions that need to be resolved before a vote can be taken up by TAC.