1 Market Operations Presentation Board of Director’s Meeting December 13, 2005

2 Agenda Overall Activity Migration From Native AREPs Performance Measures (Quarter Only) Capacity Services Energy Services including Summary Hub Price Data Congestion Services REPs and QSEs Added/Deleted Retail Activity Wholesale Activity Other Items

3 Overall Activity Transaction Type Switches2,198,367 Move - Ins7,694,199 Move Out4,425,719 CSA1,292,948 Drop to POLR306,867 Total15,918,100 Compared to Last Month 400,092 Retail Transactions Summary As of Monday, October 31, 2005 since June 1, 2001

4 Residential Small Non-Residential Large Non-Residential Migration from Native AREP % of ESI IDs 19% 23% 63% 28% 31% 73% 35% 80% 74% % of Load * at at at * % of Peak Demand on

5 Capacity Services 10/31/0510/31/ Market Perspective: Approximate Retail Market (at $.10/kWh PTB) $25, ,600.72,367.52,440.6 Volume (GWh)254,217246,00723,67524,406 % Increase3.3%-3.0% Natural Gas Price Index ($/MMBTU) % Increase38.6%86.9% Other Capacity Services: Replacement Reserve0.0 Reg Up and Down Responsive (Spinning) Reserve Non-Spinning Reserve Black Start TOTAL CAPACITY SERVICES$ YTD ($'s in millions) October ($'s in millions)

6 Capacity Services – Reg Up and Down and Responsive Reserve

7 Energy Services 10/31/0510/31/ Market Perspective: Approximate Retail Market (at $.10/kWh PTB) $25, ,600.72,367.52,440.6 Volume (GWh)254,217246,00723,67524,406 % Increase3.3%-3.0% Natural Gas Price Index ($/MMBTU) % Increase38.6%86.9% Balancing Energy: Balancing Energy - Up$ % Increase 137.5%142.3% Up (GWh)10,256.18,079.81, % Increase 26.9%1.9% % of Market 4.0%3.3%4.3%4.1% Balancing Energy - Down-$ % Increase -11.9%67.1% Down (GWh)-4, , % Increase -23.8%30.2% % of Market1.7%2.4%2.0%1.5% YTD ($'s in millions) October ($'s in millions)

8 Hub Summary Data ERCOT Hubs July 2005 HUB South$77.03 North$81.62 Houston$87.38 West$92.23 ERCOT Hub$83.24 ERCOT Bus$83.26 Weighted Average Price ($/MWH) June 2005 May 2005 NGPI % Change3.9% % Change - Bus11.8% $58.27 $60.77 $67.43 $68.90 $62.80 $62.69 $62.27 $75.23 $80.92 $80.11 $73.43 $ % 18.8% August 2005 $84.76 $ $ $ $ % 26.2% $ September 2005 $ $ $ $ $ % 13.5% $ October 2005 $ $ $ $ $ % 3.2% $143.31

9 Congestion Services

10 REPs and QSEs Added/Deleted Added RepsAdded QSEs Eagle Energy Partners I, LP Mirant Energy Trading, LLC Dynowatt, LP None Deleted RepsDeleted QSEs None