Current Stakeholder Timelines for Emergency Issues May 6, 2008 TPTF

2 TPTF05/06/08 04/04/08 TAC Action Item PUCT Commissioner Paul Hudson requested TAC consideration of accelerated process for emergency or quick-response issues for during or just post go-live Assemble timeline of current capabilities Consider whether alternative processes are needed or if current processes (such as waivers of notice, votes, or additional meetings) can facilitate quick responses

3 TPTF05/06/08 Current Stakeholder Timelines for Decision Normal TimelineEmergency Timeline Votes Board1 Week Notice2 Hours; Via telephone; Ratify decision N/A TAC1 Week Notice< 1 Week at consent of 51% of TAC Representatives; Via telephone Close of 2 Business Days TPTFMid-day Thurs. for Mon. Mtg; Mid-day Tues. for Thurs. Mtg. At discretion of TPTF Chair N/A PRS1 Week NoticeAt discretion of PRS Chair 48 Hours (Only to declare PRR urgency)

4 TPTF05/06/08 Items Requiring PRR or NPRR NPRRs prior to go-live are governed by Zonal Protocol 21.11, Process for Nodal Protocol Revisions –No mechanism for declaring an NPRR Urgent –New NPRRs to be considered at next regularly scheduled PRS meeting NPRRs post go-live will be governed by Nodal Protocol Section 21 –Nodalizing NPRR for Section 21 to be filed mid-May –Will prescribe process for Urgent NPRRs (similar to the process used today for declaring/processing Urgent PRRs) –Timeline: could have a special PRS meeting and special TAC meeting to consider; however, if follow same process as today, then a TAC recommendation would be considered at next regularly scheduled Board meeting if TAC recommendation is available 11 days in advance of Board meeting.

Supporting Documents ERCOT Bylaws TAC & Subcommittee Procedures Nodal & Zonal Sections 21, Process for Protocol Revision

6 TPTF05/06/08 ERCOT Bylaws Section 4.6 Meetings (a)…Special meetings of the Board may be called by the Chair, Vice Chair, or the CEO or his designee. (b)Notice stating the purpose, business to be transacted, place, date and hour of any meeting of the Board or any Board subcommittee where at least one Board Director is present shall be given to each Director and made available electronically to the public on the Internet not less than one week before the date of the meeting; provided, however, the Board may meet on urgent matters on such shorter notice, not less than 2 hours, as the person or persons calling such meeting reasonably may deem necessary or appropriate for urgent matters (emergency conditions threatening public health or safety, or a reasonably unforeseen situation).

7 TPTF05/06/08 ERCOT Bylaws Section 4.6 continued (c) The Board and its subcommittees having at least one Director may meet by teleconference to consider urgent matters in accordance with Section The Board must ratify any action taken on notice of less than one week or by teleconference at its next regularly scheduled meeting.

8 TPTF05/06/08 ERCOT Bylaws Section 5.3 Meetings TAC and its subcommittees shall meet as often as necessary to perform their duties and functions. All meetings of TAC and its subcommittees shall be called by their respective chairmen and all such meeting notices shall be sent in writing to each member at least one week prior to the meeting, unless an emergency condition should suggest otherwise (such emergency to be by mutual consent of a majority of the seated Representatives of TAC or subcommittee). Any Member may request notification of any such meetings and may have an employee or a TAC-approved representative for that Member attend as an observer. Each Representative of TAC may designate in writing an alternate representative who may attend meetings in the absence of the Representative and vote on the Representative’s behalf.

9 TPTF05/06/08 ERCOT Bylaws Section 14.8 Actions Without a Meeting and Meetings by Telephone. Unless otherwise provided by law, any action required or permitted to be taken at any meeting of the Corporate Members, TAC Representatives or any subcommittee of TAC may be taken without a meeting, if a consent in writing, setting forth the action to be taken, is signed by a sufficient number of Corporate Members, TAC Representatives or subcommittee members as would be necessary to take that action at a meeting at which all of the Corporate Members or subcommittee members were present and voted. Corporate Members, Directors (for urgent matters in accordance with Section 4.6), TAC Representatives or subcommittee members may participate in and hold a meeting by means of a conference telephone or other similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this Section shall constitute presence in person at such meeting, except where a person participates in the meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

10 TPTF05/06/08 TAC Procedures G.Electronic Mail Voting In matters determined by the Chair to require a vote of TAC which are urgent or otherwise require action prior to the next meeting, a vote via electronic mail ( vote) may be utilized. A request for an vote can only be initiated by the Chair or Vice Chair. An vote is permitted provided a notification is distributed to the TAC distribution list that includes a detailed description of the issue or proposition and accompanied by supporting documentation. For votes, a quorum of Standing Representatives must participate in the vote. Participation requires casting a vote or abstaining. Votes shall be submitted to ERCOT for tallying by the close of two (2) Business Days after notification of the vote. Votes are tallied in the same manner as a regular meeting. The final tally shall be distributed to the TAC distribution list and posted on the MIS.

11 TPTF05/06/08 PRS Procedures Urgent Protocol Revision Requests Section 21 of the ERCOT Protocols defines Urgent PRRs. PRRs meeting the criteria will require special processing by the PRS. The following addresses the procedure the PRS will follow when presented with a PRR that the PRS deems as Urgent. An Urgent timeline is included with this document. If a submitter requests urgent status, the complete PRR is forwarded to the e- mail distribution list of the PRS. The Standing Representatives of PRS are requested to submit a vote on whether the PRR should receive urgent status. ERCOT notify PRS of the results of the vote via the distribution list and shall post the results on the MIS. If the PRS acts to designate the PRR as an Urgent PRR, the Urgent PRR will be considered on an urgent timeline as outlined in Section 21 of the ERCOT Protocols. Emergency and Special Meetings Emergency and special meetings will be called at the discretion of the PRS Chair to facilitate discussions related to PRRs.

12 TPTF05/06/08 Protocol Section 21.5, Urgent Requests The party submitting a PRR may request that the PRR be considered on an urgent basis ("Urgent") only when the submitter can reasonably show that an existing Protocol is impairing or could imminently impair ERCOT System reliability or wholesale or retail market operations, or is causing or could imminently cause a discrepancy between a settlement formula and a provision of these Protocols. If a submitter requests Urgent status for a PRR, or upon a valid motion in a regularly scheduled meeting of the PRS and the PRS determines that such PRR: (1)requires immediate attention from TAC due to (a) serious concerns about ERCOT System reliability or market operations under the unmodified language or (b) the crucial nature of settlement activity conducted pursuant to any settlement formula; and (2)is of a nature that allows for rapid implementation without negative consequence to the reliability and integrity of the ERCOT System or market operations; then

13 TPTF05/06/08 Protocol Section 21.5, Urgent Requests, continued PRS may designate the PRR for Urgent consideration. The PRS shall consider the Urgent PRR at its earliest regularly scheduled meeting, or at a special meeting called by the PRS chair to consider the Urgent PRR. If approved, ERCOT shall submit an Urgent PRS Recommendation Report to the TAC within three (3) Business Days after PRS takes action. The TAC chair may request action from TAC to accelerate or alter the procedures described herein, as needed, to address the urgency of the situation. Notice of an Urgent PRR pursuant to this subsection shall be posted on the MIS. Any revisions to these Protocols that take effect pursuant to an Urgent request shall be subject to an ERCOT PIA pursuant to Section , ERCOT Impact Analysis Based on Technical Advisory Committee Recommendation Report, and ERCOT Board consideration pursuant to Section , ERCOT Board Vote.

14 TPTF05/06/08 Protocol Section , ERCOT Board Vote Upon approval of a PRR by the TAC and issuance of a PIA by ERCOT to the Board, the ERCOT Board shall review the TAC Recommendation Report and the PIA at its next regularly scheduled meeting; provided that the PIA is available for distribution to the Board at least eleven (11) days in advance of the Board meeting. Protocols may not allow for an Urgent PRR to receive Board consideration in less than 11 days. Zonal Protocols do not have a provision for declaring an NPRR Urgent

15 TPTF05/06/08 TPTF Charter TPTF charter is silent on notice timelines or votes. On February 5, 2008, TPTF approved the “Accelerated Issue Resolution Process” which could be used to develop TPTF guidelines for dealing with issues quickly.