Congestion Revenue Rights Market Trials Call 5 March, 2010

ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

Agenda Topics: I.Market Trials Roadmap II.Documents Posted Since Last CRR Market Call III.Known issues IV.Successful CRR Qualifications as of 4pm yesterday V.Amber Participants VI.Red Participants VII.Upcoming Activities VIII.Questions/Comments IX.FAQ Slide 3

Market Trials 2010 Roadmap 4

Documents Added Since Last Market Call All Documents Found at html html Congestion Revenue Rights Market Trials Handbook v2.0 CRR Qualification Dashboard: 03/05/10

Known Issues - Fixed: validated and ready for deployment (03/05/2010 6:00 PM) 0.1MW Error in awarded MW Some MW Flow values are not equal to Limit in Binding Constraint download file A resource that has been identified as "Restricted" cannot be requested in a "Buy" trade in the bilateral market. When entering nominations via the GUI, the numeric keypad does not properly function. The phone number in a bilateral trade contact information is limited to 20 characters. The error message for going over 20 characters is vague.

Known Issues - New Model Data Issues related to “Planning Go-Live” Connectivity Node – Connectivity Node Group Mapping Connectivity Node Name

8 Known Issues – In Progress Awarded PTP CRR is.1 MW less than bid for Obligation but clearing price is above bid price Performance Test (2 Issues) Inactive link in MIS Applications tab for Counterparty Not able to sell (offer) OBL PCRR past 1st month Lock Time for self-imposed credit for an Account Holder is at 12:00:01am; but 5:00:00pm for Counterparty Not all settlement points from the Network Model database were mapped to the CRR Model Invoices do not currently render when clicked on. Market Results Private Download file for Allocations does not contain all required information (clearing prices, and pricing factor) Market Results Public Download Bids and Offers file for Auctions shows awarded MW instead of bidded MW

9 Known Issues - Closed Monitored Lines and Transformers contains no data JAN2010 CRR Monthly Network Model report file (11204) does not contain all the required network files. Portfolio upload - Portfolio Editor becomes unusable when uploading a "targeted" bid portfolio containing a valid source/sink that is not biddable for that specific auction. The slack bus in the March published models does not have a generator. See Known Issues list:

Successful CRR Qualifications As of 1600 CPT Thursday 62 Congratulations! Scorecard is live! Slide 10

Successful CRR Qualifications as of 1600 CPT yesterday ACCENT ENERGY TEXAS LP (CRRAH)GEUS (CRRAH) CITY OF AUSTIN DBA AUSTIN ENERGY (CRRAH)GREEN MOUNTAIN ENERGY COMPANY (CRRAH) AEP ENERGY PARTNERS INC (CRRAH)CITY OF GEORGETOWN (CRRAH) AMERICAN ELECTRIC POWER SERVICE CORPORATION (CRRAH)IPA TRADING LLC (CRRAH) AIR LIQUIDE LARGE INDUSTRIES US LP (CRRAH)J ARON AND COMPANY (CRRAH) ANP FUNDING I LLC (CRRAH)JUST ENERGY TEXAS LP (CRRAH) BP ENERGY COMPANY (CRRAH)KEYSTONE ENERGY PARTNERS LP (CRRAH) BROWNSVILLE PUBLIC UTILITIES BOARD (CRRAH)LOWER COLORADO RIVER AUTHORITY (CRRAH) BRAZOS ELECTRIC POWER CO OP INC (CRRAH)LOUIS DREYFUS ENERGY SERVICES LP (CRRAH) BRYAN TEXAS UTILITIES (CRRAH)LUMINANT ENERGY COMPANY LLC (CRRAH) CARGILL POWER MARKETS LLC (CRRAH)MIDAMERICAN ENERGY COMPANY (CRRAH) CALPINE POWER MANAGEMENT LP (CRRAH)MORGAN STANLEY CAPITAL GROUP INC (CRRAH) CITIGROUP ENERGY INC (CRRAH)NRG TEXAS POWER LLC (CRRAH) CONOCOPHILLIPS COMPANY (CRRAH)OCCIDENTAL POWER SERVICES INC (CRRAH) CONSTELLATION ENERGY COMMODITIES GROUP INC (CRRAH)OCCIDENTAL POWER MARKETING LP (CRRAH) CPS ENERGY (CRRAH)OPTIM ENERGY MARKETING LLC (CRRAH) DB ENERGY TRADING LLC (CRRAH)RAINBOW ENERGY MARKETING CORPORATION (CRRAH) DIRECT ENERGY LP (CRRAH)RAYBURN COUNTRY ELECTRIC COOPERATIVE INC (CRRAH) DENTON MUNICIPAL ELECTRIC (CRRAH)THE ROYAL BANK OF SCOTLAND PLC (CRRAH) DESERT SKY WIND FARM LP (CRRAH)RELIANT ENERGY POWER SUPPLY LLC (CRRAH) DTE ENERGY TRADING INC (CRRAH)SEMPRA ENERGY SOLUTIONS LLC (CRRAH) EAGLE ENERGY PARTNERS I LP (CRRAH)SEMPRA ENERGY TRADING LLC (CRRAH) EC AND R ENERGY MARKETING LLC (CRRAH)SHELL ENERGY NORTH AMERICA (US) LP (CRRAH) EDISON MISSION MARKETING AND TRADING INC (CRRAH)STAR ELECTRICITY LLC DBA STARTEX POWER (CRRAH) EXELON GENERATION COMPANY LLC (CRRAH)SOUTH TEXAS ELECTRIC COOPERATIVE INC (CRRAH) FIRST CHOICE POWER LP (CRRAH)GDF SUEZ ENERGY MARKETING NA INC (CRRAH) FORMOSA UTILITY VENTURE LTD (CRRAH)GDF SUEZ ENERGY RESOURCES NA INC (CRRAH) FORTIS ENERGY MARKETING AND TRADING GP (CRRAH)TENASKA POWER SERVICES CO (CRRAH) NEXTERA ENERGY POWER MARKETING LLC (CRRAH)TRENT WIND FARM LP (CRRAH) CITY OF GARLAND (CRRAH)TRIEAGLE ENERGY LP (CRRAH) FRANKLIN POWER LLC (CRRAH)

If the Scorecard were run today, the following participants would be Amber EPIC MERCHANT ENERGY TX LLC (CRRAH) MERRILL LYNCH COMMODITIES INC (CRRAH) TEX-LA ELECTRIC COOPERATIVE OF TEXAS INC (CRRAH)

If the Scorecard were run today, the following participants would be RED (No record of contact regarding Qualification)

Upcoming CRR Market Trial Activities Monday, 8 March »Bid window for April Auction Opens »CRR Auction Credit locks at 5 pm CPT By Wendesday, 10 March »NOIEs review Contract and entitlement information and return any edits/updates to ERCOT Thursday, 11 March »Bid window for April Auction Closes Friday, 12 March »Start Execution of April Auction »Start Accepting PCRR Nominations for May »Start Accepting PCRR Nominations for Balance of Year

Analyzing in detail the Mar-2010 CRR market results I noted that there is something strange in the crr awards report. The two awards below should have the same clearing price (Shadow Price), but they were reported with different ones. The product is exactly the same (same Category, HedgeType, Class, CRRType, Source, Sink, StartDate, EndDate, TimeOfUse) so there is no reason for different prices. Can you explain this difference? 15 6/12/2016 There will be a difference in clearing price if one bid is a 24-Hour bid and the other is a standalone. In the case above, the CRR was the result of a 24-hour bid, whereas the was a stand alone bid. The Clearing price for a 24hour bid is the weighted (by hours) average of the clearing prices for the three times of use.

I know you explained it in a recent CRR call, but can you remind me again: shadow price = CRR clearing price? Is there any further significance to it that may be escaping me (i.e. otherwise you’d just call it “clearing price”)? The easy answer is they are the same in the ERCOT Nodal CRR market. The Nexant system uses “shadow price” and “clearing price” interchangeably. Section (1)(c ) states: “The CRR clearing price is equal to the corresponding Shadow Price for that CRR product.” ERCOT CRR has put in for an enhancement to change the name, but since it does not affect the system operation, it received a rather low priority. For now, we are just getting the word out that they are the same. 16 6/12/2016

Is the CRR Network Model available for public consumption on MIS? The network Model is posted on the MIS Secure area (7.5.3 (1) (i)). The only other information that is not Public on the CRR MIS site is the links to the application – those are certified and only entities with valid CRRAH and CP digital certificates can get to them. 17 6/12/2016

Open Question Time Questions? Slide 18