Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 1 Settlement Statements and Calendar Business Requirements Settlements and Billing September 29, 2006

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 2 Agenda Settlement Statement Types Highlights of Business Requirements –Dependency Maps –Outstanding Issues or Assumptions

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 3 Settlement Statement Types Day-Ahead Market Statements: –DAM Statement (PR 9.2.4) –DAM Resettlement Statement (PR 9.2.5) Real-Time Market Statements: –RTM Initial Statement (PR 9.5.4) –RTM Final Statement (PR 9.5.5) –RTM Trueup Statement (PR 9.5.8) –RTM Resettlement Statement (PR 9.5.6)

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 4 Statements for the DAM Highlights (1)

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 5 Statements for the DAM Highlights (2) DAM Statements are posted daily, for each DAM. DAM Statements are issued 2 days after Operating Day. DAM Resettlement Statements reflect corrected data from the previous settlement run for the same DAM. Statement Recipients include: –QSE –CRR Owner _____________________________________________________________________________________________________ Issues: –DAM Statement / DAM Invoice Merge –DAM Resettlement Statement / Dam Invoice Merge

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 6 Statements for the RTM Highlights (1)

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 7 Statements for the RTM Highlights (2) RTM Statements are posted daily, for each Operating Day. RTM Initial Statements are issued 10 business days after the Operating Day. RTM Final Statements are issued 59 business days after Operating Day. RTM Trueup Statements are issued 180 business days after the Operating Day. RTM Resettlement Statements reflect corrected data from the previous settlement run for the same Operating Day. Statement Recipients include: –QSE –CRR Owner _______________________________________________________________________________________________________________ Issues: –None

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 8 Settlement Calendar Highlights (1)

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 9 Settlement Calendar Highlights (2) The Settlement Calendar provides the dates by which ERCOT will post, process payments, and administer disputes for Settlement Statements and Invoices, including: –Settlement Statements for the DAM; –Settlement Statements for the RTM; –DAM Invoices; –RTM Invoices; –DAM Late Fee Invoices; –RTM Late Fee Invoices; ___________________________________________________________________________________________________________________ Issues: –CRR Auction Invoices, CRR Auction Revenue Distribution Invoices, and CRR Balancing Account Invoices are not reflected as items for the Settlement Calendar in the Nodal Protocols. (PR 9.1.2)

Texas Nodal © Electric Reliability Council of Texas, Inc. All rights reserved. 10 Summary The following Protocol versions were used as the basis of Settlement Statement and Settlement Calendar requirements: –Section 9 (007NPRR as approved by BOD on 07/18/2006)