CSWG Update To COPS 11/6/2012 Jim Galvin

Settlement Observations- LZ to Hub Sep 2012 to Oct 2012 Load Zone/HUB RTSPP Period: Sep-12   Location Average Zone over HUB Comparison Location RTSPP Average Row Labels Average RTSPP Zone over HUB Delta LZ_HOUSTON $27.61 HB_HOUSTON $25.27 $2.33 LZ_NORTH $25.22 HB_NORTH $25.08 $0.14 LZ_SOUTH $25.81 HB_SOUTH $24.97 $0.84 LZ_WEST $39.47 HB_WEST $23.60 $15.87 LZ_AEN Grand Total $29.53 $24.73 $4.80 LZ_CPS $25.11 Load Zone/HUB RTSPP Period: Oct-12   Location Average Zone over HUB Comparison Location RTSPP Average Row Labels Average RTSPP Zone over HUB Delta LZ_HOUSTON $26.39 HB_HOUSTON $25.92 $0.47 LZ_NORTH $27.19 HB_NORTH $26.79 $0.40 LZ_SOUTH $26.08 HB_SOUTH $26.27 -$0.19 LZ_WEST $57.48 HB_WEST $27.77 $29.70 LZ_AEN $27.00 Grand Total $34.28 $26.69 $7.60 LZ_CPS $26.86 Date Meeting Title (optional)

Settlement Observations- LZ to Hub Oct Year over Year Load Zone/HUB RTSPP Period: Oct-12   Location Average Zone over HUB Comparison Location RTSPP Average Row Labels Average RTSPP Zone over HUB Delta LZ_HOUSTON $26.39 HB_HOUSTON $25.92 $0.47 LZ_NORTH $27.19 HB_NORTH $26.79 $0.40 LZ_SOUTH $26.08 HB_SOUTH $26.27 -$0.19 LZ_WEST $57.48 HB_WEST $27.77 $29.70 LZ_AEN $27.00 Grand Total $34.28 $26.69 $7.60 LZ_CPS $26.86 Load Zone/HUB RTSPP Period: Oct-11   Location Average Zone over HUB Comparison Location RTSPP Average Row Labels Average RTSPP Zone over HUB Delta LZ_HOUSTON $28.61 HB_HOUSTON $27.71 $0.91 LZ_NORTH $27.28 HB_NORTH $22.32 $4.96 LZ_SOUTH $32.10 HB_SOUTH $29.65 $2.45 LZ_WEST $25.56 HB_WEST -$1.72 LZ_AEN $28.35 Grand Total $28.39 $26.74 $1.65 LZ_CPS $34.12 Date Meeting Title (optional)

October 2012 Price Volatility Max Prices October 2012 Row Labels Max of Average LZ_HOUSTON $58.29 LZ_NORTH $40.39 LZ_SOUTH $113.80 LZ_WEST $63.76 LZ_AEN $45.16 LZ_CPS $190.59 HB_HOUSTON $48.57 HB_WEST $36.96 HB_SOUTH $83.36 HB_NORTH $40.73 Min Prices October 2012 Row Labels Min of Average LZ_HOUSTON $21.45 LZ_NORTH $20.09 LZ_SOUTH $20.95 LZ_WEST $2.82 LZ_AEN $20.82 LZ_CPS $20.90 HB_HOUSTON $19.89 HB_WEST $2.32 HB_SOUTH $21.02 HB_NORTH $20.12 $RTSPP- October 16, 2012

Cost to Serve Load- Oct 2012 v 2011 Cost to Serve Load Summary: Oct-11 $1.09 Oct-10 $1.33   Oct-12 Arithmetic Average Related Charges Non-Spin Rsrv Chrg Reg Dn Srvc Chrg Reg Up Srvc Chrg Rspnsv Rsrv Srvc Chrg RENA On-Peak $0.05 $0.03 $0.10 $0.76 $0.21 Off-Peak $0.04 $0.08 $0.09 $0.73 Average $0.06 $0.75 $0.15 $ 0.3022 $ 0.1338 $ 0.1791 $ 0.7291 $ 0.0550 $ 0.1258 $ 0.1686 $ 0.2045 $ 0.5636 $ 0.2083 $ 0.2025 $ 0.1534 $ 0.1934 $ 0.6356 $ 0.1417

Settlement Observations- Summary Market prices continue slight downward trend, although congestion events in October show some high price move on Oct. 16 Market Prices continue the trend of declining from 2011 compared to 2012 even with weather impact excluded Lower Nat Gas prices Fewer intervals of high price spikes West Zone to Hub continues to see price separation Revenue Neutrality volatility trending down, almost identical to this time last year

NPRR 347 Implementation Plan- THIS MONTH! Last DAM Invoice is for Operating Day 11/7, Posts on 11/9 Payments due to ERCOT on 11/15, on the 3rd BBD Last RTM Invoice posts on 11/15 Payments due to ERCOT on 11/26, on the 5th BBD First Settlement Invoice posts on 11/12 Payments due to ERCOT on 11/14, on the 2nd BBD Settlement Calendar Entries for Settlement Invoices will be added in October DAM Invoice and RTM Invoice entries will be deleted in November Link to ERCOT presentation: http://www.ercot.com/calendar/2012/07/20120716-CSWG

Shortening RT Settlement Timeline As directed by COPs with requests from PUCT Commissioners, CSWG and COPS will initiate a joint workshop following COPs to evaluate reducing further the RT Settlement timeline Activity supports other ISO/RTOs move on FERC # 741 and on CFTC initiatives around Dodd-Frank Workshop will focus on impacts, cost and benefit to stakeholders and ERCOT Staff to report back to TAC on the feasibility Workshop will meet after COPs on Nov. 6, potential follow-up items will be addressed (TBD)

Other CSWG Initiatives Discussions on supporting COPs for 2013 CSWG is concerned that there is no forum for the items discussed in our venue Base Point Deviation Extract issue- Vote today at COPs, no real consensus from CSWG members Pre-Pay Accounts Service Level Agreement up for review

Questions? Date Meeting Title (optional)