Initial ERCOT Parking Deck Prioritization Recommendation Troy Anderson ERCOT – Business Integration

Evaluation of Parking Deck Items is Underway With Nodal go-live behind us, ERCOT has began the impact assessment of Parking Deck items and new NPRRs/SCRs Work is proceeding as time allows, based on the volume of Nodal Stabilization and Deferred Defect work Board-approved Priority taken into account Limited selection of items chosen to reduce resource impacts immediately after go-live This bundle is referred to as Phase 1 See next slide for list of items Phase 2 of impact assessment will begin soon Market input requested on items for this phase

Parking Deck and New NPRR/SCR Prioritization Effort Underway Phase 1 - ERCOT Review of Potential 2011 Work (Impact & Cost Benefit Analysis) NPRR208: Registration and Settlement of Distributed Generation (DG) Less Than One MW NPRR219: TSPs Must Submit Outages for Resource Owned Equipment and Clarification of Changes in Status of Transmission Element Postings Includes NOGRR050: Resolution of Reporting Issues Related to NPRR219 NPRR221: Day-Ahead Market and Real-Time Market Default Allocation Changes NPRR251: Synchronization of PRR845, Definition for IDR Meters and Optional Removal of IDR Meters at a Premise Where an Advanced Meter Can be Provisioned NPRR285: Generation Resource Base Point Deviation Charge Corrections NPRR290: ERCOT Publication of DAM PSS/E Files NPRR293: Requirement to Post PTP Obligation Quantities Awarded in DAM NPRR302: Correct Fuel Type Language for Mitigated Offer Cap NPRR303: Requirement to Post PTP Options Cleared in DAM or Taken to Real-Time SCR760: Recommended Changes Needed for Information Model Manager and Topology Processor for Planning Models Includes SCR759: acLineSegment Name Length Increase in Information Model Manager Schedule reminder January - Market subcommittee review February - Market subcommittee endorsement March - TAC and Board consideration 18 January 2011 ERCOT Board of Directors

Evaluation of Parking Deck Items is Underway ERCOT has reviewed the results and recommends actions that fall into 3 categories Recommended for implementation in 2011 Not recommended for implementation in 2011 Recommendation TBD (additional estimation time needed) Funding Recommendations – General Guidelines If “Source” = “Parking Deck” then use Parking Deck funds If “Source” = “Post-Go-Live” then use PPL funds If case can be made for Stabilization funding then Stabilization

Evaluation of Parking Deck Items 2011 Implementation Recommended NPRR208 – Registration and Settlement of Distributed Generation (DG) Less Than One MW Target Delivery = September 2011 150 day market notice required between Board approval and implementation NPRR285 – Generation Resource Base Point Deviation Charge Corrections Target Delivery = June 2011 IMPORTANT: Impact assessment is subject to change based on potential cross-impacts with the resolution of PRR830 NPRR293 – Requirement to Post CRR Option and Obligation Quantities Cleared in DAM or Taken to Real Time Target Delivery = May 2011 NPRR302 – Correct Fuel Type Language for Mitigated Offer Cap Target Delivery = March 2011 Pending Board approval (still in stakeholder process) Total cost of these items = $54k-$65k Total labor hours of these items = 450-720 hours

Evaluation of Parking Deck Items Implementation Not Recommended at This Time NPRR219 – Resolution of Alignment Items A33,A92,A106,A150 - TSPs Must Submit Outages for Resource Owned Equipment & Clarification of Changes in Status of Transmission Element Postings Cost to implement greatly exceeds the offsetting labor savings achieved with this project Need to consider alternate approaches or combining with one or more related efforts NOGRR050 – Resolution of Reporting Issues Related to NPRR219 Not recommended at this time due to its connection to NPRR219

Evaluation of Parking Deck Items Recommendation TBD NPRR221 – Automated Default Uplift Invoice NPRR251 – Sync of PRR845, Definition for IDR Meters and Optional Removal of IDR Meters at a Premise Where an Advanced Meter Can be Provisioned NPRR290 – ERCOT Publication of DAM PSS/E Files NPRR303 – Requirement to Post PTP Options Cleared in DAM or Taken to Real-Time SCR759 – acLineSegment Name Length Increase in Information Model Manager SCR760 – Recommended Changes Needed for Information Model Manager and Topology Processor for Planning Models

Evaluation of Parking Deck Items Summary Seeking market input on the initial ERCOT recommendation Input on items reviewed in Phase 1 Input on items to be included in Phase 2 Prepare for endorsement consideration in February

Appendix

Nodal Stabilization Timeline

It’s Time to Look Forward to 2011…

Prioritization Timeline

2011 Project Priority List / Funding Summary 2011 Project Budgets and Project Counts by Program Area Program Area Budget Request Projects Started in 2008/2009 New 2010 Projects CO $ 370,000 1 IO $ 680,000 2 MO $ 3,360,000 3 RO $ 2,775,000 SO $ 0 Minor Cap $ 1,000,000 Subtotal $ 8,185,000 5 6 Data Center Refresh (IO) $ 33,715,000 Grand Total $ 41,900,000 * The SO project budget is replaced by Nodal Release Planning in 2011 Nodal Release Planning is being budgeted as part of Nodal Stabilization *