| January 10, Daylight Saving Time ERCOT Update

| January 10, Daylight Saving Time 2007 Legislation On August 8, 2005, President George W. Bush signed the Energy Policy Act of This Act changed the time change dates for Daylight Saving Time in the U.S. Beginning in 2007, DST will begin on the second Sunday of March and end the first Sunday of November. The Secretary of Energy will report the impact of this change to Congress. Congress retains the right to revert the Daylight Saving Time back to the 2005 time schedule once the Department of Energy study is complete In 2007, DST will change to begin at 2:00 a.m. on the second Sunday of March and end at 2:00 a.m. on the first Sunday of November

| January 10, Daylight Saving Time 2007 Operating System Patches (Windows and Unix) –95% of the applications pull time and date from the OS and the DST change will be resolved by the OS patches Oracle Patches –Patches are available for and above –These patches are not specifically required in ERCOT because we do not use the Time Zone data type, but is still being done as a safety measure Java Versions –1.3 and 1.4 versions upgrades have been identified that include DST rules Specific Application Changes –Configuration and hard coded date references within application scripts

| January 10, Daylight Saving Time 2007 Coordination –Changes will be made through Release Management in coordination with DPOs to eliminate/minimize impacts to other projects No impact to RO projects identified at this time –ITEST team will test and validate changes –Move to PROD Target Time –Completion by mid-February To Recap once again –DST will change to begin at 2:00 a.m. on the second Sunday of March and end at 2:00 a.m. on the first Sunday of November