Lead from the front Texas Nodal 1 Texas Nodal Market Implementation Program Detailed Design Document Review Process Compiled by Susan Westbrook March 28, 2007

Lead from the front Texas Nodal 2 Detailed Design Documents – TPTF Review Section 5.1(2)(c) of the Nodal Transition plan requires TPTF to review Detail System Design documents and comment on any possible compliance issues with applicable protocols. The TPTF Charter provides that in order to be eligible to review plan and design documents, a TPTF member is required to sign nondisclosure agreements with ERCOT to the extent required by the vendor. CONTRACTUAL CONFIDENTIALITY REQUIREMENTS ERCOT’s professional services agreements and nondisclosure agreements allow the recipient of confidential information to use it solely for the purposes set forth in those agreements.

Lead from the front Texas Nodal 3 BALANCING INTERESTS ERCOT staff has established the following information disclosure framework to balance competing interests: –The needs of TPTF members for enough information to fulfill their obligation to review and comment on Detail System Design Documents; and –The needs of vendors to protect their proprietary materials; and –ERCOT’s contractual obligation to avoid improper disclosure of confidential information. ERCOT’s professional services agreements and nondisclosure agreements allow the recipient of confidential information to use it solely for the purposes set forth in those agreements.

Lead from the front Texas Nodal 4 The materials supplied by ERCOT’s vendors will fall within one of the following classifications: Public; Limited; Confidential; and Restricted. The extent to which classified materials may be disseminated is as follows: PUBLIC Public materials may be freely disseminated to the public and posted on public websites.

Lead from the front Texas Nodal 5 LIMITED –Limited materials may be disclosed to ERCOT employees and consultants, TPTF, and to Market Participants, including their employees and consultants, for the purpose of evaluating, testing, and implementing Nodal Market systems. –ERCOT may post Limited materials on its Texas Nodal Implementation Website ( and may distribute or present such materials in accordance with Texas Nodal procedures.

Lead from the front Texas Nodal 6 CONFIDENTIAL Confidential materials may be disclosed only to (1) ERCOT employees; (2) ERCOT consultants who have signed ERCOT’s Ethics Agreement; and (3) Market Participants who have executed an ERCOT nondisclosure agreement (“NDA”). Market Participants’ employees will not be required to sign separate nondisclosure agreements if: –The Market Participant’s NDA requires that individuals who have access to confidential materials sign a certification agreeing to be bound by such agreement; and –The employee has signed such certification; and –ERCOT has received a copy of such signed certification.

Lead from the front Texas Nodal 7 CONFIDENTIAL, cont’d Market Participants’ consultants will not be required to sign separate nondisclosure agreements if: –The Market Participant’s NDA requires that individuals who have access to confidential materials sign a certification agreeing to be bound by such agreement; and –the Market Participant confirms in writing that the consultant has been engaged for the purpose of evaluating the requested detailed design documents; and –The consultant has signed such certification; and –ERCOT has received a copy of such signed certification.

Lead from the front Texas Nodal 8 RESTRICTED Restricted materials may be disclosed only to ERCOT employees and to ERCOT consultants who have signed an Ethics Agreement. RESPONSIBILITY FOR DESIGNATIONS ERCOT staff will be responsible for ensuring that vendor contracts require a section of the detailed design document that: –contains detailed information sufficient to allow evaluation by Market Participants; and –is designated as Public, Limited or Confidential.

Lead from the front Texas Nodal 9 Questions?