1 Market Trials QSE Qualifications Weekly Update January 15, 2010

2 Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

3 Agenda Antitrust Admonition Environment Report –Planned / unplanned outages –Known Issues FAQ Standing Reports and Updates –General reminders / updates –Nodal telemetry outreach update –Readiness outreach update Qualification Status Question and Answers / General Discussion ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline

QSE Qualification Call Overview: Market Trials 2010 Roadmap 4

5 Environment Report: Planned / Unplanned Outages Planned Outages –None to report during supported hours Unplanned Outages –01/13/10 2:05 P.M – 2:15 P.M Market Manager application was restarted for data synchronization during this timeframe. Service availability was minimally affected during this timeframe –01/14/10 1:30 P.M – 1:45 P.M Market Manager application was restarted for data synchronization during this timeframe. Service availability was minimally affected during this timeframe

6 Environment Report: Known Issues ERCOT will post known issues every Friday to the readiness center at: ml ml No new issues to report

7 FAQ Question: What is the update frequency for the Settlement Point Names and Market Participant Short Names posted on the Nodal Readiness Center? Answer: ERCOT has been updating the Settlement Point Names and Market Participant Short Names on a monthly basis based on the Data Set Version (DSV) releases. The next DSV is scheduled for 01/22/10. The target is to synchronize with the zonal schedule in Feb 2010 going forward. The zonal schedule is posted at schedulehttp:// schedule Question: In the External Interfaces Specification, the COP template includes two fields called ‘resource’ and ‘combinedCyle’. Should QSEs submit the combined cycle name from the RARF as the ‘resource’ in the COP? Answer: When referring to the element ‘resource’ in the COP, the ‘resource’ is referring to the ‘logical resource mnemonic’ whereas the ‘Combined Cycle’ refers to the train. For example, if I have a Combined Cycle at a site called ‘MYSITE’ with 1 Combined Cycle train that is in configuration 2, the tags would be populated as follows: MYSITE_CC1_2 MYSITE_CC1

8 FAQ Question: Are the AS Offer, COP, and Three Part Offers the only transactions that use resource-specific codes (as opposed to Settlement Points), and that in all three of those transactions we use the logic for the and elements? This seems to indicate that the ‘Resource Name (Unit Code/Mnemonic)’ from the ‘Unit Info – CC’ tab of the RARF is not submitted for any transactions. Answer: The Output Schedule and Inc/Dec transactions also use the resource-specific codes. The tag is only truly required by TPO. Whereas you can include it in the other resource- specific transactions, it is dropped and not used by MMS. The individual unit codes in a CC train are not used when submitting market transactions. Telemetry, however, is at the unit level. Question: Is the element, which is XSD optional, required by ERCOT for all AS Offers, COPs, and TPOs submitted for combined cycle resources? Answer: Only TPO requires the element. The other resource-specific transactions will drop it before introducing to MMS.

9 FAQ Question: ERCOT offers QSEs three options when submitting Energy Only Offers and Energy Bids. The offers/bids can be submitted indicating fixed, variable, or curve. In the case of fixed and variable, how do you interpret it if QSEs submit more than one MW/Price combination? In the case of the “curve” type, does ERCOT interpret the curve provided as a slope, or piece- wise curve? If QSEs provide just one MW/price combination, does ERCOT see that as an incomplete curve or just draw a line between 0,0 and the supplied MW/price point? Answer: Only one price/quantity pair is allowed with an indicator of Variable or Fixed. If you enter more than one, you will receive an error message. A Curve entry with only one price/quantity pair will be treated as a Variable bid/offer. Meaning, a Curve offer with only one pair, for instance a quantity of 10 and a price of $20, could be selected for any quantity 10 MW or less for $20.

10 Standing reports and updates: General Reminders / Updates Upcoming EIS Functionality Changes –Removal of DC Tie Schedule - TBD –Addition of Text Reason for change in HSL – Next Release (Feb) –Opportunity Outage Changes (TBD) –Outage Cancellation – Reason text –Corrections in the EIS –The latest version of the EIS is posted at: Reminder: Phase 3 Kick Off and MRS #2 will be held on 1/28 –Details: –RSVPs should be sent to

11 Standing reports and updates: General Reminders / Updates Signing responses for SOAP Faults –Recap Currently, ERCOT is not returning a properly signed Notification on SOAP faults –Current Status This issue was confirmed to be a defect in the software package ERCOT uses to manage inbound and outbound communications. The vendor has provided an update to their package to address this issue. ERCOT has confirmed that this patch does resolve the issue. Effort is currently underway to regression test this patch. –Next Steps If the regression test is successful, this product will be moved to the Nodal Prod environment after coordination with the Market Trials and INT teams. Additional updates will be made available on future Market Calls.

12 Upcoming Settlement Workshops – RUC/RTM ERCOT Austin 7620 Metro Center Dr. Austin, TX February , 2010, 9:00 AM to 3:00 PM Garland Fire Department - Administration Building 1500 East State Highway 66 Garland, TX March , 2010, 9:00 AM to 3:00 PM Calpine 717 Texas Avenue, Suite 1000 Houston, TX March , 2010, 9:00 AM to 3:00 PM Nodal Training Website:

15 January 2010 Outreach Program Overview Market Call

Outreach Program Overview Confirmed Scheduled Site Visits APX (January 19 th ) Occidental (January 20 th ) Tenaska Power (January 26 th ) Optim Energy (January 27 th ) E.ON (February 9 th ) Nextera (February 11 th ) Wind Panel (February 16 th ): Hosted by Horizon Wind Retail Panel (February 17 th ): Hosted by StarTex Tri-Eagle Energy (February 18 th ) XTEND Energy (March 3 rd ) Brazos (March 10 th ) 15 January 2010 Market Call

Outreach Program Overview Market Participant “Menu” Topics: All materials are available on the Nodal Readiness Center. ( Nodal Program Update (mandatory) – (75 min) Readiness Center and Readiness Scorecard – (45 min) Day-Ahead Market Implementation – (60 min) Congestion Revenue Rights (CRR) Auction Implementation – (60 min) Reliability Unit Commitment Implementation – (60 min) Telemetry & Load Frequency Control (LFC) – (30 min) Real Time Market Processes & Systems – (60 min) Nodal Settlement and Billing Processes – (60 min) Reports and Data Extracts – (30 min) 15 January 2010Market Call

16 Qualification Update 8 more business days until qualification activities close and LMP analysis begins 60 QSEs of 287 have completed MMS submission qualification –This represents 60% of generation ERCOT’s Wholesale Client Services team are reaching out to QSEs that are still working on qualification.

17 Nodal Telemetry Outreach Update Recap of NTO Objectives and Timelines: Notes & Reminders: Telemetry support for State Estimator is being provided on a daily basis during business hours as of January 4, ERCOT’s goal is to have all Nodal telemetry completed by Feb 1, 2010 An updated QSE Telemetry Dashboard was posted to the Readiness Center on JAN 13 ( The next Telemetry Dashboard publication is scheduled for JAN 29 and will reflect telemetry status as of the JAN 22 nodal database load and will include measurements for all nodal telemetry as required to support both State Estimator and SCED

18 Nodal Telemetry Outreach Update Update on State Estimator Telemetry <100 points remain to be resolved for State Estimator STATUS# QSERs JAN 5JAN 13JAN 29 * (next scheduled dashboard posting) 100% >=80% but <100%000 <80%400 In Review14164 * Based on current information, the estimated statuses of State Estimator telemetry by JAN 29 for the Four QSEs marked “In Review” are described on the next slide...

19 Nodal Telemetry Outreach Update * Based on current information, the estimated status of State Estimator telemetry by JAN 29 for the Four QSEs marked “In Review” is as follows: 31 points will remain to be resolved in support of State Estimator For QSE #1 in review: the ERCOT ICCP team is reviewing 9 ICCP points for State Estimator and will work with WCS to set up a conference call if needed to resolve remaining points For QSE #2: Three ICCP points for State Estimator are in transition between ICCP service providers For QSE #3: Two ICCP points remain to be submitted for State Estimator (1 AVR status, 1 CB status) For QSE #4: 17 points remain to be submitted for State Estimator

20 Nodal Telemetry Outreach Update Telemetry Outreach Focus has shifted to SCED As noted during the previous Market Call (JAN 8), the focus of the Nodal Telemetry Outreach has shifted from State Estimator to SCED. If you haven’t already submitted your SCED points as identified in your previous point listing, please do so as soon as possible. The next series of point lists identifying outstanding nodal points for SCED will be distributed following the JAN 22 database load The status indicators for SCED telemetry are scheduled to be updated in the QSE Telemetry Dashboard on the Readiness Center on JAN 29.

21 Nodal Telemetry Outreach Update Data Quality Effort As noted during the previous Market Call (JAN 8), ERCOT has begun an effort to improve data quality. The purpose of this effort is to begin correcting errors in Real-Time telemetry to help lay the groundwork for establishing reasonable LMPs in FEB What QSEs should expect: QSEs should expect to receive telemetry-outreach s and phone calls highlighting various types of Real-Time telemetry issues that need attention, including: Errors in Generation Limits: HSL, LSL, Current MW output Errors in Resource Status Codes: ON/OFF Errors in Resource Status for Combined Cycles Errors in Combined Cycle Configuration The response that will be expected from QSEs to help correct Real-Time data errors will be communicated whenever errors are communicated, initially on a QSE-by-QSE basis, and also on Market Calls and in Market Announcements as necessary to address global issues As common issues for RT telemetry errors become evident, ERCOT will work to identify a tracking mechanism that will support progress reporting and/or scorecard metrics.

22 Q&A Q&A / Open Forum

23 Appendix

24 URLS and ADDRESS FOR SUPPORT URLs for access the Nodal Production systems –MIS: –Market Manager: Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS: Reminder: Market Trials address change: ERCOT asks that MPs use the address for questions from this point –This will begin the phasing out of and –A centralized address will no longer require MPs to “guess” which address to use for their questions –We have implemented a more effective method of routing and responding to s using this address –The old eds s can continue to be used until 2009 hold over efforts are completed (such as telemetry outreach)

25 Market Trials Handbooks –ERCOT will release the following Handbooks In December Real Time Market / LFC covering Phase Outage Scheduler covering Phase CRR covering release Phase Settlements / COMs covering Phase Day Ahead Market (note that this contains only reference data to the 2.1 qualification as there is no Phase 3.0 scope) –The Phase 4.0 release of the Market Trials Handbooks will occur in early February. –The Phase 5.0 release of the Market Trials Handbooks will occur in March

26 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010