Lead from the front Texas Nodal 1 EDS 4 DAM/RUC/SASM EDS 4.9 Market Call March 28, 2008

Lead from the front Texas Nodal 2 ERCOT Anti-Trust 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.

Lead from the front Texas Nodal 3 Agenda DAM/RUC EDS 4 –Dashboard Update –Current issues –Release 9.3 details –Release 8 Update –Q&A and Roll Call Appendix

Lead from the front Texas Nodal 4 DAM/RUC 4.9 Tracking: Dashboard To view the most updated copy refer to the readiness center at: Under Weekly Status

Lead from the front Texas Nodal 5 Current issues – EDS environment Defect regarding last day of month –Submissions receiving an error on the last hour/interval of the month: Recall that this was a a problem for Feb 29 and will be for March 31 as well A fix is expected for the April 1 release

Lead from the front Texas Nodal 6 Update on next phase- EDS4 Initial DAM/RUC Testing –NEXT WEEK WE BEGIN EDS4-Release 9.3 –Initial DAM/RUC Execution Activities –As a QSE you need this punchlist for April 1: 1- EDS4 System-Wide Load Forecast and ASPlan (posted & ed) 2- Individual Load Ratio Share Spreadsheet ( ed-QSE specific) 3- Updated Settlement Points loaded into your system (posted) 4- Summary Sheet of Activities 5- Your systems and certificates available (same as Rel 9.1) 6- Ensure your firewall and proxy opened to ERCOT Austin site

Lead from the front Texas Nodal 7 Update on next phase- EDS4 Initial DAM/RUC Testing 1- The System-Wide Load Forecast and AS Plan (posted and ed)

Lead from the front Texas Nodal 8 Update on next phase- EDS4 Initial DAM/RUC Testing 2- Individual Load Ratio Share Spreadsheet ( ed-QSE specific)

Lead from the front Texas Nodal 9 Update on next phase- EDS4 Initial DAM/RUC Testing 3- Updated Settlement Points loaded into your system (posted) Changes to Resource Nodes (not Resource Names)

Lead from the front Texas Nodal 10 Update on next phase- EDS4 Initial DAM/RUC Testing 4- Summary Sheet of Activities ( and posting)

Lead from the front Texas Nodal 11 DAM Awards Status of DAM Award Communication (as of 3/28/08) Due to integration issues, Notifications delivery moving toward mid-May Query Get AwardSet will conform to a temporary xml schema and will not conform to EIP specification in the beginning. We posted XSD on the Readiness Center. Note that this is an interim measure for first 2 weeks of April. –Awards queries will likely return compressed payloads given the size of the reports –GetAwardSet composed of: AwardedEnergyOffer AwardedEnergyOnlyOffer AwardedEnergyBid AwardedAS AwardedCRR AwardedPTPObligation Awards to be available via Market Manager (display of GetAwardSet)

Lead from the front Texas Nodal 12 Release 8 Update All “Standard” items posted to Readiness Center for review Standard outputs are defined as “a statement, invoice, or extract that is unassociated with any stubbed in data. “ See appendix slides for all Standard items posted for review Send acknowledgement of items available to by 4/1/08 No Logged Issues No issues logged to date for Release 8

Lead from the front Texas Nodal 13 Release 8 - April Calendar of Events SAT/SUNMONDAYTUESDAYWEDNESDAYTHURSDAYFRIDAY 1-Apr2-Apr3-Apr4-Apr Download CRR Auction Invoices (Release 7.3) 5/6-Apr7-Apr8-Apr9-Apr10-Apr11-Apr 12/13-Apr14-Apr15-Apr16-Apr17-Apr18-Apr DAM Statements and Invoices Produced 19/20-Apr21-Apr22-Apr23-Apr24-Apr25-Apr Download CRR Auction Invoices (Release 7.4) DAM Statements and Invoices Produced 26/27-Apr28-Apr29-Apr31-Apr

Lead from the front Texas Nodal 14 Q&A / Open Forum Roll-Call

Lead from the front Texas Nodal Release 9.3 Information -Release 8 documents -DAM notifications available in Sandbox -Upcoming Network Changes -Connectivity information -Links to Key Documentation -Metrics -Data preparation APPENDICES

Lead from the front Texas Nodal 16 Update on next phase- EDS4 Initial DAM/RUC Testing Objectives beginning in April –QSE submit offers DAM/RUC –ERCOT executes DAM/RUC (in limited manner) –ERCOT posts awards and settlement point prices –Targeting to support out of Austin Control Center (ensure firewalls comply with Appendix) Schedule- –Run Day-Ahead markets on Tuesday and Thursday each week –Planned first DAM run is 10am on April 3 rd –ERCOT system and data preparation still in progress to make April 3 date Summary of how testing will evolve : –Execution functionality to be taken in steps (crawl > walk > run) Weeks 1&2 – –Energy-only DAM –No A/S, no RUC, no constraints, no PtP Obligations, no credit limit Week 3 – –Energy and A/S in DAM –Include self-selected credit limits and PtP Obligations Weeks 4 & 5 –Execute DAM with constraints on Tuesday, include RUC on Thursday

Lead from the front Texas Nodal 17 Update on next phase- EDS4 Initial DAM/RUC Testing (con’d) –Reminders below to involve business in building bids and offers ************************ –For testing purposes there will be guard-rails on data, but it will not scripted by ERCOT So QSE BUSINESS INVOLVEMENT IS CRITICAL for reasonable pricing and business activities –All QSEs (with and without Load and Resources)- May submit a limited amount of DAM Energy Only Offers and DAM Energy Bids that do not represent actual Resources or Loads (virtual bids and offers) QSEs can only bid/offer up to 50MW total (later becomes 500MW) Bids/Offers should net to 0MW total (later allowed to take position of up to 200MW) It is important that the submitted bids be reasonably priced for producing appropriate prices and results.

Lead from the front Texas Nodal 18 Release 8 - Documents available for review on Readiness Center Statements: Statement XMLs R2.xml XML R2.xml XML

Lead from the front Texas Nodal 19 Release 8 documents – page 2 Invoices: Invoices XMLs:

Lead from the front Texas Nodal 20 Release 8 documents – page 3 Multiple CRR Auction Invoices See section titled CRR Auction Invoices - Release 7.2 at the following location: Corresponding CRR Auction Invoice XMLs See section titled CRR Auction Invoices – Release 7.2 at the following location: Counterparty Available Credit Limit Report pdf pdf Total Potential Exposure Detail Report rty1_ pdf

Lead from the front Texas Nodal 21 DAM Awards Status of DAM Award Communication (as of 3/21/08) Due to integration issues, Notifications delivery moving toward mid-May Query Get AwardSet will conform to a temporary xml schema and will not conform to EIP specification in the beginning. We posted XSD on the Readiness Center. Note that this is an interim measure for first 2 weeks of April. –Awards queries will likely return compressed payloads given the size of the reports –GetAwardSet composed of: AwardedEnergyOffer AwardedEnergyOnlyOffer AwardedEnergyBid AwardedAS AwardedCRR AwardedPTPObligation Awards to be available via Market Manager (display of GetAwardSet)

Lead from the front Texas Nodal 22 DAM Awards DAM awards notification availability in the nodal Sandbox There is a scheduled job running in Sandbox that sends out notifications once a day (around 11:53 AM CST) To receive them, you must have your listener configured in the Sandbox environment – if you need it configured, send us an with your URL (send to NOTE: These notifications are generated from static files (pre-formed xmls) –AwardedCRR –AwardedAS –AwardedEnergyBid –AwardedEnergyOffer –AwardedEnergyOnlyOffer –AwardedPTPObligation –ConfirmedTrades –UnConfirmedTrades –OutageSet –ASObligations –StartupShutdownInstructions

Lead from the front Texas Nodal 23 Forthcoming Network Changes Network Changes / site to site fail-over testing (please communicate to your network / firewall teams) Test to be conducted mid / late March All QSEs need to have network changes in place no later than 3/14 The changes should enable receiving / sending data to / from:: » /24 » /24 » /24 Reminder: required ports do not change (443/80) Reminder: required protocols do not change (http/https)

Lead from the front Texas Nodal 24 APPENDIX- DAM/RUC Testing: Basic Communications Test (“Ping” Test) BASIC COMMUICATION TEST Prior to this test QSE’s using External Web Services will need to have their network and security teams make the following changes: –QSE’s Market System must be able to access: NOTE: this SSL URL is on port 80 NOTE: this is changed from Release –QSE’s must be able to receive messages from –QSE’s must be able to send messages to EDS Environment: Sandbox Environment: QSE’s using MIS User Interface will need to have their network and security teams make the following changes: –Must be able to access: MIS URL: NOTE: MMS User Interface will have link from MIS NOTE: MIS/MMS UI are on port 443https://nodaleds.ercot.com/misportal/

Lead from the front Texas Nodal 25 APPENDIX- DAM/RUC Reference: Relevant Documents EDS – DAM/RUC/SASM Test Package Settlement Point Listinghttp://nodal.ercot.com/readiness/eds4/documents/index.html QSE Short Name Listinghttp://nodal.ercot.com/readiness/eds4/documents/index.html Dashboard of Metrics and Schedule EDS Issue Submission Form sue_submission_form.xls EIP External Interface Specification s_specification_v1_06.zip Explanation of Market Submissions v0.25

Lead from the front Texas Nodal 26 APPENDIX- DAM/RUC Reference: Relevant Documents ERCOT Nodal Transition Plan Plan_ doc EDS 4 Approach v1.0http://nodal.ercot.com/readiness/eds4/documents/index.html EDS 4 - DAM/RUC/SASM Market Participant Handbook v1.0 Market Management System User Guide mms_ui_draft_user_manual_ doc

Lead from the front Texas Nodal 27 APPENDIX- DAM/RUC Tracking: Readiness Metrics READINESS METRICS: Sign-Up Testing Window Scheduled –QSE signs up by 1/4/2008 – Status is GREEN –QSE’s that have not signed up by 01/04/08 – Will turn Amber until signed up 03/15/08 – Will turn red MP8 - QSE Ability to Submit Transactions Via MIS –Expected completion date March 15 MP9 – QSE Ability to Submit Web Service Transactions –Expected completion date March 15 Execution –MP’s that have met readiness metric M8 or M9 by 3/15/08 are GREEN –MP’s that have attempted readiness metric M8 or M9 by 3/15/08 are AMBER –MP’s that have not yet attempted readiness metric M8 or M9 by 3/15/08 are RED MP16 - MP EDS-4 Trials Participation (phase 2) ERCOT is calling all QSEs that have not signed up for EDS4

Lead from the front Texas Nodal 28 Appendix- DAM/RUC Reference: QSE Data Preparation Reminder to Download Settlement Points and QSE Short Name List (both files posted on Readiness- Both data sets are subject to change QSE Short Names used in transactions –Your QSE short name is needed as in XML Header –All QSE short names listed, but may change Can use ERCOT test QSE of “TSTQSE” to avoid populating and changing QSE list in your systems Settlement Point used as points of business in submission testing –Market Participants revisiting Resource Node SPs –Considering change from Low side to High side –Change would result in many SP name changes