1. Load Participation in Nodal Training Session Update DSWG December 7, 2007

2. 2 2 DSWG UpdateDecember 7, 2007 Nodal Load Participation Plain English Guide was posted to the ERCOT web site earlier this year DSWG Goals for 2007 included development of an ERCOT- sponsored training class Purpose –Introduction to Load Participation in the ERCOT Nodal Market Intended Audience –Customers capable of providing demand response –Third party DR providers –LSEs –QSEs

3. 3 3 DSWG UpdateDecember 7, 2007 Agenda (morning) ERCOT Overview Overview of Texas Electric Market –Senate Bill 7 –PUC Substantive Rules –ERCOT Protocols & Guides –Independent Market Monitor –Texas Regional Entity How our Markets are Organized –Wholesale vs. Retail –Competitive Areas vs. Non-Opt in Entities –Energy-only market –Energy Markets & Ancillary Services –Zonal vs. Nodal Texas Nodal Electricity Market –High Level Overview and Introduction –Day Ahead Energy Market –Real Time Market –Ancillary Services Markets –Market Operations & Settlement –System Operations

4. 4 4 DSWG UpdateDecember 7, 2007 Agenda (afternoon) -----LUNCH BREAK----- Demand side Participation in Texas Nodal –Day Ahead Markets -- Bids and Response EXAMPLES –Real Time Market and Voluntary Price Response EXAMPLES –Load Resources and Ancillary Service Markets EXAMPLES –Emergency Interruptible Load Service EXAMPLES Q&A –FAQ’s –List of Acronyms –List of Defined Terms

5. 5 5 DSWG UpdateDecember 7, 2007 Status Initial presentation proposed for Met Center in May 2008 (after the annual Operations Seminar) –Actual date to be set after standing committees and subcommittees have locked in ’08 schedules DISCUSSION ITEM: ERCOT Staff proposes this as a one-off training seminar –Similar to training held in early years of the Zonal market –Load participation as it relates to MP’s will be covered within the Nodal Training Curriculum –Could be offered as often as necessary depending on response and market interest Another option is to integrate it into the Nodal Training curriculum

6. 6 6 DSWG UpdateDecember 7, 2007 Q&A ON OFF Questions?