1. 1 Market Operations Presentation Board of Director’s Meeting December 13, 2005

2. 2 Agenda Overall Activity Migration From Native AREPs Performance Measures (Quarter Only) Capacity Services Energy Services including Summary Hub Price Data Congestion Services REPs and QSEs Added/Deleted Retail Activity Wholesale Activity Other Items

3. 3 Overall Activity Transaction Type Switches2,198,367 Move - Ins7,694,199 Move Out4,425,719 CSA1,292,948 Drop to POLR306,867 Total15,918,100 Compared to Last Month 400,092 Retail Transactions Summary As of Monday, October 31, 2005 since June 1, 2001

4. 4 Residential Small Non-Residential Large Non-Residential Migration from Native AREP % of ESI IDs 19% 23% 63% 28% 31% 73% 35% 80% 74% % of Load * at 10-31-05 at 10-31-05 at 10-31-04 * % of Peak Demand on 08-03-04

5. 5 Capacity Services 10/31/0510/31/0420052004 Market Perspective: Approximate Retail Market (at $.10/kWh PTB) $25,421.724,600.72,367.52,440.6 Volume (GWh)254,217246,00723,67524,406 % Increase3.3%-3.0% Natural Gas Price Index ($/MMBTU)7.95.711.46.1 % Increase38.6%86.9% Other Capacity Services: Replacement Reserve0.0 Reg Up and Down138.647.927.310.4 Responsive (Spinning) Reserve135.746.815.77.9 Non-Spinning Reserve37.75.84.81.6 Black Start5.86.1 0.6 TOTAL CAPACITY SERVICES$397.6211.456.330.6 YTD ($'s in millions) October ($'s in millions)

6. 6 Capacity Services – Reg Up and Down and Responsive Reserve

7. 7 Energy Services 10/31/0510/31/0420052004 Market Perspective: Approximate Retail Market (at $.10/kWh PTB) $25,421.724,600.72,367.52,440.6 Volume (GWh)254,217246,00723,67524,406 % Increase3.3%-3.0% Natural Gas Price Index ($/MMBTU)7.95.711.46.1 % Increase38.6%86.9% Balancing Energy: Balancing Energy - Up$935.7394.0143.759.3 % Increase 137.5%142.3% Up (GWh)10,256.18,079.81,010.7992.0 % Increase 26.9%1.9% % of Market 4.0%3.3%4.3%4.1% Balancing Energy - Down-$234.5-266.1-36.1-21.6 % Increase -11.9%67.1% Down (GWh)-4,442.9-5,827.2-477.5-366.7 % Increase -23.8%30.2% % of Market1.7%2.4%2.0%1.5% YTD ($'s in millions) October ($'s in millions)

8. 8 Hub Summary Data ERCOT Hubs July 2005 HUB South$77.03 North$81.62 Houston$87.38 West$92.23 ERCOT Hub$83.24 ERCOT Bus$83.26 Weighted Average Price ($/MWH) June 2005 May 2005 NGPI % Change3.9% % Change - Bus11.8% $58.27 $60.77 $67.43 $68.90 $62.80 $62.69 $62.27 $75.23 $80.92 $80.11 $73.43 $74.46 12.6% 18.8% August 2005 $84.76 $106.76 $121.16 $103.10 $105.09 21.3% 26.2% $115.75 September 2005 $104.55 $121.40 $130.39 $117.74 $119.27 18.7% 13.5% $125.73 October 2005 $114.96 $117.39 $128.08 $121.75 $123.09 5.5% 3.2% $143.31

9. 9 Congestion Services

10. 10 REPs and QSEs Added/Deleted Added RepsAdded QSEs Eagle Energy Partners I, LP Mirant Energy Trading, LLC Dynowatt, LP None Deleted RepsDeleted QSEs None