1. Lead from the front Texas Nodal http://nodal.ercot.com 1 TPTF Update for TAC August 2, 2007 Trip Doggett

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 Agenda ItemDescriptionPurpose 1. Meeting SummarySummary of recent TPTF activitiesFor review 2. Next MeetingsUpcoming activitiesFor review 3. Approval of proposed changes to TPTF Charter On June 27, TPTF approved a motion to present proposed changes to the TPTF Charter For Vote 4. Discuss TAC’s desired role in review or approval of Readiness Metrics On July 24, TPTF recommended sharing the metric inventory as a work in progress and ask TAC what involvement they want to have in approving them, and to agree that ERCOT should move forward with E1, E6, E8, E9, MP1, MP11, MP14, N1 For Vote 5. Approval of Milestones Request TAC approval of the following Milestones – Commercial Systems Business Requirements complete for: Congestion Revenue Rights (CRR) Auction Revenue Disbursement CRR Balancing Account Day-Ahead Market (DAM) CRR Settlements Real-Time CRR Settlements Credit Monitoring and Management Commercial Systems CSDs complete for: CRR Settlements Credit Monitoring and Management For Vote

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 Meeting Summary  Meetings June 25-27, July 9-10, and July 23-25  On June 25, TPTF discussed the following:  Nodal Program Update  Process for reviewing and approving project documents as they are updated to each Baseline  Discussion of Validation against COP  Update on Outage Scheduler CSD  Discussion regarding payments to Resources committed by RUC to provide Ancillary Services  Plan for Traceability and True-up  Review of Combined Cycle Unit Modeling whitepaper  On June 27, TPTF approved the white paper IDA003, Combined- Cycle Unit Modeling in the Nodal Design, v0.92, as modified by TPTF on June 25, 2007. The motion carried by roll-call vote with 80% in favor and six abstentions (Stream Energy, StarTex Power, Strategic Energy, Accent Energy, Cirro Group, and Green Mountain Energy). All Market Segments, except Consumer, were represented.

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 Meeting Summary – June 25 (continued)  On June 25, TPTF discussed the following:  Review of Split Generation Resource (SGR) Modeling whitepaper  On June 27, TPTF approved the IDA SGR white paper as presented on June 25, 2007. The motion carried by roll-call vote with 100% in favor and two abstentions (Calpine and Topaz). All Market Segments were represented.

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 Meeting Summary - June 26  On June 26, TPTF discussed the following:  Training Update  Market Participant Metric Dashboard  Market Readiness Metric Inventory  NPRR074, Revisions to Monitoring and Qualification Tests in Section 8  On June 26, TPTF moved to forward TPTF comments for NPRR074 to the Protocol Revision Subcommittee (PRS). The motion carried by roll-call vote with 85.7% in favor and two abstentions (Calpine and CenterPoint). All Market Segments were represented.  Registration and Qualification Update  Attestation of Ancillary Services  QSE/CRR/TSP Applications  Registration and Qualification Guide  Resource Asset Registration Form  EDS testing philosophy  EDS 3 SCED Handbook- Section for Phase 1

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 Meeting Summary - June 27  On June 27, TPTF discussed the following:  EDS Testing Philosophy (continued)  EDS Security Constrained Economic Dispatch (SCED) MP Handbook  On June 27, TPTF approved Sections 1, 2, and 3 of the SCED MP Handbook, v0.91, with changes approved by TPTF on June 26, 2007. The motion carried by roll-call vote, with 100% in favor and no abstentions. The Consumer and IREP Market Segments were not represented.  EMS Project- Update on the EMS CSD  Plan for synchronizing EMS/MMS Projects to Baseline 2  User Interface development process

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 Meeting Summary - June 27 (continued)  On June 27, TPTF discussed the following:  COMS Project  Requirements Specifications for CRR Auction Revenue Disbursement v1.9, CRR Balancing Account v1.9, DAM CRR Settlements v1.9, Real-Time CRR Settlements v1.9, and Conceptual System Design for CRR Settlements v1.9  On June 27, TPTF approved the Requirements Specifications for CRR Auction Revenue Disbursement v1.9, CRR Balancing Account v1.9, DAM CRR Settlements v1.9, Real-Time CRR Settlements v1.9, and Conceptual System Design for CRR Settlements v1.9. The motion carried by roll-call vote with 100% in favor and one abstention (GEUS). All Market Segments, except the Independent Power Marketers, Independent Retail Electric Providers, and Consumers, were represented.

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 Meeting Summary - June 27 (continued)  On June 27, TPTF discussed the following:  MIS Update  IDA Update- External Interfaces Specification and Web Services  NPRR040, Synchronization of EECP Event Realignment  On June 27, TPTF approved the draft NPRR for Synchronization of EECP Event Realignment to replace NPRR040 and to be submitted to PRS. The motion carried by roll-call vote, with 100% in favor and three abstentions (Austin Energy, City of Garland, and AEP). All Market Segments, except the Independent Generator, IREP, and Consumer Market Segments were represented.  TPTF Charter  On June 27, TPTF moved to forward to TAC proposed changes to the TPTF Charter. The motion carried by roll-call vote with 100% in favor and two abstentions (City of Allen and City of Eastland). All Market Segments, except the Independent Retail Electric Providers, were represented.  EDW Project  Performance Monitoring and Compliance Requirements  EDW CSD

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 Meeting Summary – July 9  On July 9, TPTF discussed the following:  Update on votes from previous meetings  Nodal Program Update  Intellectual property issues associated with EMS CSD  TPTF Punchlist  Project Issues with Jerry Sullivan  COMS Project  Requirements Specifications for CMM v1.2, and Conceptual System Design for CMM v1.2  On July 9, TPTF approved the Requirements Specifications for CMM v1.2, and Conceptual System Design for CMM v1.2. The motion carried by roll-call vote with 100% in favor and one abstention (CenterPoint). All Market Segments, except the Independent Generators, were represented.  PRS Assignment  Remand of PRR727 to TPTF for recommendation on to how to resolve potential conflicts between zonal and nodal Protocol sections and how to process zonal Settlements after the start of the Texas Nodal Market, including any Settlement disputes

10. Lead from the front Texas Nodal http://nodal.ercot.com 10 Meeting Summary – July 10  On July 10, TPTF discussed the following:  Status of FAT Testing by ERCOT, Pre-FAT and FAT Testing of MMS and EMS, Pre-FAT Testing of NMMS, and EDS 1 Testing  Draft NPRR for Ancillary Services (AS) payments to Resources that were brought on-line through Reliability Unit Commitment (RUC) to provide AS  CRR Project  Optimization runtime update  Demo of the customized CRR System

11. Lead from the front Texas Nodal http://nodal.ercot.com 11 Meeting Summary - July 23  On July 23, TPTF discussed the following:  Nodal Program Update  CRR API Change Request  Plans for CRR Documentation Updates  Draft CRR Clean-up NPRR  Training Update  EDW reporting requirements and CSD coverage  Electrical Bus in Outage Scheduler

12. Lead from the front Texas Nodal http://nodal.ercot.com 12 Meeting Summary - July 24  On July 24, TPTF discussed the following:  Issues related to Verifiable Costs  Resource Asset Registration Form  Market Readiness Metric Inventory  On July 24, TPTF recommended sharing the metric inventory as a work in progress and ask TAC what involvement they want to have in approving them, and to agree that ERCOT should move forward with E1, E6, E8, E9, MP1, MP11, MP14, N1. The motion carried by unanimous voice vote with no abstentions. All Market Segments were represented.  Credit Transition to Nodal  CRR API Change Request  Nodal Operating Guides  Validation of Output Schedules for Dynamically Scheduled Resources  IDA Project Update

13. Lead from the front Texas Nodal http://nodal.ercot.com 13 Meeting Summary - July 25  On July 25, TPTF discussed the following:  EDS Testing Timeline  Offer Creation and Submission Methodology for SCED Testing  On July 25, TPTF approved the document “EDS3 Release 5 – SCED Testing Establishing Generating Resource Offer Curves v0.90”. The motion carried by unanimous roll-call vote, with no abstentions. All Market Segments were represented.  Update on NPRR045, Wind Power Forecasting  On July 24, TPTF approved NPRR045, Wind Power Forecasting, as it had been submitted to PRS. The motion carried by roll-call vote, with 100% in favor and five abstentions (Brazos, CenterPoint, Calpine, City of Allen, and City of Eastland). All Market Segments were represented.  Service Level Agreement for Nodal EDS Environments  On July 24, TPTF approved the Service Level Agreement for Nodal EDS Environments v0.92. The motion carried by unanimous roll-call vote, with no abstentions. All Market Segments were represented.  Ancillary Services payments to Resources that were brought on-line through DRUC or RUC to provide AS  PRS Assignment – PRR 727

14. Lead from the front Texas Nodal http://nodal.ercot.com 14 Next Meetings  Next meetings  Monday August 13 and Tuesday August 14  Monday August 27 through Wednesday August 29  Monday September 10 and Tuesday September 11  Monday September 24 through Wednesday September 26

15. Lead from the front Texas Nodal http://nodal.ercot.com 15 Next Meetings (continued)  On August 13 and 14, we plan to discuss:  Nodal Program Update  COMS Project  MMS to COMS Interface  COMS Update  Registration Update/ RARF Update  Update on Settlements Mini-Market Examples  CRR Project  Review of updates for CRR Requirements & CSD through Baseline 2  EDW Project  Work through examples and discuss comment timeframe for the Data Archival Reporting Requirements  Discussion of Draft NPRR  Draft NPRR modifying language for Electrical Bus in Section 3.1.5.1

16. Lead from the front Texas Nodal http://nodal.ercot.com 16 Next Meetings (continued)  On August 13 and 14, we plan to discuss:  PRS Assignment  NPRR074, Revisions to Monitoring and Qualification Tests in Section 8, Performance Monitoring and Compliance  NPRR076, Synchronization of Emergency Electric Curtailment Plan (EECP) Event Realignment  PRR727, Process for Transition to Nodal Market Protocol Sections  PRS remanded PRR 727 to TPTF for recommendation on how to resolve potential conflicts between zonal and nodal Protocol sections and how to process zonal Settlements after the start of the Texas Nodal Market, including any Settlement disputes  The concept of reasonableness of LMPs

17. Lead from the front Texas Nodal http://nodal.ercot.com 17 Next Meetings (continued)  On August 13 and 14, we plan to discuss:  IDA Update  Review disposition of comments for External Interfaces Specification v1.02  EDS 1 Update  EDS process for resolving testing errors  Plan for tracking error resolution in the context of metrics and Readiness Reporting  EDS 1 testing deliverables  Training Update  Training Curriculum document- discuss prerequisite training for EDS

18. Lead from the front Texas Nodal http://nodal.ercot.com 18 Proposed changes to TPTF Charter  On June 27, TPTF moved to forward to TAC proposed changes to the TPTF Charter. The motion carried by roll-call vote with 100% in favor and two abstentions (City of Allen and City of Eastland). All Market Segments, except the Independent Retail Electric Providers, were represented.

19. Lead from the front Texas Nodal http://nodal.ercot.com 19 Discuss TAC’s desired role in review or approval of Readiness Metrics  On July 24, TPTF recommended sharing the metric inventory as a work in progress and ask TAC what involvement they want to have in approving them, and to agree that ERCOT should move forward with E1, E6, E8, E9, MP1, MP11, MP14, N1. The motion carried by unanimous voice vote with no abstentions. All Market Segments were represented.

20. Lead from the front Texas Nodal http://nodal.ercot.com 20 TAC Approval of Milestones  On June 27, TPTF approved the Requirements Specifications for CRR Auction Revenue Disbursement v1.9, CRR Balancing Account v1.9, DAM CRR Settlements v1.9, Real-Time CRR Settlements v1.9, and Conceptual System Design for CRR Settlements v1.9. The motion carried by roll-call vote with 100% in favor and one abstention (GEUS). All Market Segments, except the Independent Power Marketers, Independent Retail Electric Providers, and Consumers, were represented.  On July 9, TPTF approved the Requirements Specifications for CMM v1.2, and Conceptual System Design for CMM v1.2. The motion carried by roll-call vote with 100% in favor and one abstention (CenterPoint). All Market Segments, except the Independent Generators, were represented.

21. Lead from the front Texas Nodal http://nodal.ercot.com 21 TAC Approval of Milestones (continued)  The Transition Plan says: “Any declaration of the accomplishment of a major milestone (business requirements, conceptual design, and successful completion of Market Participant testing) or a decision to proceed is contingent on the approval of both ERCOT and TAC.”  Request TAC approval of the following Milestones –  Commercial Systems Business Requirements complete for:  Congestion Revenue Rights (CRR) Auction Revenue Disbursement  CRR Balancing Account  Day-Ahead Market (DAM) CRR Settlements  Real-Time CRR Settlements  Credit Monitoring and Management  Commercial Systems CSDs complete for:  CRR Settlements  Credit Monitoring and Management

22. Lead from the front Texas Nodal http://nodal.ercot.com 22 Questions