1. ROS Presentation: Dynamic Scheduling and EEA Austin, TX September 10, 2009 Steve Isser Vice President and General Counsel Good Company Associates 512-279-0766 www.GoodCompanyAssociates.com www.GoodCompanyAssociates.com

2. Dynamic Scheduling ERCOT Protocol 4.9 –QSE’s may use dynamic power signals to control generation to match a metered Load in order to minimize the QSE’s exposure to the Balancing Energy market. –To implement the Dynamic Schedule the QSE will send Real Time telemetry to ERCOT that is equal to the metered Load, which the QSE wishes to follow. –The QSE’s schedule will include one Supply Resource (or fleet) designated to follow the Dynamic Schedule for a Load.

3. Emergency Condition If the Emergency Condition is the result of a transmission problem, then ERCOT will act immediately, including instructing Resources to change output and instructing TDSPs to drop Load. If the Emergency Condition is the result of a short supply situation, each QSE having bid extra capacity during the Advisory period that is normally not readily available due to ramp rate limitations, will immediately update their HSL of any online Resource that is capable of providing extra capacity within thirty (30) minutes.

4. Energy Emergency Alert (EEA) EEA Level 1, ERCOT shall: –Utilize available Resources providing 30-Minute Non- Spinning Reserve Services that can be deployed to increase Responsive Reserves; –Issue Out of Merit Order (OOM) Dispatch Instructions to uncommitted units available within the expected timeframe of the emergency. –QSEs will notify ERCOT of any Resources uncommitted but available in the timeframe of the emergency.

5. Energy Emergency Alert (EEA) EEA Level 2A, ERCOT shall: –Instruct TDSPs to reduce Customers’ Load by using distribution voltage reduction measures, if deemed beneficial by the TDSP; EEA Level 2B –ERCOT will deploy all available Emergency Interruptible Load Service (EILS) Resources. –ERCOT shall issue an appeal through the public news media for voluntary energy conservation.

6. Suspend Dynamic Scheduling Is this Implied? When? –Emergency Condition? Should a DS Resource be made available at that time? –EEA Level 1? Level 2A? Level 2B? If the Protocols Don’t Specify, are DS Resources Exempt? Is a PRR Needed? Or a Statement From ROS, TAC, the Board? Who determines when the Protocols would automatically suspend a Dynamic Schedule?