1. Market Trials Update
NATF
March 2, 2010 1

2. General Reminders / Updates Market Trials Currently Activity Updates
Agenda
General Reminders / Updates
Market Trials Currently Activity Updates
90 Day Look Ahead 2

3. Market Trials 2010 Roadmap 3

4. General Reminders / Updates
Weekly Market Call Changes – March 2010
ERCOT will be changing the Market Call format the week of 3/22/2010
There will be one call, starting at 9am every Friday
This call will be online until 2pm (excepting 12pm – 1pm)
Each functional area will have a time slot allocated for its weekly update
In between weekly updates, ERCOT will hold a Q&A session as needed
The order and schedule of weekly updates will be shared via a market notice and on an upcoming Friday market call
The weekly Monday kick off meeting will remain in place, unchanged
Environment Availability for March 2010
The Nodal Production Environment will be available Monday – Friday from 8am – 6pm for all systems except EMS / SCADA and SCED
EMS / SCADA and SCED will now be supported 24x7
ERCOT test transactions will be limited to using Sundays as trade dates (e.g. regression testing and performance testing) 4

5. Market Trials Activity Update
Connectivity and Qualification Testing
256 / 276 Total QSEs Qualified as of 1/29/2010
82 / 86 QSEs w/ Resources
174 / 190 QSEs w/o Resources
~99.9% of generation currently qualified
Nodal Telemetry Outreach
QSE Telemetry
1 point required for State Estimator still missing (~99% complete for nodal telemetry)
8 points required for SCED execution still missing (~99% complete for nodal telemetry)
The updated QSE Telemetry Dashboard is posted on the Nodal Readiness Center at
Load Resource Telemetry
20 points added due to additional Load Resources (up from 0 last week)
TSP Telemetry
345 Circuit Breaker and Load points still missing/unresolved
987 Disconnect points missing—these points represent new requests in the nodal telemetry outreach effort
The updated TSP Telemetry Dashboard is posted on the Nodal Readiness Center at 5

6. Market Trials Activity Update
CRR Qualification
61 / ~76 CRRAHs Qualified
CRR Auction
March Auction Completed and Invoiced Successfully
April Auction Opens on 3/8/2010
Outage Scheduler Qualification
43 / 86 QSEs with Resources Qualified
5 / 25 TSPs Qualified 6

7. Market Trials Activity Update
LOAD = BLUE LINE ALL OTHER COLORS = Representative LMPs SCED WEEK 1 SCED WEEK 2 SCED WEEK 3 SCED WEEK 4

8. Market Trials Activity Update
Prices continue to reflect Market conditions
Running out of offer curves appropriately send offers to $2250
Adding constraints observe price separation, as expected
There are a number of Market input issues still to be resolved
Telemetry data quality
Offer curves not consistently submitted
Output schedules not submitted in lieu of offer curves
From week to week offer submissions have substantially improved
Morning peak is the only time we are still hitting $2250
Currently 85% of the expected offer curves are in place 8

9. Market Trials Activity Update
ERCOT is giving the green light to start 6 Month LMP Posting as scheduled on 3/1/2010
The following criteria were agreed on with the Market in 2007 as defining “reasonable” which also serves as the entry criteria for 6 Month LMP
LMP is Greater than or equal to offer price at maximum limit (HDL) for a Resource which is dispatched at maximum limit (HDL)
LMP is less than or equal to offer price at minimum limit (LDL) for a Resource which is dispatched at minimum limit (LDL)
LMP is equal to offered price at dispatched MW point for a Resource which is dispatched within minimum limit (LDL) and maximum limit (HDL)
Shadow Price is zero for a transmission constraint which is not binding
Shadow Price is non-zero for a transmission constraint which is binding
Base Points are between HDL and LDL
ERCOT has reviewed a representative sample of SCED solutions since Feb 11, 2010 and has found no error associated with the above criteria
During 6 Month LMP, ERCOT will be reviewing more closely offer curve submissions and telemetry quality
ERCOT’s price validation process applies 21 additional tests to further analyze SCED solution quality
Additionally, we will report on the performance of SCED solutions and # failed solves 9

10. 90 Day Outlook: March Market Activities
Jan
Feb
Mar
Apr
May
June
July
Aug
Functional Area
Targeted Activities for March 2010
ERCOT Publishes Market Trials Handbooks for Phase 5
ERCOT executes Monthly CRR Auction
CRR bilateral trading tested
Individual QSE LFC begins (include Emergency Base Point and Non-Spin deployments)
Initial DST Test (short day for Mar 14) *
CIM/Network Model loading process operational for bi-weekly loads
ERCOT posts CRR network model for Multi-Month auction
Real-Time Market
Congestion Revenue Rights
Day-Ahead Market
Reliability Unit Commitment
Outage Scheduler
COMS/Settlements
Network Modeling
Nodal Reports
Credit
Full Integration
* Note that DST testing will only be support to the market for
Submissions testing only

11. 90 Day Outlook : April Market Activities
Jan
Feb
Mar
Apr
May
June
July
Aug
Functional Area
Targeted Activities for April 2010
ERCOT executes Monthly CRR Auction
ERCOT executed Multi-Month CRR Auction
ERCOT executes DAM / DRUC 2x / week
ERCOT Executes limited HRUC
ERCOT Executes SASM
Individual QSE LFC continues
Settlements published
Real-Time Market
Congestion Revenue Rights
Day-Ahead Market
Reliability Unit Commitment
Outage Scheduler
COMS/Settlements
Network Modeling
Nodal Reports
Credit
Full Integration

12. 90 Day Outlook : April Market Activities
Jan
Feb
Mar
Apr
May
June
July
Aug
Functional Area
Targeted Activities for April 2010
ERCOT executes Monthly CRR Auction
ERCOT releases credit integration
ERCOT ramps to DAM / DRUC 5x / weekly
SASM executed as needed
ERCOT executes limited HRUC
ERCOT ramps to reflect protocol timelines on a best effort basis
2hr LFC closed loop tests executed
Real-Time Market
Congestion Revenue Rights
Day-Ahead Market
Reliability Unit Commitment
Outage Scheduler
COMS/Settlements
Network Modeling
Nodal Reports
Credit
Full Integration

13. Q&A
Q&A / Open Forum