1. Market Readiness Seminar 8
Remaining Market Trials and Cutover Activities
October 14, 2010 1

2. Antitrust Admonition ANTITRUST ADMONITION
ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.
DISCLAIMER
All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure. 2

3. General Updates and Reminders Market Testing Activities
Agenda
General Updates and Reminders
Market Testing Activities
October Testing
Full System Market and Reliability (LFC) Test Details
Cutover over Schedule Review
Go-Live Sequence
Congestion Revenue Rights
“Soft” Start
Generation Cutover
Go-Live
Communication Plan Review
Other Credit Topics
Reversion Plan Review
Q&A 3

4. General Updates and Reminders4

5. Day-to-day operations summary: Planned / Unplanned Outages of Market Trials
10/03/2010 – 10/11/2010
All system maintenance completed on 10/12/2010 (extended from 10/11/2010)
Unplanned Outages
None to report
Network Model Scheduled Updates
10/13/2010 – Completed as scheduled
10/20/2010
11/01/2010
11/10/2010
11/17/2010 . 5

6. General Updates and Reminders
Reminder on Market Participant Training
ERCOT will continue to offer training through the end of the year
The Learning Management System (LMS) will continue to be the resource used for MP training
The URL for the LMS is as follows:
10/15/2010 Friday Market Call
This meeting will still occur
Focus will be a recap of this seminar, special topics and Q&A
Reminder – If you haven’t already, please complete the Notice of Change of Information (NCI) form to designate an a) Authorized Representative and also a b) Backup Authorized Representative for your Counter-Party (overall rather than for a specific QSE or CRRAH)
Market Notice went out on September 13, 2010
ERCOT will contact these designated individuals along with the credit contacts for credit purposes such as collateral calls, late payment notices and breach or default notices.

7. Market Testing Activities October Testing7

8. Market Testing Activities During Cutover – October Testing
COMPLETE: October 1, 2010 through October 11, 2010: ERCOT will be performing system maintenance and verifications of production systems
October 12, 2010 through October 17, 2010: ERCOT systems will be available, but no markets or scheduled events will occur during this period
October 18, 2010 through October 30, 2010: ERCOT will be performing the following Market Facing Tests
Day Ahead Market will run daily until 10/29/2010 (10/30/2010 last operating day)
DRUC / HRUC will run periodically
SCED will publish LMPs and base points every five minutes (quality of prices contingent on Market participation)
October 25, 2010 through October 28, 2010: Focused input window
During this period, ERCOT is requesting that the Market submit realistic transactions
COPs that reflect actual resource operations and are updated intraday if statuses change
Bids / Offers that are representative of a post Go-Live state
TSPs and QSEs submit realistic outages
ERCOT will continue to run DAM as previously stated throughout the Focused window
ERCOT will run RUC per protocol timelines (e.g. HRUC hourly and DRUC daily)
October 27, 2010 through October 28, 2010: 24-Hour Full System Market and Reliability (LFC) Test
Full System Market and Reliability test will take place for a total of 24 hours
Test will begin on 10/27/2010 at 12:00 PM and end on 10/28/2010 at 12:00 PM
Reminder: For the duration of the 10/18/2010 – 10/29/2010 testing window, please note:
Settlements will not be published
Credit will be set high and not integrated with CMM
Market Participants may request credit to be set lower at
ERCOT will field these requests twice during the October testing window on 10/18/2010 and 10/25/2010
Outages will be integrated and limited to what has been entered in the Outage Scheduler by Market Participants
Note that during the Focused Input Window, Outages should reflect realistic entries
CRR Ownership data will leverage October Monthly Auction data 8

9. Market Testing Activities During Cutover – October Testing
Operational Scenarios in October (outside of the Full System Test)
DAM Close Functionality: this feature enables transactions received close to, but prior to the DAM submission close deadline, to be included in the DAM regardless of the time it takes to process
ERCOT will ask pre-selected QSEs to submit transaction intentionally close to the DAM close deadline in order to exercise this feature
Test will occur on 10/19/2010
DAM Failure (NPRR 255)
This test will occur on 10/21/2010
Load Resources RRS Deployment Scenario
Test Overview (for both tests)
Day 1 – QSEs update their Load Resource COPs to reflect self arranged schedules and awards from DAM prior to DRUC
Day 2 – Deployment test starts at 0900 with an ERCOT hotline call. 
Once a QSE receives the deployment message, it must respond by updating its telemetered RRS schedules
ERCOT will recall the deployment with a 0MW deployment message and a VDI.
Test #1 – 10/18-10/19
Group 1 deployed in HE10
Group 2 deployed in HE11
Group 1 & 2 recalled HE12
Test #2 – 10/20-10/21
Group 1 & 2 deployed in HE10
Group 1 & 2 recalled in HE11
Reminder:  This is only a test and there will be no shedding of actual Load 9

10. Market Testing Activities During Cutover – October Testing
24-Hour Full-System Test
ERCOT will conduct the 24-Hour Test from 10/27/ pm to 10/28/ pm
ERCOT will send a Market Notice 2 hours prior to the test start to confirm start time
Details for the WebEx that will be held during the test will be sent to Nodal PMs shortly after the Market Notice
24-Hour Full-System Test Scenarios:
Scenario #1: Switch control to the Austin facility
During this scenario, ERCOT will switch control from Taylor to Austin for approximately two hours
Scenario #2: Simulate EMS Failure
During this scenario, ERCOT will:
Discontinue sending Regulation Service deployments and updated UDBPs and SCED Base Points
To stop Reg. deployments and updated UDBPs, ERCOT will place the LFC application in “monitor” mode
To stop updated SCED Base Points, ERCOT will activate Emergency Base Points with an incremental deployment of 0 MWs
Request specific QSE(s) to go on Constant Frequency Control
This scenario will be initiated at an unannounced time during the 24-Hour Test window
This scenario will be conducted for approximately 15 to 30 minutes 10

11. Cut-Over Milestones
5/22/2018
Market Readiness Seminar

12. Nodal Cutover and Market Transition – Key Cut-Over Milestones
Network Model
Nodal Protocol Section 3.10 goes into effect (Sept. 1)
TAC Approval – July 1 (July 20)
Board Approval – July 20
Market Notice – July 30
Congestion Revenue Rights
Nodal Protocol Section 7 goes into effect (Oct. 13)
TAC Approval – August 5
Board Approval – August 17
Market Notice – September 13
Outage Scheduler
Nodal Protocol Section 3.1 goes into effect (Nov. 1)
Market Notice – October 1
Full Nodal Operations
Nodal Protocol Sections 3, 4, 5 and 6 go into effect as well as all other unimplemented Protocol Sections (Nov. 23)
TAC Approval – October 7th
Board Approval – October 19th
Market Notice – October 23rd
Market Readiness Seminar

13. Key Cutover Activities
Through December 2010
5/22/2018
Market Readiness Seminar

14. Cut-Over Monthly Outlook – October
May
June
July
Aug
Sept
Oct
Nov
Dec
Functional Area
Network Model
Outage Scheduler
Congestion Revenue Rights
Credit
MIS
Key Cut-Over Activities for October 2010
(10/01) CRR: CRR system data clean up for Go-Live
(10/04) OS: First pull of December Outages for CRR Network Model (for PCRR Allocation)
(10/04-10/13) Model: Network Model build for CRR Allocation and Auction
(10/03-10/11) MIS UI and EWS Get Report function not available (ERCOT back end reconfiguration)
(10/13) OS:  Changes to December Outages considered for CRR Auction Model
(10/13) Model:  Changes to Model considered for CRR December Auction
MP Activities / Impacts
CRR Test Data from Market Trials will be removed
MIS UI and EWS Get Report unavailable from 10/03-10/11 for production reconfiguration**

15. Cut-Over Monthly Outlook – October
May
June
July
Aug
Sept
Oct
Nov
Dec
Functional Area
Network Model
Outage Scheduler
Congestion Revenue Rights
Credit
MIS
Key Cut-Over Activities for October 2010
(10/14-10/19) CRR: ERCOT begins accepting PCRR Nominations for December Monthly Auction (updated)
(10/15-11/15) Model: Network Operations Model posted to TSP Citrix location and TSPs begin validation process
(10/26) CRR: ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly Auction and publish to MIS
(10/26) CRR: ERCOT shall post CRR Network Model for the 2010 December Monthly Auction to MIS
(10/28-11/08) Credit: ERCOT posts ACLs daily for CRR December monthly auction to CRR
(10/29) CRR: ERCOT to post December 2010 Monthly Auction Notice to MIS
MP Activities / Impacts
CRRAH able to retrieve ACLs from CRR system each business day.
MPs can post additional collateral until 11/08/2010 for Dec 2010 CRR Auction
Dec 2010 CRR Model available on MIS
Dec 2010 Monthly Auction Notice available on MIS

16. Cut-Over Monthly Outlook – November
May
June
July
Aug
Sept
Oct
Nov
Dec
Functional Area
Settlements
Credit
Congestion Revenue Rights
Disputes
Market Management
Key Cut-Over Activities for November 2010
(11/8/ :00pm) Credit: Collateral Posting Deadline (Dec Auction)
(11/8/2010 5:00pm) CRR: Credit Lock for Dec CRR Auction
(11/9/2010 – 11/11/2010) CRR: December CRR Auction Bid Open/Close
(11/12/2010) CRR: December CRR Auction Executes
(11/15/2010) CRR: December CRR Auction Results published
(11/16/2010) Settlements: December CRR Auction Invoice published
(11/16/2010) Disputes: Dispute submitted to ERCOT for CRR Invoice
(11/19/2010) Credit: Payment Due for December CRR Auction Invoices
(11/22/2010) Settlements: Payments to CRRAH (Dec Auction)
(11/23/2010) Market Submission Opens (Remaining Protocol Go- Live)
(11/24/2010) Model: Network Model Load
(11/29/2010) Credit: ERCOT to Publish ACL for the initial Day-Ahead Market execution by ERCOT
MP Activities / Impacts
Available Credit Limit is locked for CRRAHs
CRRAHs can submit disputes against CRR Auction Invoice via the API or MIS
CRRAHs can receive postings on MIS
QSEs can begin DAM Bid submission (15 submission items)
Market checkpoint calls begin to facilitate issues and readiness
Daily Market Conference Bridge starts 11/23

17. Cut-Over Monthly Outlook – December
May
June
July
Aug
Sept
Oct
Nov
Dec
Functional Area
Network Model
Settlements
Congestion Revenue Rights
Credit
Market Management System
Key Cut-Over Activities for December 2010
(12/01/10) Nodal Program: Nodal Go-Live (Operating Day 1)
(12/3/2010) Settlements: Nodal Day Ahead Market Statement & Invoice Available
(12/3/2010) Disputes: Disputes submitted to ERCOT for DAM Invoice
(12/8/2010) Credit: Nodal Payment Due for OD12/01/2010
(12/9/2010) Credit: Nodal Payout for OD12/01/2010
(12/15/2010) Model: Network Model Load
(12/13/2010) Settlements: Nodal Real-Time Statement Available
(12/16/2010) Settlements: Nodal Real-Time Invoice Available
(12/27/2010) Credit: Nodal Payment Due for Real-Time Invoice 12/16/10
(12/28/2010) Credit: Nodal Payout for Real-Time Invoice 12/16/10
MP Activities / Impacts
Daily Market Calls continue for issue facilitation
Settlement Calendar Extracts (See Emil for full list of postings)
MPs receive 1st Nodal Invoice for DAM and RTM via MIS
MPs can submit Disputes via MIS or API

18. Go-Live Sequence
5/22/2018
Market Readiness Seminar

19. CRR Cutover for CRR December Auction
Day
Date
Activity
Friday
10/1/2010
ERCOT initializes and validates CRR Production Database static data, Market Participant data, Time of Use data, Calendar Period data, and system parameters
ERCOT CRR team publishes Activity Calendar for 2010 and 2011 with known corrections and updates to MIS
Monday
10/4/2010
ERCOT CRR team pulls outages and model for 2010 December network model
 Wednesday
10/13/2010
ERCOT CRR team loads validated December network model into CRR system
ERCOT CRR team prepares contracts and entitlements for 2010 December Allocation and loads into CRR system
Thursday
10/14/2010
ERCOT will start accepting PCRR Nominations at 08:00:00 CPT for the 2010 December Monthly CRR Auction
 Tuesday
10/19/2010 
PCRR Nomination for the 2010 December Monthly CRR Allocation must be received by ERCOT at 17:00:00 CPT
10/22/2010
TCR Auction Notice for December TCR Auction
10/25/2010 
ERCOT CRR team pulls outages and model for 2011 January network model
Tuesday
10/26/2010
ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly CRR Auction
ERCOT shall post CRR Network Model for the 2010 December Monthly CRR Auction
10/29/2010
ERCOT shall post the 2010 December Monthly CRR Auction Notice – ACL credit window opens, and ACL’s received from Credit will be visible in the CRR application
11/1/2010
Market Readiness Seminar

20. CRR Cutover for CRR December Auction
Day
Date
Activity
Monday
11/1/2010
Bidding for December 2010 TCR Auction begins at 08:00:00 CPT
Wednesday
11/3/2010
Bidding for December 2010 TCR Auction ends at 14:00:00 CPT – last day for Account Holder to post collateral for the TCR Auction
Thursday
11/4/2010
ERCOT CRR team loads validated January network model into CRR system
ERCOT CRR team prepares contracts and entitlements for 2011 January Allocation and loads into CRR system
Friday
11/5/2010
ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 January Monthly CRR Auction
11/8/2010
CRR Auction Lock Date for 2010 December Monthly CRR Auction at 17:00:00 CPT
TCR Auction Collateral released
Tuesday
11/9/2010
CRR Auction Bid Window Opens at 00:00:01 CPT for the 2010 December Monthly CRR Auction
11/11/2010
CRR Auction Bid Window Closes at 17:00:00 CPT for the 2010 December Monthly CRR Auction
If total bid transactions exceed 200,000, ERCOT will notify Market Participants via the CRR Application Message facility that a second round bid window has opened – 2nd round bid window will be open from 18:00:00 CPT on Thursday, 11/11/2010 until 12:00:00 CPT on Friday, 11/12/2010
11/12/2010
ERCOT starts the Execution of the Auction Engine for the 2010 December Monthly CRR Auction
PCRR Nomination for the 2011 January Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT
TCR December 2010 Auction Invoices Due
11/15/2010
ERCOT posts 2010 December Monthly CRR Auction results to Market at 01:00:00 CPT
Auction Transactions sent to Settlements and Billing at 01:55:00 CPT
11/16/2010
CRR releases Locked Auction Funds for 2010 December Monthly CRR Auction at 16:30:00 CPT
Settlement & Billing creates a 2010 December CRR Auction Invoice and sends in out electronically prior to 23:59:59 CPT
Market Readiness Seminar

21. CRR Cutover for CRR December Auction
Day
Date
Activity
Wednesday
11/17/2010
ERCOT CRR team pulls outages and model for 2011 February network model
Friday
11/19/2010
2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT
ERCOT shall allocate PCRRs to NOIEs for the 2011 January Monthly CRR Auction
ERCOT shall post CRR Network Model for the 2011 January Monthly CRR Auction
Market Readiness Seminar

22. Refunding TCR’s for December 2010 TCR Auction
Market Readiness Seminar

23. TCR and CRR Credit Limits
Unsecured credit for TCR Auction
Total unsecured credit limit was set as of Oct 1
EAL calculated from the October 21st Zonal Invoice will be used to determine Zonal exposure
ERCOT will notify TCR Account Holders of how much unsecured credit is available for TCR auction by October 25th (Total unsecured less QSE exposure)
Unsecured credit for CRR Auction
EAL calculated from the October 28st Zonal Invoice will be used to determine Zonal exposure
ERCOT will notify CRR Account Holders of how much unsecured credit is available for TCR auction by November 1st (Total unsecured less QSE exposure)
October 14, 2010
Market Readiness Seminar

24. TCR and CRR Credit Limits
TCR Collateral Disposition
IMPORTANT REMINDER – TCR collateral “goes away” after the last TCR Auction Invoice is paid since TCRs are not referenced in the Nodal Protocols
Guarantees or LCs currently in place for TCR auctions cannot be used for Nodal activity, including CRR auctions
Language in those documents is specific to TCRs and retires with TCRs
CPs should plan to replace (if they are not already) these collateral documents with collateral valid for Nodal (including CRRs)
ERCOT will notify those that have these forms of collateral; however, each CP should double check internally about what is needed
Note: Guarantees and LCs held for QSE activity ARE valid for Nodal activity, including CRRs, as well as QSE activity
Cash collateral can be refunded or transferred to the Nodal collateral pool upon request
Send requests to
October 14, 2010
Market Readiness Seminar

25. December 2010 TCR and CRR Auction Overlap
ERCOT will offer a December 2010 TCR Auction in addition to the December 2010 CRR Auction
The TCR Auction will occur prior to the CRR Auction
Collateral requirements for Auctions
TCR collateral will be posted as it has historically been
CRR collateral will be posted separately (similar to TCR collateral) for the December 2010 CRR auction (see later slides)
The calendar activities for the Auctions overlap such that TCR Auction invoices are
published prior to collateral being required for the CRR Auction but
due to be paid after the CRR Auction lock date
Note: There are 3 business days between when TCR Auction invoices are published and the CRR Auction lock date
The overlap in activities is unavoidable given time constraints. Of course, participation is not required in either Auction.
October 14, 2010
Market Readiness Seminar

26. December 2010 TCR and CRR Auction Overlap
Counter-Parties(CPs) who desire to participate in both auctions have several options for managing their collateral during this period
Post collateral for the TCR auction and separately for the CRR auction
Disadvantage – may have to post higher levels of collateral for a period of days to accommodate both auctions
Prepay their TCR invoice before the CRR Auction lock date and roll cash collateral to the CRR auction
Advantage – avoid “doubling up” on collateral requirements for TCR and CRR auctions
Reminder: Only TCR cash collateral can be “rolled over”
Reduce collateral held for TCR invoice to invoice amount and roll collateral to the CRR auction
October 14, 2010
Market Readiness Seminar

27. December 2010 CRR Auction Specifics
As discussed in August and September, the initial CRR Auction (for December 2010) held in early November, will be handled as follows:
Treated similarly to the current Zonal TCR Auctions
Separate collateral posted
If participating in both the TCR and CRR Auction, CP will need to coordinate collateral between the two auctions
Process
CPs will be notified of the unsecured credit available by November 1
To the extend additional credit is desired, CP must send collateral specifically earmarked for the December 2010 CRR Auction to ERCOT via wire transfer between October 28 and November 8
The combination of posted collateral and unsecured credit allocated by the CRRAH will be the ACL provided for the CRR Auction
Available Credit Limits (ACL) viewable in CRR, not MIS
ACLs will be viewable in the CRR Application beginning October 29, 2010
ACLs will be viewable only by CRR Account Holders and Counter-Parties and only in the CRR Application leading up to the December CRR Auction (e.g. CMM is in cutover and Credit Reports will not be available on MIS).
October 14, 2010
Market Readiness Seminar

28. Cut-Over Monthly Outlook – Go-Live Sequence of Events
Date
Action
Comments
11/15/2010 – 11/29/2010
ERCOT Initiates “Soft Start” to Nodal Market Go-Live
 ERCOT will run non-binding DAM, RUC daily per Nodal protocol timelines. RTM will remain Open Loop, but continue to publish base points and LMPs. Note that credit will be set high on 11/15
11/15/2010
Credit posts ACLs and TPEs for non-binding DAM
First Credit Operating Day 11/16/2010
11/17/2010
Market now able to submit transactions for first Nodal Operating Day (T-14d)
12/01/2010 Operating now available for Market submissions
11/23/2010
QSEs with Resources required to submit 7 days of rolling COPs
12/01/2010 required on 11/23/2010
11/28/2010 2:00 PM – 11/28/2010 3:00 PM
Generation and Frequency Control switched to Nodal systems
QSEs will begin following Nodal base points
Settlements will continue to be Zonal
11/28/2010 2:00 PM – 11/30/ :59:59
QSEs remain on Nodal Control while settling Zonally
11/29/2010
Last Non- Binding DAM for operating day 11/30/2010
Market Readiness Seminar

29. Cut-Over Monthly Outlook – Go-Live Sequence of Events
11/30/2010 Go-Live Sequencing
Time
Action
Comments
up to 10:00
Bids and Offer submission
 QSE submit bids and offers
10:00
Close DAM
Execute Dam Clearing Process
13:30
Approve DAM results
Day Ahead results posted to MIS
COP Updates prior to DRUC
14:30
Close for RUC
Begin Execution of DRUC
16:00
Approve DRUC Results
Post DRUC Results
18:00
HRUC Begins Hourly Runs
Market Readiness Seminar

30. Cut-Over Monthly Outlook – Go-Live Sequence of Events
Key Zonal Notes for 11/30/2010 and 12/01/2010
QSEs will maintain:
Balancing Energy Offers through Operating Day 12/01/2010
Submitted on 11/30 for OD 12/1
Resource Plans through Operating Day 12/01/2010
Maintained continuously through 12/01 to reflect actual Resource Plan
Zonal Outages effective on Operating Day 12/01/2010
Examples: Actual Start / End, Forced Outages, etc
On 11/30/2010 ERCOT will run:
Zonal Ancillary Service Market
Zonal awards will be published
Zonal RPRS
Run as a study only
Zonal commitments will not be published
Zonal prices will not be generated for 12/01/2010
No Zonal Submissions or Markets for Operating Day 12/02/2010 or later
Note: that it will be required for MPs to maintain their Zonal telemetry for 30 days post go-live
Market Readiness Seminar

31. Preliminary Credit Cutover Timeline
Credit Assumptions
For the soft start, ERCOT will calculate Total Potential Exposure (TPE) using a) Zonal data and b) binding Nodal data. No non-binding Nodal data will be included in the soft start TPE calculations. Collateral included will be actual collateral held. (details to follow in coming slides)
At this point in the process, CPs should be working within real credit constraints preparatory to Go Live
Given that the data used in the soft start TPE calculations is binding, ERCOT currently plans to use CMM exposures published beginning November 18th for BOTH a) the “soft start” period of Nodal and b) as the bases for binding Zonal collateral requirements

32. Preliminary Credit Cutover Timeline
Deciding factors for this approach:
The calculations in CMM using Zonal data produce substantially similar results to what is currently experienced in Zonal
Exposure for binding Nodal activity prior to December 1, 2010 should be collateralized. CMM is the most efficient way to accomplish this
Making the change for credit effective November 18th will allow both ERCOT and Counter-Parties time to work through any issues before the remainder of the market starts up
Making the change for credit effective November 18th will reduce the confusion as to which set of reports (Zonal vs Nodal) to use between November 15th and November 30th

33. Preliminary Credit Cutover timeline
Thursday, November 11th
Zonal invoice published
NOTE - last Zonal EAL credit calculation from which a collateral call will be made (system will be maintained through Go Live and will be available for a period beyond Go Live)
The Zonal Invoice published on November 18th will be captured in CMM and Zonal collateral calls will be made based on exposure calculated in CMM using a) Zonal and b) binding Nodal data
Monday, November 15th
Initial DAM run in “soft start” - without CMM credit constraints
“e” factors set at 1/0/1
Initial “soft start” TPE published
TPEs in the “soft start” reflect real exposure and collateral only – no non-binding data will be included
Non-binding - No collateral calls sent based on these calculations. However, TPE will be binding on November 18th , so CPs should plan to cover any deficit quickly
Initial “soft start” ACL sent to CRR and DAM
Tuesday, November 16th
Initial DAM run in “soft start” – with CMM credit constraints

34. Preliminary Credit Cutover timeline
Thursday, November 18th
Zonal invoice published
NOTE: CMM calculation of TPE will be used as a) the basis for the soft start Nodal ACL and b) the binding Zonal credit calculation from which a collateral call will be made
The Zonal Invoice published on November 18th will be captured in CMM and Zonal collateral calls will be made based on exposure calculated in CMM using a) Zonal and b) binding Nodal data
From this point forward, ERCOT will use the CMM calculation of TPE as the basis for determining credit exposure for both Zonal and Nodal
Saturday/Sunday, November 20th – 21st
CMM calculations will run, Credit Reports will be published and ACLs will be sent to CRR and DAM on non-business days
Thursday - Sunday, November 25th - 28th – Thanksgiving holiday

35. Preliminary Credit Cutover timeline
Monday, November 29th
Zonal invoice published
Send ACL for initial binding DAM (afternoon)
Tuesday, November 30th
Initial binding DAM
“e” factors set at 1/0/1
Wednesday, December 1st – “Go Live”

36. Approach for establishing the initial exposures in CMM
Nodal Soft start beginning November 15th
Zonal binding collateral requirements beginning November 18th
During this period – ERCOT will publish Credit Reports and send ACLs daily based on data that
Includes
Actual collateral held (including CRR collateral, excludes TCR collateral)
Zonal data to establish TPE’s (more detail in 10/15/2010 Friday Market Call)
Binding Nodal activity
CRR inventory from December 2010 auction will impact FCE component
(e.g. Obligations will be collateralized at the greater of the ACPE component of the FCE calculation and the Auction Clearing Price (ACP))
CRR Auction invoices will be reflected in CMM until paid
First Priority Security Interest to the extent executed and perfected
Excludes
Non-binding Nodal activity resulting from soft start (e.g. DAM results, RT activity, etc)

37. Cut-Over Communication Plan
5/22/2018
Market Readiness Seminar

38. Nodal Cutover and Market Transition – Communication Plan
Up until 11/23/2010, ERCOT will maintain the following communication channels:
Friday Market Calls
Starting 09/03/2010 at 9AM-12noon these calls will be combined, without breaks, into a single Market Trials and Cut-over Activities call
Market Participants should plan on attending the full duration of this call as it will provide the primary means of communication between ERCOT and the Market.
Information and materials covered in this call will continue to be posted to the ERCOT calendar website every Friday at the following URL:
Monday Kick-Off Calls
As needed to review the cutover activities for the week
Market Notices and Market Participant Contact Lists
ERCOT will continue to leverage Market Notices to communicate pertinent information that is required to be consumed by the Market as a whole.
Market Participants employees can subscribe to the Market Notices on the ERCOT Lists website at the following URL:
Market Participants may verify their contact information on file with ERCOT through their assigned Whole Client Services Representative.
Market Readiness Seminar

39. Nodal Cutover and Market Transition – Communication Plan (Cont.)
Market Participants Contacting ERCOT
Market Trials inbox: This inbox will continue to be maintained throughout Nodal Cutover. This will serve as a “catch-all” forum for questions if there is any doubt as to where a question should be submitted.
Friday Market Calls: In line with the previously mentioned schedule, these Market Calls not only serve as the primary means for ERCOT to communicate to the Market, but also for MPs to field general questions concerning the Nodal Cutover plan.
ICCP inbox: for specific MP questions regarding their Nodal ICCP / Telemetry, this address should be leveraged for the fastest response.
ERCOT Wholesale Client Services Account Manager: Whenever possible MPs should leverage the Market Trials inbox, however, MP’s Wholesale Client Services Account Manager will also be equipped to either answer your questions or route you to the correct support personnel.
Nodal Advisory Task Force (NATF): NATF will serve as a forum for initially reviewing changes in activities during the ERCOT Nodal Cutover, NPRRs and any concerns from the Market that would impact the overall Cutover plan. To that end, NATF will be meeting more frequently to ensure expedient coverage of these types of issues. Details regarding meeting agendas and materials from past meetings will continue to be maintained at the following URL:
Market Readiness Seminar

40. Go-Live Communication Strategy
Nodal Cutover and Market Transition – Communication Plan (Cont.)
Go-Live Communication Strategy
Full Communication strategy for 11/23/ Go-Live and initial Stabilization will be communicated in the final Market Readiness Seminar
Market Readiness Seminar will occur in early November prior to the “Soft Start” on November 15, 2010
Full details on the next seminar will be published via a Market Notice and Friday Market call prior to 10/30/2010
Market Readiness Seminar

41. Reversion Plan
5/22/2018
Market Readiness Seminar

42. Reversion Plan Reversion Criteria
Reversion will occur only if there is an inability to reliably control the Grid where no work-around exists and a resolution is not reasonably achievable
This decision will be made by ERCOT Grid Operations and ERCOT Executive Management
Reversion Process
ERCOT will provide adequate Notice to the Market
This will be communicated initially by Hotline call
A Market Notice will immediately be routed following the Hotline call
ERCOT will follow-up with detailed instructions via the Hotline
Market Participants should maintain 24x7 on-call support
Deciding Factors on Reversion Plan
ERCOT has added a full week of Day Ahead and RUC “Soft Start” providing 15 days of lead into Go-Live
ERCOT has installed nearly 58 hours of Nodal Control prior to Go-Live (in addition to the over 200 hours of previous LFC Tests)
Any issue that would fit the criteria stated previously should be determined prior to Go-Live
If such an issue should occur, ERCOT will follow the communication protocol stated above
Market Readiness Seminar

43. Questions?
01 September 2010
Market Readiness Seminar