1. Briefing on NYMEX Activity Board of Directors Meeting July 18, 2006

2. Megawatt Daily Price index Average MCPE DailyMonthly ERCOT HubNorth HubHouston Hub DailyMonthlyDailyMonthly Standard contracts: 40 Mwh per day on peak (weekdays from 6:00AM to 10:00PM) Contracts are similar to those currently traded for PJM, the New York ISO and the New England ISO. Anticipated NYMEX Contracts for Trading on July 24

3. What are the obligations of ERCOT, Inc.? We don’t need to commit any resources to do anything. We will have no obligations to NYMEX.

4. Retail Electric Suppliers ERCOT Generators ERCOT Qualified Scheduling Entities Government Regulation & Oversight: PUCT (Public Utility Commission of Texas) ERCOT BUYERSSELLERS Physical Market What does the physical market look like?

5. Financial Market NYMEX Price Risk Transfer Agents Government Regulation & Oversight: CFTC (Commodities Futures Trading Commission) NYMEX Qualified Trading Entities BUYERSSELLERS What does the financial market look like? Price Risk Transfer Agents

6. Financial Market NYMEX Price Risk Transfer Agents Government Regulation & Oversight: CFTC (Commodities Futures Trading Commission) NYMEX Qualified Trading Entities BUYERSSELLERS Price Risk Transfer Agents Retail Electric Suppliers ERCOT Generators ERCOT Qualified Scheduling Entities Government Regulation & Oversight: PUCT (Public Utility Commission of Texas) ERCOT Physical Market What could the combined market look like?

7. Some NYMEX Qualified Trading Entities AND ERCOT Qualified Scheduling Entities BANK OF AMERICA NA BARCLAYS BANK PLC (QSE) CALBEAR ENERGY LP (QSE) CITIGROUP ENERGY INC (QSE) DB ENERGY TRADING LLC J ARON AND COMPANY JPMORGAN CHASE BANK NA JPMORGAN VENTURES ENERGY CORPORATION LEHMAN BROTHERS COMMODITY SERVICES INC MERRILL LYNCH COMMODITIES INC (QSE) MORGAN STANLEY CAPITAL GROUP INC OLD LANE COMMODITIES LP UBS AG LONDON BRANCH WCW INTERNATIONAL INC

8. Price Risk Transfer “Futures” Market NYMEX Price Risk Transfer Agents Government Regulation & Oversight: CFTC (Commodities Futures Trading Commission) NYMEX Qualified Trading Entities BUYERSSELLERS Price Risk Transfer Agents Retail Electric Suppliers ERCOT Generators ERCOT Qualified Scheduling Entities Government Regulation & Oversight: PUCT (Public Utility Commission of Texas) ERCOT Physical Market What could the combined market look like?

9. Megawatt Daily Price index Average MCPE DailyMonthly ERCOT HubNorth HubHouston Hub DailyMonthlyDailyMonthly Standard contracts: 40 Mwh per day on peak (weekdays from 6:00AM to 10:00PM) Anticipated NYMEX Contracts for Trading on July 24

10. Megawatt Daily Price index Average MCPE DailyMonthly ERCOT HubNorth HubHouston Hub DailyMonthlyDailyMonthly Standard contracts: 40 Mwh per day on peak (weekdays from 6:00AM to 10:00PM) Anticipated NYMEX Contracts for Trading on July 24 Daily – up to two (2) months forward

11. Megawatt Daily Price index Average MCPE DailyMonthly ERCOT HubNorth HubHouston Hub DailyMonthlyDailyMonthly Standard contracts: 40 Mwh per day on peak (weekdays from 6:00AM to 10:00PM) Anticipated NYMEX Contracts for Trading on July 24 Daily – up to two (2) months forward Monthly – up to three (3) years forward

12. Questions?