1. February 22, 2008 TPTF Early Delivery Systems Status Daryl Cote

2. 2 2 TPTF2/22/2008 Release 3 – State Estimator and Telemetry 2007 2008 SepOctNovDecJan Feb ICCP Fail-over / P2P R3: SE / Telemetry Criteria (SE Tuning) E1 R2 E2 R3 SE Verification EDS 2 Release 3 Exit Criteria % Complete Comments TSP/QSE data points reasonably conform to Telemetry and SE Performance criteria 70% ~580MW delta in Generation data ~4000 TSP points need investigation ERCOT Operations have operating procedures in place to address performance issues 30% (30%) 8 of 27 procedures have been updated. The remaining will be completed when Release 3 processes are verified. Network Security Analysis functions are verified and ERCOT Operations have procedures in place to manage 85% (76%) Latest releases addressed some issues and a release in Late February EDS should address the remaining issues. ERCOT SE is tuned and meets performance criteria80% (43%) Convergence and Tolerance – see next slide Unobservable – see slide 4 Load Modeling restructured, load adaptation and bus load forecast verified 90% (75%) Adaptation working 7 day types. EDW reports correctly post to MIS and can be accessed0% EDW reports have been verified within ERCOT and by MPs 0% Legend: % in parentheses are from the 11/05 TPTF update

3. 3 3 TPTF2/22/2008 Convergence Rate Non-business hours tolerance is set to 50MW / 75MVar

4. 4 4 TPTF2/22/2008 Observability Status Reported to ROS on Feb 14 th and emphasized the need to complete this effort ASAP

5. 5 5 TPTF2/22/2008 Release 4 – NMMS / NOMCR 2007 2008 SepOctNovDecJan Feb R4: NOMCR / Network Model verification E2 R4 NOMCR Checkout Network Model Verification  Start of EDS 2 - R4 NOMCR has been moved to start the week of 3/17/2008  NMMS became available in a “Sandbox” environment enabling market participants to become familiar with the system 1/28/2008  NMMS/NOMCR overview training has been completed by the market participants  Citrix connections and digital certificates have been successfully installed and validated for 100% of the market participants  MOD on Demand module became available in a “Sandbox” for planners  Access have been granted and validated with the market participants to use PTC and MOD application functionalities  Testing scenarios and acceptance testing are currently in the development phase  Market participants have been scheduled to attend CIM class on 2/26/08  Quick reference materials and users guide on how to use the system, create and maintain projects, and change requests were distributed to the market participants  A narrated web-based version of the NMMS course and training material are now available on line at: http://nodal.ercot.com/training/courses/nc09.html#materials http://nodal.ercot.com/training/courses/nc09.html#materials

6. 6 6 TPTF2/22/2008 Release 4 – NMMS / NOMCR #TSP Network Model Management Training EDS Training 2 days @ ERCOT EDS Testing 5 days @TSP Site 1AEP/CPL10/29 to 11/1/20073/17 to 3/19/20083/20 to 3/26/2008 2AEN1/2 to 1/4/20084/16 to 4/17/20084/18 to 4/24/2008 3COD-City of Denton1/8 to 1/10/20085/7 to 5/8/20085/9 to 5/15/2008 4COG-City of Garland1/2 to 1/4/20084/16 to 4/17/20084/18 to 4/24/2008 5BEC1/2 to 1/4/20084/28 to 4/29/20084/30 to 5/6/2008 6CPS1/2 to 1/4/20084/16 to 4/17/20084/18 to 4/24/2008 7MVEC1/2 to 1/4/20084/28 to 4/29/20084/30 to 5/6/2008 8PUB1/8 to 1/10/20084/28 to 4/29/20084/30 to 5/6/2008 9TNMP1/2 to 1/4/20085/7 to 5/8/20085/9 to 5/15/2008 10STEC (1)1/2 to 1/4/20085/7 to 5/8/20085/9 to 5/15/2008 11ERCOT CRR TEAM1/8 to 1/10/20084/23 to 4/24/2008 12ERCOT Planning Group1/8 to 1/10/20084/23 to 4/24/2008 13BTU1/8 to 1/10/20085/19 to 5/20/20085/21 to 5/27/2008 14CSTX City of College Station1/8 to 1/10/20083/26 to 3/27/20083/28 to 4/3/2008 15GEUS-Greenville1/8 to 1/10/20084/7 to 4/8/20084/9 to 4/15/2008 16MEC1/2 to 1/4/20085/19 to 5/20/20085/21 to 5/27/2008 17CNP1/8 to 1/10/20084/7 to 4/8/20084/9 to /15/2008 18ONCOR1/8 to 1/10/20085/19 to 5/20/20085/21 to 5/27/2008 19RCEC-Rayburn Country Electric1/8 to 1/10/20083/26 to 3/27/20083/28 to 4/3/2008 20TMPA1/2 to 1/4/20085/7 to 5/8/20085/9 to 5/15/2008 21STEC (2)1/8 to 1/10/20083/26 to 3/27/20083/28 to 4/3/2008 22LCRA1/2 to 1/4/20085/7 to 5/8/20085/9 to 5/15/2008

7. 7 7 TPTF2/22/2008 Release 5 - SCED 2007 2008 SCED R5.1SCED R5.3: RT ICCPSCED R5.4: LMP Post SepOctNovDecJan Feb SCED R5.2 E3 R5 6-month LMP Posting RT ICCP EDS 3 Release 5 Exit Criteria % Complete Comments Daily submissions of COP, TPO, and OS~90%Known issues with Performance (initial correction did not resolve the issue) Average submissions are in the 90% range SCED Inputs verified: HRL, LRL, SURAMP, SDRAMP, HDL, LDL; GTBD, ICCP 80% (40%) Daily emails sent to QSEs if issues are thought to exist with data submittals. This will be an ongoing effort and is expected to occur more than once daily. SCED Outputs verified: QSE’s ability to receive Resource Base Points and LMPs via ICCP 60% (35%) 60% of the points have been verified by the QSE 13% of the points have been identified as having issues by QSE 27% of the points have not been verified by the QSE Base Point and LMP calculation verified for Resources with Offer Curves or Output Schedules 100% (0%) Identified & resolved issue with truncating LMPs over ICCP and incorrect Base Points for Combine Cycles Reports100% (100%) Reports related to SCED are available in draft form on MIS and https://nodaleds.ercot.com/nodalercot/readiness/reports/publicreports.htm l https://nodaleds.ercot.com/nodalercot/readiness/reports/publicreports.htm l LMPs verified for Reasonability and posted to MIS for Market Participant review100% (0%) Completed on Feb 15 th. The calculation of the LMPs are reasonable given the input data, but the input data needs improvement. Legend: % in parentheses are from the 1/21 TPTF update

8. 8 8 TPTF2/22/2008 SPPs –West 345Kv Hub 02/9 02/10 2/11 02/12 02/13 Invalid CC Configuration Given sufficient inputs the output of SCED are reasonable and can be sustained over a period of time.

9. 9 9 TPTF2/22/2008 LMP Reasonableness  Market Operations presented a document to TPTF at the Nov 5&6 th meeting on reasonableness.  The document described preconditions of data accuracy and system functionality and a few basic scenarios to validate the system including: 1.No constraints are activated - All nodes will have the same final LMP 2.No constraints are activated and GTBD (Generation to be dispatched) is increased - All nodes will have the same final LMP but will be higher than the LMP in the case with lower GTBD 3.A single constraint is activated – The LMP at the nodes with negative Shift Factor will be higher than LMP at the nodes with positive Shift Factor 4.All constraints are competitive - no price mitigation is done on the offer curves

10. 10 TPTF2/22/2008 This covers scenario 1 through 4

11. 11 TPTF2/22/2008 Supporting Data for Scenarios

12. 12 TPTF2/22/2008 Release 6 - LFC 2008 JanFebMarAprMay Jun E3 R6 R6.1: ACE & RLC EDS 3 Release 6.1 Exit Criteria % CompleteComments Test Time Scheduled (Phase 1 and 2)100% (100%) Dates have been set with all QSEs with Resources. Completed Test Form Received back from MP80% (9%) 17 of 21 submitted. RLC Validation Completed71% (0%) Two SPRs have been created on RLC logic: 1643 (discussing today) and 2211 (approved by TPTF). Will need to regression test with a few QSEs once implemented Emergency Base-Point Validation Completed33% (0%) ERCOT issue has been resolved and QSEs that conducted testing when the issue existed have been contacted to setup a regression test Legend: % in parentheses are from the 1/21 TPTF update R6.2: QSE TestingR6.3: TST Link for LFC Documents & Status: http://nodal.ercot.com/readiness/eds3/documents/index.htmlhttp://nodal.ercot.com/readiness/eds3/documents/index.html

13. 13 TPTF2/22/2008 Release 6 – LFC Phase I Testing Status  Phase II WebEx on Wednesday February 27 th at 1:30 PM  Phase III Testing Workshop March 14 th 9:00 AM at the Met Center Austin  Prior to March 15 th QSEs need to provide accurate & continuous values for: Regulation Up, down, RR, & Non-spin Responsibility, RR & Non-spin Schedules, Participation Factors, Raise & Lower block status LFC email Address: LFC@ERCOT.COM

14. 14 TPTF2/22/2008 Release 7.1 - CRR EDS 3 Release 7.1 Exit Criteria% CompleteComments Active market participants successfully:  Logged-in and accessed the CRR application  Uploaded a bid/offer portfolio (in either XML/CSV)  Edited a bid/offer within a portfolio (confirms web browser supports java applets)  Downloaded auction market results  Created a sell/buy bilateral trade posting 98% (of active participants) As of Feb 13 th 2008: 40 active participants 11 participants did not participate 8 participants joined late/deferred Since official conclusion of R7.1 – more participants are still completing R7.1 activity. Jan 08Feb 08Mar 08Apr 08May 08Dec 07 CRR–R7.0CRR–R7.1CRR–R7.2CRR–R7.3CRR–R7.4CRR–R7.5 (TBD) Jan 08Feb 08Mar 08Apr 08May 08Dec 07Jan 08Feb 08Mar 08Apr 08May 08Dec 07 CRR–R7.0CRR–R7.1CRR–R7.2CRR–R7.3CRR–R7.4CRR–R7.5 (TBD) R7.1 (UI Connectivity) started on schedule on Feb 4 th Strong progress enabled early completion of R7.1 on Feb 13 th Kicked-off R7.2 (fully structured monthly allocation/auction) on schedule on Feb 18 th Nominations being submitted this week Bid submission and bilateral trade activity next two weeks

15. 15 TPTF2/22/2008 EDS 4 Release 9.1 2008 JanFebMarAprMay Jun E4 R9 R9.1: DAM/RUC Submission TestingR9.3:R9.4: DAM/ Adj Period, RT R9.3: Outage Scheduler Legend: % in parentheses are from the 1/21 TPTF update The next two weeks are the peak demand for support calls and we believe we have staff to cover it. Only 5 QSEs are scheduled for support calls after March 5 th (minus those that have not signed up) EDS 4 Release 9.1 Exit Criteria% Complete Comments Intent to Participate Sent83% (75%) Sign-Up Testing Window Scheduled81% (68%) See next slide MP8 - QSE Ability to Submit Transactions Via MIS 32% (0%) MIS with ERCOT-developed UI in EDS for most transactions MP9 – QSE Ability to Submit Web Service Transactions 23% (1%) Only one QSE attempting Web Services has needed to reschedule to complete development

16. 16 TPTF2/22/2008 EDS 4 Release 9.1 Ambridge Energy Aquila Bear Energy* Brilliant Energy Citadel Energy Products Clearview Electric ECONnergy Electric Now Glacial Energy Kansas City Power and Light Lehman Brothers Commodity Services Merrill Lynch Commodities MxEnergy Electric Inc QSE National Power Company Sitara Energy Spark Energy Texas Retail Energy Texpo Power Urban Energy Source WCW International QSEs that have not signed up for a testing window for EDS4 (as of COB 2/20/08) 3 Market Notices sent to date and Client Services continuing to contact Account Executives

17. 17 TPTF2/22/2008 EDS Deliverables R5.4 – SCED OS Handbook R9.2 COMs R8 DAM/RUC R9.3 EECP Post for TPTF Comment 1/22Feb 8 Feb 22Apr 7 Comment Close 1/29Feb 15Feb 18Feb 29Apr 14 TPTF VoteFeb 4/5Feb 22Feb 21/22Mar 5Apr 21 Legend: indicates completion 168 Hour Test plan and cut-over approach are being developed and plan to discuss with TPTF in late March

18. 18 TPTF2/22/2008 Questions?