1. March 10, 2009 COPS Uplift Update Mandy Bauld

2. 2 February 10, 2009 Update ‘Summer 2008 Defaults’ Uplift Process is complete 1st Uplift (Jan 09) Uplift Invoice Pay-in$2,500,000.00 Pay-out to Short-Paid entities$2,500,000.00 2nd Uplift (Feb 09) Uplift Invoice Pay-in$1,661,186.82 Late Fee Recovery (Misc Db) Pay-In$179,484.37 Remaining Credits on Hand$403,101.65 Pay-out to Short-Paid entities$2,243,772.84 Total amount Uplifted $4,161,186.82 Total paid to Short-Paid entities $4,743,772.84

3. 3 February 10, 2009 Next Steps ‘Lessons Learned’ discussions / action items (@ SEWG?) –Default Process in the past / present What processes should be consistent regardless of the specific default scenario? What processes may change, depending upon the scenario? –Consider drafting PRR language to Stop Late Fee calculations (similar to Nodal) ”…provided that ERCOT may cease charging late fees earlier than 180 days following a short-payment of an Invoice if ERCOT, in its sole discretion, determines that the recovery of late fees from the defaulting Entity is unlikely.” Allow hold back of x (5-10?)% collateral to fund small resettlements through finals and true ups and Other? –Ad-Hoc Invoice process (already at SEWG) Includes focus on communication channels