1. Commercial Operations Sub-Committee Update to TAC December 4, 2008

2. Highlights from November 11 th Meeting Discussed problem with initial settlement of EILS payment : –1 st EILS period ending May 31 st settled using “Initials” for applying Load Ratio Shares of EILS cost. –ERCOT Staff and COPS suggest changes (new PRR) be crafted to correct this problem. –ERCOT noted 2 nd EILS period ending Sept. 30 th will use Final (R4’s) for applying LR Share of costs. –3 rd Period to incorporate Final and True-up statements in determining LRS of EILS costs. –DEWG/SDAWG to work with ERCOT Staff and submit new PRR to correct problem. Update from ERCOT regarding recent mismatched schedules: –ERCOT noted this is an IT issue and staff is working to determine cause and corrective process to resolve issue.

3. DEWG / SDAWG Worked with ERCOT to resolve EILS Settlement Issue : –PRR786, submitted to target ERCOT to use the most recent Load Ratio Share (Final Settlement Version) and so a resettlement using the most current load (True-up Settlement Version) Normal report on ERCOT issues: –Slight decline in number of issues, most recently centered around Lodestar Upgrade, though no major issues. Followed up on the ERCOT stabilization efforts: –Identified projects to watch for in 2009 that address common flaws in the current systems around reports and extracts that need to be maintained until Nodal replacement is implemented.

4. CCWG CCWG met on 11-18-08 Developed wish list of improvements for the “ERCOT.com” website to assist ERCOT in understanding website satisfaction survey indicators. Reviewed draft of new Renewable Energy Credit Section of COPMG. Continue to work on other sections of the COPMG in anticipation of Nodal.

5. PWG LPGRR032 – Profile Decision Tree Changes for Advanced Meters was recommended unanimously –IA to be reviewed at next PWG meeting (12/18/08 ) Working on Draft PRRs for Section 18 Protocols: –To remove “grey boxes” for unfunded project # PIP106 linked to PRR385 and PRR478 for DLC. –Clarify language on procedure if a Hurricane or other natural disaster like IKE causes delay in completion of Annual Validation of Profile Id Assignments. On schedule: –Annual Validation process, –Round 2 Load Research data for recalibration of current load profiles (December 2010) 2009 PWG goals developed to present to COPS at 12/08/08 meeting.

6. TAC Assignment – Market Participant Survey   Dispute Resolution:   COPS agrees with ERCOT Action Plan   Suggests that MPs need to better understand dispute process   Review ADR process – Survey results most likely the result of ADR issues   Format of Settlement Statements:   Statements remain unchanged since last survey – COPS unsure as to reason for change from last survey   COPS agrees with ERCOT Action Plan and suggest MPs will now have to shadow from extracts upon implementation of Nodal. Data Extracts and Reports:   COPS agrees with ERCOT Action Plan & agrees new Extract SLA will improve awareness and understanding of Extract and Report Expectations. Website Satisfaction:   CCWG agrees with ERCOT action plan & has developed a list of improvements for the “ERCOT.com” website to assist ERCOT in understanding website satisfaction survey indicators.

7. Questions ?