1. Nodal ATF http://www.ercot.com/committees/board/tac/natf/ 1 Nodal Advisory Task Force Update for TAC November 4 th, 2010

2. Nodal ATF TAC Update from Nodal ATF Met October 5 th, 26 th, and November 2 nd. –DAM Deep Dive Each Thursday @ 10am Next few meetings scheduled for: –Tuesday, November 9 th, 2010 - AS Capacity Expectations –Tuesday, November 16 th, 2010 tentative –Tuesday, November 30 th, 2010 ? December ? http://www.ercot.com/committees/board/tac/natf/ 2 Meetings

3. Nodal ATF NATF Motions... Motion to endorse ERCOT’s proposal to withdraw NPRR287 and to allow any Market Participant, subject to protocol requirements, to receive available Real-Time Prices via ICCP. –The motion carried with one abstention from the Independent Retail Electric Provider (IREP) Segment. TAC Update from Nodal ATF9/7 motion

4. Nodal ATF NATF Motions... Motion to recommend Option 4 to TAC; ERCOT Calculate the Proxy Heat Rate (PHR), the Value X, and Emissions costs, for the 12/1/10 Operating Day using normal production procedures and timelines, and using zonal Real-Time Hub prices as necessary. –Motion carried by roll call vote with one abstention from the Consumer Market Segment. –Voting ballot attached to Notice. TAC Update from Nodal ATF9/7 motion

5. Nodal ATF NATF Motions... Motion to endorse ERCOT comments to NPRR 277 to be considered by TAC with the initial value of REGP no less than 0.75 in conjunction with considering periods when any Resource is asked to move beyond its ramp rate as periods of abnormal operation related to GREDP and Base Point deviation and proper notification to the Market of changes to the value of REGP. –Motion carried by voice vote with one abstention from the Independent Generator Market Segment. TAC Update from Nodal ATF9/7 motion

6. Nodal ATF NATF agenda items for November 9 th AS Capacity Monitor Report –ERCOT Expectations on deployments from Reserves (both Capacity and Ramp) –Discuss ERCOT’s Appeal of NPRR275, Clarify QSE’s Ability to Make Changes to Ancillary Service Resource Responsibility In Real Time ERCOT expressed interest in NATF continuing to meet at least through the initial stages of Nodal Stabilization. With the blessing of TAC, NATF intends to meet the 1 st quarter “as needed but at least monthly” and take an assessment at the April TAC meeting. Best way to track the status of issues are the documents posted in the ALL ISSUES section at: –http://nodal.ercot.com/docs/po/index.htmlhttp://nodal.ercot.com/docs/po/index.html NATF expects ERCOT to continue updating NATF, TAC and the Board regarding the progress of the fixes and workarounds. TAC Update from Nodal ATFNATF Concerns

7. Nodal ATF TAC Update from Nodal ATF http://www.ercot.com/committees/board/tac/natf/ 7 Additional Topics Questions?

8. Nodal ATF TAC Update from Nodal ATF http://www.ercot.com/committees/board/tac/natf/ 8 Illustration of 11/9 topic NSRS 100 MW RRS 100 MW RegUp 50 MW HSL 600 MW LSL 100 MW 100 MW / 20 MIN = 5 MW/MIN 100 MW / 10 MIN = 10 MW/MIN 50 MW / 5 MIN = 10 MW/MIN What are ERCOT’s expectations regarding… A the required ramp rate? B the energy in 5 minutes? C the energy in 10 minutes? D the energy in 20 minutes? 10, 20, 25 MW/MIN ? 50, 100, 105 MW ? 100, 200, 250 MW ? 200, 400, 500 MW ? Market Design is primarily…  SCED Re-dispatch GTBD  Reg for Change in total Generation

9. Nodal ATF SURAMP = RAMPRATE – (RUSTELEM/ 5) SDRAMP = NORMRAMP – (RDSTELEM / 5) Where SURAMP/SDRAMP - SCED up/down ramp rate RAMPRATE- Normal Ramp Rate when RRS is not deployed or when the subject Resource is not providing RRS. Emergency Ramp Rate for Resources deploying RRS RUSTELEM/ RUSTELEM -Reg-Up/Down Ancillary Service Resource Responsibility designation provided by telemetry 9 Ramp Available for SCED for Congestion Management TAC Update from Nodal ATF Appendix

10. Nodal ATF SURAMP = RAMPRATE – (RUSTELEM* REGP / 5) SDRAMP = NORMRAMP – (RDSTELEM * REGP / 5) Where SURAMP/SDRAMP - SCED up/down ramp rate RAMPRATE- Normal Ramp Rate when RRS is not deployed or when the subject Resource is not providing RRS. Emergency Ramp Rate for Resources deploying RRS RUSTELEM/ RUSTELEM -Reg-Up/Down Ancillary Service Resource Responsibility designation provided by telemetry REGP- Percentage of Regulation Service for which Ramp Rate will be reserved in Real-Time. The value will be between one and zero. Suggested value 0.75 10 Suggested Protocol Change via ERCOT Comments to NPRR277 TAC Update from Nodal ATF Appendix