1. http://nodal.ercot.com 1 Market Trials Call Bi-Weekly Update October 30, 2009

2. http://nodal.ercot.com 2 Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

3. http://nodal.ercot.com 3 Agenda Anti-trust Admonition Day-to-day operations summary –Planned and Unplanned ERCOT outages of Sandbox –New Known Issues Standing reports and updates –General Reminders / Updates –Readiness Outreach Update –Focused Input Testing Deep Dive Topic (different topics each meeting as needed) - Market Manager Demo Question and Answers/General Discussion ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline

4. http://nodal.ercot.com 4 Day-to-day operations summary: Planned / Unplanned Outages of EDS Planned Outages –N/A Unplanned Outages –10/19/09 - 8: 00 A.M – 10:50 A.M Sandbox was down following data center maintenance activity from the prior weekend –10/29/09 – 2:00P.M – 3:45 PM The ERCOT Nodal Market Environment experienced degradation in availability during this time period. Root cause is under investigation; issue is related to the Storage Area Network and vendors have been engaged

5. Known Issues for Market Connectivity Known Issues list : Latest known issues list affecting scope of market connectivity testing has been published on Readiness Center at http://nodal.ercot.com/readiness/markettrials/connectivity/index.html http://nodal.ercot.com/readiness/markettrials/connectivity/index.html –An unclear error is returned if Self-Arranged AS doesn’t contain all three subtypes of RRS –Inc/Dec offer response appears invisible on the Market Manager –When submitting a DC Tie Schedule on the Market Manager for all 24 hours, the Market Manager times out –Query response for Self-Arranged AS improperly compressing hours together for RRS subtypes –Listeners implemented in Axis framework may be affected by an issue when validating digital signatures. –ERCOT public key has changed – download at http://nodal.ercot.com/readiness/sandbox/index.html http://nodal.ercot.com/readiness/sandbox/index.html http://nodal.ercot.com 5

6. Known Issues for Market Connectivity Known Issues list (continued): –The system is not correctly translating submissions for the extra hour on the long day and is rejecting valid submissions –No extra hour available on the Market Manager screens for the long day –Error message incorrect when UserId field in the header doesn't match certificate (implies the opposite) http://nodal.ercot.com 6

7. Standing reports and updates: General Reminders / Updates Notification Listener Information Current State –You can register two Notification Listener URLs with ERCOT. One will be considered the primary and one will be considered the secondary Primary vs. Secondary Listener URL –The primary URL is the one ERCOT will actively attempt to deliver notifications to. –ERCOT will not automatically fail from the primary to secondary listener URL. How Do I Change from Primary to Secondary Notification Listener URL? –In a future release, ERCOT will provide an API that will allow you to swap programmatically between the primary and secondary URL. This feature will be available in Market Trials Phase 3. –During Market Trials, you may contact eds3@ercot.com to have the URL switchededs3@ercot.com –ERCOT systems will no longer attempt multiple deliveries if your Primary Notification URL is unavailable How will I Know if my Notification Listener fails to respond? –Upon delivery failure, ERCOT will automatically deliver an email to your registered email address. –You must register with ERCOT the email address that you wish to receive failure alerts How Do I Test if My Notification Listener is Receiving Notifications from ERCOT? –In a future release, you will have the ability to invoke a TestNotification API that will send a notification to your current primary listener URL. This feature will be available in Market Trials Phase 3. –This API can be used at your discretion. Ideal times are following invocation of the Switch URL API or after you experience downtime or following a release or maintenance of your listener. http://nodal.ercot.com 7

8. http://nodal.ercot.com 8 Standing reports and updates: General Reminders / Updates Action Item from Last Call: Q: In Outage Scheduler, do users login in with the QSE or the RE Certificate? A: QSE’s will log in with their QSE certificate and have access to all resources they currently represent. FAQ: On the qualification checklist, ERCOT has added the Resource Parameter transaction. Will QSE’s be required to submit this over Web Services in order to qualify. A: No. QSE’s may enter this transaction using the Market Manager User Interface. FAQ: How do I submit my Listener URL? A: Updates or initial registration of Listener URL’s need to be submitted using the Nodal Contact Declaration Form posted at http://nodal.ercot.com/readiness/rq/documents/index.html http://nodal.ercot.com/readiness/rq/documents/index.html

9. Standing reports and updates: General Reminders / Updates Market Trials Activity –# of MP’s currently participating: 16 (as of Thursday 10/29 @ 6pm) This includes several Vendors representing multiple QSE’s –# of individual transactions received to date: ~33,000 Note that this reflects individual transactions within a payload, not a single XML file submission. 85% of the activity over Web Services / 15% Market Manager User Interface 22,000 transaction failed –Market trials team has been able to respond to all inquiries If you haven’t received a response, please notify eds3@ercot.comeds3@ercot.com Common Issues / Questions –Several MP’s have not sent in their Listener URL We will be reaching out to those folks next week. This is not required until qualification, but ERCOT wants to ensure this is intentional Updates or initial registration of Listener URL’s need to be submitted using the Nodal Contact Declaration Form posted at http://nodal.ercot.com/readiness/rq/documents/index.html http://nodal.ercot.com/readiness/rq/documents/index.html Send updates to nodalmarkettransition@ercot.comnodalmarkettransition@ercot.com –ERCOT Public Key The Nodal Production Environment has a new Public Key from the previous EDS Environment and Sandbox The Nodal Production Environment Public Key is posted at http://nodal.ercot.com/readiness/sandbox/index.htmlhttp://nodal.ercot.com/readiness/sandbox/index.html –Invalid MP Short Names Several MP’s are getting errors due to invalid short names The Market Participant short names are currently posted at: http://nodal.ercot.com/readiness/markettrials/connectivity/index.htmlhttp://nodal.ercot.com/readiness/markettrials/connectivity/index.html –Invalid UserId Production MPIM requires designation of Web Services certificates (checkbox on the certificate generation page) Once designated as a Web Services certificate, MPIM will place “API_” on the front of the userid for example: NODALTEST1 would be registered as API_NODALTEST1 Ensure that your XML Header contains this full userid in the field http://nodal.ercot.com 9

10. Standing reports and updates: General Reminders / Updates Reminder of supported windows –The Nodal Production environment is supported Tues – Thurs 9am – 6pm –During unsupported windows, the environment will be available, but may be taken down at any time for maintenance or for ERCOT internal testing –More details on supported windows and any other information on Phase 2.1 can be found in the Market Connectivity Testing Market Participant Handbook posted at http://nodal.ercot.com/readiness/markettrials/connectivity/index.html http://nodal.ercot.com/readiness/markettrials/connectivity/index.html ERCOT review of transactions submitted –ERCOT will be reviewing transactions submitted during Phase 2.1 –MP’s that generating large number of errors, will be contacted to determine if any support is needed. This call is only for support and participation in 2.1 is not required until Jan 2010 qualifications Early, voluntary qualification –We have received a few requests for early qualification –Qualification checklists will be sent to QSE’s starting today –QSE’s need only submit transactions listed on the checklist and provide the date / timestamp –When complete, send the completed checklist to eds3@ercot.comeds3@ercot.com http://nodal.ercot.com 10

11. http://nodal.ercot.com 11 Request for Volunteers to Submit “Quality” COPS for Specific Dates and Times October 30, 2009

12. http://nodal.ercot.com 12 Asking for volunteers to provide “quality” COPS for FIT days It would be helpful to ERCOT, if QSEs provided “quality” COPS for a few specific days within the upcoming FIT windows. Not a requirement. Looking for willing volunteers. (A great exercise for the QSE.) May make it easier to provide “quality telemetered data. Provides better data for testing in Nodal Itest Environment. Especially would like COPS to be submitted to NPROD by 1000 and by 1430 on the first two days of the FIT windows. Especially interested in COP info for the current and next two Operating Days. Would like an updated COP before 1430 that shows the specific Resources that will be used to supply the QSE’s AS Supply Responsibility. (The QSE’s zonal Supply Responsibility.)

13. http://nodal.ercot.com 13 FIT Windows Nov 03-05 Nov 17-19 Dec 01-03 Would like “Quality Cops” Nov 3, 4 17, 19 and Dec 01, 02 at 1000 and 1430. COPs should provide quality data for several days out.

14. 30 October 2009 Completed Site Visits Lower Colorado River Authority – October 9 th Calpine – October 14 th Austin Energy – October 20 th Garland Power & Light – October 21 st GDF Suez – October 29 th Outreach Program Overview

15. Confirmed Scheduled Site Visits through November ANP Funding – November 3 rd Luminant Energy – November 5 th Invenergy – November 10 th Exelon – November 11 th AEP – November 12 th Constellation – November 17 th PSEG – November 18 th J Aron – November 19 th 30 October 2009

16. Outreach Program Overview Market Participant “Menu” Topics: All materials are available on the Nodal Readiness Center. (http://nodal.ercot.com/readiness/outreach/index.html)http://nodal.ercot.com/readiness/outreach/index.html Nodal Program Update (mandatory) – (75 min) Readiness Center and Readiness Scorecard – (45 min) Day-Ahead Market Implementation – (60 min) Congestion Revenue Rights (CRR) Auction Implementation – (60 min) Reliability Unit Commitment Implementation – (60 min) Telemetry & Load Frequency Control (LFC) – (30 min) Real Time Market Processes & Systems – (60 min) Nodal Settlement and Billing Processes – (60 min) Reports and Data Extracts – (30 min) 30 October 2009

17. Outreach Program Overview 30 October 2009 EntityDate CPS Energy6-Jan BTU (Bryan Texas Utilities) Services13-Jan Topaz Power Management19-Jan Occidental20-Jan Shell Energy21-Jan Tenaska Power Services26-Jan Optim Energy27-Jan APX3-Feb Brazos Electric9-Feb Nextera Energy11-Feb Wind Panel (Houston)16-Feb Retail Panel (Houston)17-Feb Tri-Eagle Energy18-Feb XTEND Energy LP2-Mar EC and R QSE9-Mar Tentative Scheduled Site Visits EntityDate ANP Funding3-Nov Luminant5-Nov Invenergy Wind Development10-Nov Exelon11-Nov American Electric Power Service12-Nov Constellation Energy17-Nov PSEG Energy Resources18-Nov J Aron & Company19-Nov Fulcrum Power2-Dec Eagle Energy Partners I LP (QSE, RE, SQ1)3-Dec STEC9-Dec BP Energy Company10-Dec NRG Texas Power15-Dec Direct Energy LP5-Jan

18. Outreach Program Overview Any questions please contact Nodal Outreach at NodalMarketTransition@ercot.com NodalMarketTransition@ercot.com 30 October 2009

19. 11/26/2015 http://nodal.ercot.com 19 This FIT Update includes the following discussion items:  Near-term FIT Windows  FIT III Week 18 Results  Convergence Trends Standing reports and updates: Focused Input Testing (FIT) Update

20. http://nodal.ercot.com 20 FIT Update: Near-term FIT Windows Next FIT testing will take place 11/3 – 11/5 (Market Notice to be sent on 10/30) Reminder: remaining 2009 FIT windows will only review telemetry and State Estimator convergence. SCED inputs will be removed from FIT until further notice. The December 1-3 FIT window is the last for the FIT III Series. In January, telemetry support begins on a daily basis during business hours. The Dec 15-17 FIT window was cancelled. FIT III Assessment reports are posted at: http://nodal.ercot.com/readiness/markettrials/rtm/index.html http://nodal.ercot.com/readiness/markettrials/rtm/index.html ALL TIMES ARE CENTRAL DurationStart date and timeEnd date and time 27 hrs (3x9)November 3 - 8:00 AMNovember 5 - 5:00 PM 27 hrs (3x9)November 17 - 8:00 AMNovember 19 - 5:00 PM 27 hrs (3x9)December 1 - 8:00 AMDecember 3 - 5:00 PM

21. http://nodal.ercot.com 21 FIT Update: FIT III Week 18 Results

22. http://nodal.ercot.com 22 FIT Update: FIT III Week 18 Results

23. http://nodal.ercot.com 23 FIT Update: FIT III Week 18 Results

24. http://nodal.ercot.com 24 Deep Dive Topic Deep Dive Topic Market Manager Demonstration

25. http://nodal.ercot.com 25 Q&A Q&A / Open Forum

26. http://nodal.ercot.com 26 Appendix

27. http://nodal.ercot.com 27 Test Digital Certificate request (originally presented 9/18/09)

28. General Reminders / Updates Reminder: ERCOT is requesting test digital certificates issued by voluntary MP’s: –See appendix for details Reminder: Sandbox EIS1.19 available for testing –See appendix for details Reminder: Market Trials / MRS –Date / Time: 10/8 9:00am – 1:00pm –Austin Met Center Rm #206 –Agenda and presentation to be posted 10/2 to the ERCOT calendar: http://www.ercot.com/calendar/2009/10/20091008-EDS http://www.ercot.com/calendar/2009/10/20091008-EDS Reminder: Request for Updates to QSE Nodal Contact Information –See appendix for details

29. http://nodal.ercot.com 29 Telemetry Issue Resolution and ICCP Change Process (originally presented 9/18/09)

30. http://nodal.ercot.com 30 FIT Update: Current Telemetry Issue Process  For telemetry issues during FIT, contact a Shift Engineer at 512-248-6345.  For telemetry issues outside of FIT, contact EDS3@ercot.com.EDS3@ercot.com

31. LFC11/26/2015 FIT Update: High-Level View of the ICCP Change Process 31 The TML process for QSE ICCP Service Requests and an example of the ICCP Change Request Form are posted at: http://nodal.ercot.com/readiness/eds1/documents/index.html

32. http://nodal.ercot.com 32 QSE Information Update Request (originally presented 9/04/09)

33. QSE Information Update Request As we near Market Trials, ERCOT is asking that all QSE’s and TSP’s update needed information Each MP will receive an email by the end of next week directing them to the attached spreadsheet The spreadsheet will have inputs for the following: –Primary / Back-up contact information for each of the functional areas (e.g. DAM, RTM, ICCP, Settlements, CRR….), Accountable Executive, Authorized Rep and Nodal Project Manager We ask that at least 1 back-up be provided for each area There is space to add up to 3 back-ups –Listener URL for notifications sent from ERCOT to MP’s (this is to confirm what we already have on file is correct) –Email address where notification failure alerts will be sent

34. http://nodal.ercot.com 34 ERCOT Certificate Request (originally presented 9/04/09)

35. ERCOT Certificate Request ERCOT is requesting test digital certificates issued by voluntary MP’s: –Agenda and presentation to be posted 10/2 to the ERCOT calendar: http://www.ercot.com/calendar/2009/10/20091008-EDS http://www.ercot.com/calendar/2009/10/20091008-EDS –Aug 27, 2009 ERCOT released all nodal roles to the production MPIM (Market Participant Identity Management) –ERCOT is asking for volunteer MP’s to generate a certificate for their company containing only these Nodal roles for a user called NODALTEST1 Note that we have placed a 1 on the user to avoid conflicts with the previously used NODALTEST user. –NEW: This user should have the “web services” checkbox checked when creating the certificate –Once created, email the NODALTEST1 certificate to smiddleton@ercot.com Note that Scott Middleton will serve as the central point of control for these certificatessmiddleton@ercot.com –Once we have completed the 168 hour test, MP USA’s may revoke this certificate (ERCOT will also destroy it) –ERCOT would like a core set of certificates in place by October 1, 2009

36. http://nodal.ercot.com 36 NODALTEST Certificates Expiration (originally presented 8/07/09)

37. Standing reports and updates: Certificates (reminder) NODALTEST Certificate Expirations –All NODALTEST certificates will expire over the next several months –These certificates will not be renewed –In order to continue to test in the sandbox, MP’s may use any valid ERCOT certificate –When the Nodal Production environment is deployed in October, MP’s will use their current (zonal) certificate. –MP USA’s will need to add the appropriate Nodal roles depending on the testing that user will perform –Note: Nodal roles will not have an affect on zonal system usage

38. http://nodal.ercot.com 38 Creation of the Nodal Implementation Team (originally presented 6/12/09)

39. Standing reports and updates Program Update – Creation of the Nodal Implementation Team (NIT) –At its June 4, 2009 meeting, TAC created the Nodal Implementation Team (NIT) which will be a vehicle for stakeholder engagement in the Nodal program. –In preparation for the NIT initial meeting, the TPTF email distribution list has been discontinued and has been replaced by the NIT distribution list (NIT@lists.ercot.com)NIT@lists.ercot.com If you were previously subscribed to the TPTF distribution list, no action is needed as TPTF subscribers were automatically migrated to the NIT distribution list. If you were not previously subscribed to the TPTF distribution list and would like to subscribe to the NIT distribution list, please access the ERCOT distribution list management website at http://lists.ercot.comhttp://lists.ercot.com –Meeting materials, agenda, and WebEx information will be distributed as soon as they are available –First Meeting will take place on Monday, June 22, 2009 9:30 am – 4:30 pm –The NIT Charter was distributed via email to NIT@lists.ercot.comNIT@lists.ercot.com The charter is embedded below for your review:

40. http://nodal.ercot.com 40 Review of Overall Registration Data Project Schedule (originally presented 5/22/09)

41. http://nodal.ercot.com 41 Review of Overall Registration Data Project Schedule http://nodal.ercot.com 41 Each window will be broken into 3 iterations with heightening levels of data quality goals All non-PUN RE’s will submit during 1 of 2 windows (except Wind) Each non-PUN RE will request one of the two windows between 5/22/09 and 6/5/09 via email to nodalmarkettransition@ercot.comnodalmarkettransition@ercot.com Some RE’s may be moved to a different window based on volume Planning and Protection data will be rolled in for the remaining windows (see next slide) All Wind resources will submit during the second window 2009 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Private Use Network Transmission Data Collection Window 1 - Non-Wind* RE’s Transmission / Planning / Protection Data Collection - Iteration 1 - Iteration 2 - Iteration 3 - Iteration 1 - Iteration 2 - Iteration 3 Private Use Network Planning and Protection Data Collection Window 2 - Wind RE’s Transmission and Planning / Protection Data Collection - Iteration 1 - Iteration 2 - Iteration 3 MP-10 Phase 2 Final Validation SEM GO-LIVE 8/31 EIS 1.19 to EDS 8/10 85% Prod Quality 95% Prod Quality 98% Prod Quality 85% Prod Quality 95% Prod Quality 98% Prod Quality 85% Prod Quality 95% Prod Quality 98% Prod Quality Kick Off Market Call

42. Registration Data Collection Update Iteration 3 of the Private Use Network Transmission Data Collection closes on 5/19/09 Current Production Quality Metric is 96.5% (goal is 98% by 5/19) 5/22/09 9:30AM – 11:00AM ERCOT will host a kick off for the next leg of the Nodal Registration Data Collection project Changes to Load Resource Registration The kick off meeting will cover the following topics: –Transmission data collection (review for non-PUNs / non-Wind) –Planning and Protection data review (inclusive of Private Use Networks) –Review of registration activities for the remainder of 2009

43. http://nodal.ercot.com 43 Nodal API sub-group Report, by Transaction, Completion Confidence (originally presented on 2/6/09)

44. http://nodal.ercot.com 44 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09) TPTF Action – Report, by Transaction, Completion Confidence –Each Transaction will be classified into 3 confidence levels –RED – Confidence low – high risk of change in the 1.18 and/or 1.19 releases –YELLOW – Changes should be limited to non-structural changes (e.g. enumeration changes) –GREEN – Any Changes will be limited to defects. –Note that if there are no changes in 1.18 and significant change in 1.19, a transaction will be marked as RED for both. It will retain that color until all changes are complete.

45. http://nodal.ercot.com 45 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09)

46. http://nodal.ercot.com 46 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09)

47. http://nodal.ercot.com 47 Verifiable Cost Submission (originally presented on 4/17/09)

48. http://nodal.ercot.com 48 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010

49. http://nodal.ercot.com 49 Verifiable Cost Submission ERCOT plans to roll out verifiable cost training: Verifiable Cost Training will cover: –What are Verifiable Costs –What data need to be submitted –Who is required to submit the data forms and supporting information –Where, when and how are Verifiable Costs used Current Plans: –Instructor Led Training during May/June –One session each in Austin, Houston and Dallas Please send any comment to nodaltraining@ercot.comnodaltraining@ercot.com