1. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 1 Nodal Enterprise Data Warehouse Section 8 – Performance Monitoring and Compliance Requirements Scott Privette June 11, 2007

2. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 2 Market Monitoring & Data Collection Requirements The EDW Project will own the requirements generated from all protocols pertaining specifically to the reporting of Performance Monitoring and Compliance. The EDW Project with IDA assistance will distribute requirements to other projects in support of the Performance Monitoring and Compliance (Appendix A). The EDW Project will insure the EIS systems transitioning to the nodal market will support the functions identified in the requirements. The EDW Project will build the transition and operational support plans for EIS to utilize in transitioning to the Nodal Market.

3. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 3 EDW Compliance Requirements Process The EIS Nodal EDW Compliance requirements submitted to TPTF are those compliance-related requirements that are not covered by the requirements of other Nodal Projects.

4. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 4 Question & Answer Review Comment & Responses Any Questions?

5. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 5 EDW Compliance Requirements Process The EIS Nodal EDW Compliance requirements submitted to TPTF are those compliance-related requirements that are not covered by the requirements of other Nodal Projects.

6. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 6 Nodal Protocol Backup Info 1.1Summary of the ERCOT Protocols Document (2)The ERCOT Board, Technical Advisory Committee (TAC), and other ERCOT subcommittees authorized by the Board or TAC (“ERCOT’s Committees”) or ERCOT staff may develop polices, guidelines, procedures, forms, and applications for the implementation of and operation under, these Protocols and to comply with applicable rules, laws, and orders of a Governmental Authority. A policy, guideline, procedure, form, or application described above is an “Other Binding Document” if it meets the requirements set forth below. ERCOT shall post all Other Binding Documents to a part of the MIS Secure Area that is reserved for posting of Other Binding Documents. “Other Binding Documents” means: a)The Operating Guides, the Retail Market Guide, the Settlement Metering Operating Guides, the Power System Planning Charter and Process, Texas SET, the Texas Market Test Plan, and the ERCOT Creditworthiness Standards; and b)The policies, guidelines, procedures, forms, and applications that satisfy all the requirements listed below: (i)Before the policy, guideline, procedure, form, or application takes effect, ERCOT must e-mail it to all affected registered Market Participants and must post it to the part of the MIS Secure Area that is reserved for posting of Other Binding Documents. ERCOT must use reasonable efforts to e-mail and post the policy, guideline, procedure, form, or application at least 30 days before it takes effect, but ERCOT must e-mail and post the policy, guideline, procedure, form, or application at least 15 Business Days before it takes effect, unless ERCOT reasonably determines that an urgent circumstance necessitates a shorter notice period or the ERCOT Board approves a shorter notice period. (ii) If either the e-mail or posting under Section 1.1(2)(b)(i) occurs less than 30 days before the policy, guideline, procedure, form, or application takes effect, ERCOT must include in the e-mail and posting an explanation of why it was not able to give 30 days’ advance notice before the policy, guideline, procedure, form, or application takes effect. (iii)ERCOT must label the policy, guideline, procedure, form, or application at the top of its first page with the words “Other Binding Document under Section 1.1 of the Protocols.” (iv)The policy, guideline, procedure, form, or application must expressly state how long it will be in effect.

7. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 7 Nodal Protocol Backup Info 1.1Summary of the ERCOT Protocols Document (2)The ERCOT Board, Technical Advisory Committee (TAC), and other ERCOT subcommittees authorized by the Board or TAC (“ERCOT’s Committees”) or ERCOT staff may develop polices, guidelines, procedures, forms, and applications for the implementation of and operation under, these Protocols and to comply with applicable rules, laws, and orders of a Governmental Authority. A policy, guideline, procedure, form, or application described above is an “Other Binding Document” if it meets the requirements set forth below. ERCOT shall post all Other Binding Documents to a part of the MIS Secure Area that is reserved for posting of Other Binding Documents. “Other Binding Documents” means: a)The Operating Guides, the Retail Market Guide, the Settlement Metering Operating Guides, the Power System Planning Charter and Process, Texas SET, the Texas Market Test Plan, and the ERCOT Creditworthiness Standards; and b)The policies, guidelines, procedures, forms, and applications that satisfy all the requirements listed below: (i)Before the policy, guideline, procedure, form, or application takes effect, ERCOT must e-mail it to all affected registered Market Participants and must post it to the part of the MIS Secure Area that is reserved for posting of Other Binding Documents. ERCOT must use reasonable efforts to e-mail and post the policy, guideline, procedure, form, or application at least 30 days before it takes effect, but ERCOT must e-mail and post the policy, guideline, procedure, form, or application at least 15 Business Days before it takes effect, unless ERCOT reasonably determines that an urgent circumstance necessitates a shorter notice period or the ERCOT Board approves a shorter notice period. (ii) If either the e-mail or posting under Section 1.1(2)(b)(i) occurs less than 30 days before the policy, guideline, procedure, form, or application takes effect, ERCOT must include in the e-mail and posting an explanation of why it was not able to give 30 days’ advance notice before the policy, guideline, procedure, form, or application takes effect. (iii)ERCOT must label the policy, guideline, procedure, form, or application at the top of its first page with the words “Other Binding Document under Section 1.1 of the Protocols.” (iv)The policy, guideline, procedure, form, or application must expressly state how long it will be in effect.

8. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 8 Nodal Protocol Backup Info 21.12Process for Transition to Nodal Market Protocol Sections 21.12.1Introduction ERCOT will implement the nodal market design in phases. This Section provides Market Participants with a transparent and orderly mechanism for retiring zonal Protocol sections and effectuating nodal Protocol sections during the transition to a nodal market design. This Section shall not be used to revise nodal Protocols. Revisions to the nodal Protocols shall be implemented through Section 21.11, Process for Nodal Protocol Revisions. This Section shall automatically expire at 2400 on December 31, 2009 unless terminated sooner by the ERCOT Board of Directors. 21.12.2Notice to Market Participants of Retirement of Zonal Protocol Provisions and Effective Date for Nodal Protocol Provisions No part of the nodal market may start operation until all the Market Readiness Criteria for that part of the nodal market have been met. Certification that all Market Readiness Criteria have been met must be made at least by each of the following: the TPTF, TAC, ERCOT, and the ERCOT Board. Upon such certification, ERCOT shall issue two market notices alerting Market Participants to the retirement of zonal Protocol sections and the effective date of nodal Protocol sections. ERCOT shall issue the first market notice no less than thirty days prior to the retirement or effective date and the second market notice no less than ten days prior to the retirement or effective date. The market notice shall include: (1)The zonal Protocol Sections to be retired, if any; and (2)The nodal Protocol Sections to become effective. 21.12.3Maintenance of Protocols During the Transition to a Nodal Market Design ERCOT shall post to the MIS information contained in the market notice issued pursuant to Section 21.12.2.

9. Texas Nodal © 2005 - 2006 Electric Reliability Council of Texas, Inc. All rights reserved. 9 EDW Requirements Utilization The requirements approved by the TPTF for the EIS Nodal EDW Project will drive the entire data replication and reporting systems for the nodal market. Resultant ServicesEIS NODAL EDW PROJECT TEAM TPTF Section 17 Protocols Nodal Program Reporting Requirements Nodal EDW Project Compliance Requirements Nodal EDW CSD Compliance (Section 8) Protocols Nodal EDW Project IMM & Data Collection Requirements Data Retention And Reporting Architecture Data Services And Products ERCOT Zonal Delivery System Updates Nodal Market Data Delivery