1. http://nodal.ercot.com 1 Market Trials Congestion Revenue Rights Weekly Update September 3, 2010

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 Environment Report –Planned / unplanned outages –Known Issues Standing Reports and Updates –Future activities Question and Answers / General Discussion –FAQ 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. Market Trials 2010 Roadmap http://nodal.ercot.com 4

5. http://nodal.ercot.com 5 Day-to-day operations summary: Planned / Unplanned Outages of EDS Planned Outages Thursday, 9/2/10, from 3:00pm until 5:00pm** No planned outages next week Unplanned Outages Monday, 8/30/10 intermittently starting around 2:40pm ** This outage involved the CRR System being synchronized with the current Registration data in Siebel. If you cannot get into the CRR application on MIS anymore, it is because you have not completed qualification yet. Please contact your WCS representative.

6. Known Issues Topology Processor (software that creates the PSS/E file from the Network data) does not export the outages to CRR’s PSS/E file –CRR team has a workaround by using the TCR PSS/E file with outages and augmenting it for the CRR application Update: This is still an issue in the vendor software, so we will be using the manual process again for the October auction model in Market Trials.

7. http://nodal.ercot.com 7 Standing Reports and Updates: General reminders / updates October Auction Market Trials Activities – NEW* ** The Credit Exposure sent to CMM is the lesser of the ACL received from CMM on Tuesday, 9/21, or the credit locked for the market by the CP or the AH * Market Trials Handbook has been updated with these new dates DayDateActivity Wednesday9/8/2010CRR Ownership as of 8/31/2010 Posted on MIS Friday9/10/2010 2010.October.Monthly Auction Network Model Posted to MIS 2010.October.Monthly Auction True-Ups Allocated, if warranted Monday9/13/2010 2010.October.Monthly Auction Notice Posted to MIS 2010.October.Monthly Auction Credit Window Opens at 00:00:01am Monday9/20/2010 2010.October.Monthly Auction Credit Window Lock Date at 5:00pm 2010.October.Monthly Auction Bidding Window Opens at 00:00:01am Tuesday9/21/2010 2010.October.Monthly Auction Final eCollateral due at noon 2010.October.Monthly Auction Locked Credit sent to CMM at 4:30pm** Wednesday9/22/20102010.October.Monthly Auction Bidding Window Closes at 11:59:59pm Thursday9/23/20102010.October.Monthly Auction 2nd Round Bidding, if needed, from Noon to 11:59:59pm Friday9/24/20102010.October.Monthly Auction Market Calculations Monday9/27/20102010.October.Monthly Auction Market Results Posted to MIS Tuesday9/28/2010 2010.October.Monthly Auction Invoices Posted to MIS 2010.October.Monthly Auction Credit Exposure released at 4:30pm

8. http://nodal.ercot.com 8 Standing Reports and Updates: General reminders / updates 2010-2011 Activity Calendar posted to MIS on Wednesday, 9/1 NOIE’s must have their paperwork submitted to Ercot by Wednesday, 9/8, at 5:00pm

9. http://nodal.ercot.com 9 Q&A Q&A / Open Forum

10. How will new Market Participants get Qualified for future CRR markets? Your Wholesale Client Services Representative will continue to walk you through the Registration Process after Texas Nodal Implementation, just as they have done during Market Trials. The cutoff date of 8/13 for the December 2010 auction was to allow enough time for Legal, Registration, Credit, and CRR to complete their qualification activities. While this is the only market with a specified “cut-off” date, please allow adequate time for the registration, qualification and credit approval to be completed in order to participate in future CRR activities.

11. http://nodal.ercot.com 11 What is the CRR Schedule of Activities from now until Go-Live? DayDateActivityComments Wednesday9/1/2010 ERCOT posts CRR Activity Calendar to MIS Wednesday9/8/2010 NOIE’s must have proof of ownership in to ERCOT by 5:00pm CPT Thursday9/23/2010 ERCOT CRR Group begins validation of Generation Resource Capacity of approved ownership for Generation Resources or Long-Term Contractual Agreements Monday10/1/2010 ERCOT initializes and validates CRR Production Database static data, Market Participant data, Time of Use data, Calendar Period data, system parameters, etc. Wednesday10/13/2010 ERCOT CRR team prepares contracts and entitlements for 2010 December Allocation and loads into CRR system Thursday10/14/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2010 December Monthly CRR Auction 1 Tuesday10/19/2010 PCRR Nomination for the 2010 December Monthly CRR Allocation must be received by ERCOT at 17:00:00 CPT 2 15 Business Days prior to the opening of the auction Section 7.4.2 (c)(i) Tuesday10/26/2010 ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly CRR Auction 3 10 Business Days prior to the opening of the auction Section 7.4.2 (c)(i) ERCOT shall post CRR Network Model for the 2010 December Monthly CRR Auction 4 Post no later than 10 Business days before the auction Section 7.5.3 (1)(i)(i) Friday10/29/2010 ERCOT shall post the 2010 December Monthly CRR Auction Notice 5 Not less than 10 days before each monthly CRR auction Section 7.5.3.2 (1) Friday11/5/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 January Monthly CRR Auction 1 5 Days from acceptance date

12. http://nodal.ercot.com 12 What is the CRR Schedule of Activities from now until Go-Live? DayDateActivityComments Monday11/8/2010 CRR Auction Lock Date for 2010 December Monthly CRR Auction at 17:00:00 CPT 6 Lock Date Section 16.11.4.6.1 (1) Tuesday11/9/2010 CRR Auction Bid Window Opens at 00:00:01 CPT for the 2010 December Monthly CRR Auction 7 Thursday11/11/2010 CRR Auction Bid Window Closes at 23:59:59 CPT for the 2010 December Monthly CRR Auction 8 Friday11/12/2010 ERCOT starts the Execution of the Auction Engine for the 2010 December Monthly CRR Auction 9 Auction Engine Starts PCRR Nomination for the 2011 January Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2 15 Business Days prior to the opening of the auction Section 7.4.2 (c)(i) Monday11/15/2010 ERCOT posts 2010 December Monthly CRR Auction results to Market at 01:00:00 CPT ERCOT creates Common Download files for CRR Auction Results by 8:00am CPT 10 Post Auction Results Section 7.5.3.1 (1) ERCOT sends auction results at 01:55:00 CPT to Settlements & Billing and Credit for 2010 December Monthly CRR Auction 11 Tuesday11/16/2010 CRR releases the Locked Auction Funds for 2010 December Monthly CRR Auction at 17:15:00 CPT 12 ERCOT releases locked auction funded Settlement & Billing creates a 2011 January CRR Auction Invoice and sends in out electronically prior to 23:59:59 CPT 13 S&B issues invoices Section 9.8(1) Friday11/19/2010 2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14 Invoices due Section 9.9.1(1) ERCOT shall allocate PCRRs to NOIEs for the 2011 January Monthly CRR Auction 3 10 Business Days prior to the opening of the auction Section 7.4.2 (c)(i) ERCOT shall post CRR Network Model for the 2011 January Monthly CRR Auction 4 Post no later than 10 Business days before the auction Section 7.5.3 (1)(i)(i) Monday11/22/2010 ERCOT due to pay out to CRR Account Holders that are owed from 2010 December Monthly CRR Auction 15 Money owed to CRR AH paid Section 9.9.2(1)

13. http://nodal.ercot.com 13 What is the CRR Schedule of Activities from now until Go-Live? DayDateActivityComments Friday11/19/2010 2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14 Invoices due Section 9.9.1(1) Wednesday11/24/2010 ERCOT shall post the 2011 January Monthly CRR Auction Notice 5 Not less than 10 days before each monthly CRR auction Section 7.5.3.2 (1) Tuesday11/30/2010 CRR sends Daily Ownership Data to MMS at 1:55am for 12/1//2010 Day Ahead Market Wednesday12/1/2010 Go Live Date Friday12/3/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 February Monthly CRR Auction 1 Monday12/6/2010 CRR Auction Lock Date for 2011 January Monthly Auction Closes at 17:00:00 CPT 6 Lock Date Section 16.11.4.6.1 (1) Tuesday12/7/2010 CRR Auction Bid Window Opens at 00:00:01CPT for the 2011 January Monthly Auction 7 ERCOT shall post CRR ownership as of 11/30/2010 Section 7.5.5.2 Thursday12/9/2010 CRR Auction Bid Window Closes at 23:59:59 CPT for the 2011 January Monthly CRR Auction 8 Friday12/10/2010 ERCOT starts the Execution of the Auction Engine for the 2011 January Monthly CRR Auction 9 PCRR Nomination for the 2011 February Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2 15 Business Days prior to the opening of the auction Section 7.4.2 (c)(i)