1. Nodal Formatting of Zonal Protocols Sections Currently Not Part of the Nodal Protocols 11/28/06 TPTF Diana Zake, Market Rules

2. 2 Market Rules’ goal is for the market to have a complete set of Nodal Protocols by the full implementation of the Texas Nodal market. There are 11 Zonal Sections (10, 11, 13, 14, 15, 18, 19, 20, 21, 23, and 24) and the ERCOT Fee Schedule that have not yet been formatted for the Nodal Protocols. Nodal formatting for Zonal Section 10 is underway under NPRR034. Nodal formatting for Zonal Section 13 is under consideration by the UFE Task Force. Current Status

3. 3 What is Formatting? Consists of non-substantive revisions such as: Correction of typos (excluding grammatical changes); internal references (including table of contents); improper use of acronyms; and references to ERCOT Protocols, PUCT Substantive Rules, the Public Utility Regulatory Act (PURA), North American Electric Reliability Council (NERC) regulations, Federal Energy Regulatory Commission (FERC) rules, etc. Renumbering paragraphs, lists and items. Incorporation of Nodal terminology. Should formatting incorporate revisions agreed upon by TNT?

4. 4 NPRR Processing Protocol Section 21.11,Process for Nodal Protocol Revisions, contains details of the accelerated timeline for stakeholder review and approval of NPRRs. Paragraph (2) of Protocol Section 21.11.1, Introduction, states that Section 21.11 applies to NPRRs until the date of full implementation of the Texas Nodal market.

5. 5 NPRR Processing Until the full implementation of the Texas Nodal market, Market Rules will maintain two sets of Protocols. A PRR that effect the Nodal market design must be accompanied by a NPRR; the revisions are maintained on both the PRR and NPRR web pages and are considered separately through the ERCOT governance process (e.g., NPRR017/PRR681, NPRR019/PRR686, NPRR020/PRR688). Several companion NPRRs are yet to be submitted (e.g., PRR679, PRR682, PRR685, PRR697, PRR698).

6. 6 2006-2008 Project Budgets CART 2006 2007 2008 (projected) CO$ 2.5M$ 4.5M $ 2.0M IO$ 8.1M$12.5M $ 8.0M MO $ 2.5M$ 1.5M $ 0.3M RO$ 6.7M$ 7.0M $ 5.0M SO$ 5.2M$ 4.5M $ 0.5M Totals $25.0M $30.0M $15.8M This forecast is a hint of the amount and category of Zonal Protocol activity to expect. However, not all PRRs/NPRRs result in system projects.

7. 7 Plan for Nodal Formatting of Outstanding Zonal Protocol Sections Market Rules will submit NPRRs to format outstanding Zonal sections no later than 3/31/08 to minimize the number of synchronization NPRRs for PRRs approved in 2007. Market Rules will support any request to submit NPRRs to format outstanding Zonal sections prior to 3/31/08.

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