1. Report to TAC July 2008

2. In Brief Working Group Reports Working Group Reports CMWG CMWG DSWG DSWG MCWG MCWG MWG MWG QMWG QMWG VCWG VCWG Task Forces Task Forces Potomac Economics Recommendations & Cost Allocation – Inactive Potomac Economics Recommendations & Cost Allocation – Inactive Generation Adequacy - Reactivate Generation Adequacy - Reactivate Other Reports Other Reports NOGRR 025 NOGRR 025 PRR for CSC/CRE Determination PRR for CSC/CRE Determination PPL PPL CDR CDR

3. Working Group Reports Active/Inactive Task Forces WMS voted to inactivate: WMS voted to inactivate: Potomac Recommendations Task Force Potomac Recommendations Task Force Cost Allocation Task Force Cost Allocation Task Force WMS wants TAC guidance on: WMS wants TAC guidance on: Generation Adequacy Task Force Generation Adequacy Task Force Was a joint ROS/WMS Task Force and then a WMS only Task Force Was a joint ROS/WMS Task Force and then a WMS only Task Force

4. Working Group Reports CMWG PRR 801 PRR 801 Approved a motion not to include auction revenues in the revenue neutrality calculation. Approved a motion not to include auction revenues in the revenue neutrality calculation. Also included the following (related to the scaling factor): Also included the following (related to the scaling factor): Combinations of outages known at the time of development of the monthly TCR auction model; Combinations of outages known at the time of development of the monthly TCR auction model; Outages are expected to be entered for the month, subsequent to the development of the TCR auction model; Outages are expected to be entered for the month, subsequent to the development of the TCR auction model; Historical CSC operational flow capability for the month or season; and Historical CSC operational flow capability for the month or season; and ERCOT to publish scaling factors/reasons with monthly TCR auction announcement. ERCOT to publish scaling factors/reasons with monthly TCR auction announcement.

5. Working Group Reports CMWG CRE selection criteria CRE selection criteria threshold-weighted shift factor/PTDFs threshold-weighted shift factor/PTDFs boundary generation boundary generation concentration of effective generation; and concentration of effective generation; and correlation of CRE to its zone correlation of CRE to its zone WMS recommended that it be filed (PRR 816) WMS recommended that it be filed (PRR 816) 2010 CSC/CRE Schedule 2010 CSC/CRE Schedule Yesterday Yesterday July 24, 2009 July 24, 2009 August 04, 2009 August 04, 2009

6. Working Group Reports DSWG Technical Workshop on EILs – July 17 th Technical Workshop on EILs – July 17 th

7. Working Group Reports DSWG Draft PRR for Load Resource Responsive Reserve Compliance (Protocol Section 6.10.5.4) Draft PRR for Load Resource Responsive Reserve Compliance (Protocol Section 6.10.5.4) Report failures to the Texas Reliability Entity (TRE) Report failures to the Texas Reliability Entity (TRE) Proposed change recommends a portfolio approach Proposed change recommends a portfolio approach WMS suggested that DSWG consider a unit-specific approach WMS suggested that DSWG consider a unit-specific approach

8. Working Group Reports MCWG NPRR 147 NPRR 147 Alternatives Discussions to Date: Alternatives Discussions to Date: Shortfall funding options Shortfall funding options Loss allocation options Loss allocation options Other market Comparisons Other market Comparisons

9. Working Group Reports MWG SMOGRR007, Synchronization of Settlement Metering Operating Guide with PRR804, Revisions to Section 21 Appeal Process SMOGRR007, Synchronization of Settlement Metering Operating Guide with PRR804, Revisions to Section 21 Appeal Process MWG has filed the SMOGRR MWG has filed the SMOGRR

10. Working Group Reports QMWG PRR 811 – Real Time Production Potential PRR 811 – Real Time Production Potential Data mining in process from multiple wind resources Data mining in process from multiple wind resources Need ERCOT and TRE input on PRR and more input on data calculation method Need ERCOT and TRE input on PRR and more input on data calculation method WMS urged the PRR move forward WMS urged the PRR move forward SCR 754 – migration was on June 24 th SCR 754 – migration was on June 24 th Implementation Update PRR803/776 – no reported issues Implementation Update PRR803/776 – no reported issues Nodal WGR White Paper – NPRR being drafted Nodal WGR White Paper – NPRR being drafted OOMe Reliability Tool Enhancements OOMe Reliability Tool Enhancements Electronic OOMe deployments to resources to address limitations in MOS in deployments above or below unit-specific instructions – implementation 9/3/09 Electronic OOMe deployments to resources to address limitations in MOS in deployments above or below unit-specific instructions – implementation 9/3/09 Draft NOGRR for ICCP Handbook Change Control Draft NOGRR for ICCP Handbook Change Control ERCOT to draft new NOGRR ERCOT to draft new NOGRR

11. Working Group Reports VCWG Clean Air Interstate Rule (CAIR) Clean Air Interstate Rule (CAIR) Became effective 1/1/2009 adding an SO2 trading program in 2010 – VCWG will draft manual changes for WMS approval in July. Became effective 1/1/2009 adding an SO2 trading program in 2010 – VCWG will draft manual changes for WMS approval in July. NPRR168 – Verifiable Costs General Corrections NPRR168 – Verifiable Costs General Corrections Referred back to VCWG to consider timing for calculating and posting the proxy heat rate. Referred back to VCWG to consider timing for calculating and posting the proxy heat rate. Draft NPRR for RUC Cancellations Draft NPRR for RUC Cancellations WMS approved VCWG filing of NPRR WMS approved VCWG filing of NPRR

12. Working Group Reports VCWG NPRR174 – FIP Modifications in Verifiable Startup and Minimum Energy Cost and Recovery of Exceptional Fuel Costs During RUC Intervals NPRR174 – FIP Modifications in Verifiable Startup and Minimum Energy Cost and Recovery of Exceptional Fuel Costs During RUC Intervals WMS reviewed issues related to gas price blowout impacting shorts (not valid) and endorsed NPRR WMS reviewed issues related to gas price blowout impacting shorts (not valid) and endorsed NPRR Nodal Verifiable Cost Manual Revisions Nodal Verifiable Cost Manual Revisions Nodal Historical O&M Costs White Paper was discussed and VCWG will discuss an update on July 15 Nodal Historical O&M Costs White Paper was discussed and VCWG will discuss an update on July 15 WMS endorsed the concepts in the Nodal Surcharge White Paper WMS endorsed the concepts in the Nodal Surcharge White Paper Draft Nodal Verifiable Cost Affidavit Draft Nodal Verifiable Cost Affidavit REs and QSEs please have your legal depts. review REs and QSEs please have your legal depts. review

13. Other WMS activity NOGRR 025 NOGRR 025 At the June 30, 2009 Special Joint Reliability and Operations Subcommittee (ROS)/WMS meeting, WMS voted to endorse NOGRR025 as amended by the 06/22/09 NDSWG comments and as revised by WMS. The WMS revisions incorporate portions of the comments previously filed. At the June 30, 2009 Special Joint Reliability and Operations Subcommittee (ROS)/WMS meeting, WMS voted to endorse NOGRR025 as amended by the 06/22/09 NDSWG comments and as revised by WMS. The WMS revisions incorporate portions of the comments previously filed. PRR815 CSC/CRE Determination Process PRR815 CSC/CRE Determination Process In absence of a final order, WMS has concerns regarding use of “shall” in 7.2.1 (1)(a)(ii) In absence of a final order, WMS has concerns regarding use of “shall” in 7.2.1 (1)(a)(ii)

14. Other WMS activity 2010 Project Prioritization List 2010 Project Prioritization List Endorsed as presented Endorsed as presented 2009 CDR 2009 CDR Reconstitute GATF with intent to make recommendations for May 2010 CDR, not December CDR update. Reconstitute GATF with intent to make recommendations for May 2010 CDR, not December CDR update.

15. WMS 2009 Goals Item WMS input/direction needed by Nodal Market Transition On-going Nodal Verifiable Cost Methodology On-going (VCWG) Approved Zonal PRRs – Analysis and Prioritization Q1-Q2 Consideration of timely, economic improvements to Zonal Market Before Q4 Determine CSCs for 2010 Q3 (CMWG) Market Issues Related to: Credit issues On-going (MCWG) EILS and AS Markets On-going Integrating advanced meters & other demand response into Ancillary Service Markets On-going (DSWG) Wind & related renewable technology integration On-going (QMWG/RTWG)