1. T ECHNICAL A DVISORY C OMMITTEE F EBRUARY 2010 U PDATE Commercial Operations Subcommittee (COPS) Retail Market Subcommittee (RMS) 1

2. 2010 TAC S UBCOMMITTEE L EADERSHIP R ECEIVED C ONFIRMATION Commercial Operations Subcommittee (COPS) Chair: Debbie McKeever, Oncor Vice Chair: Ken Riordon, LCRA Retail Market Subcommittee (RMS) Chair: Kyle Patrick, Reliant Energy Vice Chair: Kathy Scott, CenterPoint Energy Protocol Revisions Subcommittee (PRS) Chair: Sandy Morris, LCRA Vice Chair: Marguerite Wagner, PSEG Texas Reliability and Operations Subcommittee (ROS) Chair: Ken Donohoo, Oncor Vice Chair: Scott Helyer, Tenaska Wholesale Market Subcommittee (WMS) Chair: Barbara Clemenhagen, Topaz Power Group Vice Chair: Jennifer Troutman, AEP Energy Partners Nodal Advisory Task Force (NATF) Chair: Don Blackburn, Luminant Vice Chair: James Jackson, CPS Energy 2

3. 300– N ODAL U PDATE 300 D AYS TO G O -L IVE – 0 I TEMS I MPACTING G O -L IVE D ATE Market Trials 2.1: Market Connectivity Complete Market Trials 3.0: Congestion Revenue Rights (CRR) 43 of 83 CRRAH Qualified to date First Monthly Auction for March begins on February 12 th CRR allocation starts on Feb 1 st Market Trials 3.0: Real Time Markets / Outage Scheduler Started Feb 1 st 160 of 292 QSEs Qualified for MMS transaction submittal 64 / 114 QSEs w/ Resources 79 % of Generation Qualified Window Closes for Qualification on Aug 13 th Metrics: Outage Scheduler Qualification Tracking to be added 2/5/2010 LMP Trending and Reasonableness to be added 2/10/2010 Outage Scheduler Qualifications will continue through March 30 th March 1 st starts Six month LMP analysis 3

4. 300 N ODAL U PDATE 300 D AYS TO G O -L IVE – 0 I TEMS I MPACTING G O -L IVE D ATE Market Trials 4.0: DAM/RUC Starting Thursday Apr 1 st, for Operating Day Friday April 2 nd On Schedule Submission Qualifications underway in Market Trials 2.1 Market Trials 5.0: Full Functionality Starting May 17 th 2 Week Slippage Mitigation plan in place to pull back on track Overtime and budget monitoring Market Readiness 27 of 34 outreach sessions completed 4

5. 2010 P ARTICIPANT R EADINESS T OUCH P OINTS Meetings Training Outreach Market Trials April March February January 7 site visits MP 6 –Telemetry & MP 14 –RARF launched 1/28 MRS #2 NATF 1/5 Nodal 101 LSE 201 Generation 101, 201 CRR –Online Settlement Workshop NMMS 5 site visits Additional Phase 3 metrics Standby site visits mitigation approach Start weekly calls Mandatory QSE/CRRAH re- qualification begins Phase 3 Handbooks COMS Outage Scheduler CRR RTM/LFC Weekly calls Phase 3 Market Trials initiates QSE OS qualification Phase 4 Handbooks DAM/RUC MIS Credit Nodal 101 LSE 201 Basic Training Generation 101, 201 CRR – instructor-led Settlement Workshop Operations Seminar NATF 2/2 Nodal 101 LSE 201 Basic Training Generation 101, 201 CRR – instructor-led Settlement Workshop Operations Seminar NATF 3/2 Weekly calls Phase 3 Execution Phase 4 Handbooks Updates to prior handbooks LFC individual QSE tests 4 site visits Scheduled Site Visits conclude MRS #3 Standby site visits Phase 4 metrics launch Weekly calls Phase 4 Market Trials initiates NATF 4/6 Nodal 101 Trans 101 Generation 101, 201 CRR – instructor-led NMMS Economics of LMP 5

6. P ROTOCOL R EVISION S UBCOMMITTEE (PRS) PRR837, Load Used in RMR Studies NPRR198, Load Used in RMR Studies- Provides guidance to ERCOT to use the peak Load forecast posted pursuant to P.U.C. SUBST. R. 25.505, Resource Adequacy in the Electric Reliability Council of Texas Power Region, for the next 12 months for the RMR study PRR837 - Approved with minor edits NPRR198 - Tabled at TAC TAC made the same edits to the NPRR that were agreed to on the PRR, however NPRR was tabled at TAC to allow PRR837 to be approved by the ERCOT Board prior to submitting the NPRR. NPRR199, Shift Factors by Resource Node Adds the reporting requirement for ERCOT to provide Shift Factors by Resource Node and is necessary for Nodal Go-Live. NPRR199 - Approved NPRR200, MMS DC Tie Schedule Data Source Changes the source of Direct Current Tie (DC Tie) Schedules for use by the Market Management System (MMS) to an associated QSE submitted Electronic Tag (e-Tag). This NPRR is also necessary for Nodal Go-Live. NPRR200 - Approved 6

7. P ROTOCOL R EVISION S UBCOMMITTEE (PRS) NPRR201, Calculation of Transmission and Distribution Losses Revises the Nodal Protocol language to align with the current practice for calculation of Transmission Losses and Distribution Losses on a seasonal versus monthly basis. NPRR201 - Approved NPRR206, Nodal Market Day-Ahead Market Credit Requirements Revises the nodal collateral requirements by QSEs who participate in the Day-Ahead Market (DAM). The change will potentially reduce the collateral burden for QSEs’ bids while sufficiently collateralizing ERCOT. Several meetings prior to TAC were held and a lot of discussion during TAC was conducted prior to voting on this NPRR. Several market participants filed comments to clarify language proposed in the PRS recommendation; NPRR206 - Approved with several edits by TAC 7

8. C OMMERCIAL O PERATIONS S UBCOMMITTEE (COPS) LPGRR037, Replace Wording Truncated from LPGRR035 12/30/09 This LPGRR revises the Profile Decision Tree to include wording that was truncated by Microsoft Excel 2003© during the processing of LPGRR035 before it was approved. Urgent Status was requested and approved by COPS LPGRR037 - Approved Subcommittee, Working Group and Taskforce 2010 Goals were included in the COPS update to TAC 8

9. R ETAIL M ARKET S UBCOMMITTEE (RMS) W HOLESALE M ARKET S UBCOMMITTEE (WMS) The only voting item for RMS and WMS this month was to receive TAC confirmation on their 2010 Subcommittee Leadership Subcommittee, Working Group and Taskforce 2010 Goals were included in their update to TAC 9

10. R ELIABILITY AND O PERATIONS S UBCOMMITTEE (ROS) OGRR233, Backup Control Plan Submission Process NOGRR028, Synchronization – Backup Control Plan Submission Process This Operating Guide Revision Request (OGRR) and Nodal Operating Guide Revision Request (NOGRR) proposes language changes to clarify the frequency and submittal process of backup control plans. Both the OGRR233 and NOGRR028 were Tabled at TAC to allow time for additional investigations to be completed that will determine if there are process overlaps created with implementing both the OGRR233 and NOGRR028 NOGRR031, Synchronization with OGRR218, Revise Training Requirements for QSEs Nodal Operating Guide Revision Request (NOGRR) changes the five day (40 hours) emergency training requirements to 32 hours for QSEs who represent Generation or Load Resources and eight hours for Qualified Scheduling Entity (QSE) operators who do not represent Generation or Load Resources. NOGRR031 Approved by TAC 10

11. R ENEWABLE T ECHNOLOGY W ORKING G ROUP Q4-2009 Texas Renewable Implementation Plan (TRIP) TAC Endorsed the recommended Q4-2009 Texas Renewable Implementation Plan (TRIP) TAC assigned new Renewable Technology Working Group Leadership Mark Bruce - NextEra Energy Resources - Chair Howard Daniels – CenterPoint Energy - Vice Chair. 11

12. A DDITIONAL V OTING I TEMS : ERCOT Operations, Planning, and IT Reports 2010 Closely Related Element (CRE) Addition Approved Calpine Permanent Exemption Request for Protocol Section 10.3.2.2, Generation Netting for ERCOT Polled Settlement Meters Calpine Exemption was Approved Multiple Interconnected Generators (MIG) Task Force Report For multiple interconnected Generators the MIG Taskforce recommended that ERCOT use the same timeline that is currently in Protocols that is used for outage coordination Approved by TAC 12

13. A DDITIONAL T ABLED I TEMS PRR833, Primary Frequency Response Requirement from Existing WGRs -- Left on the Tabled list due to discussions are still on-going NPRR091, Scarcity Pricing and Mitigated Offer Cap During the Period Commencing on the Nodal Market Implementation Date and Continuing for a Total of 45 Days Approved motion to Table for a month to allow time for WMS to revisit this NPRR091 since it has been tabled for two years, may need to be updated. NPRR146, ICCP Telemetry Information Submittals TAC Approved Tabling indefinitely 13

14. 2010 TAC L EADERSHIP R ETREAT F RIDAY, F EBRUARY 5, 2010 TAC and Subcommittee Leadership discussed: Nodal Implementation What is expected of each Subcommittee? What does ERCOT expect from each Subcommittee? Are there special implementation needs that need to be addressed by TAC, Subcommittees and/or NATF ? What should be the avenue or venue to get emergency/urgent issues addressed and resolved quickly? 2010 TAC Goals New Technology Integration TAC/Subcommittee References in the Protocols Various sections in Section 18 – Load Profiling Various sections in Section 19 – Texas SET Transactions 14

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