1. Date Meeting Title (optional) Texas Reliability Entity Update Don Jones Manager, Reliability Standards

2. 2 TAC 4/8/2010

3. 3 TAC 4/8/2010

4. 4 Texas RE Separation Update ●On track for July 1 legal separation from ERCOT  Expect FERC approval in May ●Texas Reliability Entity has 92 members as of March 30 (82 in good standing) ●A search is underway for independent board members ●The election process for member representatives to sit on the Texas RE stakeholder committees will begin in early May TAC 4/8/2010

5. 5 Texas RE Segment Membership ●92* Texas Reliability Entity membership applications received  System Coordination & Planning: 1  Transmission:10  Cooperative Utility: 12  Municipal Utility: 12  Generation: 48  Load-Serving and Marketing: 9 ●82* Members in good standing: *Numbers are as of March 30 TAC 4/8/2010

6. 6 TAC 4/8/2010 Formation of MRC and New RSC ●Texas Reliability Entity, Inc. will establish the Member Representatives Committee (MRC) and the NEW Reliability Standards Committee (RSC) in preparation for commencement of independent operations in July ●Each Texas Reliability Entity Sector will select two representatives for each committee (one if the Sector has only one member)  An alternate for the MRC will also be selected by each Sector

7. 7 Representative Selection ●Each Sector is encouraged to coordinate to determine how its representatives will be selected  The Texas Reliability Entity membership list is posted and contains each member’s primary and alternate contact informationmembership list ●We expect some Sectors will select their MRC and RSC representatives by consensus or informal election  Those Sectors can simply provide us with the names of their selected representatives TAC 4/8/2010

8. 8 Election Schedule ●May 3: Names of representatives due from Sectors coordinating their own selection process, or Sectors can inform Texas RE they will provide names by May 21 and do not need Texas RE to conduct an election. TAC 4/8/2010

9. 9 Election Schedule ●For Sectors that do not provide consensus representatives, the timeline for holding formal elections is as follows:  May 4-13: Texas RE will solicit nominations for MRC and RSC positions.  May 14: Nominations will be posted and ballots distributed.  May 14-23: Ballots accepted.  May 24: Texas RE will post full rosters for MRC and RSC. TAC 4/8/2010

10. 10 Meeting Schedule ●After the MRC and RSC slates are filled, the following initial meetings will be held:  June 2: First meeting of the MRC to elect chair and vice chair (who will serve on the Texas Reliability Entity Board). This meeting will follow the RSC meeting on that day  June 22: First meeting of the independent Texas RE Board  July 13: First meeting of the independent Texas RE RSC TAC 4/8/2010

11. 11 Texas RE Standards and Compliance Workshop ●Texas RE will hold its Spring 2010 Standards and Compliance Workshop on Wednesday, May 26 at ERCOT Met Center in Room 206 ●Registration will open six weeks in advance on April 14 on www.texasre.org/about/training/www.texasre.org/about/training/  Reminder notices will be sent out to the Texas RE email list  Subscribe to ERCOT Mailing List “TexasRE_Info” TAC 4/8/2010

12. 12 Next Steps ●Texas RE will send additional announcements to members and to the mailing list whenever action is required. For questions, please contact Don Jones or Sarah Hensley.Don JonesSarah Hensley TAC 4/8/2010