1. http://nodal.ercot.com 1 Market Trials Real Time Market / LFC Weekly Update February 19, 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 Antitrust Admonition Real Time Market / LFC Call Overview –Scope of call –Standing agenda items Environment Report –Planned / unplanned outages –Known Issues FAQ and Support Metrics Standing Reports and Updates –General reminders / updates –Readiness outreach update –Qualification update Qualification Status Phase 3 RTM / LFC Update Question and Answers / General Discussion 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. QSE Qualification Call Overview: 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 –FYI: ERCOT will be performing a patch migration this weekend Unplanned Outages –02/15/10 – 02/15/10 9:10 A.M – 9.20 A.M Service availability was interrupted on the Market Manager system with bid submission status not being reported during this period. –02/16/10 – 02/16/10 4:10 P.M – 4.30 P.M Service availability was interrupted on the Market Manager system with bid submission status not being reported during this period. –02/18/10 – 02/18/10 11:50 A.M – 12.00 P.M Timeout errors were being reported with both EWS and Market Manager submissions. –02/18/10 – 02/18/10 2:05 P.M – 2.10 P.M Timeout errors were being reported with both EWS and Market Manager submissions.

6. http://nodal.ercot.com 6 Environment Report: Known Issues ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml http://nodal.ercot.com/readiness/markettrials/connectivity/index.ht ml Note that known issues will be posted to each functional area going forward (e.g. RTM / LFC issues will post to the RTM / LFC section of the readiness center)

7. http://nodal.ercot.com 7 Nodal Telemetry Outreach Update New Known Issues Issue with NP6-215: Real-Time Dynamic Rating Data A defect has been entered to properly stamp the date/time for the data in the report Issue with the last interval of 15-min type submissions having the wrong date in the field returned in query The last interval of 15-min type submissions (self schedule, energy trade) is returned with the wrong date in the field. The date returned should be one day less than what is returned. This condition may result in empty fields displayed following MMS UI queries for Energy Trades and Self-Schedules on the MMS MM UI when Energy Trade and Self-Schedule data to fill the query actually exists in the system

8. http://nodal.ercot.com 8 Nodal Telemetry Outreach Update Closed Known Issues Issue with report NP6-235: System-Wide Demand Previously unable to confirm values in demand column; report contained incorrect values Issue with report NP4-722: Weather Assumptions This report previously referenced an Hour Beginning timestamp when it should have been referencing an Hour Ending timestamp Issue with SOAP fault sync response For transactions that should generate a SOAP fault, the sync response was previously not SOAP signed Issue with querying for Ramp Rate Reasonability Limits for Load Resources Queries for Ramp Rate Reasonability Limits for Load Resources previously did not return any results; instead, the resource_parameter web service would return a “not found” error

9. http://nodal.ercot.com 9 Nodal Telemetry Outreach Update Closed Known Issues Issue with error on Self-Arranged AS submission via API Self AS submissions for RRS require all three RRS sub-types to be entered. Previously, if all three sub-types were not entered for a Self AS submission, the error message returned was unclear (starting with org.xml.sax.SAXException) Issue with Market Manager displaying “successful cancellation” messages for unsuccessful cancellations For cancellations violating a validation rule (for instance, trying to cancel a submission for an Operating Day in the past), the Market Manger UI previously displayed an incorrect message saying that the cancel operation was successful instead of displaying the error message

10. http://nodal.ercot.com 10 FAQ / Support Metrics Most questions are responded to within a 24 hour time frame Note that these do not include follow-up questions FAQs : No new for the week

11. http://nodal.ercot.com 11 Standing Reports and Updates: General reminders / updates Network Model Update –Successfully applied the network model update 2/17/2010 ~6:30pm –This applies data “as of” 2/1/2010 –Next two loads are targeted for 3/3/2010 and 3/17/2010 –Known issue: some Load resources were mistakenly removed or renamed incorrectly. This will be resolved by 3/19/2010 Settlement point and MP short name list on readiness center –ERCOT has refreshed the list of settlement points and short names on the readiness website last night http://nodal.ercot.com/readiness/markettrials/index.html http://nodal.ercot.com/readiness/markettrials/index.html –Note that these two spreadsheets have been combined into 1 –Reflects the 2/17 network model update –New “DRAFT” information added to the spreadsheet: Substation to Load Zone mapping per section 3 of the Nodal Protocols Load to NOIE Load Zone mapping Resource Node to Electrical Bus mapping Load Resource to Load Zone mapping

12. http://nodal.ercot.com 12 Standing reports and updates: General Reminders / Updates FIP/FOP (no change for next week) –Fuel Index Price for next week will be $5.44 –Fuel Oil Price will be $13.50 for next week Handbooks Updated for Phase 4 –These are now published to the readiness center –http://nodal.ercot.com/readiness/index.htmlhttp://nodal.ercot.com/readiness/index.html –Reminder: MRS #3 and Market Trials Kick Off 3/25/2010 –Details in an upcoming Market Notice

13. Outreach Program Overview Confirmed Scheduled Site Visits NEXTera (February 26 th ) XTEND Energy (March 3 rd ) Brazos (March 10 th ) Shell (March 11 th ) Formosa (March 16 th ) Westar (March 18 th ) Market Call 19 February 2010

14. Outreach Program Overview Market Participant “Menu” Topics: All materials are available on the Nodal Readiness Center. (http://nodal.ercot.com/readiness/outreach/index.html)http://nodal.ercot.com/readiness/outreach/index.html Nodal Program Update (mandatory) – (75 min) Readiness Center and Readiness Scorecard – (45 min) Day-Ahead Market Implementation – (60 min) Congestion Revenue Rights (CRR) Auction Implementation – (60 min) Reliability Unit Commitment Implementation – (60 min) Telemetry & Load Frequency Control (LFC) – (30 min) Real Time Market Processes & Systems – (60 min) Nodal Settlement and Billing Processes – (60 min) Reports and Data Extracts – (30 min) Credit Monitoring and Management – (45 minutes) Market Call 19 February 2010

15. Outreach Program Overview Outreach Site Visits continue through March 2010 EntityDate LOWER COLORADO RIVER AUTHORITY9-Oct CALPINE CORP14-Oct AUSTIN ENERGY20-Oct CITY OF GARLAND21-Oct GDF SUEZ ENERGY MARKETING29-Oct ANP FUNDING3-Nov LUMINANT ENERGY5-Nov INVENERGY WIND DEVELOPMENT10-Nov EXELON11-Nov AMERICAN ELECTRIC POWER SERVICE12-Nov CONSTELLATION ENERGY17-Nov PSEG ENERGY RESOURCES18-Nov J ARON19-Nov FULCRUM POWER2-Dec EAGLE ENERGY PARTNERS I LP3-Dec STEC9-Dec BP ENERGY COMPANY10-Dec ConfirmedCompleted EntityDate NRG TEXAS POWER15-Dec DIRECT ENERGY LP5-Jan CPS ENERGY6-Jan BTU (Bryan Texas Utilities) SERVICES13-Jan DIRECT ENERGY14-Jan APX19-Jan OCCIDENTAL20-Jan TENASKA POWER SERVICES26-Jan OPTIM ENERGY27-Jan E.ON9-Feb WIND PANEL (Houston)16-Feb RETAIL PANEL (Houston)17-Feb TRI-EAGLE ENERGY18-Feb NEXTEra26-Feb XTEND ENERGY LP3-Mar BRAZOS ELECTRIC10-Mar SHELL ENERGY11-Mar FORMOSA UTILITY VENTURE16-Mar Westar18-Mar TOPAZ POWER MANAGEMENTTBD Market Call 19 February 2010

16. http://nodal.ercot.com 16 Qualification Update QSEs with Resources and Load and Load Only –86 TOTAL –82 QUALIFIED representing 99.9% of the generation –4 QSEs with Resource remain to be qualified –Note that the total numbers are in flux as QSEs enter and leave the market QSE without Resources –189 TOTAL –172 QUALIFIED –17 QSEs without Resources remain to be qualified

17. 3/1/2016 http://nodal.ercot.com 17 Real Time Market / LFC Update

18. SCED Week 3 SCED is behaving as expected given offer curves and telemetry in place COP submissions improved from 66% to 89% total TPO submissions improved from 59% to 87% total Wholesale client reps are making outreach calls to QSEs Week ending 2/11 had 10 QSEs with 100% weekly TPO/COP submissions (22% of QSEs) Week ending 2/17 had 20 QSEs with 100% weekly TPO/COP submissions (43% of QSEs) The new Market Submissions dashboard is available on the Readiness Center at http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html http://nodal.ercot.com

19. Real Time Market / LFC Update http://nodal.ercot.com 19 SCED Week 3 $2250 LMP’s during morning peaks Some nodal constraints were entered and prices behaved according to expectations

20. http://nodal.ercot.com 20 Nodal Telemetry Outreach Update LFC Notes Handbook Updates for LFC: The Real-Time/LFC Market Trials Handbook has been updated to include details for the individual QSE LFC tests (see FEB 17 Market Notice) and is available for pick-up on the Nodal Readiness Center http://nodal.ercot.com/readiness/markettrials/rtm/index.html http://nodal.ercot.com/readiness/markettrials/rtm/index.html LFC Test Calendar: Individual QSE LFC tests begin MAR 1 The LFC Test Calendar identifying QSE test windows will post to the Nodal Readiness Center FEB 26 Current Calendar Statistics: 20 QSEs have been contacted to schedule a test window 8 QSEs test windows have been scheduled 1 QSE has performed the test (NRG) ERCOT will distribute emails confirming test windows the week of FEB 22- 26

21. http://nodal.ercot.com 21 Nodal Telemetry Outreach Update LFC Notes (continued) LFC Kick-Off Call: ERCOT will host an LFC “kick-off” call FEB 26 during the regularly scheduled Real-Time Market Call (http://www.ercot.com/calendar/2010/02/20100226-RTM)http://www.ercot.com/calendar/2010/02/20100226-RTM This call will provide a focused LFC presentation and a Q&A period for QSEs who will be participating in the March-April QSE LFC tests LFC Test forms and related documents will be posted to the Nodal Readiness Center FEB 22 QSEs are invited to contact markettrials@ercot.com with any feedback or questions they would like to have incorporated into the LFC “kick-off” callmarkettrials@ercot.com

22. http://nodal.ercot.com 22 Nodal Telemetry Outreach Update State Estimator Daily Statistics (these percentages are graphed in the next slide) MonthDay% Convergence (Including Solved w/ Mismatch) FEB893.01 FEB9100 FEB10100 FEB1198.96 FEB1298.56 FEB1397.40 FEB1491.64 FEB1597.90 FEB1696.45 FEB1799.30

23. http://nodal.ercot.com 23 Nodal Telemetry Outreach Update

24. 3/1/2016 http://nodal.ercot.com 24 Nodal Telemetry Outreach (NTO) Update

25. http://nodal.ercot.com 25 Nodal Telemetry Outreach Update QSE Telemetry 1 point required for State Estimator still missing (~99% complete for nodal telemetry) 8 points required for SCED execution still missing (~99% complete for nodal telemetry) The updated QSE Telemetry Dashboard is posted on the Nodal Readiness Center at http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html Load Resource Telemetry 0 points missing (100% complete for nodal telemetry) TSP Telemetry 356 Circuit Breaker and Load points still missing/unresolved (~95% complete for nodal telemetry) 992 Disconnect points missing—these points represent new requests in the nodal telemetry outreach effort (90% complete for nodal telemetry) TSPs currently engaging ERCOT to resolve ~300 points The updated TSP Telemetry Dashboard is posted on the Nodal Readiness Center at http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html

26. http://nodal.ercot.com 26 Q&A Q&A / Open Forum

27. http://nodal.ercot.com 27 Appendix

28. http://nodal.ercot.com 28 URLS and EMAIL ADDRESS FOR SUPPORT URLs for access the Nodal Production systems –MIS: https://mis.ercot.com/pps/tibco/mis/https://mis.ercot.com/pps/tibco/mis/ –Market Manager: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: https://mis.ercot.com/pps/tibco/mis/ Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS: https://misapi.ercot.com/2007-08/Nodal/eEDS/EWShttps://misapi.ercot.com/2007-08/Nodal/eEDS/EWS Reminder: Market Trials email address change: ERCOT asks that MPs use the markettrials@ercot.com email address for questions from this point forwardmarkettrials@ercot.com –This will begin the phasing out of eds2@ercot.com, eds3@ercot.com and eds4@ercot.com email addresses.eds2@ercot.comeds3@ercot.com eds4@ercot.com –A centralized address will no longer require MPs to “guess” which email address to use for their questions –We have implemented a more effective method of routing and responding to emails using this address –The old eds emails can continue to be used until 2009 hold over efforts are completed (such as telemetry outreach)

29. http://nodal.ercot.com 29 Market Trials Handbooks –ERCOT will release the following Handbooks In December Real Time Market / LFC covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/rtm/index.htmlhttp://nodal.ercot.com/readiness/markettrials/rtm/index.html Outage Scheduler covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/os/index.htmlhttp://nodal.ercot.com/readiness/markettrials/os/index.html CRR covering release Phase 3.0 http://nodal.ercot.com/readiness/markettrials/crr/index.htmlhttp://nodal.ercot.com/readiness/markettrials/crr/index.html Settlements / COMs covering Phase 3.0 http://nodal.ercot.com/readiness/markettrials/coms/index.htmlhttp://nodal.ercot.com/readiness/markettrials/coms/index.html Day Ahead Market (note that this contains only reference data to the 2.1 qualification as there is no Phase 3.0 scope) http://nodal.ercot.com/readiness/markettrials/dam/index.htmlhttp://nodal.ercot.com/readiness/markettrials/dam/index.html –The Phase 4.0 release of the Market Trials Handbooks will occur in early February. –The Phase 5.0 release of the Market Trials Handbooks will occur in March

30. http://nodal.ercot.com 30 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010