1. Retail Market Subcommittee AMS and TEC update August 22, 2012

2. TDSP’s AMS Install Totals • Oncor (7/31/12) 2,914,763 • CenterPoint Energy (7/31/12)2,283,012* • *CNP’s AMS deployment complete • American Electric Power (7/31/12)593,784 • Texas New Mexico Power (7/31/12) 52,451 • Totals 5,844,010

3. NOGRR100 – Extending Manual Time Error Correction (TCE) Threshold • This Nodal Operating Guide Revision Request (NOGRR) extends the manual time error correction threshold from +/- 3 seconds to +/- 30 seconds. • ModifiesOperating Guide Section 2.2.9.1, Time Error, to include new Time Error Correction (TCE) procedures such as: ERCOT may conduct Time Error correction at any time. However, ERCOT must promptly initiate Time Error correction if the Time Error exceeds +/- 30 seconds, unless operational circumstances require otherwise. ERCOT will initiate and terminate Time Error correction via hotline call to all QSEs. The call initiating Time Error correction will include the frequency offset (- 0.02 Hz for fast and + 0.02 Hz for slow) and the start time. The Time Error correction may end when: (i) The Time Error is within +/- 0.5 seconds of the target reference; (ii) System events mandate termination; (iii) The period of correction reaches five hours; or (iv) After any hour without at least a 0.5 second error reduction.

4. NOGRR100 – Extending Manual Time Error Correction (TCE) Next Steps • June 20, 2012: • Retail Market Subcommittee (RMS) unanimously endorsed NOGRR100 as recommended by ERCOT and Metering Issues Taskforce • July 18, 2012: • Operations Working Group (OWG) was in consensus to recommend approval of NOGRR100 as submitted. • August 15, 2012: • OWG was in consensus to recommend Impact Analysis (IA). NOGRR100 language and IA next step is ROS on 9/13/12 • September 13, 2012: • Reliability & Operations Subcommittee (ROS) consideration • October 4, 2012: • Technical Advisory Committee (TAC) consideration

5. Questions