Texas Nodal Program: Market Readiness Metrics Update

1. Texas Nodal Program:Market Readiness Metrics Update Mike Beck TPTF

2. Program Status: Readiness There has been a mix of positive and negative changes since the last meeting: ERCOT: red  green (+) EDS3: red  amber (+) MP: green  red (–) Texas Nodal Program Update

3. ERCOT ERCOT readiness status is GREEN,butlikely to go AMBER June 1st based on staffing metric • Engagement (green) • ERCOT remains fully engaged • Training (green) • a new round of training for ERCOT operators started this week • completion target is August 31, 2008 • Process (green) • updated weekly • completion target is August 31, 2008 • Staffing (majority green) • updated transition plans expected in early June • this remains the only category with red and amber • recruitment is ongoing • Testing (green) • no recent developments Texas Nodal Program Update

4. Market Participants Market Participant readiness status is RED,driven by MP10 and MP11 • Engagement (>95% green) • will be updated June 12th when Cycle 4 Survey is scored • Connectivity (>95% green) • no change, pending further EDS developments (MIS Portal, TML) • Registration and Qualification (red) • MP17 goes active June 2nd • MP10 and MP11 (Resource Mapping and RARF Submissions) are causing overall red status • Telemetry (green) • no change, present measurements complete • Training (>95% green) • will be updated June 12th when Cycle 4 Survey is scored • Trials Participation (>95% green) • no change, pending further EDS developments Texas Nodal Program Update

5. Market Participant Readiness Overall registration and qualification status for Market Participants is RED • Situation • A number of Market Participants are not in compliance with MP11 (Registration Activities) • There are an estimated 215 RARFs representing 720 unit-specific resources, 671 of which are modeled (the remaining 49 are distributed generation resources). • 91% (608 of 671) of Generation and Load Resource units have been submitted, representing 93% of MW capacity • Most RARFs are expected to be returned to MPs for revision (most likely several rounds) • Current rate of acceptance [with Tier 1 review] of submittals into RARF database is about 80% • Acceptance does not indicate valid data • QSE’s w/Resources that represent Resource Entities who are missing RARFs will be rejected from EDS trials • June 16 closed loop LFC test (and preceding open-loop test) will not be conducted until 100% of MW capacity has been accepted by ERCOT • Mitigation Steps • Contacted non-responding resource entities [completed] • Developed a temporary work-around for TML submission [completed] • Ongoing outreach to MPs to assist in addressing issues [ongoing] • Publish “wall of shame” for non-responsive entities [ongoing] Data as of 5.21.08 Texas Nodal Program Update

6. Market Participant Readiness MPs with red status under registration and qualification QSEs without Resources - RED • Aquila Inc DBA Aquila Networks • Citadel Energy Products LLC • Clearview Electric Inc • Glacial Energy Inc • Kansas City Power and Light Company • National Power Company Inc • Texpo Power LP • Urban Energy Source LLC QSEs with Resources - RED • FPL Energy Power Marketing • Lower Colorado River Authority • Luminant Generation Company LLC • NRG Texas LP • Reliant Energy Power Supply LLC • American Electric Power Service Corp • Barton Chapel Wind LLC • City of Austin DBA Austin Energy • Eagle Energy Partners I LP • Formosa Utility Venture LTD Data as of 5.21.08 Texas Nodal Program Update

7. EDS EDS 1, 2, and 4 status remains the same, while EDS 3 has improved to amber • EDS 1 (green) • no recent changes • EDS 2 (red) • remaining metrics are intertwined with the state estimator • quality of data being delivered to ERCOT is not compliant with the state estimator • EDS 3 (amber) • following recent acceptance of ACE data by TAC EDS 3 went from red to amber • EDS 4(red) • outage evaluation system is not yet completed Texas Nodal Program Update

8. Readiness Metrics We will begin to measure the following metrics in early June * With the implementation of MP17, all existing MP metrics are active Texas Nodal Program Update

9. Market Participant Engagement Survey: Cycle 4 Market Participants are currently completing Cycle 4 of the Engagement Survey • Cycle 4 of the Market Participant Engagement Survey was released on May 15th • This survey focuses on staffing, processes, and technology from present through the 168-hour test • This survey will be open for response through May 30th • Results will be available June 12th on the scorecards • ERCOT Account Managers will take an active role with outreach to MPs will beginning mid-survey to ensure full participation Texas Nodal Program Update

10. Questions ? Texas Nodal Program Update