http://nodal.ercot.com 1 coms/settlements/credit weekly update june 11, 2010

http://nodal.ercot.com *COMS/Settlements/CreditWeekly UpdateJune 11, 2010

http://nodal.ercot.com *

http://nodal.ercot.com *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.


http://nodal.ercot.com *AgendaAnti-trust Admonition

Standing Reports and UpdatesOperating Day Settlement ReportsWeek in Review/General RemindersNext Weeks Activities

Environment ReportKnown Issues

Credit

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


http://nodal.ercot.com *DAM Settlement Overview for June 2Statement and Invoice Overview157 Statements/Invoices posted to QSEs49 Statements/Invoices posted to CRRAHs0 QSEs received Statements/Invoices for $0CRR OverviewCRRs were not deratedCRR Owners were fully funded (i.e. there were no Short Fall Charges)General Reminders/UpdatesSubmit any questions/issues about statements, invoices, extracts or calculations to [email protected]


http://nodal.ercot.com *DAM Settlement Overview for June 3Statement and Invoice Overview161 Statements/Invoices posted to QSEs53 Statements/Invoices posted to CRRAHs0 QSEs received Statements/Invoices for $0CRR OverviewCRRs were deratedCRR Owners were fully funded (i.e. there were no Short Fall Charges)General Reminders/UpdatesSubmit any questions/issues about statements, invoices, extracts or calculations to [email protected]


http://nodal.ercot.com *RTM Settlement Overview for May 25Statement Overview204 Statements posted to QSEs4 Statements posted to CRRAHs30 QSEs received Statements for $0General RemindersSubmit any questions/issues about statements, invoices, extracts or calculations to [email protected]


Charge Type TrackerBelow are the Day Ahead Market charge types that have been executed at least once during Market Trials (17 of 19 executed)



Charge Type Trackerhttp://nodal.ercot.com *Below are the Real-Time Market charge types that have been executed at least once during Market Trials (30 of 45 executed)


Week in Review

6/9 No DAM day due to simulated Day Ahead Market failure. Supplemental AS Markets (SASM) successfully competed. 6/8 and 6/9 will reflect additional procured AS.6/10 Two Supplemental AS Markets (SASM) successfully competed

6/10 RTM Invoice posted for following Statements :RTM Initials 5/21, 5/25, 5/26, 5/27RTM Finals 5/12, 5/13, 5/14246 QSEs (33 for $0)49 CRRAs (45 for $0)

6/11 -- Balancing Account (82 QSEs) and CARD (82 QSEs) invoices will be posted for May activity. Extracts will be available within 48 hours.

6/12 No DAM due to NODAL Prod release



http://nodal.ercot.com *Next Weeks ActivitiesOperating Days for next week that will be settled

6-15 SASM only if needed6-16 AS Insufficiency; commit Resources for AS in DRUCSASM only if needed6-17 SASM only if needed6-18 SASM only if needed6/19 SASM only if needed


Environment Report-Known IssuesCOMS New Known IssuesNo New Known Issues

COMS Closed IssuesNo New Closed Issues

Reminder: ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/coms/index.html




Credit and TreasuryWeekly UpdateJune 11, 2010


http://nodal.ercot.com *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.


Week in Review

Resolved generation volume issue identified last weekRoot cause has been identified and fix expected by early next weekHigh historical estimates will roll off as settlement data is available. New estimates will reflect the fixPrior reports will not be rerun

Continue to post Credit ReportsACL and TPE Summary Reports early (by 9:30)Remainder by 11am (after review)

Continue to send ACLs each business dayERCOT continues to adjust ACLs or credit limits as needed to ensure adequate credit limits while the market gets familiar with the Credit Reports

Encountered an issue with ACLs on Thursday AM due to delay in Calculation Engine run.



Week in ReviewLarge credit exposuresWhile the load volume estimation issue has been fixed and the generation volume estimation issue is being fixed soon, estimates with erroneous data have not fully rolled off. Expect completed not settled estimates used in AIL component of TPE calculation to improve daily and reflect all corrections within the next two weeksCredit and Debit invoices continue to appear in the OIA (Outstanding Invoice Amount) of the EAL (Estimated Aggregated Liability) calculation after payment due dateERCOT staff researching the root cause of this issueExtrapolation of high historical activity forward continue to impact exposure calculations for some CPsWill roll off or CPs may work with ERCOT staff to adjust the ADTE component of the Total Potential Exposure (TPE) for the old historical activity



Week in ReviewLarge credit exposuresContinue to see some CPs utilize the Real Time market significantly, resulting in high exposuresTo obtain more realistic exposure calculations, CPs should begin functioning in MT5 as you might after Go-LiveFor QSEs representing Load, use Energy Trades or DAM rather than RT to meet your load requirements. For all, use more realistic estimates in your market activity (bids / offers in DAM, etc)



Next Weekhttp://nodal.ercot.com *


Next Week - Schedule of activityMeeting Title (optional)Date

Meeting Title (optional)

Other topicsTentative timeline for First Priority Security Interest documentJuly 1, 2010 ERCOT circulates initial draft to CPs.July 19, 2010 Comments back from CPs.August 2, 2010 ERCOT circulates second draft to CPs.August 17, 2010 ERCOT reviews document with F&A.September 21, 2010 Final review and possible approval by F&A and ERCOT Board.



Known Issueshttp://nodal.ercot.com * Reports not available at this timeFCE detail reports are not being posted due to large volume of data (several hundreds of pages per report)AIL detail report is not being posted due to data issue on report

Load Volume used in AIL Calculation FIXED; however historical data still being corrected Issue with Load Estimation has been fixed and high estimates are rolling off AIL.

Generation Volume used in AIL Calculation FIXED; however historical data still being corrected Issue with Generation Estimation has been fixed and high estimates are rolling off AIL.


Known IssuesOIA (Outstanding Invoice Amount) of the EAL (Estimated Aggregated Liability) calculation Credit and Debit invoices appear in OIA calculation after payment due dateIssue being researched

ADTE field of the EAL Details Report has a display issue; calculation is correct

Note: ERCOT will post known issues on the website and beginning next week will only report new known issues and resolution of issues on the weekly call.



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http://nodal.ercot.com 1 coms/settlements/credit weekly update june 11, 2010

Documents

qses53 statementsinvoices

qses49 statementsinvoices

qses42 statementsinvoices

ercot activities

ercot staff

ercot board

ercot meetings

dam settlement overview