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ERCOT

Operating Guide Revision Task Force Meeting

ERCOT MET Center Room 211

Austin, Texas

October 16,200710:00 - 16:00

AGENDA

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.

Review of September2007 meeting notes and action items to ensure the agenda is complete.

OGRR’s:

203 – Conforming Changes to Address Current NERC Terminology and the Texas Regional Entity (TRE) Terminology: This Operating Guide Revision Request (OGRR) corrects and updates references to NERC standards, policies, requirements, etc. This OGRR also changes references from “ERCOT Compliance” to “Texas Regional Entity” and “ERCOT Control Area” to “ERCOT Balancing Authority” where applicable. Update Operating Guide language to current NERC terminology. (Posted August 10, 2007; OGRTF and TRE have commented to date.ERCOT Market Rules and Legal has requested this OGRR placed on hold pending a draft PRR companion. OGRTF/OWG to date has not received this draft PRR for review.)

NOTE: This Operating Guide Revision Request (OGRR) corrects and updates references to NERC standards, policies, requirements, etc. This OGRR also changes references from “ERCOT Compliance” to “Texas Regional Entity” and “ERCOT Control Area” to “ERCOT Balancing Authority” where applicable. These terminology updates will make it easier for Market Participants to cross-reference concepts between the ERCOT Protocols and Operating Guides and the NERC and TRE documentation, including NERC Reliability Standards

204 –Hotline Technology Update: Section 8.3.3 of the Operating Guides states that the “Hotline must be a 500 set not attached to the Market Participant’s Phone system.” Proposed language will allow continued use of either older, 500 set or any newer technology which operates independently from Market Participant’s commercial market communications (settlement) phone system. Specific technology referenced in Operating Guides is no longer manufactured and newer technology with additional useful features is available but not compliant with Section 8.3.3 of the Operating Guides. (Posted September 20, 2007, AEP commented to date.)

205 –Modify Responsive Reserve Service Obligation: In this Operating Guide Revision Request (OGRR) Qualified Scheduling Entity (QSE) Managers Working Group is requesting to modify the ERCOT Operating Guides requirement mandating that the ERCOT Responsive Reserve Obligation is 2300 MW. The request is to increase the Responsive Reserve Obligation to 2800 MW. QSE Managers Working Group does not recommend modifying the MW thresholds for which Alerts or Emergency Electric Curtailment Plan (EECP) action is taken. QSE Managers Working Group believes that this requested revision to the ERCOT Operating Guides, coupled with requested revisions to the ERCOT Protocols addressing administrative price adjustments, will benefit the market by allowing market forces to correctly set market prices before ERCOT command and control action is necessary for reliability purposes. (Posted October 3, 2007 for comments.)

Nodal Operating Guides:

Review comments received from MPs, WG/TF, TRE, and ERCOT.

New Business:All Participants

Open Forum:All Participants

Dial-In Conference Call Number:

Tuesday:Dial-In:512-225-7280

Dial-In Code:4755

The next OGRTF Meetingis scheduled for Monday, November12th, room 211, 10:00 a.m. to 4:00 p.m., ERCOTMetCenter, Austin.

OGRTF Chair: Stephen C. Knapp (Steve)

410-470-3374 (Office)

443-286-6785 (Cell Phone)