NOTICE DATE:  March 11, 2008

NOTICE TYPE:  M-B031108-01   Operations

CLASSIFICATION: Public

SHORT DESCRIPTION:  System Wide Offer Cap

INTENDED AUDIENCE:  All Market Participants

DAY AFFECTED:  March 8, 2008

LONG DESCRIPTION:  Pursuant to P.U.C. SUBST. R. 25.505(g)(6)(C), ERCOT
changed the high system-wide offer cap (HCAP) to $2,250 per megawatt
hour (MWh) on March 1, 2008.  

On Tuesday, March 4, 2008 ERCOT performed a planned site failover test
of its Energy and Market Management Systems (EMMS) from Austin to
Taylor.  During the process, the Scheduling, Pricing, and Dispatch
Options (SPDOPTS) file that contained the parameters for the Market
Clearing Engine (MCE) reverted back to the pre-March 1, 2008 Balancing
Energy Bid Cap of $1,500 for Balancing Energy Service (BES) bids and
Shadow Price Cap of $2,500.  One interval was affected by the reversion
on the Operating Day of March 8, 2008 before the reversion was
identified.  

The problem was resolved by 11:20 A.M. on Monday, March 10, 2008 to
reflect the proper Balancing Energy Bid Cap of $2,250 for BES bids and a
Shadow Price Cap of $5,600.

ADDITIONAL INFORMATION:  ERCOT plans to file a Notice of P.U.C.
Substantive Rule violation on March 12, 2008 with the PUCT.

CONTACT:  If you have any questions, please contact your ERCOT Account
Manager. You may also call the general ERCOT Client Services phone
number at (512) 248-3900 or contact ERCOT Client Services via e-mail at
[log in to unmask] <mailto:[log in to unmask]> .

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