NOTICE DATE:  June 4, 2008

NOTICE TYPE:  M-A060408-01 INFORMATIONAL: Mass Transition Event

SHORT DESCRIPTION:  Market Participant Default and Mass Transition Event

INTENDED AUDIENCE:  ERCOT Market Participants

DAY AFFECTED: June 3, 2008

LONG DESCRIPTION: HWY 3 MHP LLC (Duns # 786106208 and 7861062081000), a Load Serving Entity (LSE) in the ERCOT Region, defaulted under its Agreement with Electric Reliability Council of Texas, Inc. as of 5:00 P.M. on June 3, 2008.

Pursuant to Protocol Section 15.1.3, Mass Transition, and Retail Market Guide (RMG) Section 7.11, Mass Customer Transition Process, ERCOT began the Mass Transition of HWY 3’s customers to the Providers of Last Resort (POLRs) on June 4, 2008.

The size of the associated Load is approximately 429 MWhs per day and the total number of ESI IDs involved is approximately 12,222.

ERCOT has been working closely with the Public Utility Commission of Texas (PUCT) and affected Market Participants to ensure an efficient and effective transfer of customers.

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]

ERCOT’s Legal Department is also available should your entity’s legal department have any specific questions.  You can reach Andrew Gallo ([log in to unmask]) at (512) 225 – 7065 and Chad V. Seely ([log in to unmask]) at (512) 225 – 7035.

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JA/CD