NOTICE TYPE: M-A092408-04 General

SHORT DESCRIPTION: ERCOT Receives Additional Distribution of Funds from The Reserve

INTENDED AUDIENCE: All ERCOT Market Participants

DAY AFFECTED: November 13, 2008

LONG DESCRIPTION: The Electric Reliability Council of Texas, Inc. (ERCOT), today received $61.5 million from The Reserve’s US Government Fund.

The Reserve’s first distribution from the US Government fund was made pro rata to all investors at approximately 40 percent of their current account balance. The Reserve said today they will make additional distributions as more cash becomes available.

ERCOT expects a full recovery of the remaining $86.4 million in the US Government Fund and $23.5 million in The Reserve’s Primary Fund. ERCOT received an initial distribution of $24.3 million from The Reserve’s Primary Fund on October 31.

ADDITIONAL INFORMATION: ERCOT has maintained funds in money market mutual funds controlled by The Reserve, including the Primary Fund and the U.S. Government Fund. On Monday, September 15, 2008, the day after the bankruptcy of Lehman Brothers Holdings, Inc., it became known that approximately 1.2% of the Primary Fund assets were Lehman securities, which triggered a high level of redemption request for The Reserve’s funds. On September 16, 2008, ERCOT delivered a letter requesting that The Reserve immediately close all of its investment accounts with The Reserve; and ERCOT has received confirmation of this redemption order from The Reserve.

Based on the information known at this time, ERCOT expects a full recovery of all of its and its members’ funds invested in The Reserve’s funds due to the priority of its redemption request; however, the timing of full recovery is still unknown.

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].

If you are receiving e-mail from an ERCOT distribution list that you no longer wish to receive, please follow this link in order to unsubscribe from this list: http://lists.ercot.com.