NOTICE DATE: January 21, 2010

NOTICE TYPE: W-B012010-02 Settlements

SHORT DESCRIPTION: Revised and updated results of the procurement of EILS for the February – May 2010 Contract Period

INTENDED AUDIENCE: QSE Settlement Personnel

DAYS AFFECTED: February 1 – May 31, 2010

LONG DESCRIPTION: ERCOT has discovered a program code error that resulted in incomplete initial consideration of Emergency Interruptible Load Service (EILS) bids for the February 1, 2010, through May 31, 2010, EILS Contract Period. The error caused some valid bids to fail to populate in the bid stacks initially reviewed by ERCOT management.

ERCOT management has reviewed the updated complete data and has revised its procurement decisions for this Contract Period in light of the updated bid stacks. The revisions resulted in larger EILS capacity procurements and lower overall average prices paid than originally reported in Market Notice W-B012010-01. ERCOT has notified the affected Qualified Scheduling Entities (QSEs) and has provided them with their additional contract materials. The issue was discovered well in advance of the beginning of the Contract Period, does not affect the procurement timeline, does not affect any existing or pending contracts and did not affect procurements in any previous Contract Periods. The code has been corrected and ERCOT has implemented a new procedure for manual review of bid submissions for future Contract Periods.

The revised and final procurement results are as follows:

Business Hours 1 HE 0900 through 1300, Monday thru Friday except ERCOT Holidays; 425 hours
MW Procured or Self Arranged	350.8
Number of EILS Resources	90 (includes 61 aggregations)
Projected cost	$1,157,273.30
Average cost per MW per hour	$7.76

Business Hours 2 HE 1400 through 1600, Monday thru Friday except ERCOT Holidays; 255 hours
MW Procured or Self Arranged	346.7
Number of EILS Resources	90 (includes 61 aggregations)
Projected cost	$685,237.28
Average cost per MW per hour	$7.75

Business Hours 3 HE 1700 through 2000, Monday thru Friday except ERCOT Holidays; 340 hours
MW Procured or Self Arranged	323.0
Number of EILS Resources	89 (includes 60 aggregations)
Projected cost	$920,209.32
Average cost per MW per hour	$8.38

Non-Business Hours All other hours; 1,859 hours
MW Procured or Self Arranged	284.1
Number of EILS Resources	81 (includes 55 aggregations)
Projected cost	$3,930,275.49
Average cost per MW per hour	$7.44

Total revised projected cost of EILS for this Contract Period, including projected credits for EILS Self-Provision, is $6,692,995.39.

CONTACT: If you have specific questions about the EILS program, please send an email to [log in to unmask]. If you have any other 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 email at [log in to unmask].

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