NOTICE DATE: August 13, 2010

NOTICE TYPE: W-A081310-01 Settlement

SHORT DESCRIPTION: QSE short payment due to the late posting of TCR Invoices for the resettlement of Operating Day June 17, 2010

INTENDED AUDIENCE: QSE Settlement Personnel

DAY AFFECTED: Invoices due on August 12, 2010

LONG DESCRIPTION: Qualified Scheduling Entities (QSEs) that are owed monies from ERCOT on Invoices due on August 12, 2010, will notice that the amount of funds transferred is short of the balance due on the Invoice. ERCOT sends this Market Notice to indicate that it will follow the "short payment" procedure stated in Protocol Section 9.4.4, Partial Payments, for payments being made to QSEs.

The adjusted June 2010 TCR Invoices, which occurred as a result of the June 17, 2010, price corrections of zonal Market Clearing Prices for Energy (MCPEs) (see July 30, 2010, Market Notice M-B073010-01), were mistakenly not posted to enable a full payout to the market for the Invoices containing the June 17, 2010, resettlement. Due to ERCOT’s mistake to timely post the TCR Invoices for the June 17, 2010, resettlement, there are insufficient funds to pay all amounts in full. The aggregate amount of the short payment is $325,932.24.

To remedy this situation, ERCOT believes it must follow the “short payment” procedure as described in the ERCOT Protocols even though the “short payment” is not the result of any short-paying Invoice Recipient. ERCOT will deduct ERCOT administrative fees, and payments for Reliability Must-Run (RMR) Services from the amount received and then reduce payments to all Invoice Recipients that are owed monies, except for monies owed for RMR Services. The reductions will be made based on a pro rata basis of monies owed to each ERCOT creditor for this Invoice to the extent necessary to clear ERCOT's accounts on the payment date to ensure revenue neutrality for ERCOT.

Per Market Notice M-A081310-01, adjusted TCR Invoices will post on August 13, 2010. The adjusted TCR Invoices are due to ERCOT on Friday, August 20, 2010, and subsequently, payment to the market will occur on Monday, August 23, 2010. The funds collected from TCR Account Holders will be used to make payments to the short-paid Invoice Recipients.

Invoice Due Date: August 12, 2010
Total Amount Short to Market:	$325,932.24
Total Amount Paid Out to Market:	$40,447,583.56

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 email at [log in to unmask].

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