NOTICE DATE:  July 25, 2011

NOTICE TYPE:  M-A072511-01 NPRR

SHORT DESCRIPTION:  Implementation details of NPRR221 – Default Uplift Invoice

INTENDED AUDIENCE:  QSE and CRRAH Settlement Personnel

DAY AFFECTED:  August 24, 2011

LONG DESCRIPTION:  On August 24, 2011, ERCOT will implement code and procedural changes to support the automation of current Protocol language which was revised by Nodal Protocol Revision Request (NPRR) 221, Day-Ahead Market and Real-Time Market Default Allocation Charges, which was approved by the ERCOT Board on June 15, 2010. However, the new functionality will not be utilized until ERCOT performs the uplift for the February 2011 default, which will be no earlier than September 16, 2011.

NPRR221 revised the language in Section 9 and changed the way default amounts in the Day-Ahead Market (DAM) and Real-Time Market (RTM) are allocated. NPRR221assigns a share of the default to each Counter-Party based on the greatest of the Counter-Party’s MWh activity in either the Congestion Revenue Right (CRR) market or DAM or RTM at the Counter-Party level for the calendar month prior to the month in which the default occurs. The Counter-Party share of the default is invoiced to the Counter-Party’s Qualified Scheduling Entities (QSEs) or CRR Account Holders, on a pro rata basis. The level of MWh activity in the CRR market and DAM is measured as the greater of the MWh purchases or sales in that market and the level of MWh activity in the RTM is measured as the greater of the Counter-Party’s MWh Load or generation, excluding generation from Reliability Must-Run (RMR) Resources and other Resources during Reliability Unit Commitment (RUC)-Committed Intervals.

To account for this change, ERCOT will post revised Statement & Invoice XSLs and XSDs that include the specifications for the new Default Uplift Invoice. There are no changes to the other Statement & Invoice XSLs and XSDs. The Statement & Invoice XSLs and XSDs zip files are located at http://www.ercot.com/services/mdt/xsds/.

ADDITIONAL INFORMATION: NPRR221 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/201-225/221/index.

The Default Uplift Invoice link can be located on the Market Information System (MIS) Markets/Settlements page in the certified Settlements Statements and Invoices Portlet.

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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