NOTICE DATE:  October 14, 2011

NOTICE TYPE:  M-A042911-02 NPRR

SHORT DESCRIPTION:  Implementation update for NPRR343 and NPRR290

INTENDED AUDIENCE:  ERCOT Market Participants

DAY AFFECTED:  October 26, 2011

LONG DESCRIPTION:  On April 19, 2011, the ERCOT Board approved Nodal Protocol Revision Request (NPRR) 343, CRR Bid and PTP Obligation Bid Criteria Change. The implementation of NPRR343 is occurring in phases. For the next phase of implementation, effective October 26, 2011, ERCOT will post a list of Settlement Points that were de-energized in the Day-Ahead Market (DAM) base case, as required by the grey-boxed language item (2)(j) of Protocol Section 4.5.3, Communicating DAM Results.

ERCOT has already implemented portions of NPRR343 as described below (see Notice M-A042911-01 for further details).

*         ERCOT posted the first file of Electrically Similar Settlement Points on Friday April 29, 2011.

*         On May 1, 2011, the DAM Operator began manually removing the Point-to-Point (PTP) Obligation bids that source and sink from the same electrically similar group of Settlement Points before running the DAM.

Additionally, the remaining scope of NPRR343 and NPRR290, ERCOT Publication of DAM PSS/E Files, which was approved by the ERCOT Board on April 19, 2011, are planned for delivery in the December 2011 scheduled release. Although there are no system changes on October 26 related to NPRR290, ERCOT is unboxing NPRR290 grey-boxed language in paragraphs (a) and (b) of Protocol Section 4.2.3, Posting Secure Forecasted ERCOT System Conditions, which clarify the posting requirements for the Redacted Network Operations Model, the Network Operations Model (unredacted) and the differences between the posted Redacted Network Operations Model and the previous posting.

In summary, on October 26, 2011, a new report will be posted reflecting a list of Settlement Points that were de-energized in the DAM base case, a subset of NPRR290 grey-boxed language will be unboxed to clarify existing model posting requirements, and in December 2011 the full scope of NPRR343 and NPRR290 is scheduled for implementation.

ADDITIONAL INFORMATION:  The "DAM De-Energized Settlement Points in Base Case" report will be posted on the Market Information System (MIS) Secure Area under the Day-Ahead Market page in the "Day-Ahead Market Results" portlet. An ERCOT digital certificate is required to access the MIS Secure Area.

Pursuant to Protocol Section 21.6, Nodal Protocol Revision Implementation, ERCOT is required to provide notice as soon as practicable, but no later than ten days prior to implementation.

NPRR290 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/276-300/290/index.

NPRR343 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/326-350/343/index.

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]<mailto:[log in to unmask]>.

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