NOTICE DATE: November 18, 2011

NOTICE TYPE: M-A100711-03 NPRR

SHORT DESCRIPTION: REMINDER – Phase 2 implementation details of NPRR320

INTENDED AUDIENCE: CRR Account Holders and CRRAH settlement personnel

DAY AFFECTED: December 1, 2011

LONG DESCRIPTION: On November 14, 2011, ERCOT implemented the functionality to support phase 2 of the system changes for Nodal Protocol Revision Request (NPRR) 320, Minimum PTP Option Bid and Settlement (formerly “Minimum PTP Option Bids and CRR Auction Fee”), which was approved by the ERCOT Board on April 19, 2011. The phase 2 changes will be effective starting December 1, 2011. See Notice W-A100711-01 below for further implementation details.

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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NOTICE DATE: October 7, 2011

NOTICE TYPE: M-A100711-01 NPRR

SHORT DESCRIPTION: Implementation details of NPRR320

INTENDED AUDIENCE: CRR Account Holders and CRRAH settlement personnel

DAYS AFFECTED: November 1 and December 1, 2011

LONG DESCRIPTION: Nodal Protocol Revision Request (NPRR) 320, Minimum PTP Option Bid and Settlement (formerly “Minimum PTP Option Bids and CRR Auction Fee”) was approved by the ERCOT Board on April 19, 2011. NPRR320 provides for the calculation of Point-to-Point (PTP) Option Award Fees (i.e., “CRR Auction Fees”), the inclusion of those fees on Congestion Revenue Right (CRR) Auction Invoices and the distribution of those fees through the Balancing Account Closure process. ERCOT plans to implement the NPRR320 functionality in two phases.

Phase 1 – Inclusion of CRR Auction Fees on CRR Auction Invoice (Protocol Section 7.7.1, Charging of PTP Option Award Fee and Section 9.8, CRR Auction Award Invoices)

ERCOT plans to implement the system changes to support the collection of PTP Option Award Fees (i.e., “CRR Auction Fees”) via CRR Auction Invoices on October 26, 2011. The CRR Auction Fees, calculated as OPTAFAMT per Section 7.7.1, are shown as a line item per CRR on the CRR Auction Invoice. The CRR Auction Invoices for the 2011.Annual AuctionY1 and 2012.AnnualAuctionY2 Annual Auction will be the first to include the CRR Auction Fees. The fees will be included on the CRR Auction Invoices for all subsequent CRR Auctions.

In support of the phase 1 changes being made for NPRR320, which resulted in changes to the CRR Auction Invoices, file path and delivery structure changes were made in ERCOT systems. Due to these changes, updates to all of the settlement statements and Invoice XSLs were necessary. To account for the change to the CRR Auction Invoice, the CRR Auction Invoice XSD has also been updated. Please ensure you are using the most current version of the XSDs and XSLs which are posted at http://www.ercot.com/services/mdt/xsds/. The current file version has an updated date of October 5, 2011. Market Participants will need to download the updated Statement Invoice XSL and XSD files.

Phase 2 – Distribution of CRR Auction Fees through the Balancing Account Closure Process (Protocol Section 7.9.3.4, Monthly Refunds to Short-Paid CRR Owners and Section 7.9.3.5, CRR Balancing Account Closure)

ERCOT plans to implement the functionality to support the distribution of the CRR Auction Fees through the Balancing Account process on November 14, 2011. This distribution will occur for the first time in January 2012, for the fees collected through the monthly auction for December 2011, and will be used for the distribution of CRR Auction Fees collected for all subsequent auctions.

As part of this change, ERCOT will calculate and provide a new bill determinant:

· CRRFEETOT (Section 7.9.3.4).

The following calculations were modified to utilize the CRRFEETOT bill determinant:

· CRRRAMT (Section 7.9.3.4)

· LACRRAMT (Section 7.9.3.5).

The new supporting bill determinant data (CRRFEETOT) will be supplied through the CRR Balancing Account Extracts that can be found at https://mis.ercot.com/pps/tibco/mis/Pages/Market+Information/Settlements in the following tables:

· CRROUTPUTHEADER

· CRROUTPUTSCALAR

ADDITIONAL INFORMATION: While ERCOT will be implementing functionality as described above, Market Participants are encouraged to take necessary steps to prepare their systems for the following Protocol effective dates:

Protocol Section to be Unboxed	Effective Date of Boxed Language
7.7.2	December 1, 2011
7.9.3.4	December 1, 2011
7.9.3.5	December 1, 2011
9.8	November 1, 2011

ERCOT will continue to produce Miscellaneous Invoices to collect and distribute CRR Auction Fees, according to Section 7.7.2, Distribution of PTP Option Award Fee, for all CRR Auctions executed and posted prior to the implementation of NPRR320 functionality. This includes the completion of CRR Auction settlement activity for the 2011 Balance of Year Auction as well as for the monthly auction for November 2011. The Miscellaneous Invoices can be found on the Market Information System (MIS) at https://mis.ercot.com/pps/tibco/mis/Pages/Market+Information/Settlements.

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.

NPRR320 and associated documents can be found on the ERCOT website, under Market Rules, at http://www.ercot.com/mktrules/issues/nprr/301-325/320/index.

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