NOTICE DATE: March 27, 2012

NOTICE TYPE: W-B032712-01 Financial/Credit

SHORT DESCRIPTION: Correction to “e1” calculation

INTENDED AUDIENCE: Counter-Parties and QSEs

DAYS AFFECTED: Operating Days March 3 and 29, 2012

LONG DESCRIPTION: Per Protocol Section 4.4.10, Credit Requirements for DAM Bids and Offers, ERCOT establishes values for “e1”, “e2”, and “e3” that are used in determining credit requirements in the Day-Ahead Market (DAM).

ERCOT has determined that the “e1” factors calculated and communicated on Tuesday, March 20, 2012, and effective beginning with the DAM run on Friday, March 23, 2012, do not include March 3, 2012, activity as the result of a data issue.

The “e1” factors have been recalculated for the same 30 day period (February 20, 2012, through March 20, 2012) by including the updated data for March 3, 2012. The corrected “e1” will be in place for the DAM run on March 28, 2012, for Operating Day March 29, 2012. Impacted Counter-Parties and QSEs will receive an email with the updated “e1” value.

CONTACT: If you have any questions, please contact Vanessa Spells at [log in to unmask], (512) 225-7014, Rizaldy Zapanta at [log in to unmask], (512) 225-7015, Maruthi Gaddam at [log in to unmask] (512) 275-7441 or Cheryl Yager at [log in to unmask], (512) 225-7029. Additional questions can be directed to your assigned ERCOT Account Manager, [log in to unmask] or the general ERCOT Client Services phone number (512) 248-3900.

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