NOTICE DATE: May 3, 2012

NOTICE TYPE: M-A050312-01 Legal

SHORT DESCRIPTION: ERCOT Board intends to discuss and possibly reconsider its prior action to correct prices for Settlement Point DC_N on Operating Day November 24, 2011

INTENDED AUDIENCE: ERCOT Market Participants

DAY AFFECTED: Operating Day November 24, 2011

LONG DESCRIPTION: On February 21, 2012, the ERCOT Board of Directors (ERCOT Board) approved a price correction, as recommended by ERCOT Staff, on the Locational Marginal Prices (LMPs) and Settlement Point Prices (SPPs) assigned to de-energized Settlement Point DC_N (Electric Bus DCTM_L_A) in the Real-Time Market (RTM) for Settlement Intervals 74 (18:15:11) to 95 (23:25:10) for Operating Day November 24, 2011. The ERCOT Board found that the Real-Time LMPs and SPPs were inaccurate due to a software and data error.

Subsequent to the ERCOT Board’s decision, on March 7, 2012, the Public Utility Commission of Texas (Commission) issued its final Order in PUCT Docket No. 39433, Appeal and Complaint of Longhorn Energy LP and West Oaks Energy LLC Concerning ERCOT Decision to Conduct Market Resettlement. PUCT Docket No. 39433 also involved an ERCOT Board price correction matter, as a result of a data error, for de-energized Settlement Points for Operating Days December 1, 2010, through February 1, 2011. The Commission concluded that the Day-Ahead and Real-Time LMPs and SPPs for these Operating Days were not significantly affected by a software or data error. The Order reversed the ERCOT Board’s April 2011 decision to authorize a price correction for the affected Operating Days.

Due to the Commission’s decision in PUCT Docket No. 39433 and the similarities surrounding the facts for Operating Day November 24, 2011, the ERCOT Board intends to discuss and possibly reconsider its February 21, 2012, action to correct the Real-Time LMPs and SPPs associated with Settlement Point DC_N for Operating Day November 24, 2011, at its May 15, 2012, meeting.

ADDITIONAL INFORMATION: ERCOT Staff has elected to suspend implementing the price correction for Operating Day November 24, 2011, until the ERCOT Board discusses and possibly reconsiders this matter at its May 15 meeting. Additional information will be provided as part of the ERCOT Board materials for this meeting.

CONTACT: If you have any questions, please contact either Bill Magness, General Counsel, at (512) 225-7076 or [log in to unmask] or Chad V. Seely, Assistant General Counsel, at (512) 225-7035 or [log in to unmask].

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