NOTICE DATE: March 13, 2013

NOTICE TYPE: W-A031313-01 Settlements

SHORT DESCRIPTION: Default Uplift Invoices for the default of EPCOT LLC

INTENDED AUDIENCE: QSE and CRRAH settlement personnel

DAY AFFECTED: Default Uplift Invoices posted on March 13, 2013

LONG DESCRIPTION: The ERCOT Region experienced a ‘Mass Transition’ as a result of a default by EPCOT LLC in July 2012. The defaulting Counter-Party engaged in financial transactions with ERCOT and owes monies to ERCOT as a result of those transactions.

Paragraph 6 of Section 9.19, Partial Payments by Invoice Recipients, of the ERCOT Protocols provides:

If sufficient funds continue to be unavailable for ERCOT to pay all amounts in full (excluding late fees) to short-paid Entities for that DAM or RTM Invoice, and the short-paying Entity is not complying with a payment plan designed to enable ERCOT to pay all amounts in full (excluding late fees) to short-paid Entities, the following shall occur:

(i) ERCOT will cease charging late fees to the short-paying Entity; provided however, that ERCOT may cease charging late fees earlier than 180 days following a short-payment of a DAM or RTM Invoice if ERCOT, in its sole discretion, determines that the recovery of late fees from the short-paying Entity is unlikely; and

(ii) ERCOT shall uplift short-paid amounts through the Default Uplift process described below in Section 9.19.1 and Section 9.19.2, Payment Process for Default Uplift Invoices.

The defaulting Counter-Party does not have a payment plan and therefore is not in compliance “with a payment plan designed to enable ERCOT to pay all amounts in full to short paid Entities.” ERCOT ceased charging late fees in July 2012. Pursuant to ERCOT protocols, ERCOT will uplift the principal amount remaining on the defaulting Counter-Party’s obligation to ERCOT.

On March 13, 2013, ERCOT will issue Default Uplift Invoices totaling $6,973.54 to QSEs and CRRAHs per the methodology described in Protocol Section 9.19.1, Default Uplift Invoices. This total uplift amount represents the total short payments by the defaulting Counter-Party for the Invoice due on July 19, 2012, adjusted by credits applied by ERCOT to the defaulting Counter-Party’s obligation. The table below provides a breakdown of the total amount being uplifted by the defaulting Counter-Party.

EPCOT LLC

Invoice Due Date	Invoice Amount	Amount Short-Paid	Less Payments Held/Remainder Collateral	Uplift Amount
07/19/12	$ 144,894.66	$ 83,099.77	$ 76,126.23	$ 6,973.54

Payment for Default Uplift Invoices is due on March 20, 2013, which is five (5) Bank Business Days after the Invoice date. ERCOT will distribute the funds to previously short paid entities on March 21, 2013.

If necessary and as they arise, ERCOT will short pay and ultimately uplift any additional unpaid amounts owed by the defaulting Counter-Party which may arise from subsequent resettlements, pursuant to Protocol Section 9.19.1, Default Uplift Invoices.

ACTION REQUIRED: Payment for Default Uplift Invoices is due on March 20, 2013, which is five (5) Business Days after the Invoice date.

ADDITIONAL INFORMATION: The Default Uplift Invoices can be found in the Market Information System (MIS) Markets Tab/Settlements Page/Settlement Statements and Invoices Portlet.

Statement & Invoice XSLs zip file that includes the specifications for the Default Uplift Invoice can be found on http://www.ercot.com/services/mdt/xsds/.

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 the ERCOT Credit Team via email at [log in to unmask].

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