Texas Regional Entity Presentation

Texas Regional Entity

Compliance Report

Board of Directors

August 17, 2009

Overview

¡ñ July 2009 ERCOT CPS1 Monthly Performance

¡ñ July 2009 SCPS2 Scores for Non-Wind and Wind Only QSEs

¡ñ June 2009 Resource Plan Performance Metrics for Non-Wind and

Wind Only QSEs

¡ñ Key Issues

? NERC Organization Registration and upcoming Compliance

Workshop schedule

? NERC Standards Self-Certification update and Schedule

? NERC Audit & Enforcement Highlights

? Technical Feasibility Exceptions (TFEs)

? Nodal Regulatory Requirements

? PRR ¨C 822 Removing Access to Restricted Computer Systems,

Control Systems and Facilities

Page 2 of 16

ITEM 4A - COMPLIANCE REPORT

AUGUST 17, 2009

CPS1 Average

July 2009 ERCOT¡¯s CPS1 Monthly Performance

170

170

160

160

150

150

140

140

130

130

120

120

110

110

100

100

Monthly Avg

12Actual

Mo Rolling Avg

Page 3 of 16

Poly.

(12 Mo Rolling Avg)

Trend

ITEM 4A - COMPLIANCE REPORT

AUGUST 17, 2009

Analysis of CPS1 Monthly Performance

¡ñ Purpose: To maintain Interconnection steady-state

frequency within defined limits by balancing real

power demand and supply in real-time

¡ñ CPS1 is one reliability measure of how well the ERCOT

region managed the BPS

¡ñ ERCOT region¡¯s frequency performance is determined

by NERC Control Performance Standard 1 (CPS1)

¡ñ Seasonal fluctuation is expected

¡ñ Scores for individual months can be adversely affected

by events (such as hurricanes)

¡ñ A detailed formula can be found in NERC Reliability

Standard BAL-001-0a

Page 4 of 16

ITEM 4A - COMPLIANCE REPORT

AUGUST 17, 2009

July 2009 SCPS2 Scores for Non-Wind Only QSEs

100

90

80

Percent

70

60

50

40

30

20

10

0

41 Passing Non-Wind Only QSEs

0 Failing Non-Wind-Only QSEs

Page 5 of 16

ITEM 4A - COMPLIANCE REPORT

AUGUST 17, 2009

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