Texas Regional Entity Presentation

Texas Regional Entity

Compliance Report

Board of Directors

May 19, 2009

Overview

¡ñ April 2009 ERCOT¡¯s CPS1 Monthly Performance

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

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

Wind Only QSEs

¡ñ Key Issues

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NERC LSE Registration Update

Nodal Market Preparedness

NOGRR 025 - Monitoring Programs for QSEs, TSPs & ERCOT

Zonal PRR and OGRR Progress

Wind Metrics progress

¡ñ NERC Audit & Enforcement Highlights

¡ñ Texas RE Compliance Workshop

¡ñ Compliance Human Resources

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ITEM 4A - COMPLIANCE REPORT

MAY 19, 2009

April 2009 ERCOT¡¯s CPS1 Monthly Performance

Page 3 of 23

ITEM 4A - COMPLIANCE REPORT

MAY 19, 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

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ITEM 4A - COMPLIANCE REPORT

MAY 19, 2009

April 2009 SCPS2 Scores for Non-Wind Only QSEs

100

90

80

Percent

70

60

50

40

30

20

10

0

35 Passing Non-Wind Only QSEs

1 Failing Non-Wind-Only QSEs

Page 5 of 23

ITEM 4A - COMPLIANCE REPORT

MAY 19, 2009

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