March 10, 2009COPS

Uplift Update

Mandy Bauld

February 10, 2009 2

Update

‘Summer 2008 Defaults’ Uplift Process is complete

1st Uplift (Jan 09)  

  Uplift Invoice Pay-in $2,500,000.00

  Pay-out to Short-Paid entities $2,500,000.00

2nd Uplift (Feb 09)  

  Uplift Invoice Pay-in $1,661,186.82

  Late Fee Recovery (Misc Db) Pay-In $179,484.37

  Remaining Credits on Hand $403,101.65

  Pay-out to Short-Paid entities $2,243,772.84

     

Total amount Uplifted $4,161,186.82

Total paid to Short-Paid entities $4,743,772.84

February 10, 2009 3

Next Steps

• ‘Lessons Learned’ discussions / action items (@ SEWG?) – Default Process in the past / present

• What processes should be consistent regardless of the specific default scenario?

• What processes may change, depending upon the scenario?

– Consider drafting PRR language to• Stop Late Fee calculations (similar to Nodal) ”…provided that

ERCOT may cease charging late fees earlier than 180 days following a short-payment of an Invoice if ERCOT, in its sole discretion, determines that the recovery of late fees from the defaulting Entity is unlikely.”

• Allow hold back of x (5-10?)% collateral to fund small resettlements through finals and true ups and

• Other?

– Ad-Hoc Invoice process (already at SEWG)• Includes focus on communication channels