Dear Valued Client,

GSE would like to make you aware of upcoming changes to the ERCOT power congestion management system in Texas. On Dec. 1, 2010, we will be moving from a Zonal congestion system to a Nodal congestion system. Although all electricity agreements will remain intact, this change could have a significant impact on your energy costs moving forward depending upon the pricing structure associated with your agreement.

Please make sure to follow up with your GSE consultant for a more detailed explanation of the potential impacts of the new Nodal system. Below are a couple of upcoming changes to discuss with your GSE representative.

• As of December 1, 2010, MCPE will cease to be the default index product. The index will now either be designated by the Real Time (RT), or Day Ahead Market (DAM), depending upon the selection by your current Retail Electricity Provider.
• Each Retail Electric Provider in Texas has the ability to reconcile Nodal charges at their own discretion. While each contract addresses these issues individually, it is important to understand the various components of the Nodal market that will impact your business directly (trade hub to load zone, RUC, etc.).

  As always, our job is to provide you with the most up to date energy market information.

  Thank you for the opportunity to work with you.

  Regards,