Short Payment Notice

QSEs that are owed monies from ERCOT on invoices that are due today,
December 26, 2001, will notice that the amount of funds transferred is
short of the balance due on the invoice. This is a notification that
ERCOT will follow the "short payment" procedure stated in the ERCOT
protocols for payments being made to QSEs today. Due to short payments
by one or more QSEs, ERCOT is insufficient of funds to pay all amounts
in full. As described in the ERCOT protocols, section 9.4.4, ERCOT will
deduct ERCOT administrative fees and reduce payments to all invoice
recipients that are owed monies. The reductions will be based on a pro
rata basis of monies owed to each ERCOT creditor for this invoice to the
extent necessary to clear ERCOT's accounts on the payment date to insure
revenue neutrality for ERCOT. ERCOT will distribute past due funds on a
pro rata basis of monies owed on the next business day after receipt of
the monies.

If you have any questions, please call your ERCOT client service
representative.

ERCOT Client Relations
ClientRelations@ercot.com
512-248-3900