Retail Communications Workshop February 27, 2007

2007 Retail Communications Agenda Review and discussion of Templates Retail Release Retail Planned Maintenance Discovery of Retail Transaction Business Processing Failures Retail Transaction Business Processing Failures Outage during Business Hours Outage during Non-Business Hours Identification and Tracking of Notices

Retail Release Notice Template Timing of Market NotificationPhases of NoticeNotice ContentListserv Retail Release 30 Days Prior to Release I – Initial General Market Notification Standard Content + Background Material Distribution lists and Primary and Secondary contacts 10 Days Prior to ReleaseII –Follow-UpSame as Previous 1 Day Prior to ReleaseII –Follow-UpSame as Previous End of Event ASAPIII – FinalCompletionSame as Previous

Retail Planned Maintenance Notice Template Timing of Market NotificationPhases of NoticeNotice ContentListserv Retail Planned Maintenance Target 3 Days Prior to Maintenance I – Initial General Market Notification Standard Content + Background Material Distribution lists and Primary and Secondary contacts Target 1 Day Prior to MaintenanceII –Follow-UpSame as Previous End of Event ASAPIII – FinalCompletionSame as Previous

2007 Retail Communications Discovery of Retail Transaction Business Processing Failures –How does ERCOT find issues? ERCOT Commercial Operations –Alarms and alerts –Timing ERCOT Business Owners –Analysis –Timing Market Participant Contact –Account Manager contact –Helpdesk –When do we notice you? In accordance with the proposed templates and as soon as it is reasonably possible after Client Services has knowledge of the event. Unknown processing issues may not surface to anyone’s attention for long periods of time.

Retail Transaction Business Processing Failures Notice Template Timing of Market Notification Phases of NoticeEscalationNotice ContentListserv Retail Transaction Business Processing FailuresUpon implementation of SCR 748, ERCOT logs outage and post instance to webpage. Business Day 1 ASAP I – Initial General Market NotificationNoneMinimal Distribution lists and Primary and Secondary contacts By COB Day 2 at LatestI –Follow-UpNone Standard content + applicable MP spreadsheets as available Same as previous + Market Participant Specific End of Event Occurring before Escalation beginsIV – FinalNone Normal Processing /Root Cause Same as previous + Market Participant Specific By COB Day 3II – Follow-UpYes Same as previous + updates Same as previous + Subcommittees + TAC + Market Participant Specific By COB Day 4II - Follow-UpYes Same as previous + updatesSame as previous + Business Day 5 and beyondIII –Follow-UpNone Market Participant Specific Market Participant Specific End of EventIV – FinalYes Normal Processing /Root Cause Same as last General + escalation Lists if required

Outage During Business Hours (slide 1) Notice Template Duration of Outage Timing of Market Notification Phases of NoticeEscalationNotice ContentListserv Retail Transaction Processing Un- Controlled/Contro lled Outage During Business Hrs> 30 minutesUpon implementation of SCR 748, ERCOT logs outage and post instance to webpage. Business Day 1 ASAP after notification I – Initial NotificationNoneMinimal Distribution lists and Primary and Secondary contacts By COB Day 1II - Follow-UpNoneStandard contentSame as previous Business Day 2 by 9 amII – Follow-UpNone Same as previous + updatesSame as previous ASAP After RestorationIII – Pre-Final Same as last message sentMinimal Same as last message sent. End of OutageIII – FinalNoneService restored Same as last message sent. By COB Day 2 II – Follow-Up and Initiate Daily Conference Calls to begin on Day 3Yes Same as previous + conference call information Same as previous + Subcommittees + TAC Business Day 3 by 9 amII - Follow-UpYesSame as previous By COB Day 3II - Follow-UpYesSame as previous End of OutageIII – Final Same as last message sentService restored Same as last message sent.

Outage During Business Hours (slide 2) End of Outage + 7 Calendar Days IV –Mitigation Action Subcommittee Update Same as previous + mitigation actions; additional follow-up communications Appropriate Committees End of Outage + Reasonable Time for Completion of Root Cause Analysis not to exceed 45 days without at least an interim report. IV – Lessons Learned & Mitigation Action Subcommittee Update Same as previous + lessons learned and mitigation actions; additional follow-up communications Appropriate Committees

Outage During Non-Business Hours (slide 1) Notice Template Duration of Outage Timing of Market Notification Phases of NoticeEscalationNotice ContentListserv Retail Transaction Processing Un- Controlled/Controlled Outage During Non- Business Hours (5pm to 8 am, weekends, and ERCOT holidays) > 30 minutes Upon implementation of SCR 748, ERCOT logs outage and post instance to webpage. If ERCOT IT, Business, Client Services determines a weekend/holiday non-business hour event to be of major significance, initial market notices will be sent ASAP with follow-up notifications as necessary. Business Day 1 by 9 am I – Initial NotificationNoneMinimal Distribution lists and Primary and Secondary contacts Business Day 1- If Outage Restoration complete by 9 am, then by NOON I – Initial Notification and FinalNoneStandard contentSame as previous By COB Day 1II - Follow-UpNoneStandard contentSame as previous Business Day 2 by 9 amII – Follow-UpNone Same as previous + updatesSame as previous ASAP After RestorationIII – Pre-Final Same as last message sentMinimal Same as last message sent. End of OutageIII – FinalNoneService restored Same as last message sent.

Outage During Non-Business Hours (slide 2) By COB Day 2 II – Follow-Up and Initiate Daily Conference Calls to begin on Day 3Yes Same as previous + conference call information Same as previous + Subcommittees + TAC Business Day 3 by 9 amII - Follow-UpYesSame as previous By COB Day 3II - Follow-UpYesSame as previous End of OutageIII – Final Same as last message sentService restored Same as last message sent. End of Outage + 7 Calendar Days IV –Mitigation Action Sub- committee Update Same as previous + mitigation actions; additional follow-up communications Appropriate Committees End of Outage + Time for Completion of Root Cause Analysis not to exceed 45 days without at least an interim report. IV – Lessons Learned & Mitigation Action Sub- committee Update Same as previous + lessons learned and mitigation actions; additional follow-up communications Appropriate Committees

2007 Retail Communications Tracking Market Notice Tracking Codes –Code each notice with a prefix Wholesale = W Retail = R Market-Wide = M –Code Each notice with a unique identifier A = First topic notice of a day B = Second topic notice, so forth –Code each notice with the notice date –Code each notice with a sequence number 01, 02, 03, etc –Example R-A

2007 Retail Communications Tracking Market Notice Tracking Codes –First topic Retail notice on February 27, 2007 Initial Notice –R-A Follow-up same day –R-A Follow-up next day –R-A –Second topic Retail notice on February 27, 2007 Initial Notice –R-B –Market-Wide and Wholesale Notice on February 27, 2007 Initial Notice –M-A –W-A

2007 Retail Communications Tracking

2007 Retail Communications Questions?