Profiling Working Group 1 PWG Update Report By Brad Boles of Cirro Energy ERCOT PWG Vice-Chair for COPS Meeting June 11, 2007

Profiling Working Group 2

Goals Update 1Implement new Version 2 ERCOT Profiles. Done. 2LRS sample selection round two. Done. 3New Oil & Gas Profile – BUSOGFLT. Scheduled 9/18/ Annual Validation. TAC approved LPGRR020 Resolution Target 99% and annual decision tree updates. 5Evaluate the methodology for profile scaling factors (per UFETF Nov. 16) 6Review 2004, 2005 & 2006 UFE Analysis. Initial 2006 analysis complete as well as a comparison of old and new profiles on UFE. 7Examine ways to accommodate extreme events in Settlement process. 8Establish Long Term Strategy of Load Profiles including refresh timeline

Profiling Working Group Goals Update 9 IDR Analysis – 2 issues outstanding from original analysis 10Review if having more weather stations adds accuracy 11Review if the weighting of weather stations is appropriate 12Review IDR installation procedure language to ensure compliance 13Does having 2 decimals on load profiles significantly affect settlement Pro and Con discussion deferred to the COPS. 14Review LPG language on list based profiles and universality 15 PUCT Docket responses to demand response or AMR rule, etc. 16 Set up area on PWG web page for key documents Done. See ERCOT.com, “Committee and Groups”, ”COPS”, “PWG”, “Presentations”. Note, takes a bit to open 56 + MB. 17Annual Review of load profiles as specified in market language

Profiling Working Group Goals Update 18Analysis to identify new profiles as specified in market language 19Update the TOU procedures on the Load Profiling web site 20Investigate ways to improve Business Profile ID assignments 21Review analysis of DLC demonstration programs. PWG is working on PRR and LPGRR drafts. PWG June meeting shall mostly be on this issue. Market participation is encouraged. 22Review Protocol and LPG language for appropriateness for large Opt-in Entity. 23Review Protocol and LPG language for consistency with PUCT Load Research Rule. A LPGRR is filed by ERCOT Staff to begin the clean up of obsolete gray boxes.

Profiling Working Group 6 LPGRR018 Default Residential Profile Segment For new ESIIDs 1.Approved by TAC. 2.LPGRR effective date, 5/1/ Market Notice has been sent. 4.Decision Tree language to be gray boxed. 5.TDSPs have six months to change systems. 6.Implementation date is 11/1/2007.

Profiling Working Group 7 DLC and Demand Response Update 1)Sponsorship; a)COMET to take the lead on small generation and advanced metering. b)PWG is working on DLC language changes c)Long Term Solutions Task Force has been formed 2)Budget and Project allocation above the line 3) PWG Goal and ERCOT Staff resource allocation 4) PWG agreed to focus on DLC for summer implementation and let other demand response issues develop as needed in the Market Stakeholder process. 5) Develop PRR and LPGRR language to fine tune 6) Implementation of ERCOT Project 7) Timeline (target summer 2008)

Profiling Working Group 8 UFE Comparison Old vs. New Profiles See key document at PWG May 22, 2007 Meeting. 7/0522/UFE_Analysis_Old_-_New_Model.ppthttp:// 7/0522/UFE_Analysis_Old_-_New_Model.ppt Abs. UFE MWh for New Models is 13% lower, which is 1,049,078 MWh less variability. UFE Cost for New Models is 40% lower, which is equivalent to $ 111,635,419 based on MCPE. Abs. UFE Cost for New Models is 19% lower, which is equivalent to $ 107,847,168. Congratulations to all Market Participants.

Profiling Working Group 9 Questions? PWG meets on the fourth Tuesday of the Month thru Oct.