Move-in/Move-out Transaction Analysis Summary of ERCOT Analysis July 1, 2002 through August 9, 2002 August 29, 2002

Move-in Move-out Transaction Analysis Total transactions in sample = 403,527 Duplicate TRAN_IDs Invalid ESIID Invalid ZIP Duplicate 814_16s Duplicate 814_16s Duplicate 814_16s Duplicate 814_16s 814_17s 814_17s ESIID Not Active 814_17s 814_17s Rep Active / ESIID Inactive Rep Invalid / ESIID Inactive Supplier not Certified Incorrect Billing Type Complete / Cancelled 814_16s NFI 814_16s 814_16s 814_16s

Move-in Move-out Transaction Analysis Total transactions excluding duplicates = 304,200 Invalid ESIID Invalid ZIP Invalid ZIP Invalid ESIID 814_17s 814_17s ESIID Not Active ESIID Not Active Rep Active / ESIID Inactive Rep Active / ESIID Inactive Rep Invalid / ESIID Inactive Rep Invalid / ESIID Inactive Supplier not Certified Supplier not Certified Incorrect Billing Type 814_16s Incorrect Billing Type Complete / Cancelled 814_16s NFI NFI Complete / Cancelled

Move-in Move-out Transaction Analysis Total 814_17 Rejects = 31,347 Invalid ESIID Invalid ZIP Invalid ZIP Invalid ESIID ESIID Not Active ESIID Not Active Rep Active / ESIID Inactive Rep Active / ESIID Inactive Rep Invalid / ESIID Inactive Rep Invalid / ESIID Inactive Supplier not Certified Supplier not Certified Incorrect Billing Type Incorrect Billing Type Complete / Cancelled NFI NFI 814_16 Mapping Failure 6% of total transactions

Move-in Move-out NFI Analysis Reasons for NFIs and Estimated Volumes Delay at TDSP in sending 867 to ERCOT Estimated (10% - 20%) Multiple Move-ins from CR for Same ESIID, Same Day, for different customers Estimated (15% - 20%) ERCOT failure to successfully update Siebel with 814_04 transaction from TDSP (hardening project) ERCOT failure to successfully update Siebel with 867 transaction from TDSP (hardening project) Total 50% - 80% of 18,958 NFIs in this sampling (or 1.2% to 3% of total valid transactions are true NFIs)

Move-in Move-out Conclusions Several short-term projects and initiatives will make a significant difference in errors/issues Duplicates and invalid transactions are indications of other issues that can lead to different conclusions 50% to 80% of NFIs relate to Short-Term system issues and data coordination problems Range is large (more analysis is needed to narrow this number) Remaining NFIs are due to stacking and date change issues (i.e.. To be addressed by Long-Term project) Once short-term issues are corrected, NFIs constitute 1.2% to 3% of the overall 814_17 Rejects based on this analysis

Move-in Move-out Transaction Analysis 50% adjustment to NFI & Invalid ESIID rejects Invalid ESIID Invalid ZIP 2,478 (<1%) - 6,195 (2%) Other Rejects Invalid ZIP Invalid ESIID 814_17s ESIID Not Active ESIID Not Active NFI Rejects Rep Active / ESIID Inactive 3,792 (1.2%) - 9,479 (3%) Rep Active / ESIID Inactive Rep Invalid / ESIID Inactive Rep Invalid / ESIID Inactive Supplier not Certified Supplier not Certified Incorrect Billing Type 814_16s Incorrect Billing Type 288,256 (95%) - 297,930 (97%) Complete / Cancelled NFI NFI Complete / Cancelled

Move-in Move-out Analysis Recommendations Complete Root Cause Analysis Confirm reasons for NFIs with TDSPs and CRs Develop a comprehensive analysis of NFIs against the 29 business scenarios Identify any additional Operational Issues or Market gaps in Move-in/Move-out process Define a comprehensive list of business scenarios for Long-Term Project

Move-in Move-out Activities Timeline On-going Short Term Activities ERCOT Analysis Market Analysis 30% 70% Long-term Plan (Detailed Requirements, RFP, etc.) August September Mid-October

Move-in Move-out Considerations What are the customer service requirements? What can (or should) occur via transactions? If scenarios are identified that are not reasonably accomplished via transactions, what are the new options? What is the likelihood and frequency of items identified under item #3?