LRISv2 Subgroup 10/27/2014 1

POLR Rates- Residential § Provider of Last Resort (POLR) (m) (2) (A) Rates applicable to POLR service, residential customers LSP rate = Non-bypassable chg + LSP customer chg + LSP energy chg ($ per kWh) kWh used LSP - Large Service Provider REP with largest market share for area will be responsible for calculating/updating POLR EFLs posted on the PUC website Non-bypassable charges TDU charges + ERCOT Administration charges LSP customer charge $0.06 per kWh per Subst. Rule LSP energy charge Current month energy charge is the sum over the billing period of the actual hourly RTSPPs for the customer’s load zone times # of kWhs used during that hour x 120% Minimum energy charge is the simple average over 12 month period of RTSPPs for every 15 minute interval from Sept 2 nd to Sept 1 st of preceding year for the applicable load zone ( for example, in Oncor territory - the highest simple average for either LZ North, LZ South, & LZ West is used) x 125% 2

POLR Rates – Sm & Med Non-Res (m) (2) (B) Rates applicable to POLR service, small & medium non-residential customers LSP rate = Non-bypassable chg + LSP cust. chg + LSP demand chg + LSP energy chg ($ per kWh) kWh used Non-bypassable charges TDU charges + ERCOT Administration charges LSP customer charge $0.025 per kWh per Subst. Rule LSP demand charge $2.00 per kW per month for demand meter $50.00 per month for non demand meter LSP energy charge Current month energy charge is the sum over the billing period of the actual hourly RTSPPs for the customer’s load zone times # of kWhs used during that hour x 120% Minimum energy charge is the simple average over 12 month period of RTSPPs for every 15 minute interval from Sept 2 nd to Sept 1 st of preceding year for the applicable load zone ( for example, in CenterPoint territory - the highest simple average for either LZ Coast or LZ South is used) x 125% 3

POLR Rates – EFLs 4 Current EFL values as of 10/21/14 using September 2014 TDU tariffs EFL values are typically revised in January, March, & September of each year to coordinate with scheduled tariff revisions (TCRFs) POLR 2000 kWh Small 2500 kWh, 11kW EFL valueEnergyEFL valueEnergy Oncor CenterPoint AEP - Central AEP - North TNMP Sharyland McAllen Sharyland Utilities Average Average ResidentialfixedkWh cost per kWh Oncor$ CenterPoint$ AEP - Central$ AEP - North$ TNMP$ Sharyland McAllen$ Sharyland Utilities$ Small Non-ResfixedkWhkW cost per kWh, 11kW Oncor$ CenterPoint$ AEP - Central$ AEP - North$ TNMP$ Sharyland McAllen$ Sharyland Utilities$