1 RMS TAC Update March 6, 2003

2 Texas Test Plan Chair; Bill Bell Centerpoint Energy Vice Chair; Leanne Hayden Centrica COMET Chair; Terry Bates TXU Vice Chair; Bruce Mueller San Bernard Electric Co-op Texas SET Chair; Diana Rehfedt TNMP Vice Chairs; Kyle Patrick Reliant Resources & Johnny Roberson TXU Load Profiling Chair; Ernie Podraza Reliant Resources Vice Chair; Terry Bates TXU Texas Data Transport Chair; Debbie McKeever Oncor Vice Chair; Susan Tope Centerpoint Energy Texas Guides Chair; Felecia Lokey TXU RMS Working Group Leadership

3 COMET Charter The Competitive Metering Working Group (COMETWG) will develop and recommend the business policies and procedures to implement competitive metering services that will become available to commercial and industrial customers beginning on January 1, 2004, in the competitive retail electric market in Texas, as proposed under the Public Utility Commission of Texas (PUCT) Rule The working group will recommend a market structure and business policies and procedures necessary to implement other competitive metering services.

4 Direct Load Control Beta Test Proposal

5 Protocols Section (gray boxed) and the Load Profiling Guides (LPG 16.2) require lagged-dynamic sample to settle the market for DLC PWG has submitted Protocol revisions and LPG revisions to replace the gray boxes to implement DLC –Addresses settlement for DLC in general –Addresses issues related to DLC participation in BUL ERCOT is unable to implement system changes for DLC as laid out by Protocols and LPG by June 1, 2003 Background on DLC

6 At the Demand Response Workshop on 01/31/03, Commissioner Perlman asked ERCOT to meet with Green Mountain and Comverge to explore alternatives such that some form of DLC could be implemented for Summer 2003 In response to the above, a DLC Beta Test Program was outlined Should this be approved via the stakeholder process, ERCOT believes it would be able to implement a DLC Beta Test Program for Summer 2003

7 Deviate from Protocols “Adjustments and Changes to Load Profile Development” “…ERCOT shall give at least 150 days notice to all Market Participants prior to market implementation of any change in Load Profile Methodology, existing Load Profiles, or when any additional Load Profiles are developed.” Potentially deviate from Load Profiling Guides 12.4 “Process Timing for Requesting Changes” “…The time of annual implementation of approved changes shall not be during the months from June through September, inclusive.” Based on a recommendation from PWG, approve and forward to TAC the request to create a new profile (LPG 12.9) DLC Beta Test Requirements

8 Green Mountain must provide ERCOT with access to a radio receiver and data-logger which records radio control signals Green Mountain must provide ERCOT with details of current maintenance level of radios on its DLC program and reports of maintenance from Beta Test inception to conclusion Green Mountain must provide ERCOT a daily report of all control events Green Mountain must notify ERCOT daily of participants who withdraw from the DLC program DLC Beta Test Requirements

9 Beta Test is limited to June 1 – September 30, 2003 Participation limited to residential ESI IDs on Green Mountain’s DLC program as of April 15, 2003, or 5,000 ESI IDs, whichever is less Number of controls limited to 40 per month, while duration of control time limited to 15% of the hours in each month Consideration for the DLC Beta Test will be reflected in energy obligations only; There will be no BUL payments for the DLC Beta Test DLC Beta Test Limitations

10 Protocols Section “Adjustment and Changes to Load Profile Development” and Load Profiling Guides Section 12.4 “Process Timing for Requesting Changes” be waived and to implement the Beta Test Proposal and restrictions as presented by ERCOT. RMS DLC Resolution

11 Green Mountain must fund a pilot load research sample to support ERCOT’s analysis of the DLC program (CenterPoint to install IDRs and process data) Green Mountain and Comverge must not know load research sample point locations CenterPoint Energy must submit 814_20 transactions to change profile codes: RESHIDLC_COAST_NIDR_NWS_NOTOU or RESLODLC_COAST_NIDR_NWS_NOTOU DLC Beta Test Requirements

Restart True-Up Criteria

13 TAC Resolution from ERCOT should complete work on the data extract associated with SCR 727 and provide the subject data to the Market as soon as possible, without regard to questions associated with the integrity of the underlying data vis-à-vis synchronization of data resident in ERCOT’s Siebel and Lodestar Systems. The RMS is instructed to reconsider the success criteria for completion of Market synchronization and QRE corrective actions, particularly in light of the number of customers that could be impacted if the previously recommended target completion rates are retained (resolution of at least 95% of out-of-synchronization conditions in specified priorities in each of ERCOT, REP collective, and TDSP categories for the Market data synchronization project; and resolution of 95% of QRE issues that were within QRE scope as of December 16, 2002). The RMS is instructed to review the Siebel and Lodestar synchronization criteria in light of the results of ERCOT’s comparison of data in these systems.

14 RMS Resolution True-up settlements for 2002 shall begin 60 days after the initial release of the SCR 727 data. 2.MPs will have up to 30 days prior to the scheduled settlement date for a particular operating day to identify variances in the data extract pursuant to procedures to be developed by ERCOT. Should a MP raise an issue in a true-up dispute, ERCOT shall consider the MP’s compliance with this resolution in evaluating that dispute. 3.ERCOT shall present a resolution for consideration by the RMS concerning the process for variance resolution. This resolution shall be processed in a timeframe such that a resolution concerning the variance resolution process will be presented to the Board at its March 2003 meeting. The process shall identify specific responsibilities and timelines for variance resolution. ERCOT shall coordinate and report compliance with the variance resolution process.

15 As a follow-up to the previous motion above, the RMS moves to suspend any further effort by all MPs for Market Synchronization Priority 5, DART and QRE until the ERCOT Board approves the 2002 True-Up Restart Criteria and furthermore moves to cease any further efforts on Market Synchronization and QRE upon Board approval of 2002 True-Up Restart Criteria. MPs are obligated to complete Priorities 1, 2, 4 (1) no later than 30 days prior to the scheduled resettlement of the effected trade date. This motion is intended to eliminate the possibility of a duplicate work effort. It was noted that issues can still be addressed on a day to day basis through FasTrak. RMS Resolution &

16 3/34/5 5/5 5/65/7 Daily Data Extract Changes True-up Resettl e 1/1- 2/02 True-up Resettl e 1/3- 4/02 True-up Resettl e 1/5- 6/02 Extract and Change Analysis Notification Of Variances For 1/1-2/02 1) Service History 2) Usage History Deadline s for 1/3-4/021/5-6/02 Dispute Deadlines Data Variance Repairs Initial Data Extract 7/31/01 – 2/25/02 Analysis - Repairs Extract, Variance and Resettlement Timeline