Role of Account Management at ERCOT ERCOT – TX SET 814_20 Discussions 10/25/06

2 TX SET 814_20 Discussions ERCOT and MPs identified known and potential large volumes of 814_20 and other types transactions. –Recap of Known Types of Large Transaction Volumes 814_20s - Bulk Retires, Meter Changes, Annual Validation, Cycle changes, Address Clean-ups –Recap of Potential Types of Large Transaction Volumes 814_20s - Profile changes, Rate Changes, Advance Metering Rulemaking, Potential of Nodal, Weather Related Other Transactions - Opt Ins to the market, TDSP territory changes, Potential Mergers. –TX SET determined that we needed to look at near-term options and they would continue to investigate long-term options for future TX SET releases (may include elimination of response transactions not needed in market) –ERCOT and MPs identified options for improvements to 814_20 processing –ERCOT and MPs were to identify High, Medium and Low from an effort perspective. Costs will not be provided by ERCOT at this time. –ERCOT’s replacement of SeeBeyond with TIBCO (RBP project) may increase processing capabilities - ** Load/performance testing has not started (est. start early Nov 06)

3 Transaction volumes

4 Clarify this slide Inbounds only

5 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendations A. Manage transactions, MPs bundle or break apart into the 50K volumes. Rank - 5 Low 2-High, 1-Low Note from 1 TDSP – low is relative to 814_20s only, if other transactions – it would change to High *risk to CRs (ERCOT processes adds separate from maintains/retires – if a retire was received by ERCOT in front of maintains – it could cause a delay CRs receiving maintains later after the processing of retires) B.ERCOT create a parking lot for large volumes/throttle. Rank - 4 MedN/AMed effort from ERCOT to automate throttling capabilities based upon type (add, maintain, retire) Risk – if backlog could cause lower priority transactions to be delayed for extended period of time.

6 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendations C.Add CR DUNS to the 814_20 to allow for immediate forwarding (like the 867_03) Rank - 5 HighLowHigh effort from ERCOT to change the validation process. New 814_20 segments (adding the CR to receive the information) for a future TX SET release (long term solution). Change the flow of 814_21s to go back to TDSP when received from CR. Risk – multiple rejects (from both CR and ERCOT for any validation done after the forwarding) Risk – out of synch conditions if CR accepts change and ERCOT rejects.

7 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendation D.TDSP to automate systems to break 814_20s outbound files into 50K bundles Rank - 5 Low2-High, 1-Low *risk to CRs of putting maintains after retires, risk to CRs to receive large volumes – note from 1 TDSP – low is relative to 814_20s only, if other transactions – it would change to High *risk of still needing coordination with ERCOT limit of 1 50K file per day

8 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendation E.The prioritization of 814_20s from #2 plus building a separate pipe for 814_20 flow Rank - 1 MedN/AWith RBP, effort went from High to Med to split 814_20s into own pipe (addition could prioritize based upon type – add, maintain (can we break out further by type?) and retire) Risk – backlog could cause lower priority transactions to be delayed for extended period of time. Pipe would need to be large enough to not cause backlog. Could impact CRs with the greater volumes.

9 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendation F.ERCOT to increase capacity of current processing architecture for 814s Rank - 2 HighN/AHigh effort due to architecture change. Could impact CRs with the greater volumes. * ERCOT To Do – get clarification about the 2 pipelines vs. 1 pipeline to distinguish option #6 from option #5

10 High volume options Option ERCOT Effort TDSP Effort Notes / Recommendation G. High Volume Transaction Lane Rank - 3 HighN/A * ERCOT To Do – get Clarification – if create a 2 nd pipe for 814_20s could it be reused for other transaction types. H.Processing of a.csv file instead of TX SET transactions Rank - 5 HighLowHigh effort due to program systems to receive.csv files

11 Bring back to 10/25 TX SET meeting ERCOT to get additional information from development teams to the clarifying questions. Will bring back to 10/25 meeting. –ERCOT To Do – get clarification about the 2 pipelines vs. 1 pipeline to distinguish option #6 from option #5 Building a separate processing pipe for 814_20s is med effort as it’s a deployment configuration change within the architecture. Increasing current capacity to 200K or 300K is high effort as we don’t have the metrics from the TIBCO deployment (scheduled for Dec 2006). May require significant changes to scale the applications within the Retail Transaction Processing arena (PF, TIBCO, Siebel) to meet those levels. –ERCOT To Do – get clarification – if create a 2 nd pipe for 814_20s could it be reused for other transaction types. It would take some configuration changes to use for other transaction types. If you used it for other transaction types, the priority 814_20s would be competing with other priority transactions –ERCOT To Do – get clarification – could an 814_03 get stuck behind an 814_20? Within SeeBeyond, there are separate processes (1 for initiating and 1 for 814_20s) that flow into the same inbound, depending on when transactions are received, the 814_03s could be behind 814_20s. This will continue with TIBCO. The additional SIR in Feb will split them out. Once files are packaged for outbound, the outbound processing runs every 5-10 minutes/ system configured by transaction type and quantity, once they are past SeeBeyond, there is minimal chance for 814_03s to get behind 814_20s

12 Bring back to 10/25 TX SET meeting ERCOT to come to next TX SET meeting with more details around the recommendations selected. Will bring back to 10/25 meeting. –ERCOT reviewed the recommendations ranked by TX SET (of Low or Med effort by ERCOT) to evaluate what could be implemented near-term in the Feb 2007 release. Here is what is recommended: Automate the 814_20s throttling capabilities within current processing pipe (all 814s) a.Automation to allow for system to adjust automatically when other 814s are lower (after hours and weekends) b.Still handling daily volumes of up to 100K and c.Prioritization of the 814_20s through the pipe by 1st Adds, 2nd Maintains, 3rd Retires Building a separate processing pipe for 814_20/814_21 processing a.To handle daily volumes of up to 100K and b.Prioritize the 814_20s through the pipe by 1st Adds, 2nd Maintains, 3rd Retires

13 What’s next for TX SET? Reminder - 814_20 processing - Until near-term recommendations are implemented – ERCOT encourages TDSPs to continue to communicate to ERCOT any large volumes of 814_20s to be managed through current market processes (bundles and manual intervention by ERCOT and TDSPs). Long Term analysis continues at TX SET