3rd Party Update To RMS November 20, 2013 Bob Frazier Senior Director of Electric Technology CenterPoint Energy (representing SMT JDOA)

SMT Development Status SMT 3 rd Party Design (AMIT / SMT DO) – Completed SMT 3 rd Party Security Review – Completed SMT Customer Experience – Completed 3 rd Party Solution Delivery – Development in progress – Delivery NLT 4 th Qtr 2014 CR Bulk Historical Information Review – Design 100, Development 90%, Testing Started 2

3 rd Party Project Agenda Smart Meter History & JDOA 3 rd Party Project Status Project Schedule SMT 3 rd Party Security Review SMT Customer Experience -Site Evaluation -Navigation Analysis Schedule – Interface Design Specifications – Testing Opportunities 3

SMT 3 rd Party Security Review Reviewed by Two Independent Security Firms: One Firm Focused on Industry Alignment & Standards One Firm Focused on Social Aspects & Non-Industry Standards 4

SMT Customer Focus & Experience Review Smart Meter Texas – Site Evaluation Home Page Organization (Text Heaviness) Authenticated Landing Page (Text Heaviness) Navigation Ease of Use Organization Smart Meter Texas – Navigation Analysis Registration Process Navigation Agreement Presentment Content 5

3 rd Party Security Independent Review 1 st Quarter2 nd Quarter rd Quarter4 th Quarter 1 st Quarter2 nd Quarter rd Quarter4 th Quarter 3 rd Party Customer Experience Review 3 rd Party Customer Experience Changes 3 rd Party Development Security Validation Additional Solution Requirements 3 rd Party Testing 3 rd Party Implementation Project Schedule 6 3 rd Party Design AMIT / SMT DO 3 rd Party Technical Integration Sessions Security Validation SMT Design Assessment

CR More customer programs and better forecasting Recommended by AMWG Approved by RMS as high priority Monthly usage available via SMT provided ad-hoc 12 months daily usage Delivery of 12 months of detailed interval historical usage upon request. – Historical Information upon gaining a customer (Switches and Move-ins). Delivery of Bulk Historical Information for Existing Customers 7

8 AMWG Change RequestStatus Estimated Delivery Date Estimated Cost AMWG CR – Reports for AMWG Data Monitoring Requirement 1 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 2 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 3 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 4 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 6 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 7 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 8 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 9 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 15 JDOA Review N/A AMWG CR – Reports for AMWG Data Monitoring Requirement 17 JDOA Review N/A AMWG / RMS Change Requests (1)

9 AMWG Change RequestStatus Estimated Delivery Date Estimated Cost AMWG CR – HAN Status Report JDOA Review N/A AMWG CR – SMT Usability Development2014 Included in 3 rd Party AMWG CR – SMT Usability Development2014 Included in 3 rd Party AMWG CR – SMT Usability Development2014 Included in 3 rd Party AMWG CR – SMT Usability Estimation N/A AMWG CR – Billing and HAN APIs JDOA Review2015 N/A AMWG CR – REP API for Energy Usage on SMT Development2014 TBD based on testing AMWG / RMS Change Requests (2)

10 Future SMT DO Webinars -3 rd Party Status Updates & Content -3 rd Party Customer Privacy (NAESB, Seal of Compliance) -3 rd Party Ratings -3 rd Party Preparations, Management, Marketing -AMWG / RMS Change Requests -SMT Documentation -Monthly – Third Week of Each Month

SMT Customer Site Change Illustrations Initial Customer Home Page 11

ResidentialOverviewBusiness About Us | Contact Us | FAQs | Security | English | Español News Message Center Smart Meter Texas, Residential, & Business Imagery Illustrating Customer Functions Updated Customer Home Page 12

Initial Customer Navigation 13

Updated Customer Navigation 14

Initial Customer Authenticated Landing Page 15

Updated Customer Authenticated Landing Page 16

Initial Concept 17

Smart Meter Texas Service Invitation Third-Party Info Action on Agreement Updated Concept 18

3 rd Party Timeline(1 of 2) 19 IDSTEPSWHOTARGET NO LATER THAN DATE STATUS STEP- 001 Receive PUCT Directional CommitmentStaff & JDOA2012/12/6COMPLETE STEP- 002 Revise Storyboards based on New Business RequirementsAMITEarly January 2013 COMPLETE STEP- 003A Revisions to Business Process Definitions, Assumptions, Touch Points, and Documentation based on Revised Storyboards SMTEarly January 2013 COMPLETE STEP- 003B Create Descriptive Narrative of Project Requirements, Business Processes, Assumptions, Customer Protections, and Regulatory and Business Drivers (High to Mid-Level with Executive Summary) Mary2013/04/30 - draftIN PROCESS STEP- 004 Present Final Storyboard / Business Process with AMITSMTDO2013/1/23COMPLETE LINE IN THE SAND DECISION STEP- 005 TENTATIVE: Prepare packet for Public CommentStaffEnd of January 2013NOT REQUIRED STEP- 006 TENTATIVE: 30 Day Public Comment Period (Pre-design)StaffEnd of February 2013NOT REQUIRED STEP- 007 TENTATIVE: Review and Assess Public Comments for Incorporation into Design (based on PUCT direction and decision) StaffMid-March 2013NOT REQUIRED STEP- 008 Document New DesignSMT IN PROCESS STEP- 009 F2F End to End Design Review Workshop(s) to Get Initial Approval on the Design SMTDO2013/3/5 and 2013/3/6 COMPLETE STEP- 009B Receive Feedback on DesignSMTPM2013/3/6 through 2013/3/15 COMPLETE STEP- 009C Finalize DesignSMT2013/3/22 COMPLETE LINE IN THE SAND DECISION

3 rd Party Timeline (2 of 2) 20 IDSTEPSWHOTARGET NO LATER THAN DATE STATUS STEP- 010 Review, Finalize, and Publish Content (screen content, s, FAQs) Staff and Jenina Smith2013/3/31 Ongoing, pending Focus Group/Usability Review STEP- 011 Development, Testing, UATSMTQ2 – Q Ongoing STEP- 012 Present 3 rd Party Functionality Demo to Consumer Focus Groups on Usability:  Residential Customers  Non-residential customers Usability Consultant & SMT Q2 2013In process STEP- 013 Review and Assess Focus Group Feedback for Incorporation into Site Usability SMTDO and AMWGQ In process STEP- 014 Refinement Process (development, Testing, UAT) of approved changes identified in Focus Group SMTTBD STEP- 015 Deployment GoalSMTNo Later than End of Q4 2013