1 RMS TAC Update April 3, 2003

2 Test Plan Flight Dates It is the practice of RMS to approved the dates for future testing flights. This enables new market entries, TDSPs and ERCOT to plan when key deliverables are required and the key testing dates. Failure to supply required documentation for a new test flight can result in a market participant waiting until the next test flight and entry into the retail market.

3 New 2003 Test Plan Flights Flight 0703 for New Market Participants testing under TX SET Version 1.5 –Flight will begin pre-test activities on April 8, 2003 –Deadline to Join Flight May 22, 2003 –First transactions July 14, 2003 –Flight Scheduled to End September 5, 2003 Flight 1003 for New Market Participants testing under TX SET Version 1.5 and Possible Transaction Changes from COMET WG –Flight will begin pre-test activities on July 23, 2003 –Deadline to Join Flight September 4, 2003 –First transactions October 13, 2003 –Flight Scheduled to End December 5, 2003 Another Flight is possible because of anticipated functionality changes from MIMO task force.

4 New 2003 Test Plan Flights Affirms the Market Testing timelines for Flights 0703 and Flight 1003 as adopted by the TTPT, and further affirms that all dates included in the timelines, particularly the "deadlines to sign up for the Flight". Affirms that any material changes to these timelines or changes in scope of the test flights must be approved by RMS. RMS requests TAC to affirm the following approved RMS resolution

Texas Retail Market Plan The focus of RMS in 2001 and 2002 was to prepare for the retail market opening and to address the numerous operational problems that surfaced after market opening. We believed by developing a plan for 2003, the plan would provide direction for all market participants. The Mission Statement creates a common understanding of what RMS is and what our focus should be. The Guiding Principles provides guardrails by which decisions should be made and how retail market participants should conduct themselves. The plan also creates a frame work for the retail market to identify and prioritize projects and allocate resources.

Texas Retail Market Plan RMS requests TAC to affirm the 2003 Texas Retail Market Plan as approved by RMS.

7 RMS Heads Up #1 RMS instructed Texas SET to create a Protocol revision stating that TDSPs have 3 working days after the meter is read to transmit usage information to ERCOT. PRR will be presented to RMS at our April meeting. Protocols, TDSP tariffs and Texas SET documentation do not clearly state this requirement in any one of the documents. One can infer this requirement by reading these market documents. This PRR now will state the requirements in Section 15.

8 RMS Heads Up #2 PRR 362; Load Profiling Guide- Correction Procedure to Profile ID Type has been remanded by to Profiling Working Group. Market participants now refer to Load Profiling Guides. Profiling Working Group will be requesting RMS approval for the 2003 annual validation procedures and timelines.

9 RMS Heads Up #3 PUCT Project 25516; Load Profiling and Load Research was approved by PUCT on March 5, One of the Rule’s requirement is for ERCOT to establish within 6 months a procedure to provide a method of recovery of research costs for a new profile. Profiling Working Group will develop this procedure and present it to RMS for approval. RMS has instructed the working group to explore creating a PRR for this procedure.

10 RMS Heads Up #4 The approved Competitive Metering Rule has specific dates when certain deliverables are to be sent to the PUCT Staff. COMET intends to provide Staff with Draft versions of these deliverables on or before the due dates. These Draft versions will be presented to RMS and then to TAC for approval. Changes will be provided to Staff after each approval step. Because COMET’s time lines are compressed by the various due dates, RMS will be providing early-warning draft versions of the deliverables. The first deliverable is the competitive metering ownership time line.

11 RMS Heads Up #5 Recently, a number of questions has been raised about RMS’ working group decision making practices. RMS working groups strive to build consensus and generally reach agreement by acclamation. Issues are resolved by the free and open exchange of ideas with a consensus being built by dedicated individuals who are working together for the betterment of the market. The Working Groups present recommendations to RMS for approval. Where agreement has not been reached, information on differing views is presented to RMS. The working group votes are non-binding as RMS and in many instances, TAC must approve working group actions. The votes provide directional indications where the working group members stand on a particular topic.

12 RMS Heads Up #5 Process began by RMS Working Groups Chairs and Vice Chairs creating a strawman. Review process started at March 20 th RMS meeting where the strawman presented. We established the review dates and when other draft versions would be distributed. RMS will vote on the Final Draft at our April 23 rd meeting. Approved version will be presented at May TAC meeting.

13 Two New Task Forces Task Force #1: Investigate and recommend improvements to reduce the volume of cancel/rebills. Team will research improvements to business process or Texas SET transactions, and explore changes to the market model. Probably be several weeks for any recommendations are presented to RMS. Task Force #2: Develop and recommend processes to move large number of customers because of market events. Team will integrate Lessons Learned from the New Power and TCE bankruptcies. Hopefully, the Team could present recommendations at the April 23 rd RMS meeting.