1 Market Operations Presentation Board of Director’s Meeting September 16, 2003

2 Market Services – YTD Perspective

3 Client Relations - Wholesale  Wholesale Market Participants  10 Account Managers  Market Participants per Account Manager  Dispute Activity: 3+ / per Account Manager / Day  89 Qualified Scheduling Entities – includes 25 Sub-QSEs  128 Resource Entities  142 TDSPs – includes 130 non opt-in entities  9 QSEs, 12 Resources, 14 TDSPs

4 Dispute Status

5 Settlement Disputes Genesis  Errors / omissions  Repetitive disputes/ placeholders  Challenges to protocol language  Sometimes used to lodge complaints  Market events often drive up dispute volumes  Disputes required by protocol  SCR 727 load imbalance disputes  February local congestion / market solution issue

6 Client Relations - Retail  Retail Market Participants  6 Account Managers  Market Participants per Account Manager  FasTrak Activity: 10 / per Account Manager / Day  74 Competitive Retailers  12 TDSPs  12 CRs, 2 TDSPs

7 FasTrak 2003 “Day to Day” Issue Stats (as of ) Total ESI IDs worked to date since January 1, 2003 = 204,883 Number of ESI IDs not tracked

8 Upcoming Highlights ERCOT 101 – Retail Market – September 18th 64 people from 26 companies Q V1.6 Market Test New CRs:Alliance Power Company Pegasus Star Energy Proviron Energy Limited Trizec Holding Pedernales Co-op 2004 Market Tests Flight 0104 – V1.6 for New MPs Flight 0304 – V1.6 for New MPs Flight 0504 – V2.0 MIMO Stacking Solution Flight 0904 – V2.0 for New MPs Projects V1.6 Competitive Metering V2.0 MIMO Stacking Solution ETS Continued Evolution

9 Market Operations – Top Issues –Data Extract Variance Tracking –2002 and 2003 True Ups and Proposed Resettlements

10 FasTrak Data Extract Variance Issue Stats (as of ) number of ESI IDS not tracked number of ESI IDS not tracked

and 2003 True ups Current Schedule: 2003 True ups Oct 1 ‘ True ups

12 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: Oct 1 ‘03Feb 1 ‘ and 2003 True ups 2002 True ups

13 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension Preserves dispute rights 2002 and 2003 True ups 2002 True ups

14 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension New 2003 Resettlements Preserves dispute rights Participant cash flow approx the same 2002 and 2003 True ups 2002 True ups

15 Current Schedule: 2003 True ups 2002 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups 2002 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension New 2003 Resettlements Preserves dispute rights Participant cash flow approx the same Initial resettlements will be for unusual days in June ‘ and 2003 True ups