COMET Working Group Progress Report 09/26/03

Contents of Report Timeline for Implementing the Competitive Metering Guides (CMG) Timeline Estimate for Implementation of Phase 2 of Competitive Metering Revisions to the Qualifying List of Meters for Competitive Meter Ownership

Timeline for Approving the Competitive Metering Guides (CMG) COMET to deliver CMG to RMS on 10/17/03 RMS members review and forward their recommendations for revisions to COMET prior to 11/10/03 COMET reviews RMS recommendations at the November 11 & 12 scheduled meeting and provides redlined Guides to RMS for 11/13/03 vote RMS approves CMG on 11/13/03 and delivers to TAC for vote on 12/04/03 TAC approves and delivers CMG to the ERCOT Board for approval on 12/16/03 ERCOT board approves and the CMG are posted to the ERCOT website

TIMELINE ESTIMATION TASK FORCE COMET Team 3 Update for Aug. 12, 2003 Meeting

TASK FORCE MEMBERS Paul WattlesGood Company Johnny RobertsonTXU Kathy ScottCenterPoint Jeff MichalskiAppliance Lab Don TuckerERCOT Glen WingerdERCOT

TASK FORCE GOAL Estimate time-to-market necessary for Phase 2 (MSP Phase) of Competitive Metering –Market Participants’ requirements –ERCOT requirements Fulfill COMET Charter Respond to Commissioner Perlman’s inquiry (This document does not address data collection/ MDMA issues, which remain on the COMET agenda for the future.)

Assumptions COMET Phase 2 (MSP) requirements for TDSPs and REPs will approximately equal that of the MIMO Stacking project –ERCOT requirements will be much smaller than for MIMO Potential “workaround” phase not factored into estimates –MPs reluctant to launch workarounds, especially of unknown magnitude –COMET Phase 1 (ownership) expected to provide only limited gauge of market interest in competitive metering

Questions Which transactions involving MSPs must be EDI (X-12)? Which TX SET forms can be modified and used? What format will be required for non-MSP transactions that cannot be handled through modifications to existing TX SET?

Milestones & Time Estimates PUCT: COMET 2 (MSP) Rule approved ?? COMET stakeholders: Identify high-level requirements 6 months MPs, ERCOT: Comment/ Clarification/RMS approval 3 months MPs, ERCOT: Design/Develop/Test 15 months Estimated Total (Rule approved to LAUNCH): 24 MONTHS

Major Factors PUCT Rulemaking schedule will define the start date & deadlines 25 new transactions identified so far Many transactions will involve TX SET forms (new & modified); automation of transactions will depend on TX SET schedule –TX SET version rollouts: V 1.6 COMET 1Jan. ‘04 (firm) V 2.0MIMO StackingAug. ’04 (firm) V 2.1MIMO fix (+?)~1Q05 V X.X???~3Q05 Wholesale Market Design mega-project

Timeline Alternatives Alternatives that could enable earlier MSP participation in market: –Faster timeline under PUCT rule –Workarounds –Pilot Projects Stakeholders are encouraged to offer other ideas

Disclaimers Timeline is best-guess only –Subject to change if MSP Rule deviates significantly from Team 3 recommendation –We have barely drilled into Business Process Flows (cannot justify resources for further research in absence of a rule

Other Factors Meeting this schedule (especially process of identifying requirements) will require commitments and concerted efforts from stakeholders –i.e., rigorous COMET schedule, regular attendance, and participation in offline task force activities Personnel assignments (Design/Develop/ Test/Deploy) will overlap with other projects –MIMO –COMET 1 –Wholesale Market Design

Questions?????