October 9, 2012 Commercial Operations Subcommittee RMS Update Kathy Scott RMS Vice Chair

RMGRR110, Enhancements to the Inadvertent Gain Process Purpose: This Retail Market Guide Revision Request (RMGRR) enhances the current inadvertent gain process to provide for a more expeditious return of an Electric Service Identifier (ESI ID) that was gained in error to the losing Competitive Retailer (CR). Market Impact Competitive Retailers’ and TDSPs’ Business Processes. (Subcommittee Acronym) Vote On 8/22/12, RMS unanimously voted to recommend approval of RMGRR110 as amended by the 7/23/12 CenterPoint Energy comments and as revised by RMS. All Market Segments were present for the vote. On 9/19/12, RMS unanimously voted to endorse and forward the 8/22/12 RMS Report and Impact Analysis for RMGRR110 to TAC. All Market Segments were present for the vote. Proposed Effective Date November 1, 2012

Item Reviewed Description No Impact Estimated Project Time Requirements Budget Staffing Computer Systems Business Functions Grid Operations Impact RMGRR110, Enhancements to the Inadvertent Gain Process

RMGRR112, Synchronization of NPRR454, Removal of Unfunded Project List Language, and Modification of Administrative RMGRR Definition Purpose: This RMGRR provides an alignment with the Protocols by removing language regarding the Unfunded Project List and including ERCOT’s opinion in TAC Reports. In addition, allowing RMGRRs that are for the purpose of alignment with Protocol Section 21 to proceed as Administrative RMGRRs significantly decreases the amount of work and meeting time that must be devoted to these routine RMGRRs. Market Impact None (Subcommittee Acronym) Vote On 8/22/12, RMS unanimously voted to recommend approval of RMGRR112 as submitted. All Market Segments were present for the vote. On 9/19/12, RMS unanimously voted to endorse and forward the 8/22/12 RMS Report as amended by the 9/12/12 ERCOT comments and the Impact Analysis for RMGRR112 to TAC. All Market Segments were present for the vote. Proposed Effective Date November 1, 2012

Item Reviewed Description No Impact Estimated Project Time Requirements Budget Staffing Computer Systems Business Functions Grid Operations Impact RMGRR112, Synchronization of NPRR454, Removal of Unfunded Project List Language, and Modification of Administrative RMGRR Definition

6 TAC Vote on RMS Lead Initiatives: RMGRR110, Enhancements to the Inadvertent Gain Process –UNANIMOUSLY APPROVED BY TAC RMGRR112, Synchronization of NPRR454, Removal of Unfunded Project List Language, and Modification of Administrative RMGRR Definition –UNANIMOUSLY APPROVED BY TAC NOGRR100, Extending Manual Time Error Correction Threshold –UNANIMOUSLY APPROVED BY TAC Meeting Title (optional)Date

7 RMS Working Group and Taskforce Update TEXAS SET –October 11, 2012 meeting CRs and TDSPs will discuss: –LSE files that are provided to both ERCOT for Settlements and Smart Meter Texas (SMT) for Customers and Competitive Retailers »AMS Interval Data contained in these LSE files »Events and/or Scenarios that may cause an 867_03 Monthly Usage transaction to differ from an LSE file for the same period. TDSP’s AMS Meter Installation Totals –Oncor (8/31/12) 3,022,347 –CenterPoint Energy (7/31/12) 2,283,012* *CNP’s AMS deployment complete –American Electric Power (8/31/12) 618,159 –Texas New Mexico Power (8/31/12) 57,807 Totals (thru 8/31/12) 5,981,325

8 AMIT Update to RMS Advanced Metering Implementation Team (AMIT) –Schedule and Process Updated meeting schedule with meetings (WebEx and Face to Face (F2F)) needed for Third Party initiatives – pxhttp:// px –Feedback from market participants requested and is always welcomed AMIT expected to continue quarterly AMIT Face to Face meeting schedule –Web meetings for certain issues with Smart Meter Texas Releases will be on an as needed schedule Begin discussions regarding certain AMIT work to transition to the Retail Market Subcommittee (RMS) and other groups Smart Meter Texas (SMT) Third Party Initiatives –Since AMIT is still in discussions with the market the Third Party functionality production go-live date has not been determined at this time –Robust set of functionality for third parties such as one-time Letter of Authorization (LOA), ongoing access to Interval data, and Home Area Network (HAN) services –Customer Education & Data Privacy is a Priority

9 Sharyland New Service Territory Acquisition Project Highlights: –ERCOT and Sharyland currently working to develop Sharyland’s New Service Territory Acquisition Project Plan to present to RMS on October 17, 2012 to include : Project Timelines Project Tasks and Responsible Parties Critical Milestones Flight Testing Requirements and Schedules –Sharyland and ERCOT have committed to provide quarterly status updates to RMS and that schedule will also coincide with Sharyland’s PUCT Project status reports. –Sharyland and ERCOT have agreed to create a new DUNS number that will be assigned to new ESI IDs gained through new service territory acquisition. Sharyland will test new DUNS with ERCOT only in Market Test Flight 0213 Default CRs will test with Sharyland to become certified under new DUNS service territory in Market Test Flight 0613 All CRs wishing to provide services in Sharyland’s new service territory under their new DUNS are expected to test in Market Test Flight 1013 –Next meeting to discuss details and resolve issues concerning Sharyland’s New Service Territory Acquisition Project : November 13, 2012 at 1:00 PM – 5:00 PM – ERCOT MET Center RM 209

10 RMS Update to TAC October 4, 2012 Questions