LRISv2 Subgroup Proxy $G Discussion 10/27/2014 1

LMP- Proxy $G Policy and Design Decisions Process to qualify LRISv2 ALRs. – Define minimum customer aggregation to qualify for LRISv2 as an ALR. – What retail rates compatible with LMP-$G objective? – How to identify the rates and the corresponding ESIIDs? – Define customer rate composition to qualify for LRISv2 as an ALR. Process to manage and maintain LRISv2 ALRs. – How to manage changing ALR customer counts and LMP-$G eligibility? – How to manage changing compositions of ALR rates and LMP-$G eligibility? – Define rules regarding ALR->LSE allocation Customer deployment limitations Methodology to determine Proxy $G – Wholesale vs. Retail Proxy $G – Confirm direction – Settlement details How often to recalculate? Consistency in application of ERCOT charges between $G and VG “Offer to sell” details Everything else we haven’t thought of yet 2 Many details to work through. Let’s start here!

What is Proxy $G? Proxy $G = A proxy for the “purchase price” or “contract price” that is generally representative of what retail customers paid for their energy. T&D wires charges NOT included Fixed price, 12 month contract One Proxy $G per Load Zone How to determine Proxy $G? – Stakeholder presentations and group discussion 3

Power to Choose Price Data 4

Power to Choose Prices Selection Criteria – Fixed Price – 1,000 KWh – 12 month term – Non-TOU – Non-Prepaid – Non-Renewable Standard percentages, not ~100% renewables – Fees not included – As of October 17th 5

Power to Choose Prices TDSP$/MWh AEP TCC AEP TNC Centerpoint Oncor95.85 Sharyland Sharyland McAllen TNMP