Proposed Timeline for Extract, Variances, True-Ups Extracts 10/1/03 Clear all “old” extracts from Portal 9/26/03 Post last “old” daily extract 10/6/03 “New” extracts available 10/7/03 “New” daily extracts 10/1/03 Stop “old” variance process 2/7/04 Begin True-Up runs for /10/03 Complete existing variances w/ answers; Close remaining 12/7/03 Deadline to file variances for 1/1/03 True-Up Variances Settlements 10/1/03 Resettlement of 2003 dates beginning with selected June dates 10/13/03 Begin filing new variances; Change prioritization on variance work

Proposed Timeline LSE Variances Submit Variance at least 60 days prior to scheduled resettlement ERCOT initial validation and analysis completed ERCOT: Takes corrective action and/or Performs Turnaround with MPs Responds to submitter LSE Variances TDSP/CR Initial Response 10 Business Days 60 Calendar Days 14 Business Days Issues to Consider: It is possible that the initial response from the TDSP/CR requires a turnaround to the initiator of the issue. Settlement takes place

Proposed Timeline NIDR Usage Variances Submit Variance at least 60 days prior to scheduled resettlement TDSP validation and analysis completed; Response provided to submitting party NIDR Usage Variances TDSP to send transactions if necessary 45 Calendar Days 60 Calendar Days 15 Calendar Days Settlement takes place Issues to Consider: Depending on the resolution of the variance, the TDSP may have to submit transactions. ERCOT will work with TDSP to resolve any transaction issues to fix variances

Proposed Timeline IDR Usage Variances Submit Variance at least 60 days prior to scheduled resettlement TDSP validation and analysis completed; Response provided to submitting party IDR Usage Variances TDSP to send transactions if necessary 45 Calendar Days 60 Calendar Days 15 Calendar Days Settlement takes place Issues to Consider: Depending on the resolution of the variance, the TDSP may have to submit transactions. ERCOT will work with TDSP to resolve any transaction issues to fix variances

Proposed Timeline Service History – ESI ID Characteristics Variances Submit Variance at least 60 days prior to scheduled resettlement TDSP validation and analysis completed; Response provided to submitting party ESI ID Characteristics TDSP to send transactions if necessary 45 Calendar Days 60 Calendar Days 15 Calendar Days Settlement takes place Issues to Consider: Depending on the resolution of the variance, the TDSP may have to submit transactions. ERCOT will work with TDSP to resolve any transaction issues to fix variances Submit Variance at least 60 days prior to scheduled resettlement ERCOT validation and analysis completed TDSP to send transactions if necessary 10 Calendar Days15 Calendar Days Settlement takes place ESI ID Existence

ERCOT Proposed Changes Require 60 Calendar Days for complete resolution to all issues Prioritization  Work Issues according to submission date  Issues should be submitted in chronological order for True-Up Settlements Allow usage variances only if the variance involves an ADU change of at least ?? kWh