1. Summary of the November 11, 2002 Market Synchronization “How-to-Fix” Decisions For presentation to RMS November 14, 2002

2. 2 10-16-2002 RMS Resolution For those scenarios that the market sync project identified as out-of-sync, if the Market Sync Task Force unanimously agrees on the steps necessary to correct the out-of-sync market condition, then the market participants shall correct the out-of-sync market condition accordingly. The Market Sync Task Force shall report to RMS any decisions reached to correct out-of-sync market conditions. If there is any disagreement regarding the steps necessary to correct the out-of-sync scenario, the issue shall be passed to RMS for resolution.

3. 3 Principles Applicable to all “How-to-Fix” Decisions Fixes will take place per analysis and not to the “every record” level Fixes will be made to a day in the past +/- 1 day rule applies to all fixes and analysis Prior to applying corrections, MPs will analyze each ESI ID and take into consideration any activity that has taken place since the original capture date of the data (8/1/2002) Any ESI ID with a status issue is to be handled individually by the MPs (for example: TDSP identifies as retired but CR and ERCOT has active record) If CR or TDSP requires transaction or additional data, they retain the ability to use alternate resolution processes Decisions made for those scenarios identified will be applied to those scenarios requiring additional analysis RMS Chair/Vice Chair responsible to develop reporting and monitoring process

4. 4 Priority to Decision Mapping ♦ Decisions to Reach: Who adds records? What date to use? How to handle >4/1? How to handle pre 4/1? Necessary to match usage? Adding terminated records? What to do when no dates match? ♣ Decisions to Reach: Who changes dates? What date to use? How to handle >4/1? How to handle pre 4/1? Necessary to match usage? Adding terminated records? What to do when no dates match?

5. 5 Priority 1 - Missing Relationship 1 Entity submitted records Category 1: MP is only one with ESI ID (i.e. Missing Relationship) Category 2: MP is only one reporting ESI ID active (other MPs may have inactive relationships) Breakdown – maximum number of ESI IDs in scenario:  12,961 (ERCOT)  20,234 (TDSP)  16,477 (CR) TDSP says 3K are invalid ESI IDs Action: MPs to review and respond to ESI IDs where they did not submit a record ERCOT to compile and cross reference response from “out-of-sync” MPs Final corrective actions will align with other “how to fix” decisions but have potential for more ESI ID level decision making

6. 6 ♦ Priority 1 - Missing Relationship 2 Entities submitted records - CR is same on both records Category 1: Two MPs report relationship with same dates, third MP does not report any relationships for that ESI ID Category 2: Two MPs report relationship with different dates, third MP does not report any relationships for that ESI ID Breakdown – maximum number of ESIIDs in scenario:  594 (ERCOT + CR) excludes 39,982 that the TDSP responded with “1”  12,728 (ERCOT + TDSP) excludes 110,332 that the CR responded with “1”  83,764 (TDSP + CR) excludes 25,653 that ERCOT has added relationship & 1,187 that ERCOT responded with “1”

7. 7 ♦ Priority 1 - Missing Relationship 2 Entities submitted records - CR is same on both records Start dates match and are > 04/01 (no stop date) Active relationship (Slide 10) Entity missing relationship is responsible for adding relationship using date the other 2 MPs submitted (regardless of usage match) Other MPs have no action Dates match using the 04/01 start date (no stop date) Active relationship (Slide 11) Entity missing relationship is responsible for adding relationship using a usage date in April 2002 or April 01 if there is no April usage Other MPs have no action Start dates match and stop dates match (all >4/1) Terminated relationship (Slide 12) Entity missing relationship is responsible for adding relationship using dates the other 2 MPs submitted (regardless of usage match) Other MPs have no action Category 1: Two MPs report relationship with same dates, third MP does not report any relationships for that ESI ID

8. 8 ♦ Priority 1 - Missing Relationship 2 Entities submitted records - CR is same on both records Start dates do not match and are >04/01 Active relationship (Slide 13) Entity missing relationship is responsible for adding relationship. If CR or ERCOT is missing record, use TDSP date, If TDSP is missing record, use CR date (regardless of usage match) Other MPs have no action Start dates do not match and stop dates do not match >04/01 Active or terminated? (Slide 14) Entity missing Relationship adds relationship with start date of the TDSP and stop date of the CR (if there is one); if the CR does not have a stop date, use the TDSP stop date; Every MP matches this end date; If ERCOT has a stop date, ERCOT unstops relationship. If TDSP is missing, use the CR start and stop date. Category 2: Two MPs report relationship with different dates, third MP does not report any relationships for that ESI ID

9. 9 ♦ Priority 2 - Active Row Only (C) 2 Entities submitted records – CR is same on both records Breakdown – maximum number of ESIIDs in scenario:  3,640 (ERCOT + CR) excludes 3,482 that the TDSP responded with “1”  21,608 (ERCOT + TDSP) excludes 22,446 that the CR responded with “1”  3,515 (TDSP + CR) Category 1: Two MPs report relationship with same dates, third MP does not report an active record Category 2: Two MPs report relationship with different dates, third MP does not report an active record

10. 10 Start dates match and are > 04/01 (no stop date) Active relationship (Slide 17) Entity missing relationship is responsible for adding relationship using date the other 2 MPs submitted (regardless of usage match) Other MPs have no action Dates match using the 04/01 start date (no stop date) Active relationship (Slide 18) Entity missing relationship is responsible for adding relationship using a usage date in April 2002 or April 01 if there is no April usage Other MPs have no action Category 1: Two MPs report relationship with same dates, third MP does not report an active record ♦ Priority 2 - Active Row Only (C) 2 Entities submitted records – CR is same on both records

11. 11 ♦ Priority 2 - Active Row Only (C) 2 Entities submitted records – CR is same on both records Category 2: Two MPs report relationship with different dates, third MP does not report an active record Start dates do not match and are >04/01 Active relationship (Slide 19) Entity missing relationship is responsible for adding relationship. If CR or ERCOT is missing record, use TDSP date, If TDSP is missing record, use CR date (regardless of usage match) Other MPs have no action CR match in history but 1 entity has terminated record Active or terminated? (Slide 20) Start dates are unchanged; Follow CR status; if CR has stop date, other MPs match CR stop date; If CR does not have a stop date, all MPs unstop relationship Prior to adding a stop date, verify with CR

12. 12 Priority 3 - Multiple Active CRs submitted records Multiple Subcategories (most complex situations) Breakdown – maximum number of ESIIDs in scenario: a)1,420 where ERCOT, TDSP, and CR1 all Agree b)18 where ERCOT, CR1& CR2 agree but TDSP does not c)27 where TDSP, CR1 & CR2 agree but ERCOT does not d)15,206 where TDSP, ERCOT and one CR agree but another CR claims ESI ID e)2,232 where ERCOT and one CR Agree but TDSP and another CR agree f)16 where ERCOT and TDSP agree but multiple CRs do not g)1,248 ESI IDs where >2 relationships are claimed Action: MPs to review ESI IDs and work through the QRE process make corrections For those situations when a CR must stop a relationship, the same logic defined for other “how to fix” should apply here

13. 13 Active relationship? (Slide 23) ~25K ESI IDs Start dates are unchanged; Follow CR status; if CR has stop date, other MPs match CR stop date Prior to adding a stop date, verify with CR ♣ Priority 4 - 1 Row only submitted by each MP Type CR is same on all MP records Category 1: CR has stop dates but ERCOT and TDSP are active Category 2: CR and TDSP has stop date but ERCOT remains active Category 3: MPs have different start and stop dates Active relationship? (Slide 24) ~21K ESI IDs ERCOT terminates record – If CR and TDSP stop dates match use that date – If no match use TDSP date; – no action is taken on start date; Other MPs do not change stop date Active relationship? (Slide 25) ~10K ESI IDs Disregard start date mismatches If all MP records are terminated, take no action If TDSP has stop date and CR does not, follow CR status Use CR stop date

14. 14 Priority 4 - 1 Row only submitted by each MP Type CR is different on one MP records Multiple Subcategories (most complex situations) Breakdown – maximum number of ESIIDs in scenario:  20,212 (ERCOT and CR have same CR but TDSP has different CR)  391 (ERCOT and TDSP have same CR but a different CR claims the ESI ID)  2,158 (TDSP and CR have same CR but ERCOT has a different CR) Action: MPs to review ESI IDs and work through the QRE process make corrections For those situations when a CR must stop a relationship, the same logic defined for other “how to fix” should apply here

15. 15 Priority 5 - Active Row Only (B) 1 Entity submitted records Category 1: –MP is only one reporting ESIID active (other MPs may have inactive relationships) Breakdown – maximum number of ESIIDs in scenario:  6,218 (ERCOT)  760 (TDSP)  6,591 (CR) Action: MPs to review and respond to ESI IDs where they did not submit a record ERCOT to compile and cross reference response from “out-of-sync” MPs Final corrective actions will align with other “how to fix” decisions but have potential for more ESI ID level decision making

16. 16 Priority 6 - Active Row Only (A) Reported by 3 Entities – CR is different on one MP records Multiple Subcategories (most complex situations) Breakdown – maximum number of ESIIDs in scenario:  3,135 (ERCOT and CR have same CR but TDSP has different CR)  3,231 (ERCOT and TDSP have same CR but a different CR claims the ESI ID)  3,876 (TDSP and CR have same CR but ERCOT has a different CR) Action: MPs to review ESI IDs and work through the QRE process make corrections For those situations when a CR must stop a relationship, the same logic defined for other “how to fix” should apply here