1. ERCOT 2001 Marketing & Business Plan Review Meeting
January 23, 2001

2. ERCOT Marketing & Business Plan Table of Contents
I. ERCOT Fundamentals and Viewpoint
A. Market Overview
B. Market Overview (cont.)
II. Strategy
A. ERCOT Business Plan Outline
B Business Objectives
C. Regulatory Strategy
III. Marketing Strategy
A. Marketing Overview
B. Marketing Segments
C. ERCOT Product Slate
D. Marketing Metrics
E. Marketing Metrics (cont.)
IV. Organization and Responsibilities
A. Org Chart
B. Segment Responsibilities
Appendix I: Customer List

3. I. ERCOT Fundamental & Viewpoint A. Market Overview
ERCOT supply exceeds demand for the next four years
Average Annual Planned Capacity Growth 2.8%
Average Annual Peak Demand Growth 2.7%
Based on ERCOT Web site data

4. I. ERCOT Fundamental & Viewpoint B. Market Overview (cont.)
ERCOT studies range from overbuilt to a “normal” reserve margin.
ERCOT is deregulating and typically price uncertainty and upward bias in pricing happens during the initial start-up of a market.
Strategy is to build a balance book. Our bias will be balanced long term (as opposed to long/short viewpoint).
ERCOT is requiring schedulers be qualified (QSE), this has led to a formation of a services business.

5. II. Strategy A. ERCOT Business Plan Outline
The goal is to create a “Virtual Utility”. Creating a “balanced book” of load, generation, ancillary services and strong customer base.
Marketing loosely aligned along customer’s preferred method of interacting with ENA. Each customer will have an Account Manager.
Goals and measurable objectives
Total P&L (2001 Goal is $25MM)

6. II. Strategy B. 2001 Business Objectives The “Virtual Utility”
Load Serving
TNMP 1200MW
Other REP 100 MW
Industrial 200 MW
Generation Sources
Enron Wind 135MW
AES MW
TIE 250 MW
Avista 630 MW
Other Remainder
QSE Service
TNMP MW
EES 150 MW
New Power 100MW
Other Remainder
Ancilary Services
Transmission
TexMex 300 MW
Tie Into New Mex 300 MW
Other MW
2001 Goals
1500 MW
2000MW
1000 MW
900 MW

7. II. Strategy C. Regulatory Strategy
Representation on key boards and organizations
Robin Kittell-ERCOT Board
Ron McNamara-TAC
Active involvement in any regulatory or rule making issues
Offer new services related to “opening” of ERCOT market
QSE Scheduling
Ancillary Services
Commercial point person: Michelle Parks

8. II. Strategy D. Under Construction
Competitor Analysis
Identify all significant competitors
Identify competitor products and offerings
Customer Profiles
In-depth information regarding customers
Site Bank & Development Options
Formulate plan
Identify how to approach development
in house, AES, Mossbacher or combination
Request a budget

9. III. Marketing Strategy A. Marketing Overview
Each customer will have an account manager.
Deals/Customers will be segmented by customer interaction and product needs. The segments are:
Transactional
Services
Development
Each segment will have a team lead or “coordinator” responsible for product development and uniformity and achieving 2001 segment goals.

10. III. Marketing Strategy B. Marketing Segments
Customer/Deal Type
Deal Flow
Daily coverage
Speed
Efficiency
Cost Effectiveness
Transactional
QSE
Power Marketing Services
Credit Services
Fuel Management
Services
Portfolio builders
Tolling, supply
Full requirements
Unique transactions
Development

11. III. Marketing Strategy C. ERCOT Product State

12. III. Marketing Strategy D. Marketing Metrics for 2001
Transactional Goals
Deal Flow
50 transactions  1 Month
Coverage
IOU and Large Aggregators & Distributors
Daily contact
Municipalities
Establish relationship with every municipality in Texas
Industrials
Contact all industrials with loads greater than 10MW
Close 2 deals with excess industrial generation
Derivatives
Establish derivative marketplace in ERCOT
Enron Online
Establish EOL as preeminent market for ERCOT
Sign 25 new customers for trading

13. III. Marketing Strategy E. Marketing Metrics for 2001 (Cont.)
Services Goals (Services and Business Development)
QSE Services
Sign 5 QSE contracts
Total MW 2000 Peak
Asset Management
“Touch” or contract 1500 MW of generation
Development Goals
Renewable Energy Credit
Monetize 75% of all available credits
Full/Partial Requirements
Manage 1500 MW (Peak load requirements)
Government Affairs/Regulatory
Assist and help guide our regulatory efforts

14. IV. Organization and Responsibilities A. TEAM ERCOT

15. IV. Organization and Responsibilities B. Segment Responsibilities
Commercial Functions
Strategic Information