1. Mass Transition of TDSP ESI IDs from Sharyland Utilities to Oncor
FIRST INFORMATIONAL WORKSHOP
Mass Transition of TDSP ESI IDs from Sharyland Utilities to Oncor
August 15, 2017

2. Sharyland Acquisition
Oncor-Sharyland Asset Swap | Overview
Proposed Deal Between Sharyland and Oncor
Retail distribution assets and retail distribution operations located in Sharyland’s current Stanton, Brady, and Celeste (SBC) service territories, as well as its McAllen service territory
Oncor Acquisition
Sharyland Acquisition
258 miles of 345 kV transmission lines located in West and Central Texas
Retail Outcome
Sharyland’s 54,000 retail electric delivery customers will become Oncor customers and will be served under Oncor’s tariff, and as a result, their rates will fall significantly relative to current levels.

3. Purpose of the Asset Swap
Good for Texas
Oncor’s economies of scale help deliver value for Sharyland customers. Lower rates will provide more disposable income for Texas families, and will help make commercial businesses in Sharyland’s former service territory more competitive.
Good for Oncor
Oncor is always looking for new opportunities to grow its business. This transaction allows Oncor to acquire new customers and continue to expand its growing and vibrant service territory.
Good for Sharyland
This transaction will allow Sharyland to expand its transmission footprint in Texas.

4. Oncor and Sharyland’s Current Service Territories
CELESTE
BRADY

5. Sharyland – Oncor Transition Overview

6. Timeline for Transfer of Assets
Dependent on receipt of various approvals, including PUC approval of the joint application for sale, transfer or merger and the subsequent closing of the transaction.
Transfer of customers should be completed within approximately 30 to 60 days after closing.
If approved as anticipated, the transaction is expected to close in the fourth quarter of 2017.
The joint application for Sale, Transfer or Merger has been filed in PUC Docket

7. Transition Process Summary
ERCOT Retail Market Guide Sections through provide the process for transitioning ESI IDs from one TDSP to another.
Oncor will create new ESI IDs for each of the current Sharyland premises.
Transfer of customers should be completed within approximately 30 to 60 days after closing. ESI IDs will be transitioned on the cycle dates, so the entire transition will take at least one month to complete.
To effectuate the transition, the REPs of record for each ESI ID will be required to submit Move-out transactions to Sharyland and Move-in transactions to Oncor effective on the cycle date.

8. Transition Process Summary
Oncor and Sharyland will work with ERCOT and REPs to track pending TX SET transactions and communicate with impacted parties.
Pending Sharyland transactions that are scheduled to be completed after the transition will be cancelled and will need to be resubmitted by the REP using the Oncor ESI ID.
ESI IDs should transition to Oncor with the same REP serving the premise immediately before the transition. The transition event should not be seen as a time for selecting a new REP.
Timing for on-cycle Move-ins and on-cycle Move-outs will be coordinated through the market processes. ERCOT will host another workshop to discuss the processes in more detail.
This process will not require action from the customer.

9. Transition Process Summary
Switch Holds will not be transferred from Sharyland to Oncor.
Oncor will not re-instate Sharyland tampering switch holds.
REPs will need to send deferred payment plan (DPP) switch holds to Oncor after the transition if they want to reinstate a DPP switch hold on a customer.
Oncor will place switch holds on ESI IDs if tampering is discovered at the time of the transition or anytime after that. Tampering charges will be assessed accordingly.
After the transition, Oncor will re-instate critical care / critical load designations. 814_20s will be sent to the REPs of record.

10. Transition Process Summary
Oncor will provide a list of Oncor ESI IDs cross-referenced to the Sharyland ESI IDs for each REP of Record. The list will include Oncor rate codes and meter reading cycles.

11. TDSP Rates
Sharyland will begin providing a $3 million annualized interim residential rate credit with bills issued on or after September 11, 2017:
For residential customers in the SBC service areas
Reduces rates by approximately 10 percent
Continues until customers transition to Oncor after deal closes
Sharyland has contributed $150,000 to a charitable fund to provide financial assistance for churches and places of worship of all denominations in the SBC service areas that are billed on a demand basis, until they are transitioned to Oncor [form is posted at SU website].
Oncor rates will be applied to customers on the first billing cycle after the completion of the Move-ins to Oncor’s ESI IDs.

12. TDSP Rates – Non-Residential
Sharyland Oncor
Existing Rate Codes
Corresponding Oncor Rate Codes
Single Tier Annual Load Factor Rate
Current Oncor 4-Tier Annual Load Factor Rate
No Power Factor Billing
Power Factor Billing for Customers => 290 kW Once Metering Installed
Demand Ratchets
Demand Ratchets Reset
Demand Billing > 10 kW
Review Most Recent 12-Months to Determine if can be Billed <= 10 kW
4CP Billing for BUSIDRRQ
Continue Providing 4CP Billing for BUSIDRRQ Customers

13. ERCOT Market Testing
It has been confirmed that all REPs certified to operate in the Sharyland service territory are also certified in Oncor’s service territory.
REPs who are currently certified to operate in Oncor’s service territory will not require additional testing.

14. Shall we limit switching during the transition?
Rules of Engagement
Open discussion about orderly market operations during the transition of customers.
Good point, but….
Shall we limit switching during the transition?
I agree to disagree…

15. Oncor Operations Post-Transition

16. Historical Usage Requests
Sharyland’s historical usage will not be maintained in Oncor’s CIS system.
Initially, Oncor will not be able to provide historical usage via the EDI or LOA request processes.
Oncor will retain historical usage that occurs after the transition.
Example: Four months after the conversion, Oncor will be able to provide four months of historical usage date.

17. AMS Deployment in the Sharyland Service Territory
Oncor’s current plans call for deployment of AMS meters and the associated network over an extended timeframe after the completion of the transition.
Approval for AMS deployment is expected as part of the Sale, Transfer or Merger proceeding.
Oncor will submit a compliance filing outlining an AMS deployment schedule following PUC approval of the transfer.
Until the completion of the AMS deployment, non- standard meter timelines and fees will apply to discretionary service requests such as MVIs, MVOs, DNP and RNPs.

18. Outage Reporting
Prior to AMS Deployment
After Full AMS Deployment
Customers who call the current Sharyland outage number or Oncor’s existing Outage Line will be handled by an Oncor agent or the IVR
Customers will be able to utilize all Oncor outage reporting and status update channels

19. Sharyland Utilities Assumed Addresses (SUAA)
Neither Sharyland nor Oncor will be able to resolve the SUAA street address issue prior to the transition.
After the transition, Oncor will form an internal team to analyze the best way to attempt to resolve the SUAA situation.
Oncor may be able to utilize the Sharyland GPS coordinates for each ESI ID as part of the solution.

20. Final Thoughts
“To Our Customers:
….we believe the most community-centric action we can take is to give our retail customers access to a world class utility with the lowest rates in the State, and focus our forward strategy on the transmission infrastructure necessary for your communities to continue to grow and prosper.”
Hunter Hunt
Chairman, Sharyland Utilities
“Welcome Sharyland Customers
Throughout this process, we want to make your transition from Sharyland to Oncor as seamless and effortless as possible……We look forward to providing you exceptional service.”
Mike Guyton Chief Customer Officer, Oncor 

21. Contacts for Mass Transition of TDSP ESI IDs from Sharyland Utilities to Oncor
ERCOT
Ted Hailu
Sharyland Utilities
BJ Flowers
Oncor
Chris Rowley

22. Questions