1. Electric Service Customer Choice and Rate Relief Law of 1997 Implementation Issues

2. Affiliate Transactions b Non-discriminatory b Joint Advertising forbidden b Use of Logo/corporate name allowed b customer information shared the same b Utility cant share ARES info b separate books for affiliate

3. ARES (Alternative Retail Electric Supplier) certification b Filings with ICC b bond equal to 15% of estimate of payment to Utility b irrevocable letter of credit A- rating b Technical Qualifications

4. ARES Certification b Differences for ARES serving non-res. > 15,00 KWHARES serving non-res. > 15,00 KWH all retail but not res.all retail but not res. Serve everyoneServe everyone

5. Delivery Services b Billing & Collection b Payment & Disconnect b Delivery Issues b Ancillary Services

6. Delivery Issues b Metering b Load Profiling - estimate hourly load b Distribution system losses

7. Ancillary Services b Scheduling, System control, Dispatch Regulation & Frequency Response SystemRegulation & Frequency Response System Energy Imbalance ServiceEnergy Imbalance Service Operating Reserve - Spinning ReserveOperating Reserve - Spinning Reserve Operating Reserve - Supplemental ReserveOperating Reserve - Supplemental Reserve

8. Lottery b 10/1/99 Delivery Services to non-residential customers > 4 KWHnon-residential customers > 4 KWH lottery on random, non-discriminatory basislottery on random, non-discriminatory basis cant exceed 3.5% of total utility systemcant exceed 3.5% of total utility system b 3 lotteries 9.5 MWH lottery9.5 MWH lottery common ownership lotterycommon ownership lottery general lottery - customers totaling 33% KWH salesgeneral lottery - customers totaling 33% KWH sales

9. Unbundling b Metering and billing should be unbundled. b Customer handling too vague b implementation deferred until further consideration b 9/1/99 proceeding; 5/1/00 order; 9/1/00 implemented