1. Demand Response Task Force February 2008 Update

2. Bridge Solution Short Term Only: Use as “bridge” to long term solution Standardize Energy Impacts: Utilize “deemed” impacts Standardize Payments: Participating CRs get a credit for that day based on “deemed” impacts

3. Bridge Solution (cont.) Limited Program Participation: 10000 ESIIDs per participating CR Total Market Load limit of 100 MW Limited Number of Events: CRs limited to calling 1 DR Day per month Only 1 DR Day per week Registration & Verification: Participating CRs file attestations with ERCOT

4. Programs & Deemed Impacts Program #Program DescriptionDeemed Load Reduction1Residential, Single Family, AC, 33% Cycling*1.0 kW2Residential, Single Family, Pool Pump, 100% Cycling0.33 kW3Residential, Multifamily, AC, 33% Cycling0.65 kW4Residential, Single Family, Electric Water Heater, 100% Cycling0.35 kW Program # Program Description Deemed Load Reduction 1Residential, Single Family, AC, 33% Cycling*1.0 kW 2 Residential, Single Family, Pool Pump, 100% Cycling 0.33 kW 3Residential, Multifamily, AC, 33% Cycling0.65 kW 4 Residential, Single Family, Electric Water Heater, 100% Cycling 0.35 kW

5. Process Overview Step 1: CR calls ERCOT Client Relations to initiate DR Day Must call by 4:00 PM the day before Step 2: ERCOT notices the market via ERCOT. com and email A new distribution list will be created Step 3: CRs conduct DR events on DR day

6. Process Overview Step 4: CRs provide ERCOT with lists of participating ESI IDS via MarkeTrak Includes DUNS, ESI IDs, Program ID and Intervals load was curtailed Step 5: ERCOT validates list of ESI IDs to verify Rep of Record Communicates discrepancies via MarkeTrak

7. Process Overview Step 6: ERCOT calculates preliminary Deem Load Reduction Provides spreadsheets to participating CRs Step 7: ERCOT performs calculations during Final settlements process

8. Next Steps for Demand Response Short Term Solution COPGMRR filed as urgent and up for vote this month PRR will be filed as urgent after COPS and RMS review Interim Solution PUCT Staff has asked that the Advanced Metering Implementation Team be allowed to address