1. Retail Market Subcommittee Update to TAC Kathy Scott April 24, 2014 1

2. RMGRR120 Recommendation RMGRR120, Sharyland Updates (Vote) ◦ This Retail Market Guide Revision Request (RMGRR) updates Sharyland business processes and contact information to support the Sharyland transition to competition and proposes non-substantive administrative changes to correct title references and acronym usage.  04/01/14: RMS unanimously Approved RMGRR120 language changes and its implementation with an Urgent Status. ◦ ERCOT’s Impact Analysis reflects:  No project required. This Retail Market Guide Revision Request (RMGRR) can take effect upon the Technical Advisory Committee (TAC) approval.  No impacts to Staffing, Computer Systems or Business Functions ◦ With the April 24 th TAC Approval, will allow these process changes to be available to the Competitive Market effective of May 1, 2014, which synchronizes with Sharyland Utilities’ transition effective date. April 24, 2014RMS Update to TAC2

3. ERCOT’s Unplanned IT System Outage ERCOT’s Infrastructure Failure occurred on Tuesday (3/11) beginning at 9:27AM affected numerous market systems. Duration of Outage1,688 minutes ◦ The following services were restored at ERCOT’s alternate data center between 03/12 and 03/14 :  Retail Transaction Processing  Service Requests & Settlement Disputes  Market Participant ID Management (MPIM)  Market Information System (MIS) Retail  ERCOT.com  MarkeTrak API  MarkeTrak GUI  Flight Testing Environment (Market Flight 0214 in progress) ◦ Grid Operations IT systems were not affected April 24, 2014RMS Update to TAC3

4. ERCOT’s Unplanned IT System Outage May 6, 2014 following RMS, a Workshop will be conducted to Review ERCOT’s Current Disaster Recovery Processes: ◦ Agenda:  Timeline of events from March 11 th System Outage  Overview of ERCOT’s Disaster Recovery Capability & Processes  What is ERCOT’s Governance Process during outage?  Communication - time frames outside the market notices  Downtime processes  Are current Workaround Processes sufficient?  Recovery Process and Plan – resort back to production April 24, 2014RMS Update to TAC4

5. Sharyland Transition Update: 1 st Stage: ◦ Sharyland’s Customers would Select a REP during February 1- April 13, 2014:  Competitive REPs were allowed to sign-up Sharyland Customers and submit Move-In transactions during this timeframe requesting the Customer’s May 2014 meter read date as the initial transition to competition requested date. 2 nd Stage: ◦ For Sharyland’s Customers that Did NOT Select a REP:  From April 14-16, Sharyland will determine which customers have not chosen a Competitive REP and will randomly assign those customers to Default REPs, as was identified in the PUCT Order.  Default REPs will submit their Move-Ins for their assigned Customer’s ESI IDs between April 17 and 27, 2014.  All other Competitive REPs will hold all MVIs received between April 13 th through April 27 th April 24, 2014RMS Update to TAC5

6. Sharyland Transition Update: 3 RD and Final Stage: ◦ Beginning April 28, 2014 since all Customers will have either selected Competitive Retailer or were assigned a Provider by default;  If Sharyland receives a Move-In from the Competitive REP with a May date as defined in the SU Transition Taskforce documentation, the initial Default REP’s Move-In will be rejected as unexecutable and Sharyland will execute the Competitive REP’s Move-In for the May 2014 Scheduled Meter Read Date allowing Customer’s Choice of REP to prevail. Sharyland Utilities Transition Numbers (4/18/14): April 24, 2014RMS Update to TAC6

7. 2014 RMS Approved Goals: Align Retail Market Subcommittee (RMS) Goals with TAC goals and the strategic vision of the ERCOT Board of Directors. Maintain market rules that support Retail Market processes that are consistent with PURA and PUC. Support the appropriate incorporation of load participation. Explore and Implement Retail Market Enhancements. Facilitate market enhancements necessary to leverage the capabilities of Advanced Metering Systems in the Retail market. Maintain market rules that support open access to the ERCOT Retail market. Continue to work with ERCOT to develop Protocols and other market improvements that support increased data transparency and data availability to the market. Continue to work with ERCOT to ensure appropriate credit and collateral rules exist or are created. April 24, 2014RMS Update to TAC7

8. 2014 RMS Approved Goals: Successfully implement Project (PR) 010_03 MarkeTrak Phase III Enhancements via System Change Request (SCR756) Part B If Board approved, support all phases of SCR 776, Retail Data Transport Upgrade to NAESB EDM v2.2 ◦ Project Planning, Project Execution, Market Testing and ◦ Market Education & Communication Complete review of current Flight Testing and scripts in an effort to find opportunities for improvements and efficiencies for future Market test flights. Successfully implement Sharyland Utilities (SU) transition to competition. Sunset the following taskforces:  MarkeTrak Task Force, if all Phase III Enhancements (SCR756) are successfully implemented and plan is developed to transition all MarkeTrak Taskforce responsibilities to the Texas Data Transport Working Group  Sharyland Transition Taskforce, if all transition to competition tasks have been successfully implemented. April 24, 2014RMS Update to TAC8

9. Questions? 9April 24, 2014RMS Update to TAC