1. Prepared by Opinion Dynamics Corporation May 2004

2. Response Rate 429 completed surveys from a sample of 1,157 Market Participants (37%) ERCOT Board Membersn=16 Committee Membersn=112 Market Participant Staffn=301 Classification of respondent based on self-selected descriptions – QA1

3. By Market Participant Firm Type Response Rate

4. Survey Approach: 10 point scale  Many questions based on a 10 point scale: 1-3 = very negative response, 8-10 = very positive response.  Mean responses will trend toward the middle of a 10 point scale – only those with passionate opinion are likely to provide a rating in top or bottom 3.  In general, mean responses of 6.5 or above are favorable ratings, 7.5 and above are extremely positive responses.

5. Background and Context Market Participant Opinions Regarding ERCOT Staff’s Role In Developing Market Rules Findings ERCOT staff should participate in market rules development ERCOT staff should only administer the market rulesUndecided Board Member (n=16) 38%50%13% Committee Member (n=112) 67%28% 5% Market Participant Staff (n=301) 53%23%24%

6. Background and Context Market Participants’ Understanding of ERCOT’s Committee Structure Findings

7. Background and Context Market Participants’ Understanding of ERCOT’s Committee Structure (cont.) Findings

8. Color Key

9. Overview of Perceived Strengths  Performance of ERCOT staff, officers and directors  Personalized contact with Market Participants-- particularly CSR contact  Timeliness and accuracy of data  Providing effective training Findings

10. ERCOT Staff Performance: Corporate Objectives (10 point scale, means shown) Findings Ensuring Reliability/Adequacy of Grid Nondiscriminatory access to transmission/ distribution Accurate accounting of electric production & delivery Timely information about customer’s choice of REP

11. ERCOT Staff Performance (10 point scale, means shown) Findings Consistency Attitude Industry expertise Responsiveness to Market Participants Overall Performance Management of ERCOT organization (Officers & Directors only)

12. ERCOT Staff Performance: CSRs (10 point scale, means shown) Findings Timely response Knowledge/ Industry Expertise Response accuracy Direction of inquiries Accessibility Attitude/Willingness to resolve problem Overall expectations

13. ERCOT Staff Performance: Functional Areas (10 point scale, means shown) Findings Market Participant Registration Systems Testing Retail Transaction Processing Scheduling Grid Operations Settlements and Billing Settlements Dispute Resolution

14. Communications (10 point scale, means shown) Findings Amount of information Clarity of ERCOT Staff’s Messages Written Communication Verbal Communication Timeliness

15. Communications: Functional Areas (10 point scale, means shown) Findings Asset Registration Systems Changes Progress on Market Projects Bidding Systems Planning

16. Timeliness & Accuracy of Data (10 point scale, means shown) Findings Settlements Bill Transmission Congestion Rights Renewable Energy Credits Data Extracts Metered Data

17. Effectiveness of Training (10 point scale, means shown)

18. Overview of Areas for Improvement  Portal reliability  Spending priorities  Systems and tools for communicating with the market Website navigation EMMS IT Technical Helpdesk  Functional Performance congestion management data extracts settlement dispute resolution Findings

19. ERCOT Portal Level of Agreement with Statements About ERCOT IT Systems/Staff Findings The Portal is effectiveThe Portal is reliable

20. ERCOT Spending Practices (10 point scale, means shown) Findings Spending Funds Equitably Spending Funds on Things that are Important to Your Company Spending Funds Cost Effectively

21. Communications: Room for Improvement (10 point scale, means shown) Findings Impacts of PRRs Grid ops decisions When behind schedule for systems changes When systems are down Communicating…

22. Findings Navigation of the Web Site Usefulness of IT Help Desk Understanding EMMS Communications: Room for Improvement (10 point scale, means shown)

23. ERCOT Functional Performance (10 point scale, means shown) Findings Timely and Effective Implementation of Systems Changes Timely Resolution of Settlements Disputes Providing Data Extracts with Necessary Content Addressing Congestion Management issues

24. Market perceived areas of strength:  Performance toward core mission  Systems are providing timely and accurate data  ERCOT staff’s performance Conclusions

25. Market perceived need for system improvements with:  ERCOT.com navigation  Data extracts (content breadth)  Portal availability and usefulness Conclusions

26. Market perceived communication gaps in:  Impacts of PRRs  Systems changes  Spending priorities  Grid operations decision process & Understanding of EMMS Conclusions (cont.)

27. Possible specific areas for strategic consideration by ERCOT Board:  Role of committees in setting spending priorities and introducing market changes  Defining and communicating expectations regarding ERCOT staff’s role in rules change process Conclusions (cont.)

28. ERCOT Response Coordination Team “Acting of Feedback”

29. ERCOT Response Coordination Team Tasked by the ERCOT Officer Team to: 1.Coordinate with ERCOT Executive M’gmt and HR&G on priorities 2.Task cross functional internal teams assigned to: evaluate, recommend change, establish objectives, tracking mechanism and draft market message 3.Ensure coordination, consistency and action takes place addressing priority areas that “Need Attention” 4.Update HR&G within 90 days and then as requested

30. ERCOT Response Coordination Team Gary Stroud Richard Gruber Mark Walker Larry Grimm Representation that brings a diverse perspective of the various audiences: Market Participants Regulators and Legislators ERCOT Staff Will strive to keep all audiences informed and aligned to our common purpose – Make the Texas Electric Market Better

31. ERCOT Response Coordination Team Initial meeting focused on high level analysis and categories of items that Need Attention: Communications Tools Process Delivered survey results to ERCOT management team (Directors and Managers) 6/9 Begun scoping out specific approach appropriate for items or groups of items Begun identifying team lead candidates

32. Questions ?