1. 1 Update from ERCOT Retail Market Services to RMS May 15, 2003

2. 2 Retail Market Update Topics –SCR 727 extract variance update –Organizational update –GISB migration update –FasTrak seminar announcement –Flight 0703 planning update

3. 3 ESI ID Data Extract Variance Process Update Current Events and Stats ERCOT Initial Validation Process (SH) ERCOT Issue Analysis/Correction Process (SH) Current Issues Potential Issues

4. 4 ESI ID Data Extract SCR727 Implementation Plan ERCOT DDL MP to ERCOT 1 Initial & Daily Extracts 4 Market Participants DDL MP 727 Db Existing Transactional Db Compare Tool Variances Identified 3 2 1 6 5 MP to MP FasTrak Valid Variances To Be Resolved Portal NOIEs TDSPs & CRs 7&8 9 ERCOT Issues Metrics Reporting

5. 5 ESI ID Data Extract Variance Process Current Events TimelineActivity 02-27-03 Technical Conference call Version 1.0 FasTrak Data Extract Variance Users Manual went operational Version 1.0 FasTrak Spreadsheets went operational 03-04-03 Business Conference Call 04-17-03 TDSPs coordinated meeting to recommend change/additions to Manual and Spreadsheets 04-22-03 Follow-up meeting coordinated by TDSPs 04-13-03 30 day prior to settlement of Jan 01,02 2002 - CRs and TDSPs to submit variance requests 05-10-03 Business call to discuss implementation of revised User Manual and Spreadsheets 05-12-03 Version 3.0 FasTrak Data Extract Users Manual and Version 2.0 Spreadsheets went operational

6. 6 ESI ID Data Extract Stats (as of 05-15-2003) 149 total issues submitted to ERCOT affecting Jan’02 trade month –8 are in progress with ERCOT –25 are in progress with TDSP –116 are Resolved or Rejected 25 issues received in last week affecting Jan’02 trade month

7. 7 ESI ID Data Extract ERCOT Initial Validation Process (LSE-SH)

8. 8 Check ItemDescription (A) Valid FasTrak verification  Variance type should be submitted to ERCOT  FasTrak issue number matches spreadsheet (B) Valid MP Data verification  Submitting entity matches submitting MP DUNS number in spreadsheet  Only one submitting MP DUNS number per spreadsheet  If submitter is LSE, submitter must match REPCODE (C) Valid Trade Month verification  Submitting New Start Time, New Stop Time, STARTTIME, and/or STOPTIME must fall within indicated Trade Month Affected (D) Valid spreadsheet per DEVUM  Spreadsheet is correct version and has correct column formats  Requested Resolution is valid for Variance Issue  For Variance Issue/Requested Resolution combination, all required fields are populated and in the correct format (E)- Valid Duplicate Data verification  Based on ESIID, STARTTIME, and STOPTIME, no duplicate rows exist in spreadsheet

9. 9 ESI ID Data Extract ERCOT Initial Validation Process (LSE-SH) Check ItemDescription (F) Valid Date Information verification  If adding row, ensure New Start Time matches STARTTIME and/or New Stop Time matches STOPTIME  If updating row, ensure New Start Time is more than 2 days different from STARTTIME and is prior to New Stop Time and/or STOPTIME. Ensure New Stop Time is more than 2 days different from STOPTIME and is after New Start Time and/or STARTTIME (G) CR Relationship “TDSP as LSE”  Any changes with a New Start Time before 1/1/2002 cannot change an existing relationship associated with a TDSP as LSE  TDSP as LSE cannot remove a relationship before 1/1/2002 (the TDSP as LSE can request to stop the relationship on or after 1/1/2002) (H) Market Sync Comparison  Any changes with a New Start Time, New Stop Time, STARTTIME and/or STOPTIME between 4/1/2002 and 8/11/2002 cannot be associated to any ESIID identified in Market Sync as Priority 1,2, and 4 (part 1)  Relationships created per Market Sync Priority 1, 2, and 4 (part 1) cannot be removed

10. 10 ESI ID Data Extract ERCOT Initial Validation Process (LSE-SH) Check ItemDescription (I) Variance Relationship +/- 2 days  Any changes with a New Start Time and/or New Stop Time cannot be within 2 days of STARTTIME and/or STOPTIME in Data Extract (J) Relationship Associated to NPTB  Any changes with a New Start Time and/or STARTTIME between 12/19/2001 and 1/31/2002 cannot be associated to an identified Non-Price-to-Beat ESIID. Changes to the STARTTIME for removal of the relationships cannot be requested for NPTB ESIID, only STOPTIME may be altered (K) Compression Related  Any request to make changes via a New Start Time or a New Start Time and New Stop Time may be identified as a compressed Lodestar row. Most MPs store relationships based on customer changes. Lodestar stores relationships more on CR changes and also holds other ESIID characteristic changes on same database table. Because of these differences, compression must be performed by all MPs prior to filing Data Extract variances (L) Pending Service Orders  Any changes to an ESIID cannot have a pending (In Review or Scheduled) service order in Siebel associated with the submitting REP

11. 11 Variance 3 LSE relationship record in MP system but not in ERCOT system

12. 12 Variance 3 LSE relationship record in MP system but not in ERCOT system (A) GENSITE ESIIDBecause of its special nature, if an ESIID is determined to be a GENSITE, the request will be redirected to a Data Aggregation analyst (B) NOIE ESIIDBecause of its special nature, if an ESIID is determined to be a NOIE, the request will be redirected to a Data Aggregation analyst (C) Usage Date Match for Requested Date When adding a row, the New Start Time and (if applicable) New Stop Time must match a STARTTIME or STOPTIME of either Non-IDR or IDR Usage loaded at ERCOT. Determination for which to check is made based on the PROFILECODE of New MP Data (D) Usage Loaded for Requested Date If a Usage date does not match requested date, an additional check is performed to determine if Usage has been loaded for that requested date. Consideration is made for gap usage (E) Multiple CRs Involved A check is made to determine if the addition of the requested row impacts another CR(s) (F) CR(s) and TDSP Agree to create record If the CR(s) and/or the TDSP do not agree on the addition of the requested row, ESIID is marked with ‘Unable to complete’ (G) Manually correct/verify relationship at ERCOT If the CR(s) and/or the TDSP agree to add the requested row, relationship is manually corrected and verified at ERCOT. Once completed, ESIID is marked with ‘Requested correction completed’

13. 13 Variance 4 LSE relationship record in ERCOT system but not in MP system

14. 14 (A) GENSITE ESIIDBecause of its special nature, if an ESIID is determined to be a GENSITE, the request will be redirected to a Data Aggregation analyst (B) NOIE ESIIDBecause of its special nature, if an ESIID is determined to be a NOIE, the request will be redirected to a Data Aggregation analyst (C) Row Exists in Siebel and Lodestar A check is performed to determine if the row has already been removed at ERCOT (D) Usage Loaded for Removal Period A check is performed to determine if (and how much for Non-IDR) usage is loaded for removed period of time. This information is passed onto the TDSP for its consideration (E) TDSP Agrees to remove record If the TDSP does not agree to remove row, ESIID is marked with ‘Unable to complete’ (F) Manually correct/verify relationship at ERCOT If the TDSP does agree to remove row, relationship is manually corrected and verified at ERCOT. Once completed, ESIID is marked with ‘Requested correction completed’ Variance 4 LSE relationship record in ERCOT system but not in MP system

15. 15 Variance 5 LSE relationship record in both systems but has date issues

16. 16 (A) GENSITE ESIIDBecause of its special nature, if an ESIID is determined to be a GENSITE, the request will be redirected to a Data Aggregation analyst (B) NOIE ESIIDBecause of its special nature, if an ESIID is determined to be a NOIE, the request will be redirected to a Data Aggregation analyst (C) Usage Date Match for Requested Date When changing a row, the New Start Time and (if applicable) New Stop Time must match a STARTTIME or STOPTIME of either Non- IDR or IDR Usage loaded at ERCOT. Determination for which to check is made based on the PROFILECODE of Extract (D) Usage Loaded for Requested Date If a Usage date does not match requested date, an additional check is performed to determine if Usage has been loaded for that requested date. Consideration is made for gap usage (E) Multiple CRs Involved A check is made to determine if the requested change row impacts another CR(s) (F) CR(s) and TDSP Agree to create record If the CR(s) and/or the TDSP do not agree on the requested change, ESIID is marked with ‘Unable to complete’ (G) Manually correct/verify relationship at ERCOT If the CR(s) and/or the TDSP agree on the requested change, relationship is manually corrected and verified at ERCOT. Once completed, ESIID is marked with ‘Requested correction completed’ Variance 5 LSE relationship record in both systems but has date issues

17. 17 ESI ID Data Extract Current Issues 1.Appears some MPs may not be loading daily extracts. Some corrections requested already exist in ERCOT system. 2.Appears only a few MPs are using the extract as defined. Or perhaps others have no issues. 3.Implementation of process and resolution procedures for LSE Record changes is taking longer than expected. 4.Some MP are just now submitting issues for Jan ’02. ERCOT will continue to work requests in trade month order. 5.Additional analysis for Large ESI IDs may benefit overall Market Settlements. 6.Variance requests during the Pilot Period (7-31-01 to 12-31-01). –Market agreed that ERCOT should prioritize requests based upon trade dates that are being resettled. –If any dates during pilot are to be resettled, Market would be notified, and then ERCOT would work those requests. –Corrections crossing into 2002 should be dated to the applicable start date in 2001.

18. 18 ESI ID Data Extract Potential Issues – for June RMS discussion 1.Multiple CR involvement - Record change request that crosses multiple CR records in ERCOT system a)Who owns responsibility for notification and reconciliation with TDSP and CR(s)? b)What happens when one CR or more disagree? c)Acceptability of all CRs involved knowing who each other is? 2.LSE relationship record fixes for 2002 will be manual a)No 814 transactions will flow b)TDSPs will need to supply cancel/rebill transactions (810/867) 3.Completion of some CR requests will create de-energized periods in ERCOT systems where usage data exists a)Will Market Participants accept that usage will be UFE? b)What if usage exists and is really large? c)Is anyone responsible for “finding the correct CR” if completing another CR request results in usage during a de-energized period?

19. 19 ERCOT GISB 1.4 Update RMS Meeting 05/15/03

20. 20 GISB Migration Update MONTHProduction GISB Production HTTPS HOLDReady GISB Ready HTTPS TOTAL March5510 April29130 May6319139 TOTAL406319169

21. 21 GISB Migration Update ERCOT has committed to work with all MPs to resolve issue surrounding GISB V1.4. A statement was put in the latest draft of the GISB EDM IMP Guide: –"Allowances: All reasonable attempts should be made to comply with this section. Market Participant legacy systems that cannot meet the requirements of this section must contact ERCOT in order to be granted an exception. " All new TX SET 1.5 trading partners are being scheduled for migration. Flight 0703 will be first flight with GISB or FTP Replacement as the two options with ERCOT.

22. 22 FasTrak Seminar Announcement May 22, 2003

23. 23 FasTrak Seminar 5/22/03 WHAT is the FasTrak Seminar? The FasTrak Business Group has created a Seminar to: Relay the inception, evolution, and design of FasTrak Educate users on the functionality, design, and extensibility of FasTrak Suggest how best practices can optimize the effectiveness of FasTrak Discuss how enhancements to FasTrak can better serve the user

24. 24 FasTrak Seminar 5/22/03 WHO is the FasTrak Seminar for? The FasTrak Seminar is open to: All FasTrak Users Business Managers Business Analysts RMS Participants

25. 25 FasTrak Seminar 5/22/03 WHEN is the FasTrak Seminar? The FasTrak Seminar will be: Thursday, May 22, 2003 10am – 3pm CST ERCOT Taylor Control Center Please RSVP by Monday, May 19, 2003 to Kerry Wariner (kwariner@ercot.com) and Glen Wingerd (gwingerd@ercot.com).

26. 26 Retail Market Update Flight 0703 Planning Update

27. 27 Flight 0703 Planning Update Deadline for signup to the 0703 Flight is Thursday 5/22/03, 5pm CST. TTPT Script sub-team made minor script revisions from the last flight. –Revisions were provided to ERCOT on 5/5/03. –ERCOT updated scripts and are now available online. –Any additional script revisions should be sent to Mike Woolsey at Oncor (mwoolse1@oncorgroup.com) TTPT ETOD sub-team made recommendations for improvements to ETOD. –Short term improvements are in progress for 0703 Flight. –Long term improvements to ETOD are being reviewed by ERCOT and TTPT team members. Where necessary, development projects will be created at ERCOT. Long term improvements will not be ready for this flight. Connectivity Testing kick off call – 6/9/03 Any requests for retesting are being asked to join the Flight 0703 for best use of resources at MP companies and ERCOT.

28. 28 ERCOT Market Services Organizational Update Retail Market Subcommittee Meeting ERCOT Austin May 14, 2003

29. 29 ERCOT Market Services Mission Educate – members, staff and outside stakeholders about retail and wholesale market operations Facilitate – issues resolution and market change process Analyze – retail market performance, market segment business requirements, best practice opportunities Communicate – between all stakeholders information important for improved market performance, while respecting ERCOT’s role and the market’s requirement for confidentiality

30. 30 ERCOT Market Services 2004 Priorities Implement improved transaction processes – MI/MO and others Identify and implement improved business processes and practices Build out retail protocols to institutionalize improvements Continue efforts to enhance transaction transparency for both initiating transactions and exception processing

31. 31 ERCOT Market Services 2004 Priorities Build a retail market education and training program to meet the needs of market participants and improve market performance Establish a cash, forward market offering retail and wholesale MP’s more options, flexibility, transparency and liquidity

32. 32 ERCOT Market Services (May ’02)

33. 33 Retail Market Update Questions ?