1. Residential Survey Task Force Update to RMS April 12, 2005

2. Evolution PWG Meetings – August/September 2004 ERCOT recommended and presented proposed survey for residential sector and timeline PWG accepted sponsorship for recommendation to RMS RMS Meeting – October 2004 Approved concept of a residential survey Significant discussion surrounding administration of the survey PWG Meeting – October 2004 Modified survey form, letter, and developed a timeline RMS E-mail vote, accepted, and forwarded to TAC TAC Meeting – November 2004 Significant discussion surrounding administration of the survey Survey remanded back to RMS for further discussion RMS Meeting – November 2004 Task Force set up to review, develop if necessary, and determine direction of survey

3. Survey Objectives Develop a more accurate algorithm to predict the presence and use of electric heat for residential customers. Algorithm inputs are premise level historical usage and weather zone Algorithm output is probability of having electric heat Collect data to support analysis to potentially develop new profile types

4. Survey Alternatives Reviewed and investigated alternatives to conducting a customer survey Purchase information from a third-party vendor Visual inspections Reviewed and investigated various survey mediums E-mail survey to ERCOT exploder lists Telephone survey Door-to-door survey Mail survey Combinations of the above Mail survey is the most suitable alternative, given the timeline and budget constraints

5. Two-Phased Survey Approach Phase 1: Pilot mail survey to 1,000 customers, equally distributed across all weather zones Estimate response rate for phase 2 Assess response accuracy Phase 2: Full mail survey Go/No-Go decision based on pilot responses Evaluate accuracy based on usage history Analyze response rate to determine sample size required to achieve statistically significant results Ensure the budget supports the required sample size Draw sample based on pilot response rate results

6. Survey Administration Reducing Customer Confusion Bilingual (English/Spanish), short, simple to understand cover letter and survey form ERCOT supported 24-hour, bilingual, toll-free telephone number ERCOT supported web page containing ERCOT background, survey question details, toll-free telephone number, and “Frequently Asked Questions” (FAQs) Minimizing Call Center Impacts Cover letter will refer customer questions/concerns to toll free number FAQs will be provided to REPs to be used as training materials for the call centers Improving Response Rate Postage-paid return envelope ERCOT to purchase customer name associated with address information Correlating ESI-ID to Response Bar-coded survey form linking ESI-ID to response

7. Projected Residential Survey Timeline RSTF revised form & cover letter ERCOT to approve vendor Conduct Pilot Survey Conduct Full Survey Responses provided to ERCOT ERCOT analysis of survey responses PWG review of analysis JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC

8. Proposed Resolution Approval of cover letter and survey Approval to initiate the Pilot survey Move the resolutions forward to TAC for approval