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. Overview of Perceived Strengths  Performance of ERCOT staff, officers and directors  Timeliness and accuracy of data  Providing effective training  Mean responses of 6.5 or above are favorable ratings, 7.5 and above are extremely favorable ratings Findings

5. 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

6. 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)

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

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

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

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

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

12. 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

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

14. 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

15. 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

16. 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

17. 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

18. 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%

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

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

21. Thank You