1. 1 Market Operations Presentation Board of Director’s Meeting September 16, 2003

2. 2 Market Services – YTD Perspective

3. 3 Client Relations - Wholesale  Wholesale Market Participants  10 Account Managers  Market Participants per Account Manager  Dispute Activity: 3+ / per Account Manager / Day  89 Qualified Scheduling Entities – includes 25 Sub-QSEs  128 Resource Entities  142 TDSPs – includes 130 non opt-in entities  9 QSEs, 12 Resources, 14 TDSPs

4. 4 Dispute Status

5. 5 Settlement Disputes Genesis  Errors / omissions  Repetitive disputes/ placeholders  Challenges to protocol language  Sometimes used to lodge complaints  Market events often drive up dispute volumes  Disputes required by protocol  SCR 727 load imbalance disputes  February local congestion / market solution issue

6. 6 Client Relations - Retail  Retail Market Participants  6 Account Managers  Market Participants per Account Manager  FasTrak Activity: 10 / per Account Manager / Day  74 Competitive Retailers  12 TDSPs  12 CRs, 2 TDSPs

7. 7 FasTrak 2003 “Day to Day” Issue Stats (as of 09-12-2003) Total ESI IDs worked to date since January 1, 2003 = 204,883 Number of ESI IDs not tracked

8. 8 Upcoming Highlights ERCOT 101 – Retail Market – September 18th 64 people from 26 companies Q4 2003 V1.6 Market Test New CRs:Alliance Power Company Pegasus Star Energy Proviron Energy Limited Trizec Holding Pedernales Co-op 2004 Market Tests Flight 0104 – V1.6 for New MPs Flight 0304 – V1.6 for New MPs Flight 0504 – V2.0 MIMO Stacking Solution Flight 0904 – V2.0 for New MPs Projects V1.6 Competitive Metering V2.0 MIMO Stacking Solution ETS Continued Evolution

9. 9 Market Operations – Top Issues –Data Extract Variance Tracking –2002 and 2003 True Ups and Proposed Resettlements

10. 10 FasTrak Data Extract Variance Issue Stats (as of 09-12-2003) number of ESI IDS not tracked number of ESI IDS not tracked

11. 11 2002 and 2003 True ups Current Schedule: 2003 True ups Oct 1 ‘03 2002 True ups

12. 12 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: Oct 1 ‘03Feb 1 ‘04 2002 and 2003 True ups 2002 True ups

13. 13 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension Preserves dispute rights 2002 and 2003 True ups 2002 True ups

14. 14 Current Schedule: 2003 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension New 2003 Resettlements Preserves dispute rights Participant cash flow approx the same 2002 and 2003 True ups 2002 True ups

15. 15 Current Schedule: 2003 True ups 2002 True ups Oct 1 ‘03 Proposed Schedule: 2003 True ups 2002 True ups Oct 1 ‘03Feb 1 ‘04 min 120 day suspension New 2003 Resettlements Preserves dispute rights Participant cash flow approx the same Initial resettlements will be for unusual days in June ‘03 2002 and 2003 True ups