1. Retail Market Subcommittee Update to COPS Kathy Scott May 14, 2014 1

2. RMGRR120 RMS/TAC Approved RMGRR120, Sharyland Updates (Vote) ◦ This Retail Market Guide Revision Request (RMGRR) updates Sharyland business processes and contact information to support the Sharyland transition to competition and proposes non-substantive administrative changes to correct title references and acronym usage.  04/01/14: RMS unanimously Approved RMGRR120 language changes and its implementation with an Urgent Status. ◦ ERCOT’s Impact Analysis reflects:  No project required. This Retail Market Guide Revision Request (RMGRR) can take effect upon the Technical Advisory Committee (TAC) approval.  No impacts to Staffing, Computer Systems or Business Functions ◦ On April 24 th TAC Approved RMGRR120 where these changes were implemented and available to MPs in the Retail Market Guide (RMG) on 5/1/14 that synchronized with Sharyland Utilities’ transition effective date.  http://www.ercot.com/mktrules/guides/retail/current http://www.ercot.com/mktrules/guides/retail/current May 14, 2014RMS Update to COPS2

3. 5/6/14 – RMGRRs Approved by RMS RMGRR121, Clarification of Inadvertent Gain Processes (Vote) ◦ This Retail Market Guide Revision Request (RMGRR) adds language to the Retail Market Guide to clarify best business practices when processing inadvertent gain issues in MarkeTrak.  05/06/14: RMS unanimously Approved RMGRR121. This RMGRR will be scheduled for TAC’s consideration during their May 29 th meeting. RMGRR122, Synchronization with NPRR608, Alignment of Transaction Timing to the PUCT Performance Measures (Vote) ◦ 05/06/14: This Retail Market Guide Revision Request aligns ERCOT’s processing time with the transactional timing in the Public Utility Commission of Texas’ (PUCT’s) Performance Measures.  05/06/14: RMS unanimously Approved RMGRR122 as recommended by TDTWG and TX SET. IA is scheduled for RMS review on 6/3/14. May 14, 2014RMS Update to COPS3

4. 5/6/14 - NPRR Approved by RMS NPRR608, Alignment of Transaction Timing to the PUCT Performance Measures (Vote) ◦ 05/06/14: This Nodal Protocol Revision Request (NPRR) aligns ERCOT’s processing time with the transactional timing in the Public Utility Commission of Texas’ (PUCT’s) Performance Measures.  Retail Market Guide Revision Request (RMGRR)122, Synchronization with NPRR608, Alignment of Transaction Timing to the PUCT Performance Measures  Reason for change is a Regulatory Requirement  05/06/14: RMS unanimously endorsed NPRR608 as submitted by ERCOT and recommended by TXSET and TDTWG. This RMS recommendation will be provided to PRS during their May 15, 2014 meeting for their voting consideration. May 14, 2014RMS Update to COPS4

5. Sharyland Transition Update: 1 st Stage: ◦ Sharyland’s Customers would Select a REP during February 1- April 13, 2014:  Competitive REPs were allowed to sign-up Sharyland Customers and submit Move-In transactions during this timeframe requesting the Customer’s May 2014 meter read date as the initial transition to competition requested date. 2 nd Stage: ◦ For Sharyland’s Customers that Did NOT Select a REP:  From April 14-16, Sharyland determined which customers had not chosen a Competitive REP and randomly assigned those customers to Default REPs, as identified in the PUCT Order.  Default REPs will submit their Move-Ins for their assigned Customer’s ESI IDs between April 17 and 27, 2014.  22,018 ESIIDs were distributed to Default Providers on 4/16 and all corresponding transactions had been accounted for by 04/25, an additional 980 ESIIDs were dropped to Default REPs on 5/2/14 May 14, 2014RMS Update to COPS5

6. Sharyland Transition Update: 3 RD Stage : ◦ Beginning April 28, 2014 since all Customers will have either selected Competitive Retailer or were assigned a Provider by Default;  If Sharyland receives a Move-In from the Competitive REP with a May date as defined in the SU Transition Taskforce documentation, the initial Default REP’s Move-In will be rejected as unexecutable and Sharyland will execute the Competitive REP’s Move-In for the May 2014 Scheduled Meter Read Date allowing Customer’s Choice of REP to prevail. Final Stage : ◦ Effective May 1, 2014 and during the May 2014 Scheduled Meter Read Date all premises energized and assigned to SU shall be transitioned to either a Competitive REP or Default REP, therefore, another ESI ID scrub will be performed end of May May 14 2014RMS Update to TAC6

7. Sharyland Transition Update: Sharyland Transition Numbers : ◦ Effective May 2, 2014: May 14, 2014RMS Update to COPS7 Customer Class Total Number of ESI IDs # of ESI IDs with MVIs Scheduled and In Review % With Chosen REPs # of ESI IDs assigned to Default REPs 4/14/2014 Number of ESI IDs assigned to Default REPs on 5/2/2014 RES21,88710,61048.48%11,277 Small Non-RES 26,38715,84660.05%10,541 Medium Non-RES 91358363.86%330 Large Non-RES 191578.95%4 Total49,20627,18855.25%22,018 960

8. ERCOT’s Unplanned IT System Outage ERCOT’s Infrastructure Failure occurred on Tuesday (3/11) beginning at 9:27AM affected numerous market systems. Duration of Outage1,688 minutes ◦ The following services were restored at ERCOT’s alternate data center between 03/12 and 03/14 :  Retail Transaction Processing  Service Requests & Settlement Disputes  Market Participant ID Management (MPIM)  Market Information System (MIS) Retail  ERCOT.com  MarkeTrak API  MarkeTrak GUI  Flight Testing Environment (Market Flight 0214 in progress) ◦ Grid Operations IT systems were not affected May 14, 2014RMS Update to TAC8

9. ERCOT’s Unplanned IT System Outage On May 6, 2014 following RMS, a Disaster Recovery Workshop was held to Review ERCOT’s Current Disaster Recovery Processes and to determine where areas of improvements may exist: ◦ A lot of good discussion and several action items were identified that will require additional follow-up meetings between ERCOT and Market Participants. ◦ RMS requested that ERCOT provide their Disaster Recovery workshop updates/feedback to the Texas Data Transport Working Group (TDTWG) since TDTWG is responsible for the maintenance and monitoring of the Retail Market IT Services - Service Level Agreement (SLA). May 14, 2014RMS Update to COPS9

10. Mass Transition Update REACH ENERGY LLC, a Qualified Scheduling Entity (QSE) and Load Serving Entity (LSE), DUNS 791894152, defaulted under its Standard Form Market Participant Agreement (SFA) with ERCOT as of 5:00 pm on May 7, 2014. ◦ The number of ESI IDs involved is approximately 4,975  Majority of ESI IDs (4964 ESI IDs) associated with REACH were gained by one (1) designated Competitive Retailer. Since this designated CR wasn’t certified in Sharyland McAllen’s Service Territory, the remaining eleven (11) ESI IDs associated with REACH were gained by one or more POLRs according to the allocation process outlined in the PUCT Mass Transition rules/process  Size of this Mass Transition’s load is approximately 222.02 MWhs per day.  Mass Transition Transaction Requested Date = May 10, 2014 May 14, 2014RMS Update to COPS10

11. WG/TF and ERCOT Updates MarkeTrak Task Force (MTTF) ◦ MTTF currently working to develop test scripts for SCR756 Phase B MarkeTrak Enhancements ◦ SCR 756 Phase B MarkeTrak Enhancements Training has been scheduled for June:  June 9, 2014 in Houston at CenterPoint Energy Tower  June 17, 2014 in Dallas at Oncor  June 24, 2014 in Austin at the ERCOT MET Center 206A Inadvertent Gain (IAG) update: ◦ Compared to prior months the April report reflects a decline in total IAG Numbers. Per ERCOT these are the lowest numbers observed since ERCOT began tracking these numbers: May 14, 2014RMS Update to COPS11

12. WG/TF and ERCOT Updates 867_03 Data Loading Time Line Changes and Error Code Changes ◦ RMS agreed that if COPS doesn’t have any issues with ERCOT’s proposal to change ERCOT’s 3:00 AM 867_03 Data Loading Timeline to 1:00 PM then RMS would support the 1:00 PM data loading change.  Joint TDSPs will conduct another conference call with ERCOT on May 21, 2014 to discuss the complete list of ERROR Code retirements in order to gain TDSPs’ agreement of all the codes planned for 867_03 ERROR Code retirement. Electric Facts Labels (EFLs):  PUCT has asked ERCOT to notify REPs of the requirements to update EFLs and submit this information to ERCOT by July 1  Options:  Renewable energy percentage for each product  Electricity Facts Label for each product  Completed Renewable Content Calculator for each product  ERCOT will send a market notice describing the reporting requirements and process  Questions or Concerns send to electricitylabel@ercot.comelectricitylabel@ercot.com May 14, 2014RMS Update to COPS12

13. WG/TF and ERCOT Updates Potential AMS Data Workshop ◦ For ERCOT and TDSPs to explain to Market Participants’ their AMS 15-minute Interval Data processes, such as:  Obtaining AMS 15-minute Interval Meter data,  Process when AMS data is missing (full day or gaps in intervals)  Frequency of AMS data provided to ERCOT and Smart Meter Texas. ◦ Workshop is planned to be an exchange of information concerning both ERCOT’s and TDSPs’ AMS Data Processes, which includes ERCOT’s Settlements process of AMS Data. ◦ Pre-Workshop planning meeting between AMS TDSPs and ERCOT scheduled on June 2, 2014. ◦ AMS 15-minute Interval Data Workshop tentatively scheduled for late June or early July 2014, look for future Market notice on location, date, time and WebEx info. May 14, 2014RMS Update to COPS13

14. Smart Meter Texas & 3 rd Party Access Advanced Metering Working Group (AMWG) Change Requests Update and 3 rd Party Access to SMT’s Historical Usage Project states report: Smart Meter Texas Development Oversight (SMT DO) scheduled meetings: ◦ Friday, May 22 at 10:00 AM (WebEx) ◦ Friday, June 23 at 10:00 AM (WebEx) August 13, 2013RMS Update to COPS14

15. 4/1/14: 2014 RMS Approved Goals: Align Retail Market Subcommittee (RMS) Goals with TAC goals and the strategic vision of the ERCOT Board of Directors. Maintain market rules that support Retail Market processes that are consistent with PURA and PUC. Support the appropriate incorporation of load participation. Explore and Implement Retail Market Enhancements. Facilitate market enhancements necessary to leverage the capabilities of Advanced Metering Systems in the Retail market. Maintain market rules that support open access to the ERCOT Retail market. Continue to work with ERCOT to develop Protocols and other market improvements that support increased data transparency and data availability to the market. Continue to work with ERCOT to ensure appropriate credit and collateral rules exist or are created. May 14, 2014RMS Update to COPS15

16. 4/1/14: 2014 RMS Approved Goals: Successfully implement Project (PR) 010_03 MarkeTrak Phase III Enhancements via System Change Request (SCR756) Part B If Board approved, support all phases of SCR 776, Retail Data Transport Upgrade to NAESB EDM v2.2 ◦ Project Planning, Project Execution, Market Testing and ◦ Market Education & Communication Complete review of current Flight Testing and scripts in an effort to find opportunities for improvements and efficiencies for future Market test flights. Successfully implement Sharyland Utilities (SU) transition to competition. Sunset the following taskforces:  MarkeTrak Task Force, if all Phase III Enhancements (SCR756) are successfully implemented and plan is developed to transition all MarkeTrak Taskforce responsibilities to the Texas Data Transport Working Group  Sharyland Transition Taskforce, if all transition to competition tasks have been successfully implemented. May 14, 2014RMS Update to COPS16

17. Questions? 17May 14, 2014RMS Update to COPS