1. Feb 18, 20031 TAC Report to the ERCOT Board February 18, 2003

2. Feb 18, 20032 Summary PRRs 376 and 378 - vote to approvePRRs 376 and 378 - vote to approve Resumption of True-Up Settlements for 2002 - updateResumption of True-Up Settlements for 2002 - update Update from RMR Task ForceUpdate from RMR Task Force

3. Feb 18, 20033 PRR 376 – Procure Total AS from ERCOT Allows a QSE to purchase AS to cover both the ERCOT AS allocation as well as the obligations to other sub-QSEs or QSEsAllows a QSE to purchase AS to cover both the ERCOT AS allocation as well as the obligations to other sub-QSEs or QSEs No impact on IT systemsNo impact on IT systems Effective March 1, 2003Effective March 1, 2003

4. Feb 18, 20034 PRR 378 – RMR Units Mandatory Down Bids Excludes RMR Unit’s energy schedules from the requirement to provide mandatory DEC bidsExcludes RMR Unit’s energy schedules from the requirement to provide mandatory DEC bids Effective March 1, 2003Effective March 1, 2003

5. Feb 18, 20035 Resolution from 01-22-2003 (1) Further true-up resettlements for 2002 will be suspended and (2) True-up resettlement (starting with January 1, 2002) will resume when adequate accuracy can be assured (as developed by the RMS and approved by the TAC) and 45 days after SCR 727 has been implemented. Every effort will be made to resume true-ups by April 1, 2003. Progress toward completion criteria will be reviewed at each RMS Meeting and reported to the TAC and the Board monthly. If the April 1, 2003 date cannot be met, the Board shall be advised and a revised target resumption date shall be given. (1) Further true-up resettlements for 2002 will be suspended and (2) True-up resettlement (starting with January 1, 2002) will resume when adequate accuracy can be assured (as developed by the RMS and approved by the TAC) and 45 days after SCR 727 has been implemented. Every effort will be made to resume true-ups by April 1, 2003. Progress toward completion criteria will be reviewed at each RMS Meeting and reported to the TAC and the Board monthly. If the April 1, 2003 date cannot be met, the Board shall be advised and a revised target resumption date shall be given.

6. Feb 18, 20036 RMS recommended Resettlement Criteria 1Develop functionality and provide data extract as defined in SCR 727. 2Market Sync completion criteria will be 95% complete for ERCOT and CR groups and 95% complete for each TDSP for Priorities 1,2,4 (1) and 5 as reported on the Market Sync Reporting tool status. 3Outstanding QRE issues documented by ERCOT as of 12/16/02 be 95% complete. (“In Progress” and “In Analysis” as reported to RMS 12-18-2002) 4ERCOT shall have the organization and procedures in place to daily synchronize ERCOT’s Siebel and Lodestar systems, and synchronization of Siebel and Lodestar systems shall be in place before the initial release of SCR727 data to Market Participants.

7. Feb 18, 20037 Data provided #1SCR 727 ready between Feb 20-March 11 #2Percent Synch as of January 29 th : ERCOT: 65% (135K resolved, 190K total, 55K remaining), All CRs: 67% (164K resolved, 246K total, 82K remaining), TDSPs: 44% (55K resolved, 124K total, 69K remaining) AEP – <1%, CenterPoint – 42%, Oncor – 62% TNMP – 4%, Sharyland – 4% #3QRE Issues resolved as of Jan 29 th 28% of the 33,369 QRE issues complete; 24,000 outstanding #4Volume of mismatches between the Siebel and Lodestar Systems would be known on February 7 th

8. Feb 18, 20038 RMS Action Plan  Continue to close QRE requests, reduce the number of market sync miss-matched records, and syncing of Siebel & Lodestar.  Develop a tactical plan to operational-ize SCR 727 extract so MPs use this data to identify and repair ESI ID components and identify out of sync records after August 11, 2002.  The RMS will bring all the restart resettlement criteria including additional details on SCR 727 extract for a TAC vote at the March 2003 TAC Meeting.

9. Feb 18, 20039 TAC Direction ERCOT: make SCR 727 data extracts available as soon as possibleERCOT: make SCR 727 data extracts available as soon as possible RMS: Consider effected ESI IDs (customers), and the results from the February 7th Siebel and Lodestar synchronization activities, and bring an amended resolution to the TAC for consideration at its March Meeting.RMS: Consider effected ESI IDs (customers), and the results from the February 7th Siebel and Lodestar synchronization activities, and bring an amended resolution to the TAC for consideration at its March Meeting. The motion was approved by a 25 to 0 vote with 1 abstention.The motion was approved by a 25 to 0 vote with 1 abstention.

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