1. TX SET Update to RMS Wednesday, May 9, 2007

2. Elimination of the Drop to AREP o RULEMAKING TO AMEND COMMISSION SUBSTANTIVE RULES CONSISTENT WITH §25.43, PROVIDER OF LAST RESORT (POLR) Project 33025 was approved on February 16, 2007 o Effective March 8, 2007, Competitive Retailers shall no longer send 814_10 Drop to AREP transactions to ERCOT o Protocol and Retail Market Guide changes required to support Rule.

3. Protocol Changes Required Protocols Section 2 – “Acronyms”  Remove ‘AREP’ Affiliate Retail Electric Provider Protocols Section 15 – “Customer Registration”  Add language that will allow ERCOT to ‘Reject’ all 814_10 Drop to AREP transactions received from a CR as an invalid request.  Remove Drop to AREP Processes, Timelines, and References found in this section Protocols Section 19 – “TX SET Transactions”  Add language that ERCOT will ‘Reject’ an 814_10 with an 814_11 Drop Response transaction  Update the 814_10 Transaction to show that it is no longer a valid transaction

4. Retail Market Guide Changes Retail Market Guide Section 2 –Definitions  Remove Drop to AREP  Remove Drop to Competitive Retailer  Remove Drop to POLR All of the above are no longer valid with the adoption of the new POLR rule and the elimination of Price to Beat (PTB)

5. Transaction Timing Matrix Changes Since the Retail Market Guide Section 7.7 ‘Transaction Timing Matrix’ was created as an abbreviated version of Protocol’s Section 15 several changes are required with the implementation of PRRs 672, 693, and PRR 707.  TX SET developed a redline document that will bring the ‘Transaction Timing Matrix’ in synch with the updated version of Protocol’s Section 15 – ‘Customer Enrollment’

6. Next Steps for TX SET Submit PRR on a ‘Normal’ timeline with recommended Protocol Revisions to Sections 2, 15, and 19 to RMS (June 13th) and PRS (June 21st) meetings Submit RMGRR on a ‘Normal’ timeline with recommended Retail Market Guide Revisions to Section 2.1 ‘Definitions’ and Section 7.7 ‘Transaction Timing Matrix’ to RMS for the June 13th meeting

7. Next Steps for TX SET At our May 23, 2007 meeting, TX SET will start our yearly discussion concerning is there a Market need and/or potentially new Rule requirements on the horizon where a new TX SET Version Release is needed for 2008 to assist RMS with planning the 2008 PPL.  Project/Tasks we want to consider: Advanced Metering Rule Requirements New Performance Measures Rulemaking could there be any changes needed to transactions to support new reporting? Recommendations coming from Small Renewable Generation Workshops that may affect transactions Post TX SET Version 3.0 Evaluation or Lessons Learned feedback may require transaction/process changes Market Issues with Transactions and/or Processes

8. 8 Questions?