1. Meter Read Validation History Defined as ERCOT requirement in Original RFP Was enforced for Market Opening ERCOT system design could not support both validation requirements and processing windows Market requested temporary suspension of meter read validations Lack of meter read validations and controls within ERCOT have created: Improper, Delayed or Unnecessary Estimated Customer Billing Imprecise Market Settlement Delivery of Meter Read Transactions to Providers Not of Record Incorrect Establishment of MP’s of Record Data Discrepancies between all Market Participants Substantial Cost Overruns to the Market and Consumers Significant Resource Impacts to Market Operations

2. PRR Points File Structure – Should Exists ANSI Standards – Should Exist Data Values and Qualifiers – Should Exist but certain gaps may exist TO Recipient – NEW REQUIREMENT & Critical for Market Sync and Management FR Recipient – NEW REQUIREMENT & Critical for Market Sync and Management Meter Read Data Syncs & Meter Id Validations - NEW REQUIREMENT & Critical for Market Sync and Management Transaction ID Validation under Cancellation Scenarios - NEW REQUIREMENT & Critical for Market Sync and Management Current defined ERCOT validations for settlement loads – Should Exist Transaction Failure, Transaction Returned for Correction - Enhanced REQUIREMENT & Critical for Market Sync and Management ERCOT will monitor on a daily basis pending exceptions, and will track and report - NEW REQUIREMENT & Critical for Market Sync and Management

3. Production Processing Targets Based on Known: 5.8 million accounts 21 business days in a month 276,190 meter read transactions per day to be processed 24 hour delivery protocol for meter read transactions Unknowns What is the current ERCOT transaction processing per second with the limited validations being applied? Under the redesign of the applications as noted for the Commercial Application project what is the transaction processing per second target being considered by ERCOT? What is the basis of the design requirements?

4. Production Processing Targets Extreme Production Processing Case: 276,190 transactions a day Production Processing Designed for 24 Hour Window Equals 3 transactions a second Acceptable Production Processing Case: 276,190 transactions a day Production Processing Target 10 transactions a sec. Production Processing Window - 7.67 hours Designed Production Processing Support 276,190 transactions a day Production Processing Target 50 transactions a sec. Production Processing Window – 1.53 hours

5. Timing is Now ERCOT Projects PR-30119High Availability Comm AppsTo upgrade and provide failover / resource sharing capability for Commercial Applications. This proposal is based on a study done by ERCOT and HP looking at replacing all current UNIX servers with latest model with load balancing in Taylor and upgraded failover in Austin. Priority 3.3 Commercial Applications System PR-30082UpgradeComplete an architectural review of TCH / Seebeyond and upgrade to new version if we do not 22 replace. Priority 2.2 PR-30083Lodestar Upgrade/ReplacementComplete an architectural review of Lodestar and upgrade to new version. Priority 0 In review PR-30125Lodestar Data Loading Planning PhaseImprovementsImprove loading of usage data into the Lodestar system for Settlement. Priority 1.1