1. Profiling Working Group January 14, 20041 PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting January 14, 2004

2. Profiling Working Group January 14, 20042 1)Draft PRR – Weather Responsiveness Determination (Vote) 2)RMS Working Group/Task Force Structure 3)Annual Profile Type and Weather Zone Validation. 4)Protocols Section 18.6.5, Future IDRs Impact Analysis. 5)Update Reports: a)ERCOT Load Research – PR30014 Project Timeline. b)PRR draft - NIDR default settlement process improvements. c)LPGRR Draft – 11.4.1 Validation of Profile Type. d)New TOU Schedule Process. e)Oil and gas properties profile change request. f)Gas/Convenience 24 hr Stores profile change request. g)PRR469 for Protocols Section 18 to PRS. h)PRR471 for NIDR to IDR Default Profile. i)PRR478/LPGRR2003-004 – Lagged Dynamic for new profile. j)PRR479 IDR Optional Removal Threshold k)Direct Load Control (DLC) Project Status, PRR484 Protocols Section 6. l)Next PWG Meetings 1/28.

3. Profiling Working Group January 14, 20043 Weather Response Determination for IDR Proxy Day Process 1.PRR draft has been written and introduced at the 12/4 PWG mtg. 2.Submitted to RMS for January approval. PRR for Weather Response Determination for IDR Proxy Day Process VOTING ITEM Motion to approve the PRR draft made by the PWG entitled, “Weather Response Determination” as submitted to the RMS exploder on 12/23/03 in file named, “PRR_Weather Responsiveness.doc”.

4. Profiling Working Group January 14, 20044 RMS Working Group/Task Force Structure 1.Per RMS November Meeting Action Item. 2.PWG reviewed with no changes “RMS Task Force Criteria Draft 103103.doc”. Load Profiling Guides 4.1 Purpose of the PWG The PWG is a forum in which ERCOT Market Participants may participate to facilitate changes in the market rules pertaining to Load Profiling issues as reflected in the Protocols and the Load Profiling Guides (LPG). The PWG shall be involved in all policy issues and some operational aspects of Load Profiling in the ERCOT market. PWG affirms it is within purpose and scope.

5. Profiling Working Group January 14, 20045 RMS Working Group/Task Force Structure Load Profiling Guides 4.2 PWG Responsibilities Maintains and upholds Protocols Section 18, “Load Profiling,” Reviews all requests for changes to Load Profiles, Load Profiling Methodologies, and implementation of the Load Profiling process; Reviews and makes recommendations to RMS regarding LPG change control, Load Profile Models, and Load Profile Methodologies; Reviews and makes recommendations to the Profile Decision Tree; Participates in defining Weather Zones and Load Profile types; Evaluates the validation and assignment processes for Load Profile IDs; Evaluates the impact of the Interval Data Recorder (IDR) requirement for possible revision prior to competitive metering; Periodically reviews the selected profiling technique for Time-of-Use (TOU); Coordinates with ERCOT in developing Load Profiles for particular customer segments that may require special Load Profiling techniques (e.g., supplemental Load Profiles); Develops and maintains the LPG; Reviews and makes recommendations to the ERCOT Load Profiling Department on load research Sample Design; Performs a liaison function between Market Participants and ERCOT Load Profiling Department and facilitates market acceptance of Load Profiling processes; and Provides a forum for Market Participants to be involved with ERCOT Load Profiling.

6. Profiling Working Group January 14, 20046 Annual Profile Type and Weather Zone Validation. 1.CNP expressed to the PWG Chair concern for the manpower needed for annual validation of profile ID assignments and concern for residential migration based on winter ratio of 1.5. Chair shall propose that the PWG reexamine the annual validation and profile id assignment process. 2.RMS to add to week market call meeting per RMS meeting 9/26/03. 3.PWG has discussed feasibility of ERCOT coding the Profile ID instead of TDSPs. 4.Major Causes of Migration of Profile ID Assignments. a)Use of a new usage month methodology. b)Significant portion of BusNoDem moving to a BusxxxLF profile. c)1.5 winter ratio factor may need a dead band and/or reevaluation. 5.All TDSPs have submitted the 814_20s. 6.Completion is pending ERCOT approval per review of the final sample validation in the Lodestar Settlement System.

7. Profiling Working Group January 14, 20047 Protocols Section 18.6.5, Future IDRs Impact Analysis. 1.Per 8/19/03 PWG meeting discussions began on compliance to Section 18.6.5. 2.18.6.5 Future Requirements for IDRs ERCOT and the appropriate ERCOT TAC subcommittee shall evaluate the impact of the IDR Requirement as defined in this Section for possible revision prior to the introduction of competitive metering services to the market on January 1, 2004. 3.ERCOT staff is working on comparing current IDR premises below 1000 KW verses if the premise had been on a NIDR profile as the basis of the impact study. 4.At 10/22 and 11/05 PWG meetings, part of the impact report was presented comparing current IDRs below 1000 kW as if they had been NIDR. Remaining analysis is on schedule. 5.Outline of final analysis was reviewed at the 12/4 PWG meeting. 6.ERCOT staff began issuing the report to the PWG on 12/31/03.

8. Profiling Working Group January 14, 20048 Update Reports a)ERCOT Load Research – PR30014 Project Timeline. b)PRR draft - NIDR default settlement process improvements. c)LPGRR Draft – 11.4.1 Validation of Profile Type. d)New TOU Schedule Process. e)Oil and gas properties profile change request. f)Gas/Convenience 24 hr Stores profile change request. g)PRR469 for Protocols Section 18 to PRS. h)PRR471 for NIDR to IDR Default Profile. i)PRR478/LPGRR2003-004 – Lagged Dynamic for new profile. j)PRR479 IDR Optional Removal Threshold k)Direct Load Control (DLC) Project Status, PRR484 Protocols Section 6.

9. Profiling Working Group January 14, 20049 ERCOT Load Research – PR30014 Project 10/23/03 Kickoff meeting with TDSPs. 11/06/03 Second TDSP coordinating meeting. TDSPs have agreed to use ebXML, FTP Replacement for sample data transfer in.LS format. 11/26/03 CR Survey due. 12/05/03 CR coordinating meeting. Estimated sample design target to TDSPs: 1/5/2004 (Has slipped) Estimated sample design acceptance: 1/15/2004 (Has slipped) Estimated complete IDR installation: 7/15/2004 See ERCOT Report for the RMS meeting for the latest timeline and current status.

10. Profiling Working Group January 14, 200410 PRR draft - NIDR default settlement process improvements. 1.PWG reviewed 7/30/03. 2.NIDR 2.NIDR default profile settlement routine was discussed at the 9/30 and 10/22 PWG meetings. ERCOT to review possible options with the current software. 3.PRR draft discussed at PWG 12/4 meeting, and to be reviewed on 1/28.

11. Profiling Working Group January 14, 200411 LPGRR Draft – 11.4.1 Validation of Profile Type. 1.PWG reviewed 12/4 an initial draft, ERCOT staff to refine.

12. Profiling Working Group January 14, 200412 New TOU Schedule Process 1)PWG 12/04 reviewed a first draft of a document to assist in how a CR would go about requesting and getting approval of a new TOU Schedule. 2)Final Draft is being polished.

13. Profiling Working Group January 14, 200413 Oil and gas properties profile change request 1.Submitted to ERCOT 3/6/03 by Pioneer Natural Resources, Priority Power Management, and Energy Data Source. 2.ERCOT to post to WEB. 3.Argument is that the aggregate profile is a very high load factor profile, close to flat. 4.ERCOT is to evaluate and submit recommendation to PWG. 5.May test the new PUCT Rule 25516 for reimbursement. 6.ERCOT shall post the methodology request to the Market Information System (MIS) and respond to the request within sixty (60) days of the posted date of the request. This period does not include the time to analyze and render the complete assessment of the request. 7.“ERCOT withholds a decision on making a recommendation on whether to adopt or to deny adoption of the suggested profile change; instead ERCOT finds the request, as submitted, is incomplete and deficient. The requestors are invited to address the incompleteness and deficiencies listed below and re-submit the request for further review.” 8.Per 6/19 PWG meeting, a straw-man in development for changes to the profile change request process and to allow lagged dynamic samples. PRR drafts to be reviewed at the 9/30 and 10/1 PWG meetings. 9.ERCOT staff has submitted a load research sample design to the requestor for approval. 10.PWG submitted to RMS on 11/13, PRR and LPGRR for added validation of profile change requests and lagged dynamic samples. 11.Requestor has concerns there are little CR interest in the profile. 12.Two of the Three Requestors have withdrawn from this request. 13.Sample design is being revisited using new MBSS tools.

14. Profiling Working Group January 14, 200414 Gas/Convenience 24 hr Stores Profile Change Request 1.Submitted to ERCOT by Coral Energy. 2.ERCOT staff is discussing a load research sample design with the requestor. 3.Requestor has supplied 600 of an expected 1000 ESIIDs for sample design.

15. Profiling Working Group January 14, 200415 PRR469 for Protocols Section 18 to PRS. 1.On 9/15/03 the PWG submitted a draft PRR entitled, “Compliance for Competitive Metering and 25516 Rulings to Load Profiling” to update Protocols Section 18 per the PUCT Rulings on Project 25516 Load Research and Load Profiling and Project 26359 on Competitive Metering. 2.RMS Chair approved the PWG going directly to PRS to assist in the timeline for the PRR approval by year end before competitive metering becomes effective on 1/1/04. 3.PRS comments due 10/17. 4.PRS to review 10/23. 5.Additional PRR is drafted by PRS for PWG review to ensure where the use of REP, CR and LSE is appropriate. 6.PRS Remanded the PRR to PWG for review of changes to language. At the 11/05 PWG meeting the PWG approved the PRS suggested changes. Reference to the Load Profiling Guides removed. Examples of Load Profile Types removed. Specific URL and Substantive Rules references removed. 7.To TAC 1/8/04.

16. Profiling Working Group January 14, 200416 PRR471 for NIDR to IDR Default Profile 1.RMS approved 9/26/2003. 2.PRS issued to market 10/09/2003 requesting a vote on urgency, comments due 10/22. 3.PRS to review 10/23. 4.To TAC 1/8/04.

17. Profiling Working Group January 14, 200417 PRR478 for Use of Lagged Dynamic Samples for New Load Profiles LPGRR2003-004 for Update of LPG Section 12 1)Approved by RMS 11/13. 2)PRS reviewed 12/18/03. 3)To TAC 2/5/04. 1)Approved by RMS 11/13. 2)Submitted to RMS. 3)To TAC 2/5/04.

18. Profiling Working Group January 14, 200418 PRR479 on IDR Optional Removal Threshold 1.RMS requested PWG review Sara Ferris’s IDR Removal draft PRR on 9/26/2003. 2.PWG on 10/01 wrote a new draft. 3.PWG reviewed the threshold value amount and discussed the PRR language on 10/22. 4.PWG Chair sent a status report to the RMS exploder on 10/27. 5.PWG met on 11/05 to prepare a recommendation for RMS. 6.PWG shall submit final recommended PRR to RMS on 11/13 with voting motions where the PWG is divided. 7.RMS edited the PRR on 11/13 and has submitted to PRS. 8.PRS to review 1/23/04.

19. Profiling Working Group January 14, 200419 Direct Load Control (DLC) Project Status 1.PRR 385 Section 18 is complete with Board Approval 5/20/03. 2.LPGRR2003-001 is attached to PRR385, approved by TAC 7/02, reviewed by Board, and the LPG is updated). 3.ERCOT Schedule is pending, Project Manager assigned. 4.ERCOT and some Market Participants question priority going forward. 5.Memo, on Project 26359 on Competitive Metering, May 8, 2003, by Commissioner Perlman suggests that wires companies need to develop a rate structure that provides strong incentives for demand responsiveness by charging different rates during high load periods. 6.PRR388 and PRR400 does not completely cover DLC issues. 7.PRR Section 6 Language for DLC is written for a PRR. 8.DSWG submitted Section 6 PRR484 to PRS on 12/19/03. 9.PRS to review 1/23/04.