Critical Retail Issues RMS Update

1. Critical Retail Issues RMS Update RMS Meeting Results • 6/01 • RMS Approved 62 Resolved Critical Issues • Began the Prioritizing process • Developed Protocol Change Requests • Developed ERCOT System Change Requests • Developed Tx Set Transaction Change • Requests • 4/01 • RMS Identified Pilot Open Critical Issues • Workshops initiated to resolve issues • Permits/Inspections • Critical Care • Move In/Move Out • Service Order/Notification • Retail Metering 2/01 RMS Formed • 3/01 • RMS Identified “pent-up” issues • Tx Set transaction development • Service Order Workshops • Outage workshops • 5/01 • Approved Pilot Work arounds • Identified Market Open Critical Issues • RMS workshops initiated to resolve issues

2. Critical Retail Issues RMS Update Issue Analysis • Analysis of the 62 Critical Issues • 12 - Business process definition requiring no system change • 24 - Business system change required by point-to-point MPs • 26 - Business system change required by all MPs, ERCOT included • Analysis of the 26 change issues effecting ERCOT • 10 - Priority 1 - essential for Market Open • 8 - Priority 2 - important for Market Open • 8 - Priority 3 - after Market Open • Analysis of the 10 Priority 1 issues • 4 - Retail Metering, not Protocol changes required • 3 - Permit/Inspections, will require Protocol changes • 3 - Move In/Move Out, will require Protocol changes All interested MPs were involved in the workshop process. 62 Critical Issues were identified and a resolution consensus was gained on practically every issue

3. Critical Retail Issues RMS Update Retail Metering • Subtractive/Additive Metering Data Requirement • ERCOT TDSPs sending netted 15 minute interval data • Non-ERCOT TDSPs sending all 15 minute interval data Solution = Adopt ERCOT TDSP methodology • Mid Cycle Meter Read with Profile Change • Caused by change in IDR, Demand, or TOU status • 4 Options considered, no good compromise solution determined Solution = Change the meter on cycle read date • Meter Reads required on Historical Usage Request • Present interpretation requires both meter read and consumption Solution = Drop requirement to provide meter read • Consumption Discrepancy • Interval data does not match consumption data Solution = Revise Tx SET transaction to allow for adjustment

4. Critical Retail Issues RMS Update Permits/Inspections • Pending order waiting completion of City Inspection • TDSPs agree to pend order Solution = Develop a new transaction to provide electronic notification • Move In Un-executable • Need a means to notify CR/Customer if a problem exists Solution = Provide notification on new transaction • Cancel Move In Request • Permit is no longer needed or required Solution = Provide notification means to keep record accurate

5. CR2 6/1 CR1 6/15 CR2 6/30 Customer B Move In # 1 Customer A Move Out Customer B Move In # 2 Critical Retail Issues RMS Update Move In/Move Outs • Existing Process Creates Service Gaps • Option 1 - No change, deal with customer problems • Option 2 - CR manages and communicates problem • Option 3 - ERCOT manages and communicates problem • Timing Requirement when CSA in effect • Service not disconnected at Move Out Solution = Clarify timing requirement, ERCOT ensures switch in 1 business day • Same CR on a new Move In • CR responsible for final bill determination Solution = Change existing reject code reason