Inadvertent Gain Overview February 2008. 2 2 Introduction Why we are here –Original Inadvertent Gain (IAG) Task Force (2004) Creation of Retail Market

Inadvertent Gain Overview

February 2008

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Introduction

• Why we are here– Original Inadvertent Gain (IAG) Task Force (2004)

• Creation of Retail Market Guide (RMG) language/process

– MarkeTrak replaces FasTrak (late 2006)• Increased visibility to volume of IAG issues in the market

• Exposed lack of consistent processes among REPs and TDSPs

• Revealed many scenarios that were not clearly covered by the RMG language

– Inadvertent Gain Task Force (2007)• Formed by RMS to identify and address IAG related issues

– MarkeTrak Phase II (2008-2009)• Implementation of enhanced IAG workflows

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Inadvertent Gain Task Force (2007)

• Goals and Accomplishments– Revise sections of the RMG to clarify timelines and responsibilities for

all parties.• RMGRR059 Inadvertent Gain Task Force Revision has been approved with

a May 2008 implementation

– Create consistent processes among Market Participants.

– Provide recommendations for monthly report to RMS that would monitor IAG MarkeTrak issues open more than 20 business days.

• New reporting is now included as part of RMS background materials

– Develop better escalation path for unresolved IAG MarkeTrak issues.

– Recommend and help develop IAG Training for all Market Participants.

– Provide requirements for the MarkeTrak Enhancements projects to help better manage the IAG workflow.

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Terminology

PUCT Substantive

Rule §25.495 RMG 7.2 Functional Definition

Switching REPGaining

CRREP that inadvertently gains customer/ESIID

Original REP Losing CRREP that loses customer/ESIID due to an

inadvertent gain

Customer ESIIDFor the purposes of the IAG process these terms

both refer to the premise that has been inadvertently gained/lost

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PUCT Substantive Rule §25.495

• §25.495 Unauthorized Change of Retail Electric Provider

– Either the original REP or the switching REP shall file a MarkeTrak issue as promptly as possible

– Affected REPs, ERCOT, and TDSP shall take all actions necessary to return the customer to the original REP as quickly as possible

• Original REP does not need to obtain further authorization from the customer

– Affected REPs, ERCOT, and TDSP shall take all actions necessary to bill correctly all charges

• Switching REP shall pay all transmission and distribution charges associated with returning the customer to its original REP

• Switching REP shall refund within 5 days all charges paid by the customer for the time period the original REP regains and ultimately rebills the customer

• The customer shall pay no more than the price at which the customer would have been billed had the unauthorized switch or move-in not occurred

• The REP that ultimately bills the customer is responsible for the non-bypassable charges and wholesale consumption for the customer

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Performance Measurement Requirements

• For each month, ERCOT shall report – the number of inadvertent gains for each REP– the number of losses due to inadvertent gains for each REP– the ratio of inadvertent gains to completed enrollments for the

gaining REP• Inadvertent gains and losses shall only be counted after the

issue has been completed or resolved, and has not been rejected.

• Instances where the gaining REP indicates a valid enrollment and does not agree that the gain was inadvertent shall be excluded from this reporting.

• REPs have the option to report these same numbers

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Inadvertent Gain Process (RMG Chapter 7.2)

• Escalation Process– Each Market Participant is responsible for its

own compliance with the PUCT Rules and RMG procedures/timelines

– Each Market Participant shall have escalation contacts within MarkeTrak

– MarkeTrak will send escalation emails Market Participants’ escalation contact(s) whenever an issue has remained untouched for seven (7) days

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• Buyer’s Remorse– Inadvertent Gain processes are not to be used when a valid

authorization or enrollment has been effectuated in the market.• Rescission Period

– REP shall inform customer they have the right to choose another REP but will be responsible for any charges incurred

– Example: Customer receives first bill and wants to switch back to previous REP – Not an IAG

– Example: Customer receives early termination penalty from Original REP and wants to switch back to the Original REP – Not an IAG

• Breach of Contract

– Example: Customer signs contract with gaining CR that overlaps with losing CR’s existing contract – Not an IAG

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• Prevention of IAGs– Before the evaluation period of a transaction, if a submitting CR

discovers that the transaction will cause an inadvertent gain, the submitting CR should cancel the switch/move-in/drop transaction using the 814_08 transaction.

– If the ESIID is discovered to be an inadvertent gain during the evaluation period, and if the TDSP approves the cancellation during the evaluation period, the submitting CR may follow the MarkeTrak process to request cancellation of the transaction.

• Use Cancel with Approval subtype

• From July 1st to August 16th 2007 there were:– 2,657 MT requests for cancellation

• 489 could have been cancelled with an 814_08

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• Resolution of IAGs

–If Gaining REP determines that an unauthorized gain has occurred they shall promptly log the IAG issue in MarkeTrak

–Gaining REP shall not send in a MVO or DNP on an ESIID that was gained in error

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• Reinstatement Dates

– The original CR and the gaining CR may work together to negotiate a reinstatement date for the original CR to take the ESIID back

– The original CR shall ultimately determine the reinstatement date

– The reinstatement date shall be one of:• one Calendar Day beyond the date of loss • any subsequent date chosen by the original CR for which the original CR

had authorization to serve the customer but no greater than fifteen (15) Calendar Days past the date the MarkeTrak issue was logged

– In order to facilitate the proper assessment of transmission and distribution charges associated with returning the customer to its original REP

• The original CR shall submit a Move-In Request (814_16) that is backdated by at least one (1) Business Day

• The original CR shall submit a Move-in no later than seventeen (17) Calendar Days after the MarkeTrak issue was logged, utilizing the reported reinstatement date

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• Reinstatement Dates (continued)– If the reinstatement process is delayed, the

reinstatement date shall not be extended beyond the fifteenth (15th) Calendar Day from the date the MarkeTrak issue was logged

– If the move-in has not been submitted within this required timeline, or the reinstatement date is different than the date noted in the MarkeTrak issue, refer to the escalation process in the MarkeTrak User’s Guide.

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CR 1 CR 2 CR 1

•CR 2’s Enrollment IAGs the ESIID from CR 1

•CR 1 submits a MarkeTrak to regain the ESIID

•CR 1 takes the ESIID back to date of loss

MARKETRAK

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CR 1 CR 2 CR 1

•CR 2’s enrollment IAGs the ESIID from CR 1

•CR 2 submits a MarkeTrak Issue because CR 2 IAG’d the ESIID

•CR 1 takes the ESIID back on an ongoing basis

MARKETRAK

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• Valid Reject Reasons– The original CR may reject the return of an

inadvertently gained ESIID from the gaining CR only for one of the following reasons:

• The original CR has already regained the ESIID or a third CR has completed a transaction since the inadvertent gain period

– This includes completed MVO/MVI to CSA

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• Valid Reject Reasons (continued)– Upon investigation of the inadvertent gain issue, the gaining CR

determines that they possess an authorized enrollment• If you have a valid enrollment request for a customer; but the ESIID

that you enroll does not belong to that customer it is still an IAG– CR A enrolls ESIID #1 at the request of Customer Smith – CR A has a billed deposit requirement that is not met and issues a

MVO – Customer Jones calls in to CR B and wants to know why the power at

ESIID #1 has been de-energized – CR B logs an Inadvertent Gain MarkeTrak Issue for ESIID #1 – CR A should Accept the issue; they should not unexecute the issue for

the reason of having a valid enrollment request

• The Customer has entered into multiple, valid contracts regarding the same ESIID(s)

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• Invalid Reject Reasons– The original CR may not reject the return of an

inadvertently gained ESIID due to:• Inability to contact the Customer • Past due balances or credit history• Customer having moved out from the Premise in question• Contract expiration or termination• Uncompleted Texas SET transactions

– Example: Original CR had an 814_24 in Scheduled status at ERCOT but IAG occurred before MVO had effectuated

• Original CR serving the Premise under a CSA

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• Out-of-synch Conditions– If the original CR does not have a record of ever serving the

ESIID involved in the inadvertent gain MarkeTrak issue, the original CR shall update MarkeTrak issue with this information

• No Original CR of Record– If it is determined that the original CR is no longer active in the

market• Gaining CR should make all reasonable attempts to contact the

Customer to resolve the issue and request that ERCOT close the MarkeTrak issue

• If gaining CR is unable to contact the customer, they may consider following the rules established in PUCT Subst. Rule §25.488, Procedures for a Premise with No Service Agreement

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• Associated Charges– CR that served the ESIID without proper authorization shall pay

all transmission, distribution and discretionary charges associated with returning the ESIID to its original CR

– If the gaining CR sends a move-out or Disconnect for Non-Pay (in violation of section 7.2.2.3):

• The original CR should file the inadvertent gain MarkeTrak issue prior to submitting a priority move-in

• Within the comments field of the MarkeTrak issue, the original CR shall state, “Reverse fees due to Inadvertent Gain.”

• If the gaining CR agrees that an inadvertent gain has occurred, then the gaining CR shall not dispute any of the valid TDSP fees associated with returning the ESIID to its original CR

– Gaining CR should not unexecute/reject the MarkeTrak issue due to the Original CR regaining the ESIID

– The losing CR shall not submit a Priority Move-In Request (814_16) if the Customer currently has power.

• TDSPs will charge for PMVI per their tariffs

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• Inadvertent Order is Pending– Since the inadvertent transaction is still pending, an

attempt should be made by the gaining CR to cancel the transaction, provided that the gaining CR agrees. If so, the gaining CR shall submit a Day to Day Cancel With Approval MT cancellation request.

– Otherwise, the completion of the pending order will create an IAG and the inadvertent will follow the standard inadvertent process.

– Gaining/Losing CR should not submit any transactions on this ESIID until both CRs have reached agreement/disagreement.

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• Leapfrog Scenarios– If a third party CR legitimately acquires

a previously inadvertently gained ESIID prior to the inadvertent issue reaching resolution, the Gaining CR is no longer the REP of record and the TDSP no longer considers this an inadvertent issue

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IAG Scenario

CR 1 CR 2 CR 3

• CR 2’s enrollment IAGs the ESIID from CR 1

• CR 1 submits a MarkeTrak issue

• CR 3s enrollment creates a leap frog scenario, the MarkeTrak is closed

MARKETRAK

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• Inadvertent Dates Greater than 150 Days– If the inadvertent gain occurred more than

150 days in the past, the TDSPs shall not issue billing corrections more than 150 days in the past from the date of the receipt of the MVI transaction

– TDSPs will not accept IAGs greater than 150 days

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• TDSP Billing– Once a backdated move-in has been accepted

by the TDSP, the TDSP shall invoice all transmission, distribution and discretionary charges associated with returning the Customer to its original CR, or CR of choice in the case of a move-in, to the gaining CR.

– The TDSP shall be responsible for invoicing all non-bypassable TDSP charges to the CRs in accordance with the periods that they each served the Customer.

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• TDSP Contacts

AEP: Gricelda [email protected]

CENTERPOINT: Corde Nuru

[email protected]

ONCOR: Liz Fanning [email protected]

TNMP: Becca Cash [email protected]

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Thank You

Documents

Inadvertent Gain Overview February 2008. 2 2 Introduction Why we are here –Original Inadvertent Gain (IAG) Task Force (2004) Creation of Retail Market