1

TAC UPDATE from ERCOT Retail Market Services

and

RMS Report

August 8, 2002

2

Retail Market Update

Topics– ERCOT’s 30 Day Plan and Other Critical Projects– Move-In/Move-Out Issues/Initiatives– ESI ID Tracking System (ETS)– Version 1.5 Project – Market Synchronization Plan– Non-PTB Back Dated Switches– Lodestar Data Loading Improvements– IDR Meter Usage Reports (ERCOT and TDSPs)– Resettlement Update– Portal Performance– Quick Recovery Team Update– Proposed POLR PUCT Rule Changes

3

Master Plan Update

4

Master Project Plan

• All Known In-flight & New Projects identified– Related project worksheet established with list of all known projects

• Status/Updates

• Targeted outcomes

• Resources (Funding & Headcount) required identified where known

– Internal reviews with ERCOT senior management underway to confirm completeness and accuracy.

• Next Steps…– Completing consolidation of all active and planned projects

– Review with ERCOT IT and Executive Steering Committees to:

• Ensure completeness of project list

• Establish priorities and dependencies

• Review resource requirements

– Present overview to ERCOT BOD at August Meeting

– Begin aligning ERCOT resources with priorities established when approved

– Tie approved project spending and people to 2003 budget/plan

5

Move-In / Move-Out Issues/Initiatives

6

Move-in/Move-outShort-term Recommendations and Ideas

Description Status

R-1 Greater transaction visibility Incorporated in ETS Phase 2 requirements – refer to ETS status report

R-2 Cancellation of pending switch

‘straw man’ complete – under review by Task Force

R-3 Holding MI/MO transactions ‘straw man’ being written – Leanne Hayden

R-4 Splitting MI from switches ‘straw man’ being written – Vernon Pierce

R-5 Safety net Move-ins Recommended to be dropped

R-6 NFI Reject Codes Completed by ERCOT

R-7 Expedite ESI ID creation

a) At ERCOT; b) at TDSP

a) Completed by ERCOT

b) ‘straw man’ being written – Darrell Hobbs

Idea 1 Eliminating initial meter read Not being addressed at this time

Idea 2 Relax NFI Logic ERCOT is researching this idea

7

Same CR Move-in

• Objective– Reduce volume of Move-in transactions at ERCOT

– Reduce Move-in error rate Market-wide

• Completed– Identified various proposals for Market Acceptance

• AEP, CPE (Option A), Entergy and Oncor

– CR sends 650_01 to TDSP requesting off-cycle read

– TDSP sends 650_02 to CR with read data

– CR sends 814_PC to update Customer Info

– TDSP sends 814_03 Monthly to ERCOT

8

Same CR Move-in

• In Progress– Development by CPE to implement Option B

• CPE (Option B) 6-8 Weeks– CR sends 814_03 to CPE with Special Flag– CPE sends 814_04 to CR – CPE sends 867_03 Final and 867_04 Initial to CR– CPE sends 867_03 Monthly to ERCOT

– Development by TNMP to implement their option• TNMP 30-60 Days

– CR submits “flat file” request for meter read– TNMP responds with “flat file” containing meter read

• Next Steps– TDSPs to communicate certification procedure with CRs– Immediate Implementation of options using 650 Transaction

• Entergy must have ROA in place – Negotiating with PUCT

9

Macro Plan for Move-in/Move-outLong-term Solution

• Objective– Determine best solution to effectively handle Move-in/Move-out transaction

processing for Texas Market – Address the market events represented by the 29 scenarios previously

identified• Some may be fully automated and some may involve more manual

processes

• Proposed Solution– Establish market participant core Task Force– Develop Detailed Requirements Document– Solicit input/responses from vendors through an RFP– Summarize vendor responses for Task Force review – Recommendation to RMS on vendor short list– Vendor presentations to Task Force – Present final recommendation to ERCOT Board– Negotiate and award contract

10

Macro Plan for Move-in/Move-outLong-term Solution

• Deliverables– Detailed Requirements Document– RFP – Vendor Proposals

• Resources and Costs– TBD by task force

11

Macro Plan for Move-in/Move-outLong-term Solution

• Timeline– RMS and Board approvals to proceed (8/20/02) – RMS establishes Task Force (8/29/02)– Develop Detailed Requirements Document for RFP (tbd)– Review with RMS detailed requirements (tbd)– Release RFP to vendors (tbd)– RFP responses due from vendors (tbd)– Summarize vendor responses for Task Force review (tbd)– Recommendation to RMS on vendor short list (December meeting)– Vendor presentations to Task Force (tbd)– Vendor recommendation to ERCOT Board (tbd)– Begin contract negotiations (tbd)– Award contract (by end of Q1/2003)

12

ESI ID Tracking System (ETS)

13

ETS

Phase I

• Objective– Develop a system to track complete ESIID life-cycle– Maintain ESIID data until transaction life-cycle is complete

• Completed– Detailed Requirements for Phase 1 – Functional and Technical Design Documents for Phase 1– First Draft Design of ERCOT-internal System Reports for Phase 1

• In Progress– Mock-up of internal reports and user interface– Development and production hardware on order

• Next Steps– Build Phase to start August 12, 2002– Completion scheduled for November 1, 2002

14

ETS

Phase II

• Objective– Develop a system to allow Market access into ESIID transaction life-cycle

data– Maintain ESIID data until transaction life-cycle is complete

• Completed– Received information from 13 Market Participants on display data elements

• In Progress– Summary of Market display data elements to be distributed for review– Requirements Document for Phase II In Progress– Mock-up of Market Reports and User Interface In Progress

• Next Steps– Seek project funding and priority approval from ERCOT Board of Directors

for ERCOT 2003 Budget

15

TX SET Version 1.5

16

TX Set Version 1.5

• Existing system performance benchmark (to ensure processing speed is maintained).

• Conceptual System Designs (CSD) – Will distribute the CSD’s to Market Coordination team members upon TX SET. clarification.

In Progress - Detail Design Phase

• Technical System Design (TSD)

• Training Documentation and Methods

• Testing scripts, files, and methodology

Completed

17

Next Steps• Week of September 2nd meeting at ERCOT finalize design

and production implementation plans.

TX Set Version 1.5

6/17/02 9/17/02 12/17/02 2/24/03

DetailDesign

ConstructionInternal System

TestMarket

Test

4/4/03

Timeline

1.5 Implementation

18

Market Synchronization Activities

19

• Objective – Address market issues resulting in an out of sync “Rep of Record”

between ERCOT, TDSP, and CR systems for all ESI IDs

• Completed Items– Programs to compare and report discrepancies are complete– MP agreed upon approach resolution for 22 scenarios at July 26th

design meeting– Technical review has been completed on two rounds of test files

• In Progress– Letter to TDSPs and CR requested:

• Technical and business project contact person from each company,• Estimated time and date the MP will submit synchronization files

– Internal data synchronization

.

Market Synchronization Retailer Synchronization Project

20

• Next Steps– By August 1st ……. Test run with encrypted files

– August 10-11 …….. All TDSPs & CRs MUST compile files

– August 12th……….. All files received by ERCOT

– August 13th……….. Status report conference call (go forward decision)

– September 5th …… ERCOT to identify out-of-synch results

ERCOT will host 2nd design meeting to prioritize and

define correction criteria

– September 10th….. RMS go forward/process decision (e-mail vote)

– October 3rd …… Escalate issues to TAC (if required)

Market Synchronization Retailer Synchronization (continued)

21

Market Synchronization – Non Price to Beat

• Objective– Make necessary corrections to ensure that >1MW Customers were

switched on the correct date in January 2002

• Completed Items – Number ESI Ids (>1 MW) Identified by CR’s 1,040– Number of ESI IDs that are corrected 836

(80%)

• In Progress (as of July 31st – to be updated)– Number of ESI IDs where CR matches but date does not 128 (13%)

(TDSP and Retailers to agree to date)– Number of ESI IDs where CR is not CR of record 76 ( 7%)

(TDSP and Retailers to agree to switch & date)

• Next Steps– Escalate ESI IDs not agreed upon

22

IDR Meter Data

23

• TDSPs and ERCOT working to improve IDR data completeness

• ERCOT developed an enhanced “IDR Data Status Report” which was delivered to TDSPs starting on 7-17-2002

– Identifies any IDR ESI ID that has ever been active and associated load data

– Includes all ESI ID Service History row to facilitate 867_03 date matching

• In special circumstances, ERCOT has deployed alternative data loading mechanisms to fill gaps and bring IDR data current in Lodestar

.

IDR Data Loading Notes

24

IDR Data Loaded into Lodestar – JULY 1 REPORT

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8/3 8/17 8/31 9/14 9/28 10/12 10/26 11/9 11/23 12/7 12/21 1/4 1/18 2/1 2/15 3/1 3/15 3/29 4/12 4/26 5/10 5/24 6/7 6/21

Date

Per

cen

t

Market

CPL

CPE

TNMP

ONCOR

WTU

Expected

* NOTE: ERCOT (and REPs) may have received additional non-sequential data (i.e, February data before January data). ERCOT rejects all meter reads that introduce gaps in the database.

95% or better expected

66%

% of IDR Data Loaded as of July 1, 2002

25

% of IDR Data Loaded by MRE (as of 08-07-2002)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

7/31 8/14 8/28 9/11 9/25 10/9 10/23 11/6 11/20 12/4 12/18 1/1 1/15 1/29 2/12 2/26 3/12 3/26 4/9 4/23 5/7 5/21 6/4 6/18 7/2 7/16 7/30

CPL

WTU

ONCOR

CenterPt

TNMP

Brazos

LCRA

Rayburn

STEC

System

IDR Data Loaded into LodestarAugust 7th Report

95% or better expected

69%

26

IDR Meter Usage Report (date through which 99% of data received)

As ofAugust 7, 2002

CPL 11/07/01CenterPoint 12/16/01ONCOR 09/25/01TNMP 12/28/01WTU 01/07/02

Brazos 07/28/02LCRA 07/29/02Rayburn 07/31/02STEC 7/312002

Market 11/01/02

Meter Reading Entity(MRE)

27

Lodestar IDR Data Loading Improvement Recommendations by TDSPs

28

• Objective – Implement process improvements which alleviate problems loading IDR data

into ERCOT’s Lodestar system

• Activities– TDSPs provided a list of 8 issues and recommendations

– ERCOT to analyze TDSP document and provide response in group forum

– Define implementation possibilities and set timelines

• Completed Items– ERCOT received TDSP documentation on July 17th

– Initial review and analysis has been completed and is being shared with TDSPs

• Next Steps– ERCOT and TDSPs to agree on scope of effort to implement agreed-to

recommendations at meeting on August 15th

– Seek project funding and priority approval from ERCOT Board of Directors

.

IDR Data Loading Recommendations by TDSPs

29

Resettlement Update

30

Objective Identify and track the key critical market issues needing resolution prior to the resettlement calculations of true-up statements for trade days beginning with July 31, 2001

Six Issues/Status:1. IDR Data Loading - 99.8% for market through mid Sept. 2001 (100% required)2. NOIE IDR Data Correction – Completed and verified by TDSP3. Profile ID Corrections

– ONCOR & AEP now pass the PWG approved acceptable criteria – TNMP & Reliant working toward meeting acceptable criteria (No ETC)

4. Lodestar and Siebel Status Mismatches – 94% complete and remainder will be corrected before August 14th

5. Negative Consumption Fixes – 92% complete with TNMP commitment to provide corrections by August 7th

6. Outstanding OOMC Disputes– QSEs have submitted corrections (reduced payments apply otherwise)

.

Resettlement of True-up Status Update

Once resettlements resume, statistics will be monitored and reported

31

Retail Portal Performance

32

Portal Performance Items

• Moved Portal E Ways to New Hardware week of 4/13– Saw a temporary 10 % improvement

• Added components (threads) on 4/25– Showed some very promising improvements

• Additional Architecture change was made 5/21– Removed TCH component competing with batch transactions– Seeing a 30% decrease in timeout errors– Also added “heartbeat” functionality to verify EAI every minute

• Implemented additional redundancy improvements 6/8– Improvements in redundancy (6) for find transactions– Limited the result set to 500 transactions

• Change made to Find ESI ID 7/28– Moving Siebel queries directly to Oracle– Only 2 errors in the last 3 days (99.8% success!)

• Future options being evaluated– For Find Transaction – move directly to Oracle (ETA is August 19th)– Additional redundant paths for Portal transactions (if needed)

33

Quick Recovery Team Update

34

Quick Recovery Effort

Focus: Problematic transactions that are required by the CRto generate end-use customer bills.

Period: December 17, 2001 – May 31, 2002

For transactions/issues outside of this date range, MPs mustcreate a FasTrak issue and contact their Registration Analystfor resolution.

35

Quick Recovery EffortProgress

•Created market website to track QRE progress by MP, root cause, etc. http://etod.ercot.com/QRECharts.asp?

•Database supporting website also acts as an audit trail for all QRE activities.

•Interviewed all TDSPs to determine procedures forhandling back dated move ins and move outs during therecovery effort.

•Provided TDSPs access to a report to close the information loopand let them know when ESI Id issues have been resolved.

•Consolidated all requests for information and/or data from QRE to TDSPs into one spreadsheet with common format.

36

ESI Ids Reported to QRE (as of August 7, 2002)

Current Status Quantity

New 27653

In Analysis 3963

In Progress 24201

Resolved 34613

Total 90436

Entity (In Progress IDs)

Quantity

TDSP 7340

QRE Team 13141

CR 3720

Total 24201

Point of Failure(Resolved IDs)

Quantity

Cause Not Reported

1691

CR 16814

ERCOT EAI 69

ERCOT FTP 40

ERCOT Manual Process (814_08) 1869

ERCOT PaperFree 7081

ERCOT See Beyond 1

ERCOT Siebel 35

ERCOT TCH 3966

TDSP 3046

Un-executable 1

Total 34613

37

Revised POLR rule from PUC

38

POLR Rule Background

• A PUC rulemaking is in advanced stages to revise the POLR rule for implementation by January 2003

• Major changes in the draft rule:– AREPs assume role of POLR for non-paying customers at PTB with

disconnection rights– Existing POLR non-pay customers to be transitioned to the AREP– Default POLR service for reasons other than non-pay to be bid competitively

– PUC Staff’s recommended final rule and an implementation timeline will be considered at open meeting August 23, 2002

39

REP, POLR AREP, TDSP, ERCOT TRANSACTION Flow

Current & Proposed for Non-pay Customers

Current Drops

ERCOT

TDSP

POLR TDSP814_10

814_11

814_14

814_15

Proposed Drops for Non-Pay

CREP ERCOT

TDSP

TDSP814_10

814_11

814_14

814_15

650_01

650-02

REP (any)

814_04 814_03

814_04 814_03

Disconnect

650_01

650-02Disconnect

AREP

AREPPOLRCustomer

list

814_01

814_02, 814_05

ERCOT TDSP814_03

814_04

40

REP, POLR AREP, TDSP, ERCOT TRANSACTION Flow

Proposed for Other Than Non-Pay

Proposed

REP (any)

ERCOT

TDSP

Default POLR

Manually done by ERCOT

ERCOTVoluntary Customer

Default POLR

814_01, 814_16

etc.

•REP Default ERCOT-driven if not orderly transition

•Requesting Customer

Manually done by ERCOT

•REP Drop for Contract

Expiration

REP (any)

Notify POLR

POLR obligated to switch customer to its service

41

Retail Market Subcommittee Report

Don Bender

42

RMS Leadership Changes

RMS Vice Chair: Reed Comstock

Strategic Energy

TDTWG Vice Chair: Susan Tote

Reliant Retail

43

PWG Operating Guides

RMS Requests TAC approval

of Profiling Work Group

Operating Guides Version 1.0

44

Other RMS Actions

• Approved TDTWG recommendation for MP’s to adopt ERCOT Proposal on a Short Term Data Communications Plan

• Approved PRR on Extension of Proxy Day Determination

• Remanded a RMS Issue on Mass Customer to CR Segment