1

Update from ERCOT Market Services

for RMS

September 26, 2002

2

Retail Market Update

Topics– ERCOT’s Master Project Plan– Move-In/Move-Out Issues/Initiatives – GISB 1.4 Update – ETS Update– Quick Recovery Team Update– New Power Transfer Update– Market Synchronization Activities– Consumption Data Loading Reports– Lodestar Data Loading Improvements– Resettlement Update

3

Master Project 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 of projects with ERCOT steering committee completed– Consolidated list of all active and planned projects distributed to TAC,

subcommittees, and PUCT on August 20th

– PRS completed prioritization of projects originated by Market Participants on August 28th

– TAC approved list of priorities on September 5th

– List delivered to ERCOT BOD targeted for approval at October meeting

• Next Steps…– ERCOT resources are being aligned with recommended priorities– Synchronize with the 2003 budget/plan when approved

5

Move-in and Move-out

Short Term Solutions Update

6

Safety Net Move-In: First part was remanded to QRE. Second part is not being acted upon because it requires ERCOT to process all the MIMO Safety Net Spreadsheets rather than TDSPs

Move-in/Move-outShort-term Solution Status

RMS has agreed to consider the following items Closed with the analysis remanded over to the Long-term MVI/MVO Working Group…

Provide Visibility into ERCOT’s Systems Splitting Move-In from SwitchNFI Rejection CodesExpedite ESI ID Creation (7A-ERCOT's portion)

RMS is being asked to Move the following items to the Long-term MVI/MVO Working Group

Cancellation of Pending SwitchHolding Move-In/Move-Out TransactionsExpedite ESI ID Creation (7B-Oncor’s portion)

7

Move-in / Move-out Long-term

Recommendations

8

Move-in/Move-outLong-term Solution Status

Completed• Established task force of market participants on September 5th • Reviewed additional root cause analysis by MPs• 3 working sessions over the next several weeks with MPs. 1st is

September 24th-25th.

Next Steps• Develop comprehensive list of business scenarios not addressed by

short-term solutions• Develop detailed requirements for long-term resolution in preparation

for RFP and subsequent implementation plan

9

Why Root Cause Analysis?

• Ensure problem resolution investments are consistent with what greatest value to market

• Confirm that current market design/implementation is viable– Confirm detailed understanding of causes

• Errors in current systems implementation• Protocol/procedural gaps• Execution issues at ERCOT and Market Participants

– How are ERCOT’s systems built?– Confirm TDSPs have consistent design

• Confirm current system’s performance and transaction sequencing

Move-in/Move-outLong-term Solution Status

10

Timeline 08-29-02 RMS establishes Task Force09-05-02 Kickoff Meeting – assignments given for MP transaction

root cause analysis10-15-02 Complete root cause analysis and comprehensive list

of business scenarios11-01-02 Develop detailed requirements document for RFP - RMS Approves MIMO requirements document - Release RFP to vendors - RFP Responses due from vendors - Summarize vendor responses for Task Force review - Recommendations to EOTF on vendor “Short List” - Vendor presentations to Task Forces - EOTF recommendation to ERCOT Board - Begin contract negotiationsEnd 1Q03 Award contract

Move-in/Move-outLong-term Solution Status

11

GISB 1.4 Update

12

GISB 1.4 Update

• RMS agreed at August meeting to move forward with implementing GISB 1.4 at ERCOT

• Internal testing and implementation of a GISB 1.4 interface is underway at ERCOT, – targeting the first week of October for preliminary market participant tests

• TDTWG is surveying market participants to finalize migration readiness dates– ERCOT will publish preliminary migration schedule and plan by the end

of October.– Expecting first market participant migration in late November.– ERCOT will plan to migrate 2-3 participants per week per the schedule

and based on market participants readiness– Goal is to complete migration off of FTP by April 1, 2003

13

ESI ID Tracking System (ETS)

14

ETS Phase I & II

• Phase I Progress– Production Database Server

and Application Server has been ordered

– Development Database Server and Application Server are configured and installed on the network

– Report Development 95% complete

– String Testing is complete – Testing in ITEST underway– On schedule for November 1,

2002

• Phase II Progress– Began work on Requirements

Document– Modifying initial cost

estimates for PUCT Data Requirements

– Summarized Market requirements for data content

– Seeking funding and approval from ERCOT Board for 2003

15

Quick Recovery Team Update

16

Quick Recovery Effort

Period for Investigation Expanded

January 1, 2002 – July 31, 2002• QRE is proactively working the Siebel extract report for all

Business Processes from the period July 1- July 31 that are still showing up as Scheduled on the ERCOT report.

• QRE will be working with Data Management to assist in clearing FasTrak issues prior to July 31, 2002. QRE will take direction from Data Management – it is not necessary for MPs to do anything.

• QRE is working to set up weekly status conference calls with each MP to review QRE progress.

17

•Created FasTrak issue for all TDSPs to provide a consolidated spreadsheet for all QRE requests for information or data

•TDSP responses to request for transactions are uploaded and tracked in QRE database

•Pursuing responses from CRs and TDSPs• ~7,875 ESI Ids are awaiting more information or

acknowledgment of closure from CR• ~21,000 have been sent to TDSPs for investigation

•Documentation is being created to outline processes used by QRE team to ensure consistency and allow for team knowledge transfer to ERCOT

•Training materials are being created and assembled to pilot on ERCOT new hires

Quick Recovery Effort

18

ESI Ids Reported to QRE (as of September 24, 2002)

Current Status Quantity

New 6990

In Analysis 7295

In Progress 35150

Resolved 67496

Total 116931

Entity Quantity

TDSP 20889

QRE Team 6391

CR 7870

Total 35150

Point of Failure Quantity

Cause Not Reported 2166

CR 32629

CR Failure 180

ERCOT 1086

ERCOT EAI 267

ERCOT FTP 696

ERCOT Manual Process (814_08)

3348

ERCOT Out of Protocol 26

ERCOT PaperFree 7627

ERCOT Siebel 591

ERCOT TCH 6728

TCH to Siebel Failure 1

TDSP 12096

TDSP Failure 55

Total 67496

19

New Power Transition Status

20

New Power Transition Status

17

43

60

In Review ScheduledNot resolved

• Not resolved because– Unrelated pending transactions against

ESI ID from 3rd party

– Out of sync conditions exist

– Insufficient information about ESI ID available or failed previous transaction

• To be finished by 9/27/2002

21

Market Synchronization Activities

22

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

ERCOT, TDSP, and CR systems for all ESI IDs resulting from market startup/processing issues as well as subsequent workarounds

• Completed– ERCOT identified “Perfect Sync” and “1 Day Perfect” – sent lists to MPs– ERCOT identified out-of-synch categories at Sept 10th design meeting– Task Force identified additional ESI IDs considered “In Sync” – sent lists to MPs– Task Force prioritized 8 categories based upon potential customer impact – ERCOT sent priority 1 and 2 out-of-sync files to TDSPs and CRs – Sept 17th and 24th conference calls to set file analysis response timelines for

TDSPs and CRs, discussion of progress and open issues • In Progress

– ERCOT sending priority 3-6 out-of-sync files to TDSPs and CRs by October 4th – TDSPs and CRs to send analysis of priority 1 files by Sept 26th and priority 2

files by Sept 30th

– TDSPs and CRs analyzing files received from ERCOT– Weekly conference calls scheduled

.

Market Synchronization Retailer Synchronization Project

23

Perfect match, 89%

Identified as matches by Task

Force, 5%

1 Day Forgiveness match, 6%

Not Analyzed, 3%

Active Row Only (A) - In all

databases, 14%

Active Row Only (B) - In 1

database, 7%

1 Row Only M ismatches, 9%

Known mismatched - set aside for analysis,

21%

Active Row Only (C) - In 2

databases, 6% Multiple Active CR Rows, 2%

Missing Relationship, 38%

Market Synchronization Retailer Synchronization Project

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Considered In Sync5,279,063

Under Analysis859,836

Non-ERCOT area Removed from Analysis

945,000

ESI IDs

24

• Next Steps

– October 1st, 8th, 15th Follow-up Conference Calls Define items for immediate “fix” and report on progress Define issues to raise to RMS

– October 16th Present any disputed scenarios to RMS

– November 7th

Escalate issues to TAC (if required)

Market Synchronization Retailer Synchronization (continued)

25

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 – Per RMS direction, ERCOT sent lists to each MP for reconciliation:

• Full list of ESI ID in the >1MW project was confirmed

• Still to be fixed list (subset of the full list) was also confirmed

– 1,133 ESI Ids (>1 MW) identified by CRs (meeting the April 30 deadline)

• Number increase attributed to reconciliation of lists with Market Participants

– 897 (85%) ESI IDs are corrected

– 74 ( 1%) ESI IDs were agreed not to fix by TDSP and CR

• In Progress– 162 (14%) ESI IDs remaining to be fixed

• 134 where CR and TDSP agree to fix

• 28 where CR and TDSP are not in agreement – CR will have to escalate

26

Market Synchronization – Non Price to Beat

CR1 CR2 CR3 CR4 CR5 CR6 CR7 CR8 CR9 Total

TDSP 1 - - - 2 18 1 9 15 - 45

TDSP 2 - 1 - - - 1 - 3 2 7

TDSP 3 3 1 1 7 3 2 - 12 1 30

TDSP 4 8 2 - 12 17 - 20 17 4 80

Total 11 4 1 21 38 4 29 47 7 162

• Next Steps– ERCOT to continue to confirm changes in Siebel and Lodestar

– Round 2 of analysis in progress at ERCOT

– ERCOT will provide suggested next steps to the submitting CR and TDSP

– Scheduling conference calls with TDSP to determine next steps for those ESI IDs that still need to be fixed (ERCOT metering team included on calls)

– CR to escalate ESI IDs where no agreement exists

27

Consumption Data Loading Reports

28

% of IDR Data Loaded by MRE (as of 08-27-2002)

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 8/13

CPL

WTU

ONCOR

CenterPt

TNMP

Brazos

LCRA

Rayburn

STEC

System

IDR Data Loaded into LodestarAugust 27th Report

95% or better expected

75%

29

% of IDR Data Loaded by MRE (as of 09-24-2002)

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 8/13 8/27 9/10

CPL

WTU

ONCOR

CenterPt

TNMP

Brazos

LCRA

Rayburn

STEC

System

IDR Data Loaded into LodestarSeptember 24th Report

95% or better expected

91%

30

IDR Data Status Report September 24, 2002

99% Data 100% DataLoaded Through Loaded Through

CPL 12/03/01 09/16/01CenterPoint 12/31/01 11/28/01ONCOR 12/03/01 09/04/01TNMP 06/25/02 07/11/02WTU 01/22/02 12/31/01

Brazos 09/15/02 09/05/02LCRA 09/12/02 03/31/02Rayburn 08/31/02 08/31/02STEC 09/03/02 07/29/02

Market 12/20/01 09/04/01

Meter Reading Entity(MRE)

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Non-IDR Data Status Report September 23, 2002

Percent of Actual Non-IDR Datafrom September 23, 2002 Batch Process

32%

38%

33%

38% 39%

0%

36%

94%96%

91% 92% 93% 95%

100% 99% 100% 99%95%

99%

0% NA0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CenterPoint ONCOR TNMP CPL WTU Sharyland Market

Initial (9-8-02) -16 Days After

Final (7-28-02) - 59 Days After

Re-Settle (9-3-01) - 385 Days After

32

Lodestar IDR Data Loading Improvement Recommendations by TDSPs

33

• Objective – Implement process improvements which alleviate problems loading IDR

data into ERCOT’s Lodestar system

• Completed Items– ERCOT and MPs met August 15th to define scope of 9 items– Conference call held on August 26th to refine scope and follow-up– 6 items are complete (see matrix on next page)– TX SET reviewed 2 EDI related recommendations on Sept 16th (see

matrix)

• In Progress– 2 items defined for immediate action (both are currently in test)– 4 items defined as long term fixes (project request being drafted)

• Next Steps– Seek project funding and priority approval

.

IDR Data Loading Recommendations by TDSPs

34

.

IDR Data Loading Recommendations by TDSPs

Issue Recommendations Immediate Action Items Long Term Fixes1 Allow 867_03 IDR data to cross

select Service History Record rowsAEP and TNMP to investigate standardizing on midnight as the cutoff time for all IDR 867_03s.

Modifying IDR loading logic to allow data to cross select Service History Rows.

2a Allow selective replacements of IDR data cuts

Complete - IDR and TX SET groups agreed this will apply to IDR ESI IDs only and will define mechanism when gap validation for IDR is removed. (see #3)

NA

2b Code 867_03 to pass through to CR and not load at ERCOT.

Complete - IDR and TX SET groups agreed this in not needed - removed from scope.

NA

3 Remove gap validation from IDR loading logic.

Project initiated to remove gap validation for IDR data loading. Contingent on Protocol requirement for whole day IDR data (PRR 363)

NA

4 ERCOT to provide TDSPs with a view of the Lodestar IDR usage.

Complete - ERCOT will provide IDR data dumps upon TDSP request.

NA

5 Process 867_03 in order of receipt. Complete - ERCOT has corrected sorting of IDR and NIDR 867 files to sort by transition type, ESI ID then date.

ERCOT will be researching other options in handling IDR data loading.

6a Error report needs unit of measure. ERCOT has fix in test environment NA

6b Provide a positive response for every IDR file loaded.

NA ERCOT to add positive response row for each .lse file loaded into lodestar.

7 Modify Lodestar import validation process to disregard KVARH data.

TDSP can disregard any error associated with loading KVARH (channel 3) data.

ERCOT to modify IDR loading logic to omit creation of .lse file other than KWH.

8 Processing of 867_03 Final for IDR data creates an incorrect stop date on switch.

Complete - ERCOT has completed system change to create correct Siebel meter read date for IDR 867_03 Finals.

NA

9 Invalid forwarding DUNS numbers in 867_03 transaction.

Complete - Issues resolved as ERCOT will submit a reject notice back to TDSP for incorrect forwarding DUNS numbers in 867_03s.

NA

35

Resettlement Update

36

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. Re-settlements started the night of September 4th . 36 re-settlements have been posted.

Six Issues/Status:

1. IDR Data Loading – 100% for market through Sept 09, 2001

2. NOIE IDR Data Correction – Completed and verified by TDSP

3. Profile ID Corrections – All TDSPs now pass the acceptable criteria

4. Lodestar and Siebel Status Mismatches – Complete for 2001 dates

5. TNMP and AEP have completed negative consumption fixes

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

.

Resettlement of True-up Status Update

Statistics will be continue to be monitored for compliance