1. PWG Profiling Working Group December 18, 20021 RMS Presentation by Ernie Podraza, PWG Chair Annual Validation 2002 DLC Implementation

2. PWG Profiling Working Group December 18, 20022 Annual Validation 2002 Estimated Timeline for Annual Validation 2002 Task Completion Target Date* ERCOT to provide TDSP with samples November 13, 2002 TDSP Reconcile differences in assignments February 1, 2003 ERCOT calc profile id assignments for entire population March 1, 2003 TDSP review of population assignment April 15, 2003 Create/submit 814_20 May 1, 2003 Resolve 814_20 reject issues June 15, 2003 –*TX Set Version 1.5 scheduled for 1 st Qtr that may potentially impact these time frames by an estimated 2 weeks Decision Tree v1.07. –12 months ending April 2002 Load Profiling Guides state Annual Validation changes are in October.

3. PWG Profiling Working Group December 18, 20023 Annual Validation 2002 PWG consensus Option 2 Going Forward: Note: All Profile ID changes for these options would occur based on 10/03 meter readings. (per LPG Section 11.4 Annual Validation) 1.Continue with annual validation 2002 as shown above (using 5/01-4/02 data). 2.Validate algorithm through 2/1/03 timeline then stop remainder of annual validation 2002. Begin planning annual validation 2003 (using 5/02-4/03 data). 3.Stop annual validation 2002 now and begin planning for annual validation 2003 (using 5/02-4/03 data). * Decision Tree v1.07 change for 12 months ending April 2003.

4. PWG Profiling Working Group December 18, 20024 Annual Validation 2002 Option 2 Pro: 1.Initial Validation took way longer that anticipated and can be viewed as the protocol validation process for 2002. 2.Schedule indicates not being able to implement changes before summer. 3.Uses the latest data, 12 months ending April 2003 but implemented in October 2003. 4.Leverages changes to new algorithm while fresh on everyone’s mind. 5.Frees resources on the validation process restricting work on other priorities. Option 2 Con: 1.No protocol validation process for 2002. Concern that a precedent is not being set. 2.Corrections to current profile id not implemented until October 2003. 3.Errors in profile id assignment affects current settlement payments. 4.Schedule should move faster that initial validation process and changes made ASAP and before summer months. 5.Protocol Section 18.4.4.1, “Validation tests of Load Profile and Weather Zone assignments, at a minimum, will occur at the following times: initial Load Profile and Weather Zone assignment, when a change is made in Load Profile or Weather Zone assignment, and at least one time per year.”

5. PWG Profiling Working Group December 18, 20025 DLC Implementation PWG consensus of lagged dynamic sample methodology on 10/15/02. Green Mountain reviewing costs. PWG reviewing Protocols and LPG. Most of ERCOT questions answered by PWG Baseline Methodology has been drafted. Next PWG meetings 1/08/02. PUCT Project 26055 –Workshop status report on DLC scheduled 1/31/2003.