1. 1 Supporting Retail Electric Deregulation for Texas

2. 2 Discussion Topics Background and HistoryBackground and History Texas Market Model OverviewTexas Market Model Overview Roles and ResponsibilitiesRoles and Responsibilities Market Change Control and ProcessMarket Change Control and Process EDI ProcessesEDI Processes –Customer Enrollment –Customer Drop –Customer Maintenance Texas SpecificTexas Specific Work in ProgressWork in Progress Questions and AnswersQuestions and Answers

3. 3 Structured to… Support legislation that provides all customers the ability to choose a Competitive Retail Company Continued support of customer billing and service needs Enable the Settlement of energy in the Wholesale and Retail markets Protect the integrity of the electric grid Ensure responsibilities and requirements for all Market Processes are identified in documented ERCOT Protocols, Retail Market Guides or PUCT Rules Background and History Texas Deregulated Electricity Model

4. 4 Texas Market Model Overview Many internal processes previously owned by the bundled utilities were modified to support retail electric service through Texas electricity deregulation. These processes are now distributed among three groups: TDSP - Transmission and Distribution Service Providers CR - Competitive Retail Company ERCOT - Electric Reliability Council of Texas

5. 5 Market Roles and Responsibilities TDSP Primary Ownership for premise Competitive Retail Co. Primary Ownership for Customer TDSP Primary Responsibilities Transmission & Distribution of Power Read & Service Meters Install, repair and maintain facilities for delivery of power to the customer Bills for Transmission and Distribution charges CR Primary Responsibilities Talks to customers Bills customers Maintains customers Gains/loses customers Purchases energy Settlement processes Collects from customer Payment to TDSP Customer Service Orders (optional) 650 Service Orders: Reread/Meter test 650 Disconnect/Reconnect 820 Payment 650 Service Order Reply: Reread/Meter Tests 650 Disconnect/Reconnect Response 810 Invoice for Wires and Service Charges Note this is a representation of the TX IOU model (ESP Consolidated), the MOU/EC model in Texas can be an LDC Consolidate model.

6. 6 ERCOT Roles and Responsibilities TDSP CR ERCOT EDI Validation Customer Registration/Maintenance Processes (switching, move-ins, move- outs, drops) CR Premise Ownership (REP of Record) Forwarding consumption from TDSP to CR Landlord/Tenant (Continuous Service Agreement) CR Ownership Classification

7. 7 Change Management EDI implementation guide changes are managed by the Texas SET (Standard Electronic Transactions) Working Group. Market Participants request Texas SET to investigate potential changes to current business processes and EDI structures Valid requests are documented in Change Controls Change Controls contain the business process and EDI transaction changes necessary for the request Change Controls are discussed and approved at TX SET meetings Change Controls are published on the TX SET website It is important to monitor the Texas SET Agendas for pertinent information

8. 8 Retail Market Change Management Accomplished by Market Participants, ERCOT, and the PUCTAccomplished by Market Participants, ERCOT, and the PUCT Accomplished through ERCOT Working Groups, ad hoc Task Forces and Sub- Committees.Accomplished through ERCOT Working Groups, ad hoc Task Forces and Sub- Committees. ERCOT Retail Market Standing Working Groups include: TTPT Texas Test Plan Team TDTWG Texas Data Transport Working Group TX SET Texas Standard Electronic Transactions COMET Competitive Metering (dormant) MMWG Market Metrics Operate under the direction of the Retail Market Subcommittee (RMS).Operate under the direction of the Retail Market Subcommittee (RMS). Working groups submit changes to RMS for Market adoption as new processes and procedures are necessary.Working groups submit changes to RMS for Market adoption as new processes and procedures are necessary. Upon RMS approval, change is presented to the Technical Advisory Committee (TAC) and the ERCOT Board.Upon RMS approval, change is presented to the Technical Advisory Committee (TAC) and the ERCOT Board.

9. 9 Retail Market Organization ERCOT Board of Directors TAC PRSRMS TTPT Working Group TX SET Working Group Market Metrics Working Group COMET Working Group TDTWG Working Group PUCT

10. 10 Each Market Participant and ERCOT is responsible for Data Exchange Management NAESB EDM v1.6 is the Data transport protocol TX SET EDI Guidelines include transaction format and details for the Retail Market Rules for Transaction timing are included in: ERCOT Protocols, PUC Rules, Retail Market Guide (RMG) Due to the variety and volume of transactions required for Texas Market operations, data exchange is a significant requirement Data Exchange

11. 11 TX EDI Transactions Customer Switch 814_01, 814_02, 814_05 Customer Move-out 814_24, 814_25 Customer Move-in 814_16, 814_17, 814_05 Cancels 814_08, 814_09 Customer Drop to AREP 814_10, 814_11 ESI ID Processes 814_20, 814_21 Historical Usage/Consumption 814_26, 814_27, 867_02 Maintain Customer Information 814_PC, 814_PD TDSP to CR Invoice/Cancel/Re-bill 810 Monthly and Initial Meter Reads 867_03, 867_04 Suspension of Delivery Services 650_04

12. 12 TX EDI Transactions Optional Processes CSA Processes 814_18, 814_19, 814_22, 814_23 AREP Enrollment 814_14, 814_15 Service Orders 650_01, 650_02 Disconnect/Reconnect Orders 650_01, 650_02 Suspension of Delivery Services Rej Resp 650_05

13. 13 Enrollments Move InMove In –customer at a new premise –specific date –Historical usage –Permit pending (20 day) status –Unexecutable if TDSP not able to perform Meter function SwitchSwitch -Customer Changing CR -on or off cycle -Historical Usage -10 day notification period for all but large C&I CSA EnrollmentCSA Enrollment –Move out triggers CSA enrollment –No Historical Usage AREP (Affiliated REP) EnrollmentAREP (Affiliated REP) Enrollment –Drop to AREP triggers enrollment Ad Hoc Historical Usage RequestAd Hoc Historical Usage Request –Only provided to REP of Record ** Texas is a First In Market

14. 14 Drops Move OutMove Out –Customer moving from premise –specific date –Unexecutable if TDSP is not available to perform Meter function Force Move Off (Drop)Force Move Off (Drop) -MVI/Switch by non REP of Record triggers Force Move Off Drop to AREPDrop to AREP –Contract default –Non Payment by Customer if CR has not chosen Disconnect option –Defaulting REP

15. 15 Maintenance (Changes) Customer MaintenanceCustomer Maintenance –Name/phone number/address changes –Initiated by CR –Point to point ESI ID (Account) MaintenanceESI ID (Account) Maintenance -Create/Maintain Premise (ESI ID) -Meter Add, Meter Remove, Meter Exchange -Load profile changes -Transaction routes thru Clearinghouse

16. 16 Cancels (Reinstatements) CancelsCancels –Cancels MVI, Switch, MVO, Drop to AREP, Force MVO –CR initiated or Clearinghouse/Customer Initiated –2 day blackout period on MVI –5 day blackout period on Switch –Order must be in review, pending or scheduled status at Clearinghouse –ESI reverts to previous ownership status; other stacked orders stay in place

17. 17 Texas Specific Competitive MeteringCompetitive Metering CR Ownership of CustomerCR Ownership of Customer Enrollment Order Stacking (allows multiple orders concurrently on a premise)Enrollment Order Stacking (allows multiple orders concurrently on a premise) Premise based vs customer account basedPremise based vs customer account based Centralized ClearinghouseCentralized Clearinghouse Full Deregulated Market – all customer segmentsFull Deregulated Market – all customer segments

18. 18 Acronyms and Definitions REP - Retail Electric ProviderREP - Retail Electric Provider AREP - Affiliate Retail Electric ProviderAREP - Affiliate Retail Electric Provider CR - Competitive Retailer - Includes any type Retail CompanyCR - Competitive Retailer - Includes any type Retail Company ERCOT - Electric Reliability Council of TexasERCOT - Electric Reliability Council of Texas MOU/EC TDSP - Municipal (Muni)/Co-op (Cooperative) TDSPMOU/EC TDSP - Municipal (Muni)/Co-op (Cooperative) TDSP NOIE - Non-opt in entityNOIE - Non-opt in entity RA - Registration AgentRA - Registration Agent POLR - Provider of Last ResortPOLR - Provider of Last Resort PUCT - Public Utility Commission of TexasPUCT - Public Utility Commission of Texas TDSP - Transmission and Distribution Service ProviderTDSP - Transmission and Distribution Service Provider

19. 19 Work in Progress To continue developing workable solutions for deregulated Market processes, it is necessary for Market Participants to be involved and dedicated to the goal. This will ensure processes continue to successfully evolve for the future.

20. 20 Questions ?