1. 1 Update on the 867_03 Contingency Plan Nancy Hetrick February 25, 2003

2. 2 867_03 Contingency Plan History RMS approved the 867_03 Contingency Plan on December 11, 2001: –Per 12/11/01 RMS Minutes, the plan was developed in the event that ERCOT is unable to forward 867_03 transactions –Per Protocol, TDSPs to continue sending 867_03 Monthly Usage to ERCOT –ERCOT then forwards the usage to the CR –TDSPs also send the 867_03 Monthly Usage to the CR point to point via GISB

3. 3 867_03 Contingency Plan History Implemented prior to or on January 29, 2002 in the following TDSP areas: –AEP –CenterPoint –ONCOR –Texas-New Mexico Power

4. 4 RMS Discussion Requested Why is the 867_03 Contingency Plan being revisited at RMS today? –Market Participants initiated discussion on the Retail Market Call. –Some Market Participants noted they were no longer relying on the 867_03 Contingency Plan and did not want to receive usage via the Contingency Plan any longer. –Other Market Participants noted they still relied on the usage received via the 867_03 Contingency Plan as they felt they were not receiving all usage from ERCOT. – As the 867_03 Contingency Plan was the result of an RMS decision, Market Participants requested it be revisited in the same forum as it was developed.

5. 5 RMS Discussion To assist with the RMS Discussion: Root Cause Analysis Performed –ERCOT encouraged CRs to provide data to help assess why CRs could potentially not be receiving usage from ERCOT that they received from TDSPs via the 867_03 Contingency Plan. –Two CRs provided ERCOT with 867_03 usage instances in which they believed usage was received via the 867_03 Contingency Plan, but not from ERCOT. –ERCOT researched the instances in question and provided feedback. Informal Poll taken on February 17, 2003 Retail Market Call

6. 6 Research Results for CR A CR A provided 59 files for December 2002 Research Results: –7 usage instances (867_03) never sent to ERCOT by TDSP Request forwarded to TDSP for further research –1 usage instance sent to ERCOT by TDSP, but ERCOT did not forward No forwarding information provided in 867_03 from TDSP –51 usage instances forwarded by ERCOT on same day as received from TDSP Run IDs provided to CR for further research 100% of valid 867_03s sent to ERCOT were forwarded to the applicable CR

7. 7 Research Results for CR B CR B provided 88 files for October 2002 Research Results: –1 usage instance sent by TDSP A, but the 867_03 failed TX SET validation at ERCOT TDSP to correct the transaction and re-drop –1 usage instance never sent by TDSP B to ERCOT TDSP reported to have a problem with the account and has not sent an 867 or 810 for 8 months; TDSP still researching –7 usage instances sent by TDSP C, but ERCOT did not forward No forwarding information provided in 867_03 from TDSP –79 usage instances forwarded by ERCOT on same day as received from TDSP Run IDs provided to CR for further research 100% of valid 867_03s sent to ERCOT were forwarded to the applicable CR

8. 8 Research Results for CR B Cont. CR B provided 29 files for November 2002 Research Results: –26 usage instances sent by TDSP A, but these 867_03s failed TX SET validation at ERCOT TDSP to correct the transactions and re-drop –3 usage instances forwarded by ERCOT on same day as received from TDSP Run IDs provided to CR for further research 100% of valid 867_03s sent to ERCOT were forwarded to the applicable CR

9. 9 Research Results for CR B Cont. CR B provided 425 files for December 2002 Research Results: –200 of the 425 usage instances have been researched by ERCOT –200 usage instances forwarded by ERCOT on same day as received from TDSP Run IDs provided to CR for further research 100% of valid 867_03s sent to ERCOT were forwarded to the applicable CR for those files researched for December

10. 10 Research Summary 2 CRs provided data for ERCOT to research Of the 601 867_03 usage instances in question as provided by the CRs: –8 usage instances were never sent to ERCOT by the TDSP –8 usage instances did not contain forwarding information from the TDSP –27 usage instances failed TX SET validation at ERCOT –333 usage instances were forwarded by ERCOT on the same day as received from the TDSP –225 usage instances remain to be researched

11. 11 Informal Poll Results ERCOT took an informal poll of Market Participants of their position on the February 17, 2003 Retail Market Call Informal Poll Results include Retail Market Call as well as Email Votes: –8 in favor of Discontinuing the 867_03 Contingency Plan –4 in favor of Continuing the 867_03 Contingency Plan –1 MP Abstained from voting on the Retail Market Call

12. 12 Final Comments Comments Received from Market Participants: A CR commented that based on December 2002, the stats have improved significantly. We are currently showing only a 2% gap of expected 867s which we did not receive from ERCOT. One CR supports continuing the 867_03 Workaround process until such time that the percentages of delivered meter reads reaches a sustained 98% success rate. A CR noted that if two trading partners wish to discontinue the 867 Contingency Plan between themselves, they may. However, a TDSP noted that some do not have the ability to quit providing the Contingency Plan to some while continuing to provide it for others.

13. 13 Thank You