SPP.org 1

Status Update: Retail Open Access for ETI within SPP Stakeholder Meeting September 16 th, 2008 Austin, TX

SPP.org 3 Activities Completed Since Last Meeting Met with ERCOT and confirmed that we can use existing processes and procedures  Existing SCR 727 extract will provide necessary data Received estimated software costs to aggregate ERCOT retail data and make ready for SPP Settlement systems Began development of final estimated costs for implementation (system changes, labor, and staffing)

SPP.org 4 REPs As TC - Functions ROA ActivityERCOT TodayHow it will work in SPP Customer Registration ERCOT manages the retail registration database ERCOT tests and qualifies TDSPs and REPs for retail transactions ERCOT REPs and TDSPs all interact with each other via various retail transactions ERCOT manages disputes over data in the registration system ERCOT validates that meter data is settlement ready SPP uses existing procedures to register REPs as TC’s ERCOT manages the retail registration database and tests and qualifies TDSPs and REPs (same as for ERCOT Region) ETI loads ESI Ids into ERCOT’s registration database and populates data associated with ESI IDs SPP receives SCR727 via ETI from ERCOT registration database and processes REPS will receive load data via TDSP

SPP.org 5 REPs As TC - Functions ROA ActivityERCOT TodayHow it will work in SPP Scheduling Qualified Scheduling Entities (“QSEs”) represent REPs and generation owners in ERCOT QSEs submit energy schedules and may also submit ancillary services bids QSEs settle with ERCOT QSEs pass on ERCOT charges to their clients via bilateral agreements to which ERCOT is not a party SPP will consider all REPs as Transmission Customers (“TCs”) TCs must schedule or settle with SPP or designate an agent to do so REPs will not need to have a QSE (no wholesale market interaction with ERCOT)

SPP.org 6 REPs As TC - Functions ROA ActivityERCOT TodayHow it will work in SPP Wholesale Settlements For all areas in the ERCOT region, ERCOT performs:  Data Acquisition  Population of database for profiled loads  Data Aggregation  Billing If ETI becomes part of ERCOT, ERCOT’s wholesale processes would apply to the ETI area SPP receives SCR727 updates via ETI ESI ID data must be converted and aggregated for use in SPP’s settlement system Data must be loaded into staging area and validated Data must then be loaded into SPP’s settlement system

SPP.org 7 REPs As TC - Functions ROA ActivityERCOT TodayHow it will work in SPP Invoicing ERCOT invoices QSEs for wholesale market charges TDSPs bill REPs for charges pursuant to their tariffs Currently, non-ERCOT REPs pay an annual fee of $1.15 per ESI ID to ERCOT. ERCOT is removing this fee. SPP expects that ERCOT and SPP would negotiate a comparable fee amount for ETI ROA SPP invoices TCs (or their agents) for balancing energy and associated fees TDSPs bill REPs for charges pursuant to their tariffs Any administration fees will be allocated to REPs through SPP settlements

SPP.org 8 ROA Implementation Cost Estimates ItemLowHigh Registration and Set-up Resources $520,000$850,000 Settlement System Changes $1,275,000$3,000,000 Miscellaneous Hardware$100,000$200,000 ERCOT Startup Costs to Implement ROA for ETI* $198,000$225,000 Total ROA Implementation Estimates $2,093,000$4,275,000 * Includes ERCOT Phase II costs Appendix 9 and estimated one time internal ERCOT development work.

SPP.org 9 Annual ROA Maintenance Cost Estimates ItemLowHigh Staffing*$375,000$560,000 Settlement System Fees$150,000 Miscellaneous Hardware$40,000$70,000 ERCOT Fees (est.)$36,000$65,000 Total Annual Maintenance Estimates $601,000$845,000 * Staffing rates are based on the 2009 CBTF rates

SPP.org 10 Questions?

SPP.org 11 Beth Miller Accenture accenture.com