TX SET Update to RMS Wednesday, October 10, 2007

Update from TX SET’s August 30, 2007 Meeting o Drafted changes to TX SET Working Group Procedures documentation that included: o Creating guidelines for implementing change control request received outside of version releases (RMS Action item from August RMS meeting) o Updating procedures to include a Provision for SEF files in conjunction with TX SET Implementation Guides validation process for the Market o Clarification where needed concerning TX SET Issue Procedures and Change Control Processes o Removing website links due to website IP addresses no longer valid o Re-organizing the flow of the document

Next Steps for “Updated” TX SET Working Group Procedures Draft language that was completed at the August meeting will receive final review and approval at the October 24th TX SET Meeting. Recommended changes will be submitted to RMS for review and approval at the November 7, 2007 RMS meeting.

Update from TX SET’s August 30, 2007 Meeting o Agenda Item to TX SET members “What should our focus be for the remainder of the year?” o With RMS blessings, TX SET would like to review and clean-up the Market Processes (Section 7) of the Retail Market Guide to make consistent with current market processes and any changes will be submitted to RMS for approval, however o If there are sections in the Retail Market Guide currently being discussed by other Working Groups/Taskforces, example Inadvertent Gain and MarkeTrak, those areas would be omitted from this review and left for those teams to update.

TX SET’s Meeting Schedule for Remainder of 2007 September meetings “Cancelled” instead the Inadvertent Gain Taskforce meetings were held on September 25 and 26, 2007 October meetings will be held in Tulsa, Oklahoma on Wednesday, October 24, 2007 and Thursday, October 25, Thanks to AEP (Cary Reed) who has graciously offered to host us. November meetings “Cancelled” in lieu of the December meetings. December meetings will be held in Houston on Monday, December 10, 2007 and Tuesday December 11, 2007 at CenterPoint Energy’s office.

LPGRR027 & PRR736 - TX SET’s request from PWG On September 25, 2007, Profile Working Group (PWG ) met and discussed 8 options concerning Demand Response (DR) ESI IDs. The first five options are documented and located in key documents on the ERCOT website at PWG.html PWG.html The other three are listed as items 6, 7 and 8 in the next slide.

Options Discussed by PWG Option 1: Profile ID Segment change Option 2: TOU Code change Option 3: Weather Sensitive Code change Option 4: Profile Type change Option 5: Alternative Weather Sensitive Code change Option 6: Texas Set change for dynamic Profile Type change during a switch from a Demand Response (DR) Program in conjunction with Option 1 Option 7: Do nothing. CRs currently have the option to install 15 minute interval meters on Demand Response (DR) program participants Option 8: Convert the Settlement Recorder 64 characters to use a lookup table for settlement characteristics

Action Item from PWG to Texas SET Option 6: “Long Term Solution” is to solve the issue of CR receiving foreign (DR) Profile ID assignments as the result of a Switch (Move-In/Move-Out?) by dynamically changing the profile found in the Texas SET transaction for an 814_04 and 814_05 because the Profile ID assignment should default back to the original Profile ID. The receiving CR would not be required to make any system changes to receive foreign (DR) Profile ID codes. Per PWG, “Long Term” in this case means perhaps a few extra months would be added to the implementation timeline of Demand Response (DR) programs which could place the target of Summer of 2008 at risk.

Market Transaction Flow Processes Switch: Switch%2C%20No%20Customer%20Objection.pdf Switch%2C%20No%20Customer%20Objection.pdf Move-In: Move-Out: Move%20Out%2C%20Customer%20Initiated%20MVO.pdf Move%20Out%2C%20Customer%20Initiated%20MVO.pdf

Next Steps Texas Set leadership at the request of Profile Working Group (PWG) has scheduled a joint meeting/conference call with PWG and TX SET to discuss Option 6 (Long Term Solution). Conference Call: Day/Date:Thursday, October 11, 2007 Time: 1:30 PM – 4:00 PM Conference Bridge numbers  Houston Local (713)  Long Distance Toll Free (888)  Password Continue this discussion and bring back any action items to TX SET’s October 24 and 25, 2007 meeting in order that TX SET will provide PWG with our assessment by November 2, 2007.

11 Questions?