1 RMS Task Force on Retail Market Customer/ESI Transition October 16, 2003

2 Current Status Targeted this RMS meeting for “Base” process preferences/recommendations –Retain ESI or Replace/Retire ESI Task Force: –has not yet reached consensus –has had additional discussion re: need to continue work –has requested PUCT staff input –has market survey outstanding (responses to be provided 10/22) –will adjust schedule and deliverables based on review/discussion of survey results

3 Transition Process Alternatives Seven process alternatives are being considered –Retain original ESI for service delivery point and transition that ESI from “losing” TDSP to “gaining” TDSP; Alternative X1 – new 814_20 that changes TDSPs Alternative X2 – new transaction to switch/drop TDU Alternative X6 – manual process to be defined OR –Establish new ESI for service delivery point, transition retail service from old ESI to new ESI, retire old ESI Alternative X3 – Use existing move in and move out transactions Alternative X4 – new 814_20 that copies/creates new ESI Alternative X5 – new ESI transfer transaction Alternative X7 – manual process to be defined

4 Transition Scenario Variables Variables that were determined to be important in developing recommendations for the business processes and transactions to use include: –Time Frame Short Term (prior to new trx) vs. Long Term (post system changes) –Transition Date Date certain vs. on cycle vs. off-cycle –Volume of ESI IDs in transition < to 5000 > 5000 –“Gaining” TDU territory competitive status Opt-In IOU vs. Opt-In MCTDU vs. Non Opt-In –“Losing” TDU status in market Maintains a presence in Texas market vs. exits Texas market –TDU tariff applied by “Gaining” TDU “Gaining” TDU tariff vs. “Losing” TDU tariff vs. N/A

5 Alternative Evaluation Criteria Potential evaluation criteria –Impact on customer Ongoing service (billing etc..) Impact on Choice –Lead time for implementation –Cost Development Maintenance Execution Post Execution –Cost per use –Degree of difficulty –Impact of future market activity –Existing Market Constraints Protocol Revisions TX SET Versions Regulatory Rules –Impact on Day to Day Processing Transaction Volumes Monitoring In Flight Transactions or Processes

6 Market Survey Request for market participants (and ERCOT) to express an initial preference for the appropriate process alternative for a designated scenario (specified combination of variables) and in consideration of the proposed evaluation criteria –Retain or replace –Given that preference, which process alternative should be applied

7 Market Survey Excerpt

8 Next Steps Next steps –Survey responses due COB 10/22 –Task Force meeting scheduled 10/29 Review survey responses Discuss issues or concerns Work through process details for scenarios with consensus –Updated/Revised plan at November RMS