MARS Taskforce RMS Update November 10, 2010

Conference Call concerning Settlement Estimates TDSPs held a conference call on October 28, 2010, where we: Identified that the “Supplemental AMS Interval Data Extract” was a critical piece of what was needed by TDSPs to determine daily LSE transactional issues prior to receiving the Missing Consumption Report. The Missing Consumption Report is provided 38 days out where any updates or corrections made to close gaps in data or resolve loading errors may be too late to impact final settlement. Discussed “Best Practices” by comparing the AMS IDR Extract against a query list of AMS ESI IDs not loaded in ERCOT’s Web services (SCR 740) where that query would identify disparities requiring investigation and correction. TDSPs held a conference call on October 28, 2010, where we: Identified that the “Supplemental AMS Interval Data Extract” was a critical piece of what was needed by TDSPs to determine daily LSE transactional issues prior to receiving the Missing Consumption Report. The Missing Consumption Report is provided 38 days out where any updates or corrections made to close gaps in data or resolve loading errors may be too late to impact final settlement. Discussed “Best Practices” by comparing the AMS IDR Extract against a query list of AMS ESI IDs not loaded in ERCOT’s Web services (SCR 740) where that query would identify disparities requiring investigation and correction. 2

Conference Call concerning Settlement Estimates TDSPs held a conference call on October 28, 2010, where we: Discussed ways to automate the exception handling process of LSE files/ESI IDs where AMS data failed to load at ERCOT to reduce and hopefully eliminate time required today for manual investigation and resolution. Agreed that the estimated numbers currently provided to COPS and RMS on a monthly basis showing a snapshot of AMS data loaded would continue to be provided each month as a percentage of that settlement days activities instead of a total number. TDSPs held a conference call on October 28, 2010, where we: Discussed ways to automate the exception handling process of LSE files/ESI IDs where AMS data failed to load at ERCOT to reduce and hopefully eliminate time required today for manual investigation and resolution. Agreed that the estimated numbers currently provided to COPS and RMS on a monthly basis showing a snapshot of AMS data loaded would continue to be provided each month as a percentage of that settlement days activities instead of a total number. 3

Transactional Processes Before LSE Data Used by ERCOT 4 867_03 Monthly Usage (non-IDR Profile) – Prior month’s non-IDR usage must be successfully processed and loaded at ERCOT before any changes can be made to the Load Profile assignment This process usually completes in 3 days – allowing time for: – Meter reading to be processed and non-IDR 867_03 transaction to be created by TDSP – ERCOT to receive 867_03 non IDR transaction and process usage readings – TDSP to verify if ERCOT successfully processed and loaded non-IDR readings. 814_20 Maintain ESI ID Load Profile change request – 814_20 Load Profile changes can only be completed in conjunction with a cycle reading This process usually completes in 1 Day If profile isn’t changed and successfully loaded at ERCOT, ERCOT will reject LSE File for that ESI ID. 867_03 Monthly Usage (non-IDR Profile) – Prior month’s non-IDR usage must be successfully processed and loaded at ERCOT before any changes can be made to the Load Profile assignment This process usually completes in 3 days – allowing time for: – Meter reading to be processed and non-IDR 867_03 transaction to be created by TDSP – ERCOT to receive 867_03 non IDR transaction and process usage readings – TDSP to verify if ERCOT successfully processed and loaded non-IDR readings. 814_20 Maintain ESI ID Load Profile change request – 814_20 Load Profile changes can only be completed in conjunction with a cycle reading This process usually completes in 1 Day If profile isn’t changed and successfully loaded at ERCOT, ERCOT will reject LSE File for that ESI ID.

Zonal Settlement Timeline Initial Data Aggregation Day 8 Settlement Statement Day 10 Final Data Aggregation Day 57 Settlement Statement Day 59 True-Up Data Aggregation Day 178 Settlement Statement Day 180 Initial Data Aggregation Day 8 Settlement Statement Day 10 Final Data Aggregation Day 57 Settlement Statement Day 59 True-Up Data Aggregation Day 178 Settlement Statement Day 180 5

Nodal Settlement Timelines Initial Data Aggregation Day 7 Settlement Statement Day 10 Final Data Aggregation Day 56 Settlement Statement Day 58 True-Up Data Aggregation Day 177 Settlement Statement Day 180 Initial Data Aggregation Day 7 Settlement Statement Day 10 Final Data Aggregation Day 56 Settlement Statement Day 58 True-Up Data Aggregation Day 177 Settlement Statement Day 180 6

TDSP’s Conclusion As TDSPs continue to transition ESI IDs to AMS profiles, there will be opportunities based upon the timing of transactional processes (slide #4) that AMS data may not be available in time for initial settlement. The market should continue to see that these estimated numbers would diminish during Final and True-up settlement periods and as the TDSPs continue to perfect their methods to quickly identify and resolve missing data issues associated with AMS LSE data. As TDSPs continue to transition ESI IDs to AMS profiles, there will be opportunities based upon the timing of transactional processes (slide #4) that AMS data may not be available in time for initial settlement. The market should continue to see that these estimated numbers would diminish during Final and True-up settlement periods and as the TDSPs continue to perfect their methods to quickly identify and resolve missing data issues associated with AMS LSE data. 7

Initial Settlement As of November 3, 2010 Operating Date: October 26, 2010 AMC ESI ID Totals: 1,799,667 AMDG ESI ID Totals: 271 Estimated Percentage: % As of November 3, 2010 Operating Date: October 26, 2010 AMC ESI ID Totals: 1,799,667 AMDG ESI ID Totals: 271 Estimated Percentage: % 8

Final Settlement As of November 3, 2010 Operating Date: September 7, 2010 AMC ESI ID Totals: 1,439,478 AMDG ESI ID Totals: 214 Estimated Percentage: % As of November 3, 2010 Operating Date: September 7, 2010 AMC ESI ID Totals: 1,439,478 AMDG ESI ID Totals: 214 Estimated Percentage: % 9

True-Up Settlement As of November 3, 2010 Operating Date: May 7, 2010 AMC ESI ID Totals: 776,255 AMDG ESI ID Totals: 98 Estimated Percentage: % As of November 3, 2010 Operating Date: May 7, 2010 AMC ESI ID Totals: 776,255 AMDG ESI ID Totals: 98 Estimated Percentage: % 10

AMS Meter Installation Status Report Oncor (approximately): Installed: 1,405,122 as of Deployment Plan: 2010 – 929,000 meters 2011 – 902,000 meters 2012 – 902,000 meters Oncor (approximately): Installed: 1,405,122 as of Deployment Plan: 2010 – 929,000 meters 2011 – 902,000 meters 2012 – 902,000 meters 11

AMS Meter Installation Status Report CNP (approximately): Installed: 700,040 as of Deployment Plan, includes projected growth: 2010 – 756,684 meters 2011 – 960,327 meters 2012 – 373,423 meters CNP (approximately): Installed: 700,040 as of Deployment Plan, includes projected growth: 2010 – 756,684 meters 2011 – 960,327 meters 2012 – 373,423 meters 12

AMS Meter Installation Status Report AEP (approximately): Installed: 144,774 as of Deployment Plan schedule: 2010 – 188,212 meters 2011 – 251,571 meters 2012 – 279,329 meters 2013 – 278,280 meters AEP (approximately): Installed: 144,774 as of Deployment Plan schedule: 2010 – 188,212 meters 2011 – 251,571 meters 2012 – 279,329 meters 2013 – 278,280 meters 13

Market AMS Installed Totals 14

PUCT Project Advanced Metering Implementation Team (AMIT) Documentation & Meeting Schedules can be found on: Public Utility Commission of Texas Project Website : rojects/34610/34610.cfm rojects/34610/34610.cfm Advanced Metering Implementation Team (AMIT) Documentation & Meeting Schedules can be found on: Public Utility Commission of Texas Project Website : rojects/34610/34610.cfm rojects/34610/34610.cfm 15

Advanced Metering Implementation Team (AMIT) NOVEMBER 16-17th (F2F) Tue: 9:30-5:30 Wed: 9:30-5:30 Location: Public Utility Commission, CHR, 7th Floor, {1701 N. Congress Ave, Austin, TX 78701} Free Real-Time Video of November Meetings available at: NOVEMBER 16-17th (F2F) Tue: 9:30-5:30 Wed: 9:30-5:30 Location: Public Utility Commission, CHR, 7th Floor, {1701 N. Congress Ave, Austin, TX 78701} Free Real-Time Video of November Meetings available at:

Advanced Metering Implementation Team (AMIT) DECEMBER 7 th (F2F) Tue: 9:30-5:30 Location: Public Utility Commission, CHR, 7th Floor, {1701 N. Congress Ave, Austin, TX 78701} HAN focused – and may expect to meet with the HAN DOC on that day Free Real-Time Video of December Meeting available at: End of the Year – No more meetings until 2011 DECEMBER 7 th (F2F) Tue: 9:30-5:30 Location: Public Utility Commission, CHR, 7th Floor, {1701 N. Congress Ave, Austin, TX 78701} HAN focused – and may expect to meet with the HAN DOC on that day Free Real-Time Video of December Meeting available at: End of the Year – No more meetings until

Questions? 18