1 Critical Retail Issues RMS Update RMS Meeting Results 2/01 RMS Formed 3/01 RMS Identified “pent-up” issues Tx Set transaction development Service Order Workshops Outage workshops 4/01 RMS Identified Pilot Open Critical Issues Workshops initiated to resolve issues Permits/Inspections Critical Care Move In/Move Out Service Order/Notification Retail Metering 5/01 Approved Pilot Work arounds Identified Market Open Critical Issues RMS workshops initiated to resolve issues 6/01 RMS Approved 62 Resolved Critical Issues Began the Prioritizing process Developed Protocol Change Requests Developed ERCOT System Change Requests Developed Tx Set Transaction Change Requests

2 Analysis of the 62 Critical Issues –12 - Business process definition requiring no system change –24 - Business system change required by point-to-point MPs –26 - Business system change required by all MPs, ERCOT included Analysis of the 26 change issues effecting ERCOT –10 - Priority 1 - essential for Market Open – 8 - Priority 2 - important for Market Open – 8 - Priority 3 - after Market Open Analysis of the 10 Priority 1 issues –4 - Retail Metering, not Protocol changes required –3 - Permit/Inspections, will require Protocol changes –3 - Move In/Move Out, will require Protocol changes Critical Retail Issues RMS Update Issue Analysis All interested MPs were involved in the workshop process. 62 Critical Issues were identified and a resolution consensus was gained on practically every issue

3 Subtractive/Additive Metering Data Requirement –ERCOT TDSPs sending netted 15 minute interval data –Non-ERCOT TDSPs sending all 15 minute interval data Solution = Adopt ERCOT TDSP methodology Mid Cycle Meter Read with Profile Change –Caused by change in IDR, Demand, or TOU status –4 Options considered, no good compromise solution determined Solution = Change the meter on cycle read date Meter Reads required on Historical Usage Request –Present interpretation requires both meter read and consumption Solution = Drop requirement to provide meter read Consumption Discrepancy –Interval data does not match consumption data Solution = Revise Tx SET transaction to allow for adjustment Critical Retail Issues RMS Update Retail Metering

4 Pending order waiting completion of City Inspection –TDSPs agree to pend order Solution = Develop a new transaction to provide electronic notification Move In Un-executable –Need a means to notify CR/Customer if a problem exists Solution = Provide notification on new transaction Cancel Move In Request –Permit is no longer needed or required Solution = Provide notification means to keep record accurate Critical Retail Issues RMS Update Permits/Inspections

5 Existing Process Creates Service Gaps –Option 1 - No change, deal with customer problems –Option 2 - CR manages and communicates problem –Option 3 - ERCOT manages and communicates problem Timing Requirement when CSA in effect –Service not disconnected at Move Out Solution = Clarify timing requirement, ERCOT ensures switch in 1 business day Same CR on a new Move In –CR responsible for final bill determination Solution = Change existing reject code reason Critical Retail Issues RMS Update Move In/Move Outs CR2 6/1 CR1 6/15 CR2 6/30 Customer B Move In # 1 Customer A Move Out Customer B Move In # 2