Long Term Move-In Move-Out Development Strategy August 19, 2002 DRAFT

Proposal Objectives This Proposal outlines a Recommendation for the Task Force organizational approach for the initial project phase for the Long Term Move-In and Move-Out Strategy. This proposal has been developed to support the Long Term MIMO Approach and the Timeline targets necessary to progress from one activity to another presented at RMS' August 1, 2002 meeting. These date may be modified once the Task Force begins its detailed work activities. The Next Step for this Proposal is for RMS members to offer comment on this Proposal and be prepared to approve the Task Force organizational approach at their August 29, 2002 RMS meeting.

MIMO Market Activities To Date 04/02 MIMO TX SET Committee completed documentation identifying 29 Scenarios of various MIMO situations. 06/02 MIMO Task Force identified various Conceptual Recommendations and Ideas to solve portions of the MIMO Operational Problems. RMS approved several of the Conceptual Recommendations, which the Task Force continues to work on. Many of these recommendations are long term focused and are currently being coordinated and monitored by ERCOT/RMS Various Market Participants internally complete further analysis based on the 28 Scenarios. Many Market Participants state there are many additional scenarios and more work to be done.

MIMO Market Activities To Date 08/02 At RMS August 1, 2002, ERCOT presented a timeline that included dates and activities necessary to retain a vendor to complete work necessary to implement MIMO processes for the Texas Market. Comments made at this RMS meeting indicated that additional activities should be included in the timeline.

Targeted Completion Dates RMS establishes Task Force ??/??/??Develop detailed requirements document for RFP ??/??/??RMS Approves MIMO requirements document ??/??/??Release RFP to vendors ??/??/??RFP Responses due from vendors ??/??/??Summarize vendor responses for Task Force review ??/??/??Recommendations to EOTF on vendor “Short List” ??/??/??Vendor presentations to Task Forces ??/??/??EOTF recommendation to ERCOT Board ??/??/??Begin contract negotiations End 1Q03Award contact

Proposed Task Forces Executive Oversight Task Force ERCOT Leadership -- Monte Jones MPs’ Executives RFP Requirements Task Force ERCOT Leadership--John Kassel Business Specialists Each team will have specific responsibilities, with the goal of completing their assignments on time. This will ensure the RFP is completed and a vendor is selected according to targeted timeline.

ERCOT BOD Executive Oversight Task Force RFP Requirements Task Force MIMO Task Force Hierarchy All Teams will work together to achieve a successful solution to the Long Term MIMO process. Market Stakeholder Support RMS Committee Members, PUCT ERCOT Technical Experts

MIMO Executive Oversight Task Force Chairman of EOTF - Monte Jones, ERCOT All EOTF members must be Executive level representatives of Retail Market Participants actively involved in MIMOs. Requirements Provide leadership to RFP Task Force. Establish scope of RFP process Determine Key Milestone targets Recommend MIMO solution(s) for ERCOT Board approval Gain resource commitments from Market participants for recommended solution(s) Ensure Market feedback and communication Provide executive oversight of approved solution(s)

MIMO RFP Requirements Task Force Task Force will consist of… ERCOT--John Kassel Business Specialists Proposed Scope for RFP Requirements Task Force - RRTF Responsible for ensuring RFP completely includes all information necessary for the vendor to adequately evaluate MIMO work as previously defined by Market Participant business scenarios. Evaluate vendor responses to ensure the response correctly represent the MIMO Market needs. Develop “Short List” of vendors from RFP responses Recommend to MIMO Executive Oversight Task Force solution(s)

ERCOT Responsibilities--John Kassel Lead the RRTF team in the development of the RFP with the assistance of the Business Specialists. Project Management of RFP development and vendor proposal review Able to provide technical writing and administrative support to the team Responsible for providing Market updates and responses to EOTF Call upon other RMS Working Groups such as Texas SET or ERCOT departments for support and input as needed

Business Specialist Work with ERCOT’s John Kassel to consistently provide technical, business knowledge supporting efforts of RRTF ensuring MIMO processes are correctly identified and sufficiently documented. Requirements of the Business Specialist Market Participant with vested interest in MIMO process Active Advocate in current Market issues S.M.E. with ERCOT Protocols, and TX SET Guidelines Able to commit full time for the next 6 weeks during the Requirements and RFP document development. Familiar with current Market issues and proposed changes

MIMO Task Force Composition EOTF –TDSPs –AREPs –CRs –Muni/Co-op –ERCOT –PUCT Staff RRTF –TDSPs 3 –AREPs 4 –CRs 3 –Muni/Co-op 1 –ERCOT 1 Actual Task Force representatives will be determined by RMS Market Segments. One member per Market Participant on either Task Force. No vendors or service providers will participate on the Task Forces. Consultants who participate on TTFF can not bid on the RFP.

Long Term MIMO Development Strategy RMS members should their comments concerning this proposal using the ERCOT RMS exploder list. Members may also suggest other Task Force organizational proposals using the exploder list. Deadline for comments are C.O.B. August 27, 2002 to allow members time to study all comments before voting. RMS will vote on Long Term MIMO Task Force organizational approach at RMS’ August 29, 2002 meeting.