1. RMS Update to TAC June 7, 2007

2. RMS Activity Summary RMGRR052 File Naming Convention for Customer Billing Contact Information URGENT (Vote) RMS Procedures: Working Group Name Change (Vote) Update on TAC directive relating to identifying issues with net metering and small renewable generation ERCOT Service Level Agreement Update

3. RMGRR052 File Naming Convention for Customer Billing Contact Information During Flight 0407 Market Testing to support SET Version 3.0 Implementation, an issue was identified with participants file naming convention resulting in ERCOT rejects. Remedy was for ERCOT to modify process and focus specifically on use of “csv” within file name No other alternative was more efficient No impact to resource availability and cost impacts were minor Required immediate action and URGENCY vote at RMS was approved unanimously RMS requests URGENT approval from TAC

4. RMS Procedures: Working Group Name Change (Vote) COMET Working Group name change to Retail Metering Working Group COMET was formed to provide market guidelines and protocols to support PUCT Rule 25.311, Competitive Metering Services Retail Metering Working Group name allows flexibility to address other retail metering issues that arise in ERCOT market stemming from PUCT or Legislative actions COMET Protocols remain unaffected RMS Requests Affirming Vote from TAC

5. Issues with net metering and small renewable generation March 30, 2007 TAC directed RMS to “identify issues with net metering and small renewable generation” Retail Metering WG facilitated retail market workshops to identify those issues and be considerate of impacts from Advanced Metering Rulemaking and HB 3693 RMWG met May 2 and June 6

6. Net metering and small renewable generation discussion (cont.) Recommendations from workshop  Scope of effort defined as Small Renewable Generation is 50kW and less Above 50kW up to 2mW is covered by HB 3693 Protocols currently address and Settlement is supported  Next Steps: Segregate issues by Retail; Commercial Operations; Other Defining issues as short term (September 2007) and long term (January 2009)solutions RMWG will host another workshop in 2 weeks to complete recommendations

7. Net metering and small renewable generation discussion (cont.) Retail Market  Usage transaction communicates both load and generation values (Short and a Long Term)  ESI ID Maintenance transaction that identifies “advanced” metering, if applicable (LongTerm) Commercial Op’s  Consideration for profile impacts associated with DG, TOU, DLC (long term)  Does settlement still occur based on current profiles regardless of DG, TOU, DLC?  What is relationship between QSE, REP and Consumer?  Does generation create credit against REP load?  What is the threshold for QSE involvement?  How does settlement occur when generation value creates a negative?

8. Net metering and small renewable generation discussion (cont.) Hardware  Metering must consist of either separate meters, or a single meter, that measure both load and generator output Consumer  Should not experience reduction in value associated with small renewable generation due to market processes

9. ERCOT Service Level Agreement Update ERCOT reported 100% availability in March and April. Additional hardware has been ordered to support failover capability and ensure availability. Should be in production late summer. ERCOT has proposed new SLA offering 99.9% service availability outside scheduled release and maintenance windows. 24 X 7 ERCOT has offered additional reporting to include metrics on TML of 98% 24x7, MarkeTrak of 98% 7am-7pm M-F except holiday. A service level agreement is also being created to support Data Extracts. SLA and Reporting will be presented to RMS for consideration and approval on June 13

10. Questions?