1. Profiling Working Group January 11, 20061 PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting January 11, 2006

2. Profiling Working Group January 11, 20062 Annual Validation 2005 Status - Business All TDSPs have submitted their transactions. All TDSPs have meet the 99 percent requirement. - (LPG 11.4.1 steps 11 and 12) Business Complete. This slide is a place holder of what I hope is the case to report.

3. Profiling Working Group January 11, 20063 Annual Validation 2005 Status - Residential All TDSPs have submitted their transactions per the RMS resolutions. All TDSPs are waiting on TAC and BOD approval of 2005 annual validation modifications per the RMS resolutions for the partial list of transactions so 2005 annual validation can be considered complete. This slide is a place holder of what I hope is the case to report.

4. Profiling Working Group January 11, 20064 Annual Validation 2006 Status - Business Previously reported two changes under consideration for load factor calculations; - kWh minimums, and - exclusion of zero kWh readings. December 15, 2005 the PWG by consensus has dropped these two suggested changes to annual validation because the ERCOT Staff analysis indicated almost nil affects. Market benefits to expenses are not warranted.

5. Profiling Working Group January 11, 20065 Annual Validation 2006 Status - Residential Previously reported two changes under consideration for winter ratio calculations; - Weather normalizing the trigger points, and - different trigger points per weather zone. December 15, 2005, the PWG by consensus has placed these two suggested changes to annual validation on hold pending market review of “Option 2” change in profile id assignment responsibility and subsequent market consideration of the new residential assignment algorithm developed by ERCOT Staff.

6. Profiling Working Group January 11, 20066 “Option 2” - Residential “Option 2” is moving a portion of the residential Load Profile ID assignment responsibility in the annual validation process from the TDSPs to ERCOT Staff, whereby the Load Profile Type is calculated annually at ERCOT and the information passed to each TDSP and/or Muni-COOP.

7. Profiling Working Group January 11, 20067 “Option 2” - Residential Once per year, ERCOT calculates the Load Profile Type and provides a file of changes to each TDSP. Each TDSP takes the file and creates appropriate 814_20s, and updates their systems. TDSPs are still responsible for the Load Profile ID assignment for new accounts and any updates needed for normal business.

8. Profiling Working Group January 11, 20068 “Option 2” - Residential

9. Profiling Working Group January 11, 20069 “Option 2” - Residential (1) GroupSegment Profile Segment Profile Group Profile Type Code (1) GroupSegment IDRNIDR Meter Data Type Code (3) (1) GroupSegment TOU n NoTOU Time-Of-Use Code (5) Coast East FWest North West NCent SCent South Weather Zone Code (2) (1) NWS Weather Sensitivity Code (4) Example: RESHIWR_NCENT_NIDR_NWS_NOTOU

10. Profiling Working Group January 11, 200610 “Option 2” - Residential Precedent for TDSP lists; 1)Protocols Section 11.4.3.1 Weather Responsiveness Determination … “ERCOT shall produce a report that contains the ESI IDs requiring profile code modifications and shall publish the report via the MIS. TDSPs shall successfully complete Weather Sensitivity Code modifications (Profile ID changes) no later than sixty (60) days after the ESI ID appears on the ERCOT report.” 2) RMS November email voting item, “The email vote to authorize 2005 Residential Annual Validation transactions for those ESI IDs for which ERCOT’s analysis shows such update would result in a more representative profile was APPROVED.”

11. Profiling Working Group January 11, 200611 “Option 2” - Residential PWG by consensus agrees to change the responsibility of Residential Profile ID assignment calculation of Profile Type for Annual Validation from the TDSPs to ERCOT Staff. Upon approval of this recommendation by the appropriate TAC committees, the appropriate PRR and LPGRR shall be written. After approval, the appropriate Decision Tree update shall be issued.