1. Retail Market Subcommittee Update to COPS Kathy Scott March 17, 2014 1

2. NPRR Status Report NPRR583, Validates CSA Bypass Code in a Move- Out Request is From Current CSA CR (Vote) ◦ This NPRR requires ERCOT to validate that the CR submitting an 814_24, Move-Out Request containing the Continuous Service Agreement (CSA) bypass code, is also the current CSA CR. ◦ 02/17/14 – TX SET Consensus- Withdraw NPRR583 and draft new RMGRR that creates REP Rule 13 denoting that only CSA CRs can send the CSA By-Pass code in the MVO (814_24). This new RMGRR shouldn’t require system changes or cost by ERCOT once approved. ◦ 03/04/14 – RMS unanimously endorsed the Texas SET Working Group’s request for withdrawal of NPRR58. This endorsement will be presented to PRS during their March 18, 2014 meeting for approval.  March 17, 2014RMS Update to COPS2

3. RMGRR Status Report RMGRR120, Sharyland Updates (Vote) ◦ This Retail Market Guide Revision Request (RMGRR) updates Sharyland business processes and contact information to support the Sharyland transition to competition and proposes non-substantive administrative changes to correct title references and acronym usage.  03/04/14: RMS unanimously Approved “Tabling” RMGRR120 RMGRR121, Clarification of Inadvertent Gain Process (Vote) ◦ This Retail Market Guide Revision Request (RMGRR) adds language to the Retail Market Guide to clarify best business practices when processing inadvertent gain issues in MarkeTrak.  03/04/14: RMS unanimously Approved “Tabling” RMGRR121 March 17, 2014RMS Update to COPS3

4. SCR Status Report SCR776, Retail Data Transport Upgrade to NAESB EDM v2.2 (Vote)  This SCR upgrades North American Energy Standards Board (NAESB) Electronic Delivery Mechanism (EDM) from v1.6 to v2.2, providing ERCOT and Market Participants the ability to support NAESB EDM specified digital signature as well as retail file data identification in compliance with NAESB EDM v2.2.  Strengthens data security and increases efficiency in identifying data for retail file transmissions, such as: ◦ 01/10/14 – SCR776 Impact Analysis Review/Vote:  Between $400k and $500k ◦ 02/05/14 –ERCOT’s update to TDTWG reported a reduction of 100K now $300-$400k, however, TDTWG continues to discuss SCR776 to determine if additional cost savings can be realized. ◦ TDTWG continue to discuss and develop CBA for SCR776 March 17, 2014RMS Update to COPS4

5. Working Group Update TX SET Working Group: ◦ Mass Transition Max. Daily Volume Update :  Based upon system designs and the potential for additional routine daily transactional volumes requiring the same level of attention such as MVIs, MVOs and Switch transactions, the max. daily volume consensus of ERCOT along with AEP, CNP, Nueces, Oncor, Sharyland and TNMP is a maximum of 100,000 unique ESI IDs per day could be transmitted and processed for a Mass Transition or Acquisition Transfer event :  Note: TDSPs stated that their systems haven’t been stressed tested to handle either 75,000 or 100,000 unique ESI IDs per day, but didn’t anticipate any issues with their understanding that ERCOT would initiate switch transactions for100,000 unique ESI IDs per day across all the TDSPs involved in the Mass Transition or Acquisition Transfer event and not 100,000 ESI IDs per each TDSP. March 17, 2014RMS Update to COPS5

6. Working Group Update ◦ Mass Transition, can event timeline be controlled? :  For large volumes can Mass Transition transactions be triggered prior to normal AM weekday business hours or triggered on a weekend/holiday date if timeline supports POLR rule and allows for expediting the transition of all ESI IDs involved?  ERCOT has no issues triggering the 100,000 unique ESI ID Switch transactions prior to AM week day business hours or on a weekend when and where possible.  If the transactions are split into daily volume of 100k unique ESI IDs per day, the processing time needed by ERCOT will also increase as the number of days increment.  ESI IDs are evaluated daily by ERCOT prior to triggering:  1 st Day Transactions are Initiated— 100k ESI IDs evaluated and processed  2 nd Day Transactions are Initiated —200k ESI IDs evaluated and processed  3 rd Day Transactions are Initiated —300k ESI IDs evaluated and processed  Note that each day after the 3 rd day, some percentage of ESI IDs from previous days have completed and no longer included in the evaluation process. March 17, 2014RMS Update to COPS6

7. March 17, 2014RMS Update to COPS7 RETAIL MARKET GUIDE (RMG) APPENDIX F2 Timeline for Initiation of a Mass Transition on a Business Day not Prior to a Weekend or ERCOT Holiday Reference: Section 7.11.1.1.1, Mass Transition Initiation on a Business Day not Prior to a Weekend or ERCOT Holiday CR = Competitive Retailer TDSP = Transmission and/or Distribution Service Provider POLR = Provider of Last Resort ESI ID = Electric Service Identifier Day -10 Default confirmed and Notification e-mail sent by ERCOT Daily Market Status Call 867_02, Historical Usage 814_04s, Enrollment Notification Responses, from TDSP to ERCOT 814_14s, Drop Enrollment Requests, from ERCOT to POLR CRs Customer billing information sent by ERCOT CBCI file sent by ERCOT 1 Transition Date Daily market status call TDSP performs meter reads or estimates for self- selected switch 24 Daily Market Status Call TDSP sends to ERCOT – final 867_03, Monthly or Final Usage, will include out-of-cycle meter read charge 867_04, Initial Meter Read, ERCOT sends to POLR CRs MondayTuesdayWednesdayThursdayMondayFriday 3 Initial Market Call Mass Transition process: ESI ID allocation 814_03, Enrollment Notification Request, flow requesting second calendar day ESI ID lists for POLRs/TDSPs generated Customer transition should be completed in no more than five calendar days.

8. March 17, 2014RMS Update to COPS8 RETAIL MARKET GUIDE (RMG) APPENDIX F3 Timeline for Initiation of a Mass Transition on a Day Before a Weekend or an ERCOT Holiday Reference: Section 7.11.1.1.2, Mass Transition Initiation on a Business Day Prior to a Weekend or ERCOT Holiday CR = Competitive Retailer ESI ID = Electric Service Identifier POLR = Provider of Last Resort TDSP = Transmission and/or Distribution Service Provider Default confirmed; Notification email sent by ERCOT Initial market call (1800 CPT) Transition Date Daily Market Status Call 867_02, Historical Usage 814_04s, Enrollment Notification Responses, from TDSP to ERCOT 814_14s, Drop Enrollment Requests, from ERCOT to POLR CRs TDSP performs meter reads or estimates for out-of-cycle switch Customer billing information sent by ERCOT Daily market status call TDSP sends to ERCOT - final 867_03, Monthly or Final Usage, will include out-of-cycle meter read charge 867_04, Initial Meter Read ERCOT sends to POLR CRs Mass Transition Process: ESI ID Allocation 814_03, Enrollment Notification Request, flow requesting second day ESI ID lists for POLRs/TDSPs generated Day -10124 MondayTuesday Wednesday SundayFriday 3 Saturday Customer transition should be completed in no more than five calendar days.

9. TDSP’s AMS Install Status Report: AEP – 98.5% complete: ◦ 1,010,158 as of 01.31.2014 TNMP – 57% complete: ◦ 129,988 as of 01.31.2014 Oncor – 100% complete: ◦ 3,262,864 as of 12.31.2012 CNP – 100% complete: ◦ 2,283,012 as of 7.31.2012 Total Number of AMS Meters Installed: 6,686,022 March 17, 2014RMS Update to COPS9

10. Sharyland Transition Update: Potential LCRA Load Zone Issue ◦ ESI IDs in SU’s Brady division (only) will be impacted by this LCRA Load Zone assignment for those Brady’s ESI IDs settled at ERCOT. Per SU these ESI IDs will still be included in the transition to competition that is scheduled to be effective on May 1, 2014. ◦ SU, ERCOT Legal and Bill Barnes (NRG) worked together to develop NPRR602.  NPRR602 will be presented to PRS for their March 18, 2014 meeting requesting an urgent timeline in order to obtain TAC approval on March 27, 2014 and finally ERCOT Board approval for the April 8th Board meeting in order to have a process in place to meet the May1st SU transition go-live timeline. Sharyland Utilities Transition Numbers : March 17, 2014RMS Update to COPS10

11. Additional Updates: Performance Measures 4 th Quarter 2013 Inadvertent Gain Update: Loads in SCED Issues Impacting Retail Market  Next meeting to discuss LRIS Subgroup to discuss Retail Issues and Concerns scheduled March 24, 2014 at 9:30 AM at ERCOT Met Center Conference Room 168 March 17, 2014RMS Update to COPS11

12. Additional Meeting Updates Smart Meter Texas Development Oversight (SMT DO) monthly Web conferences for 2014: ◦ Friday, March 7 th 10AM – 11: 00 AM  Discussed the 3 rd Party Access project schedule and deliverables: ◦ Friday, March 21 st 10AM – 11:00 AM ◦ Friday, April 25 th 10AM – 11:00 AM ◦ Friday, May 23 rd 10AM – 11:00 AM ◦ Friday, June 20 th 10AM – 11:00 AM March 17, 2014RMS Update to COPS12

13. Questions? 13March 17, 2014RMS Update to COPS