1. RMS/COPS Workshop VI 1 October 06, 2015

2. Antitrust Admonition ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, they are available at http://www.ercot.com/about/governance/index.html.http://www.ercot.com/about/governance/index.html Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. Disclaimer:  All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure. 2

3. Agenda Introductions Understanding the Background that drove Nodal Protocol Revision Request 711 (NPRR711): Market Responses to Questions Identified during prior Workshops and more recently through comments: Review and Discuss NPRR 711 Comments filed  http://www.ercot.com/mktrules/issues/NPRR711#keyd ocs http://www.ercot.com/mktrules/issues/NPRR711#keyd ocs Action Items/Next Steps 3

4. ERCOT Protocols Section 2 Protocol Section 2 Definitions and Acronyms:  Interval Data Recorder (IDR) A metering device that is capable of recording energy in each Settlement Interval under Section 9, Settlement and Billing, and Section 10, Metering.  Interval Data Recorder (IDR) Meter An IDR where the ESI ID is required to be assigned a BUSIDRRQ Load Profile Type code and data is submitted in accordance with Section 10.3.3.3, Submission of Settlement Quality Meter Data to ERCOT.  Interval Data Recorder (IDR) Meter Mandatory Installation Requirements The kW (kVA) level at which the installation of an IDR Meter is required for Settlement purposes as set forth in Section 18.6.1, Interval Data Recorder Meter Mandatory Installation Requirements. 4

5. ERCOT Protocols Section 10 Protocol Section 10.3.3.3  Submission of Settlement Quality Meter Data to ERCOT (1)Settlement Quality Meter Data shall be submitted to ERCOT on a periodic cycle, but no later than monthly: (a) For provisioned Advanced Meters, Settlement Quality Meter Data will be submitted using an ERCOT specified file format for the interval data only, which will be used for Settlement. (i) The monthly non-interval total consumption and demand (if applicable) values for these ESI IDs shall be provided to ERCOT and Load Serving Entities (LSEs) using the appropriate Texas Standard Electronic Transactions (TX SETs) in order to: (A) Effectuate the registration transactions outlined in Section 15, Customer Registration; and (B) Determine if a Premise has become subject to the IDR Meter Mandatory Installation Requirements. (ii) These non-interval total consumption and demand values will not be used for Settlement. (b) For all other meters, Settlement Quality Meter Data will be submitted using the appropriate TX SET. 5

6. ERCOT Protocol Section 18 Protocol Sections 18.6  Installation and Use of Interval Data Recorder Meters: 18.6.1 Interval Data Recorder Meter Mandatory Installation Requirements (1) Interval Data Recorder (IDR) Meters are required and shall be installed and utilized for Settlement of Premises having either: (a) A peak Demand greater than 700 kW (or 700 kVA in CenterPoint Energy’s service territory); or (b) Service provided at transmission voltage (above 60 kV). (2) For the IDR Meter installation process, refer to the Retail Market Guide Section 7.13.2.2, Mandatory Interval Data Recorder Installation Process. 6

7. Retail Market Guide Section 7 Retail Market Guide Section 7.13.2.2  Mandatory Interval Data Recorder Installation Process. Each month following ERCOT’s publishing of the IDR Requirement Report, the CR has 30 days to verify that each ESI ID meets the requirements of Protocol Section 18.6.1, Interval Data Recorder Meter Mandatory Installation Requirements, and if so, initiate the appropriate request to the TDSP or notify the TDSP of any discrepancies for investigation. (a) If the IDR Meter installation request meets the Protocol requirements, the CR shall initiate a request to the TDSP for an IDR Meter to be installed using one of the following options: 7

8. Retail Market Guide Section 7 Mandatory Interval Data Recorder Installation Process (cont.): (i) Send the appropriate 650_01, Service Order Request, requesting an exchange of the current meter to an IDR Meter installation, also included in the TX SET transaction the CR will provide in the comments/text field the reason for the exchange request (example, ESI ID met mandatory install requirements) along with all CR and Customer contact information in order that the TDSP can appropriately coordinate and schedule the request with the CR and/or Customer. (ii) Complete Section 9, Appendices, Appendix H2, Interval Data Recorder (IDR) Meter Installation Request Form, and submit it by e-mail to the appropriate TDSP for processing at the TDSP’s e-mail address listed in Table 29, TDSP E-mail Addresses for the IDR Installation Request Form. 8

9. IDR Meter with BUSIDRRQ Load Profile Assigned 9 MDMS Converted to/or MV90 Systems Usage and Billing System IDR or AMS Meter Meter Data Manager conversion to/or MV90 System Data Retrieval: AMS Data Collection or Telephone Line or Field Polled at Meter ERCOT Transaction Management Systems and NASEB Server REPS Customers 867_03 Monthly Cycle and Interval Data Billing and Invoicing by REP 15-Minute Interval Data with Reads used for 867 Monthly Usage Transaction Processing” 867_03 Monthly Cycle and Interval Data

10. Interval Data Recorder (IDR) Meter Process TDSPs collect readings and usage from IDR or AMS Meters through either:  Meter Data Management Systems (MDMS)  Automated Processes  Telephone/Dial-up Communications  Meter Crew Polling IDR meter at Premise Reading and Usage Data processed to create the Monthly 867_03 TX SET transaction  Monthly readings along with 15-minute interval data is processed according to TDSP’s Monthly Cycle Read Schedule TDSPs will communicate these readings and interval data to ERCOT and REP of Records via the TX SET 867_03 Monthly Usage transaction for ERCOT’s Real Time Market (RTM) Settlements and REPs of Record for their Customer’s Invoice. 10

11. AMS Data Flow Overview 11 Data Collection Meter Data Management System (MDMS) Customer Information System (CIS) Daily Register Read and Interval Usage Data REPS Retailers “Daily 15-Minute Interval Data LSE Files” COLLECTOR SMT ERCOT Customers Register Read for 867 Processing Transaction Management Systems and NASEB Server “867 Readings along with Summarized Usage” Daily 15-Minute Interval Data LSE Files

12. AMS LSE Data Process Usage and Register Reads collected from AMS meters through TDSP’s automated communications process. Register Reads and Usage are processed in Meter Data Management Systems (MDMS) LSE Interval Data is produced Daily LSE Files containing 15-minute Interval Data is sent to both ERCOT for Real Time Settlements (RTM) and Smart Meter Texas (SMT) for Customer’s and REP of Record’s use. 12

13. Questions? 13