1. TAC Report to the ERCOT Board February 17, 2004

2. 2 Summary Request that ERCOT staff initiate Operations Review GroupRequest that ERCOT staff initiate Operations Review Group Creation of Commercial Operations WGCreation of Commercial Operations WG Selection of Subcommittee Chairs & Vice ChairsSelection of Subcommittee Chairs & Vice Chairs Guides Revision Requests approvalGuides Revision Requests approval Settlement Time line recommendationSettlement Time line recommendation  PRRs 425, 426, 459, 464, 473, 477, 478, 482, 484

3. February 17, 20043 TAC Subcommittee Chair/Vice Chairs for 2004 SubcommitteeChair Vice Chair Protocol Revisions Kevin Gresham Reliant Resources Steve Madden Occidental Chemical Reliability & Operations Rick Keetch Reliant Resources Paul Breitzman Garland Power & Light Retail Market Dennie Hamilton Reliant Resources Tommy Weathersbee Oncor Wholesale Market Bob Helton American National Power Brad Belk LCRA

4. February 17, 20044 Guides Revisions Approved by TAC Retail Market Guide (RMGRR 2004-001)Retail Market Guide (RMGRR 2004-001) –Add Standardized Safety Net/Priority Move-In Process Competitive Metering Guide (CMGRR 2004- 001)Competitive Metering Guide (CMGRR 2004- 001) –Revised to conform with the finalized Agreement for Meter Ownership approved by PUCT Load Profiling Guide (LPGRR 2003-2004)Load Profiling Guide (LPGRR 2003-2004) –Revised to conform with PRRs 442 and 478

5. February 17, 20045 TAC Recommends 2003 True-up Settlement statements should begin on June 1, 20042003 True-up Settlement statements should begin on June 1, 2004

6. February 17, 20046 PRR 425 – Section 8 Outage Coordination Revises transmission and resource outage requirements.Revises transmission and resource outage requirements. Intent is to provide more certainty around outages for ERCOT and market participantsIntent is to provide more certainty around outages for ERCOT and market participants Clarifies requirements for RMR, BS and SyncCondensersClarifies requirements for RMR, BS and SyncCondensers Effective 3/1/04; 1 LT FTE; minor IT impactEffective 3/1/04; 1 LT FTE; minor IT impact Recommended for approval by a vote of 27-1-1Recommended for approval by a vote of 27-1-1

7. February 17, 20047 PRR 426 – Uninstructed Resource Charge for Uncontrollable Resources PRR allows uncontrollable resources an alternative for the calculation of URC and OOME Down paymentsPRR allows uncontrollable resources an alternative for the calculation of URC and OOME Down payments Manual workaround for some portions effective 3/1/04; remainder effective upon system implementation; 1 ST FTEManual workaround for some portions effective 3/1/04; remainder effective upon system implementation; 1 ST FTE Recommended for approval by a vote of 28-0-1Recommended for approval by a vote of 28-0-1

8. February 17, 20048 PRR 459 – EPS Meter Data Transmittal PRR provides deadlines related to EPS meter data transmittal as well as clarification of boxed languagePRR provides deadlines related to EPS meter data transmittal as well as clarification of boxed language Effective upon system implementation; changes are made to in-flight projectEffective upon system implementation; changes are made to in-flight project Recommended for approval unanimously by TACRecommended for approval unanimously by TAC

9. February 17, 20049 PRR 464 – Confidentiality of LSE Transaction Data PRR requires that transaction data submitted by LSEs to ERCOT or received by the LSE from ERCOT remain confidentialPRR requires that transaction data submitted by LSEs to ERCOT or received by the LSE from ERCOT remain confidential Disclosure may otherwise provide competitively sensitive informationDisclosure may otherwise provide competitively sensitive information Effective 3/1/04; minor impactsEffective 3/1/04; minor impacts Recommended for approval by a vote of 28-1Recommended for approval by a vote of 28-1

10. February 17, 200410 PRR 473 – Reactive Standards Proposed language allows induction generators to elect to make a contribution to reactive capability construction but lacks any specificity about paymentProposed language allows induction generators to elect to make a contribution to reactive capability construction but lacks any specificity about payment Effective 3/1/04; minor impactsEffective 3/1/04; minor impacts Recommended for approval by a vote of 26-3Recommended for approval by a vote of 26-3

11. February 17, 200411 PRR 477 – Section 19 TX SET PRR conforms section to reflect revised or added transactionsPRR conforms section to reflect revised or added transactions Effective 3/1/04; no impactsEffective 3/1/04; no impacts Recommended for approval unanimously by TACRecommended for approval unanimously by TAC

12. February 17, 200412 PRR 478 – Use of Lagged Dynamic Samples for New Load Profiles PRR allows use of lagged dynamic samples for new load profilesPRR allows use of lagged dynamic samples for new load profiles Will reduce the time lag between profile approval and settlement; accommodate changes better than static models; and increase accurate use of profilesWill reduce the time lag between profile approval and settlement; accommodate changes better than static models; and increase accurate use of profiles Effective upon system implementation; minor system and business impactsEffective upon system implementation; minor system and business impacts Recommended for approval unanimously by TACRecommended for approval unanimously by TAC

13. February 17, 200413 PRR 484 – Changes for DLC Implementation PRR clarifies how DLC will participate in BULPRR clarifies how DLC will participate in BUL Needed to meet system development requirementsNeeded to meet system development requirements Effective upon system implementation; system and business impactsEffective upon system implementation; system and business impacts Recommended for urgent status and approval unanimously by TACRecommended for urgent status and approval unanimously by TAC

14. February 17, 200414 PRR 482 – Responsibility for ERCOT Administrative Fee Allocates the ERCOT Admin Fee to both Generation Resources and Loads using a 3-year phase-in and Method 1 from ERCOT commentsAllocates the ERCOT Admin Fee to both Generation Resources and Loads using a 3-year phase-in and Method 1 from ERCOT comments Effective 1/1/05; system and business impactsEffective 1/1/05; system and business impacts Recommended for approval by a vote of 21-8-1Recommended for approval by a vote of 21-8-1

15. February 17, 200415