1. 1 Settlement Dispute Validation Commercial Operations Subcommittee January 27, 2005 Presented by ERCOT Wholesale Client Services

2. 2  The ERCOT Protocols specify the required elements for a valid settlement dispute.  Occasionally, ERCOT receives disputes that are missing required information.  Incomplete disputes require additional time for both ERCOT and the disputing parties. Introduction

3. 3  Present the required elements for settlement disputes.  Initiate a discussion of how ERCOT should incorporate a validation methodology into the settlement dispute process.  Long-term goal: All disputes are submitted with all of the information required to resolve the dispute in a timely manner. Goals

4. 4  Protocol Section 9.5.3 specifies the required elements for a valid settlement dispute: 1.Disputing organization 2.Dispute contact person 3.Dispute contact information 4.Operating Day in dispute 5.Statement identification code Required Elements

5. 5  Protocol Section 9.5.3 required elements (cont’d): 6.Statement type 7.Market service type 8.Time period in dispute 9.Amount in dispute 10.Settlement and billing dispute type 11.Reason(s) for the dispute Required Elements

6. 6  Many of the required elements are also required fields in the dispute submission tool or are pulled from the digital certificate of the submitter.  Four troublesome elements occasionally omitted: 1.Operating Day in dispute 2.Statement identification code 3.Time period in dispute 4.Amount in dispute Missing Elements

7. 7  Disputes may contain all of the required elements, but the information is incomplete. 1.Channel number from Statement ID 2.Dispute reason not fully described.  Disputes may contain contradictory information Incomplete or Unclear Data

8. 8  Require all fields to be completed in the dispute submission tool? 1.ERCOT will investigate 2.May take time  Dispute Validation? 1.Protocol Section 9.5.4 allows ERCOT to deny disputes that are missing information. 2.How and when? Where do we go from here?

9. 9  Criteria 1.Statement ID is complete and identifies Settlement Channel 2.Trade Date is valid and corresponds to Statement ID 3.Disputed intervals are identified 4.Dispute dollar amount is declared 5.Reason for dispute is clearly described 6.Supporting data is satisfactory to enable research of dispute. ERCOT Proposal ERCOT proposes the following Settlement Dispute Validation Methodology:

10. 10  Procedure for disputes that do not pass validation 1.ERCOT will create a dispute activity explaining why the dispute did not pass validation 2.ERCOT will deny the dispute 3.The market participant may resubmit the dispute with additional information. ERCOT Proposal Settlement Dispute Validation Methodology (cont’d):

11. 11 Questions