Role of Account Management at ERCOT

1. Role of Account Management at ERCOT 2007 TAC Goal Input February 01, 2007

2. Commercial Operations Subcommittee (COPS) • 2006 COPS Accomplishments: • Worked with RMS to transition PWG into COPS and maintain timely completion of Annual Validation Process. • Worked through process to change “Settlement Invoice Due Date” from 16 Calendar Days to 5 Business Days. • Submitted proposed changes to “Discontinue Interest Charges for Defaulting Entities at Time of Uplift”. • Implementation of TPTF Review Task Force. • The PWG Completed Implementation of New Profile Determinates. • Updated “Commercial Operations Market Guide” and established a structured revision process (similar to other guides). • ECCP Communication Plan - updated/refined template and changes. • Recommendation to PRS regarding “discontinuing interest charges for defaulting entities at time of Uplift” • An ad hoc task force created to review TPTF working documents as they relate to data and financial settlement processes.

3. Commercial Operations Subcommittee (COPS) • 2006 COPS Accomplishments: • The DEWG co-sponsored with ERCOT a successful web services training – 60 participants. • The DEWG updated the Extract and Report Matrix – up to date Matrix of all reports and extracts produced by ERCOT on website. • “Screen Scraping” – MP’s concern that ERCOT “policies” conflict need to access information – MIS group under TPTF is aware of market concerns and added this issue to their log. • The DEWG monitored progress of various activity related to data and extracts. • The UFE TF obtained better understanding of the drivers of UFE analyzing the historical trends in volatility and magnitude

4. Commercial Operations Subcommittee (COPS) • 2007 COPS Goals: • Focus on nodal implementation & changes in market processes. • Plan, organize, monitor, and assist, the COPS working groups assigned specific tasks as they relate to nodal activity. • Settlements & Data Aggregation Working Group (SDAWG): • Resolve nodal settlement timelines & accounting processes. • Monitor and comment on all relative TPTF working documents as the relate to the financial & settlement processes; suggest Protocol language changes as required. • Work through implementation process as nodal progresses. • Unaccounted for Energy Task Force (UFE TF): • Inactive until needed.

5. Commercial Operations Subcommittee (COPS) • Profiling Working Group (PWG): • Ongoing effort to improve determinates. • Complete implementation of new profile determinates on time and on budget. • Monitor process, timelines, market issues • Ensure data is correct • Provide oversight of Annual Validation Process • Review, Monitor, and Suggest Improvements to Profiling Process • Data Extracts Working Group (DEWG): • Inactive until needed. • Accept handoff from TPTF when timing is right for implementation of Market Information System (MIS) changes for Nodal.

6. Protocol Revisions Subcommittee (PRS) • 2007 PRS Goals:

7. Reliability and Operations Subcommittee (ROS) • 2006 ROS Accomplishments: • Address frequency control issue (i.e. Schedule Control Error (SCE), governor response – expectation on how things will work). • The ROS completed this work & ERCOT’S SCE scores have improved. • Annual engineering work . • The ROS evaluated several items including an analysis of the April 2006 EECP event. As part of the review, the ROS modified the EECP procedures to alert the market sooner about potential emergency conditions. • Fuel and winter issue review • ERCOT staff updated the previous fuel and winter issue review. The updated study showed that ERCOT would not be able to serve expected winter Loads if natural gas supplies were curtailed.

8. Reliability and Operations Subcommittee (ROS) • 2007 ROS Goals: • Convert the existing ERCOT Operating Guides to conform to the new nodal market. • Establish the Texas Reliability Entity’s (TRE) standards drafting process. • Review & analyze ERCOT System Operations, Emergency Electric Curtailment Plan (EECP) events & significant outages. • The analysis should include proposed changes to ERCOT Operating Guides, Protocols and Standards. • Support the conversion of the ERCOT network model for use in the nodal market. • Identify compliance obligations for meeting NERC Standards and tasks delegated by ERCOT to entities via the ERCOT Protocols. • This should include a description of evidence needed to demonstrate compliance.

9. Retail Market Subcommittee (RMS) • 2006 RMS Accomplishments: • RMGRR031 Update and Clarification to IDR Installation Process for Mandatory and Optional IDR Installations • Service Availability Agreement with ERCOT Documentation and Development of Measurements Reporting Tool • SCR748 Website Enhancements to Support ERCOT Outage Notifications • PUCT Project No. 29637 Standards Terms and Conditions Market Process Documentation and Transaction Process Changes • 5 RMG process documentation updates; PRR672 relating to ERCOT Transaction Timing; & PRR693 specific to ERCOT processing of Priority MVI requests • Developed Interim Manual Process to Expedite Mass Transition Processing: Reduced Number of Days for POLR CR to submit Switch request; Reduced FASD from 6 to 3 days

10. Retail Market Subcommittee (RMS) • 2006 RMS Accomplishments: • PUCT Project No. 31416  amending 25.43 relating to the Provider of Last Resort • Customer Information Repository Process Definition • Old POLR to New POLR Transition Process Definition • Transaction based Mass Transition Process enabling 5 day transition process • Hosted POLR Workshop to inform and educate MP's on process • At request of PUCT Staff, RMS hosted working group discussions relating to Advanced Meter Rulemaking and provided recommendations • Implementation of MarkeTrak Phase I

11. Retail Market Subcommittee (RMS) • 2007 RMS Goals: • SCR745, Retail Market Outage Evaluation & Resolution, Implementation and Reporting • Update ERCOT Service Availability Agreement to be inclusive of Service Degradation Issues • Successful TX SET 3.0 implementation • Define MarkeTrak Phase II Enhancements & Performance Monitoting • Monitor PUCT Activities: Advanced Metering Rulemaking, Performance Measures Rulemaking • Continue PRR672, Retail Market Timing Necessary for PUCT Project 29637, effort to improve ERCOT throughput of 814_20 maintenance transaction enabling adds and deletes

12. Wholesale Market Subcommittee (WMS) • 2007 WMS Goals: • Examine issues associated with SB20 • Anything else that TAC comes up with • Complete review of revised ERCOT reserve margin calculation methodology and make appropriate recommendation to TAC. • Resolve the issue of Renewable Production Potential (RPP) • Review settlement of wind resources. • Examine settlement of Ancillary Services for multiple markets. • Examine Implementation of CREZ & Resource Adequacy/Market Power Rules.

13. Other Input Received • Nodal implementation oversight – identifying the appropriate role for the TAC stakeholders in oversight of & communications related to nodal implementation. • More in-depth communications on TAC reliability issues. • Maintaining focus on retail transaction processing, outages & communications. • Developing the appropriate level of stakeholder involvement in the TRE & improving communications to the stakeholders about TRE developments. • Focus on generation adequacy to meet preferred reserve margins.

14. Other Input Received • Focus on transmission studies to ensure generation has adequate transmission. • Set information update deadline for TAC meetings at 24 hours prior to meeting. • Improvement to Economic Impact Analysis calculations. • Continued reports of employee turnover & efforts to improve. • Security (related to information kept on laptop computers). Nodal development oversight. • ERO/TRE monitor and rate oversight. • ERCOT credit requirements of Market Participants.

15. Other Input Received • Refine Replacement Reserve Service procurement requirements. • ERCOT obtaining stakeholder input on regulatory issues. • Focus on retail transaction processing, effective communications between ERCOT & stakeholders related to processing issues, and accountability. • Explore possibility of opening up Load reduction programs to smaller customers, on a voluntary basis to encourage more active participation. • Aggregator access to data related to usage and switching dates. • Explore possibility of having CWG join TAC subcommittee team. • Increased review/discussion of reliability. • Defining subcommittees’ roles in the nodal transition.

16. Questions?