Initial Validation Process Update

1. Load Profiling Working GroupRMS Presentation7/08/2002byErnie PodrazaReliant Energy Retail GroupChair LPWG

2. Initial Validation Process Update • Targets • Complete Profile ID assignment changes. • Due date is 6/15/02. • Part of resettlement of True-ups. • Beginning 7/31/01 trade day.

3. Initial Validation Process Update • TDSP Transaction Submittal Status Updated as of 5 PM, 7/5/02.

4. Initial Validation Process Update • TDSP Profile Change Efforts To Date • Nearly 700,000 814_20 transactions submitted. • A huge amount of work has been completed. • Internal software development changes. • Algorithm development and refinement. • 9 Initial Validation Sub-team meetings. • Frequent communication with ERCOT. • High Confidence level that the algorithms are correct. • Discrepancies have been identified.

5. Initial Validation Process Update • Issues • Difficult to distinguish initial validation transactions from normal business transactions so tracking the status is difficult. • Can not correct profile ID for an inactive account. • Validation error percents may not reflect the final legitimate discrepancies. • Final discrepancies are being worked currently. • ERCOT Transaction Clearing House delay.

6. Initial Validation Process Update • Root Cause of Discrepancies • Profile Group (Residential or Business) not matching ESI ID type. • Some data not in sync between TDSP and ERCOT. • Meter read dates in particular. • Interpretation of assignment of profile id on customer level vs. premise level.

7. Initial Validation Process Update • Current Status as of 7/3/02 LPOG Meeting • ERCOT • June 26 validation run (prior run 4/23). • Some improvement in error percents. • Discrepancies identified. • Ongoing daily reviews with TDSPs. • Will have another validation update by Thursday, 7/11/02. • TDSP • Resubmitting needed 814_20 transactions. • On going daily reviews with ERCOT to reconcile discrepancies.

8. For RMS Vote • Annual Validation for 2002 Concept • Usage month based on calendar prorating of meter reading. • May 2001 through April 2002 data validation period. • ERCOT pulls the sample (instead of TDSP). • TDSP validates ERCOT analysis of profile assignments (instead on ERCOT). • ERCOT issues list of ESI Ids that change. • TDSPs provide 814_20s. • Changes made beginning cycle reads Oct. 1, 2002.

9. For RMS Vote • Load Profiling Operating Guide • Final mailed to exploder 7/5/02. • Changes from comments. • Cheryl Moseley, speaking for the PRS. • Board does not need to approval. • Consistent with other ERCOT Operating Guides. • Appropriate Board references to protocols. • (Sections 2, 2.1.3 step 4, 2.1.3 step 5, and Section 10 paragraph 4). • Chair and Vice Chair election for calendar period. • (Section 4.3 Paragraph 1).