ERCOT 3/27/10 Production Issue Overview and Lessons Learned

1. ERCOT 3/27/10 Production Issue Overview and Lessons Learned Karen Farley Manager, Retail Customer Choice RMS

2. Outline for RMS • Project History • Troubleshooting Timeline • Market Communications • Market Impacts • Lessons Learned

3. Project History PR90024 – Expedited Switch – implemented weekend of 8/16/09 • Switch transactions submitted to ERCOT will be processed using the new timelines as indicated in the PUCT expedited switch rule. PR90024 – POLR A – implemented weekend of 1/23/10 • Increase number of Non-Volunteer POLRs (henceforth to be referred to as Large Service Providers). • Notification to defaulted customers via postcard, email and phone. • The cancellation (814_08) and notification (814_06) windows for all switches will be shortened from five to two business days prior to the Scheduled Meter Read Date (SMRD). • The reject code used on the 814_09s to communicate that the cancellation is within the two business day window prior to the SMRD is being changed to reflect this from the code CW5 to CW2. PR90024 – POLR B – implemented weekend of 3/27/10 • Monitor transitioned ESIIDs for 60 days: Identify Mass Transitioned ESI IDs to ensure that the first switch following the Mass Transition, if received within 60 calendar days of the effectuating date of the Mass Transition, is forwarded to the TDSP with a requested date equal to FASD. The identification shall terminate at the first completed switch or at the end of the 60-day period, whichever occurs first. • POLR Switch Monitoring Report: Internal ERCOT report.

4. Troubleshooting Timeline • 03/30 – ERCOT identified a problem with 814_04s failing internally and traced this back to the 814_03 for Self Selected Switches. Emergency SIR was submitted • ERCOT was contacted by a Market Participant concerning the issue with the LIN segment of 814_03s on self-selected switched. • ERCOT reprocessed impacted 814_04 transactions that failed for Texas Set validations to schedule the switch orders. • 03/31 – Emergency SIR implemented to correct 814_03 transaction. • Continued reprocessing impacted 814_04 transactions • Identified an additional set of impacted orders that had been Cancelled/Rejected by TDSP. • MarkeTrak issues were submitted to CRs on 4/1 and 4/2 to work through potential out of synch conditions. • 04/01 – Continued reprocessing impacted 814_04 transactions

5. Troubleshooting Timeline Continued • 4/1 – A REP notified ERCOT that a subset of the self-selected switches were scheduled or completed for a different date than what was requested on the initiating switch transaction. • 4/1 – 4/2 – ERCOT worked with the TDSP#4 to identify impacted list. • 4/5 – ERCOT submitted MarkeTrak issues to the REPs for the impacted switches. • 4/6 – ERCOT provided a list to the TDSP#4 of the MarkeTrak issues submitted to REPs. • 4/7 – 4/9 – Discussions between TDSP #4 and ERCOT concerning resolution method. Finalized by TDSP #4 on Friday, 4/9. • ERCOT proposed solutions in the MarkeTrak issues when originally submitted. After discussions with TDSP #4 a different solution was implemented.

6. Troubleshooting Timeline Continued • 4/9 – 4/12 – ERCOT completed data repair on affected orders to update scheduled meter read dates and updated MarkeTrak issues with the TDSP #4 solution Calls with individual Market Participants TDSP #4 – 04/08/10 – TDSP requested conference call TDSP #4 – 04/09/10 – New plan was provided by TDSP

7. Issue Identification / Market Communication Tues 03/30/10 - Market Notice R-A0330-01 INITIAL - Retail Processing LONG DESCRIPTION:  As result of Project 90024 which was implemented in this past weekend’s Retail Release, 814_04s on Self Selected Switches are failing mapping status at ERCOT due to incorrect LIN segment in the 814_03 sent to the TDSPs. Wed 03/31/10 - Market Notice R-A0330-021 UPDATE- Retail Processing LONG DESCRIPTION:  ERCOT will be implementing an emergency SIR for the invalid mapping status failures related to the weekend outage and self-selected switches. There will be no outage necessary and no market impact. All 321 self-selected switches impacted by the invalid mapping status failure and received prior to 8:00 AM this morning, March 31, 2010 have been successfully reprocessed and are in either a Scheduled or Complete state. ERCOT is working through the reprocessing of the self-selected switches received after 8:00 AM today, March 31, 2010 and will have them reprocessed before noon (12:00 PM) tomorrow, April 1, 2010. ADDITIONAL INFORMATION:  There were 25 self-selected switches in a Cancelled state prior to the ERCOT reprocessing effort. ERCOT will reach out to the submitting CRs of these individually to request resubmission and/or manual intervention.

8. Issue Identification / Market Communication Thurs 04/01/10- Market Notice R-A0330-03 UPDATE- Retail Processing LONG DESCRIPTION:  ERCOT successfully implemented an emergency SIR for the invalid mapping status failures related to the weekend outage and self-selected switches on March 31, 2010. ADDITIONAL INFORMATION:  ERCOT is continuing to identify impacted transactions related to this incident. Affected MPs have been sent initial e-mails with MarkeTrak issues opened for them. Additional e-mails will be sent on April 2, 2010 detailing further impacts. Fri 04/02/10- Market Notice R-A0330-04 FINAL Retail Processing LONG DESCRIPTION:  On Wednesday, March 31, 2010, ERCOT successfully implemented an emergency SIR for the invalid mapping status failures related to the weekend outage and self-selected switches. The volume of impacted switches is 682. ERCOT completed reprocessing of affected 814_04 transactions on Thursday, April 1, 2010.  ERCOT is continuing to work with affected market participants to identify transactions which could potentially cause out-of-synch conditions. ERCOT Initiated MarkeTrak issues are being opened with affected Market Participants. ADDITIONAL INFORMATION:  Affected Market Participants received lists of reprocessed transactions on April 1, 2010. MarkeTrak issues are continuing to be opened as out of synch situations are identified. Updated lists will be sent to affected Market Participants as issues are identified.

9. Market Impacts • Customer impacts – switches occurring on date different than requested • 31 REPs and 5 TDSPs impacted – delay of transactions and manual efforts • REPs were emailed lists and were requested to submit 814_26, ad-hoc historical usage, requests where ERCOT failed to convey this request in the 814_03 • Subset of Switches were processed by TDSP #4 as standard switches resulting in completion of orders earlier than the date requested by the customer. This also resulted in 814_06s sent with the incorrect dates. REPs will receive cancel/rebill 867s. MarkeTrak issues with lists of ESI IDs affected were logged to the submitting Switch REPs. • Self Selected Switches were rejected by TDSP #6. Once SIR was implemented, REPs could resubmit) (they had received 814_05 reject. • Out of synch conditions between TDSP, REPs and ERCOT

10. Volumes *Difference – there were 2 scenarios that did not have an issue, had to do with the order in the LIN segment of the HU/HI and SW

11. MarkeTrak issues

12. Lessons Learned Communication • Breakdown of communications at ERCOT affected notifications to the market • Delay in list of the MarkeTrak issues to impacted TDSPs • Inconsistent information was provided by ERCOT to Market Participants on resolution activities • ERCOT Action Item – host a Market call to discuss impacts • ERCOT Action Item – confirm course of action before notifying Market Participants • ERCOTAction Item – when time sensitive ERCOT Initiated MarkeTrak issues are submitted where a response is needed, ERCOT should follow-up with email and phone call to indicate importance and facilitate solution. A majority of ERCOT initiated issues are informational in nature.

13. Lessons Learned Training Challenge faced – Impacted TDSPs processed the 814_03 differently. REPs internal processes differ. This resulted in out of synch and numerous scenarios. • ERCOT Action item – RCC team members will have additional training on system issues and data analysis

14. Questions?