Supplier Workshop Presentation

1. Supplier WorkshopPresentation NSTAR Boston Edison Commonwealth/Cambridge Electric Light National Grid Massachusetts/Nantucket Electric Unitil/Fitchburg Gas and Electric Western Massachusetts Electric

2. Model Terms & Conditions for SuppliersDefining the Business Relationship Between Utilities, Suppliers, and Customers

3. Supplier Terms & Conditions Objectives: • Who? • What? • Where? • When? • Why? • How? See the EBTS...

4. Business Relationships: Customer • Selects one Supplier per account • Provides the appropriate authorization to Aggregator, Broker, or Supplier to enroll the Customer • Notifies Supplier or DisCo of intent to end relationship

5. Business Relationships:DisCo • Schedules cycle meter read dates; reads meters • Renders bills to Customers as required by Customer/Supplier relationship • Provides the Supplier with billing and usage information as required by the specific billing option • Provides the Supplier with payment information and funds collected when using the complete billing option • Performs load estimation for each Supplier and reports loads to ISO-NE

6. Business Relationships:Competitive Supplier • Obtains authorization for Customer enrollment through Customer or Aggregator • Electronically transmits the information to the DisCo for Customer enrollment, changes, or discontinued generation service • Provides billing rate and pricing to the DisCo for the complete billing option, or initiates supply bill for pass-thru billing option • Participates in Supplier training and electronic systems/transaction testing • All enrollments and consequently, supply contracts need to reflect meter read dates

7. Customer Usage Information Availability • Suppliers responsible for obtaining appropriate Customer authorization • DisCo required to transmit 12 months of energy usage data (and monthly demand if applicable) upon Supplier request • DisCo to provide 12 months energy use on Customers’ bills in addition to current billing period

8. Customer Enrollment • Customer selects one Supplier per account • Supplier obtains authorization and enrollment information • After right of recision period ends, Supplier enrolls Customer with DisCo following EBT protocol • First successful enrollment received by DisCo during the enrollment period will be processed; subsequent enrollments during that same enrollment period will be rejected • Customer switch becomes effective as of next meter read date

9. Billing Services • DisCo reads meters according to schedule • Customer chooses a billing option • Complete billing: generation charges billed on DisCo statement • Pass-thru billing: generation charges billed on Supplier statement • DisCo transfers Customer billing usage data by EBT transaction • DisCo transfers Customer payments by DisCo protocol • Cash posting sequence

10. Customer Service Support • DisCo provides Customer service for distribution • Supplier provides Customer service for generation • DisCo may offer optional Customer service to Suppliers through individual contracts

11. Distribution Service • DisCo responds to service and reliability issues following standard operating practices • DisCo complies with filed service restoration procedures • DisCo provides storm restoration facilitated by direct customer contact • DisCo fulfills new Service Requests for Customers of record • DisCo may disconnect a Customer, according to current MDTE procedures

12. Generation Discontinuance • Supplier may discontinue generation service to a customer on scheduled meter read date • Customers may discontinue Supplier service by contacting the DisCo • Residential discontinuance effective in 2 business days • All others, effective on meter read date

13. Metering • DisCo owns, operates, and maintains all billing meters • Telemetering options are available • Interval data can be used in lieu of load estimation for compatible IDR equipment • Contact specific DisCo for product list and procedures • Extended metering options may be implemented at the Supplier or Customer’s cost

14. Determination of Hourly Supplier Loads • DisCo estimates daily Supplier loads and reports to ISO-NE • Telemetering may be installed for use of actual data in lieu of estimation • DisCo provides daily results to Supplier upon request • Monthly adjustments are made through ISO-New England billing

15. Electronic Business Transactions (EBTs)

16. EBT’s: At the Heart of the Competitive Infrastructure • Guiding Principles behind the EBTs • Electronic Business Transaction Sets • Testing Requirements

17. The EBT Working Group • Why was the EBT WG formed? • Who participated? • How does the EBT WG function? • What are Electronic Business Transaction Standards (EBTS)?

18. DisCo Web Site Information • Current annual meter reading schedule • Data exchange operating schedule • Rate structures • Class average load shapes • Load Profiling Protocol • Holiday schedule • Business and Technical contacts • Supplier training schedule and locations

19. Current Document Versions • Policy documents (Regulations, T&C’s, etc.) • HTTP://WWW.MAGNET.STATE.MA.US/DPU/ • Technical Documents (EBT, EDI transactions, and implementation guidelines) • HTTP://WWW.MASSELECTRIC.COM

20. Electronic Transaction Sets • 5 Business Formats • Account Administration • Usage/Billing • Payments/Adjustments • Settlement • Historical Usage • Appendices/Data Definitions

21. Highlights of Common Transaction Data • DisCo Identifier • Supplier Identifier - Dun & Bradstreet Number • DisCo Customer Account Number • Supplier Customer Account Number • 4 Digits of Customer Last Name or Company Name

22. EBT Transaction 814:Account Administration 1 - Enroll Customer NS to DC 2 - Successful Enrollment DC to NS 3 - Change Supplier Data CS to DC 4 - Change Distribution Data DC to CS 5 - Customer Drops Supplier DC to CS 6 - Supplier Drops Customer CS to DC 7 - Confirm Drop Date DC to CS 8 - Customer Move DC to CS 9 - Error DC to S 10 - Request Customer History S to DC

23. EBT Transactions 810:Usage/Billing 1 - Customer Usage Information (Passthrough Option) DC to CS, FS 2 - Customer Usage and Billing Information (Complete Option) DC to CS, FS 3 - Request for Low Income Reimbursement FS to DC

24. EBT Transaction 820:Payment & Adjustment (Complete Billing Only) 1 - Customer Payment/ Adjustment DC to CS, FS Note: Payment report only. Money transaction handled separately

25. Settlement 1 - Aggregate Load Settlement DC to ES • Unique transaction parameters • Currently not an EDI transaction • Bilaterally arranged data transfer • Forwarded only upon Supplier request

26. EBT Transaction 867:Historical Usage • 1-Customer Usage History DC to ES, B • (B = Licensed Broker) • Note: Usage History does not include interval data

27. Data Exchange Operating Schedule • Processing Schedule • All Supplier transactions received electronically by the DisCo by noon ET on a business day will be processed that day • Effective Date • All successfully processed transactions require a minimum 2-business day window prior to the Customer’s next scheduled meter read date

28. Testing Requirements • Purpose • Suppliers demonstrate capability to electronically exchange data with each DisCo • Methodology • Exchange a standard set of test transactions with each DisCo the Competitive Supplier intends to do business with • Results • Verification of 100% error free transmissions, receipt, and translation of the data by both Competitive Supplier and the DisCo

29. Billing

30. Overview • Billing Systems Are Different • Billing calculation specifics • Billing Rate structures • Cash Posting Sequence

31. Billing Calculation • One Supplier per DisCo Account • Sales Tax Exemptions • Arrears Interest • Residential accounts are exempt

32. Rate Structures • Web Site access to retail rate tariff information • Supplier rate structure consistent with Customer’s existing DisCo rate format (Complete Billing) • Multiple price options within a rate structure • Any enhancements required to support differing rate structures can be made by bilateral agreement with each DisCo at Suppliers’ cost

33. Cash Posting Sequence (Complete Billing) • Terms and Conditions for Suppliers [Sec 8 (8b) (1)] and the EBT Report • Payment Allocation • 1st: DisCo balance • 2nd: Old Supplier balance • 3rd: New Supplier balance • 4th: Any remaining balance, applied to DisCo receivables

34. Final Supplier Balance • Customer owes old Supplier money • Two bill-period rule • What happens if account balance remains after the 2nd bill period? • Balance is removed from Customer’s account on DisCo’s billing system • Supplier is electronically notified • Supplier is responsible for any follow-up

35. Low Income Guarantee • Capped at the lower of standard offer price or the suppliers price as billed • Method and timing of reimbursement will be unique to each DisCo • See EBT report for full description of process

36. Complete Billing: Potential Service Impacts • Availability differs by Company • Budgets Plans • Payment Plans • Sample Bills • Bill Messages • Bill Inserts • Summary Billing