IDR Taskforce Report to RMS

1. IDR Taskforce Report to RMS September 14, 2005 ERCOT MetCenter Conference Room 206

2. Optional Removal Process • Task Force drafted PRR 617 to clarify the intent of Section 18.6.7 and to eliminate conflicts found in Section 18.6.1 (2). (Approved by PRS on August 24, 2005) • Task Force drafted RMGRR 028 outlining the agreed upon process on the Optional IDR Removals (RMS Voting Item) .

3. Mandatory Install Process • At the May 10th RMS Meeting, the Taskforce brought an additional recommendation to RMS to allow the scope of the taskforce to expand to include the development of an RMGRR to address the process for IDR Mandatory Installations, including the lowering of the mandatory threshold changes to 700 kW (kVA)

4. Protocol Section 18.6.1(1) • 18.6.1 Interval Data Recorder (IDR) Installation and Use in Settlement (1) IDR Mandatory Installation Threshold: IDRs shall be installed and utilized for settlement of Premises having either: a. A peak demand greater than 1000 kW (or 1000 kVA), or b. Service provided at transmission voltage (above 60 kV). As of October 1, 2005, the IDR Mandatory Installation Threshold shall be a peak demand greater than 700 kW (or 700 kVA) and all meter changes shall be completed by the later of April 30, 2006 or within 120 days of the CR being notified that the IDR Mandatory Installation Threshold has been met,

5. Current IDR Requirement List • 67 currently reported as needing IDR installations of which: • 45 New (<120 days on report) • 22 Overdue (first reported > 120 days ago) 2 -- Currently de-energized 2 -- Questionable demand values 18 -- Active and appear to require IDRs • Overdue IDRs range from 4 to 28 months • 8 CRs and 1 TDSP

6. 700 kW (kVA) IDR Requirement List • Scope of Work based on latest query: • 1,212 ESI IDs • 1,205 Active • 7 De-energized (No REP of Record) • Market Participants Involved in Transition • Retail Customers • Competitive Retailers: 35 • ERCOT • TDSPs AEPC: 82 (1 de-energized) AEPN: 14 CNP: 377 (1 de-energized) Sharyland: 2 TNMP: 43 TXUED: 694 (5 de-energized) • Period of Transition 10/1/2005 – 4/30/2006

7. Smooth Transition, Is it possible? • Taskforce Short-Term Recommendations: • Market Participants should be aware of the change to the Settlement Timeline from 17-days to a 10-day Settlement Period. • TDSPs have agreed that no IDR installations would occur prior to October 16, 2005 to allow for Settlement timeline change testing to be completed and implementation schedule, also for corrections to Load Profile to be effective. • CRs will have until October 16, 2005 to verify the demand levels for each ESI ID and take action where necessary to have ESI IDs removed from the requested list.

8. Smooth Transition, Is it possible? • Taskforce Short-Term Recommendations: • ERCOT will provide “700 kW (kVA) IDR Requirement List” to CRs (REP of Record) and TDSPs by Friday, September 2, 2005. • ERCOT will include in this list (spreadsheet) a column for CRs to include billing cycle, month, and comments of their preferred schedule for the IDR installation. • This list will also include a column that will be utilized by the TDSP to propose an alternate date or billing cycle where or if needed.

9. Smooth Transition, Is it possible? • Taskforce Short-Term Recommendations: • CRs will provide ESI ID response to “700 kW (kVA) IDR Requirement List” to both TDSP and ERCOT that will include billing cycle, proposed month, and comments of when the IDR should be installed by the TDSP. CRs are expected to make their best effort to distribute the installations uniformly across October 16, 2005 to April 30, 2006 timeframe. This updated response will be emailed by the CR no later than Friday, September 16, 2005 to: • AEP - crrtx@aep.com • CNP - CR.Support@CenterPointEnergy.com • Nueces - eflores@nueceselectric.org • Sharyland - egarcia@su-power.com • TNMP - MV90operator@tnpe.com • TXU ED - meteringservices@txued.com

10. Smooth Transition, Is it possible? • Taskforce Short-Term Recommendations: • If the schedule in aggregate received by the TDSP does not adequately spread the work load across the available timeframe, the TDSPs will work with CRs to make adjustments as needed. The TDSP will provide a final schedule to the CR (Rep of Record) and ERCOT of the proposed installation schedule of IDRs by September 30, 2005. • Monthly updates will be provided to RMS by ERCOT of the status of this IDR Transition Project. Updates will include: • Number of installs completed by TDSP territory • Number on the list requiring IDR Installation by TDSP territory

11. Questions? • Taskforce Question: • In the Load Profile Guide section 17.2 it is documented that: • “Any ESI ID listed in the IDR Requirement Report, which has not had an IDR meter installed within 120 days shall be reported as “overdue.” It is the responsibility of the Market Oversight Division (MOD) of the PUCT to monitor Market Participant compliance with IDR installation requirements.” • What is the intent of providing the list to Market Oversight Division – is it informational only and/or should some action be taken to enforce/re-enforce installation of IDR by PUCT? • Taskforce request clarification from Staff as to what should occur if the list is referred to the Market Oversight Division of the PUCT or list as “overdue”.