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PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting July 14, 2004

PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting July 14, 2004. 2004 Annual Validation Earlier this year the PWG compiled a list of ranked ideas and ERCOT Staff responded with comments concerning difficulty of implementation.

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PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting July 14, 2004

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  1. PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for RMS Meeting July 14, 2004

  2. 2004 Annual Validation • Earlier this year the PWG compiled a list of ranked ideas and ERCOT Staff responded with comments concerning difficulty of implementation. • At the PWG meeting on 6/22 it was decided to issue a survey to the TDSPs requesting what items of this priority list could be done for 2004 and beyond. • Currently ERCOT Staff is performing additional analysis on possible cut point revisions to the Profiling Decision Tree for Residential Winter Ratio of 1.5 and the Business Load Factor points of 40 and 60%. • 2003 Profile ID assignment population changes was about 1.66 million ESIIDs. • Current ERCOT Staff projects indicate 2004 Profile ID assignment population migration could be 1.2 million or about 20% of the profile segment population. • It appears that the big driver in the migration % is weather variance from 2003 to 2004.

  3. Results of Survey by TDSP 2004 Annual Validation

  4. Options 2004 Annual Validation • Continue 2004 process with 1.2 million 814_20s. • Suspend Annual Validation for 2004. • Allow more time for TDSPs to implement some suggested algorithm changes. • Change the process to allow ERCOT to compute assignments based on algorithm changes, send files of changes to TDSP, and TDSP submits 814-20 transactions. • Other suggestions ????

  5. Option 2004 Annual Validation • Continue 2004 process with 1.2 million 814_20s. • Pro: • TDSPs have minimal software changes if any. • 25% reduction in transactions from 2003. • Con: • 1.2 million transactions. • Lost resource time if process suspended later this year.

  6. Option 2004 Annual Validation • Suspend Annual Validation for 2004. • Pro: • TDSPs have no software changes for 2004. • 1.2 million less transactions. • Con: • Does not meet current Protocols. • ESIIDs may be in the inappropriate profile. • Could create a large backlog of transactions for 2005.

  7. Option 2004 Annual Validation • Allow more time for TDSPs to implement some suggested algorithm changes. • Pro: • Reduces the transactions. • Con: • TDSPs perhaps have considerable software changes. • Delays the current 2004 annual validation planned schedule.

  8. Option 2004 Annual Validation • Change the process to allow ERCOT to compute assignments based on algorithm changes, send files of changes to TDSP, and TDSP submits 814-20 transactions. • Pro: • Reduces the transactions. • Reduces perhaps some of the more extensive software changes for TDSPs. • Perhaps allows 2004 plan to stay on schedule. • Con: • TDSPs have software changes. • How would TDSPs resolve Profile ID assignment disputes if ERCOT made assignment calculation?.

  9. PWG Action Plan 2004 Annual Validation • Continue 2004 process with 1.2 million 814_20s. • ERCOT staff to continue to analyze options. • TDSPs to research possible 2004 changes by next PWG meeting. • Market Participants are reviewing the presentation and discussion per the PWG 7/7 conference call. • PWG to meet on 7/27 to discuss further. • Any suggestions from RMS?

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