Supporting Retail Electric Deregulation for Texas

1. Supporting Retail Electric Deregulation for Texas

2. Discussion Topics • Background and History • Texas Market Model Overview • Roles and Responsibilities • Market Change Control and Process • EDI Processes • Customer Enrollment • Customer Drop • Customer Maintenance • Texas Specific • Work in Progress • Questions and Answers

3. Background and History Texas Deregulated Electricity Model • Structured to… • Support legislation that provides all customers the ability to choose a Competitive Retail Company • Continued support of customer billing and service needs • Enable the Settlement of energy in the Wholesale and Retail markets • Protect the integrity of the electric grid • Ensure responsibilities and requirements for all Market Processes are identified in documented ERCOT Protocols, Retail Market Guides or PUCT Rules

4. Texas Market Model Overview Many internal processes previously owned by the bundled utilities were modified to support retail electric service through Texas electricity deregulation. These processes are now distributed among three groups: TDSP - Transmission and Distribution Service Providers CR - Competitive Retail Company ERCOT - Electric Reliability Council of Texas

5. Market Roles and Responsibilities Competitive Retail Co. Primary Ownership for Customer TDSP Primary Ownership for premise • CR Primary Responsibilities • Talks to customers • Bills customers • Maintains customers • Gains/loses customers • Purchases energy • Settlement processes • Collects from customer • Payment to TDSP • Customer Service Orders (optional) 650 Service Orders: Reread/Meter test 650 Disconnect/Reconnect 820 Payment • TDSP Primary Responsibilities • Transmission & Distribution of Power • Read & Service Meters • Install, repair and maintain facilities for delivery of power to the customer • Bills for Transmission and Distribution charges 650 Service Order Reply: Reread/Meter Tests 650 Disconnect/Reconnect Response 810 Invoice for Wires and Service Charges Note this is a representation of the TX IOU model (ESP Consolidated), the MOU/EC model in Texas can be an LDC Consolidate model.

6. ERCOT Roles and Responsibilities ERCOT TDSP CR • EDI Validation • Customer Registration/Maintenance Processes (switching, move-ins, move-outs, drops) • CR Premise Ownership (REP of Record) • Forwarding consumption from TDSP to CR • Landlord/Tenant (Continuous Service Agreement) CR Ownership Classification

7. Change Management • EDI implementation guide changes are managed by the Texas SET (Standard Electronic Transactions) Working Group. Market Participants request Texas SET to investigate potential changes to current business processes and EDI structures • Valid requests are documented in Change Controls • Change Controls contain the business process and EDI transaction changes necessary for the request • Change Controls are discussed and approved at TX SET meetings • Change Controls are published on the TX SET website • It is important to monitor the Texas SET Agendas for pertinent information

8. Accomplished by Market Participants, ERCOT, and the PUCT Accomplished through ERCOT Working Groups, ad hoc Task Forces and Sub-Committees. ERCOT Retail Market Standing Working Groups include: TTPT Texas Test Plan Team TDTWG Texas Data Transport Working Group TX SET Texas Standard Electronic Transactions COMET Competitive Metering (dormant) MMWG Market Metrics Operate under the direction of the Retail Market Subcommittee (RMS). Working groups submit changes to RMS for Market adoption as new processes and procedures are necessary. Upon RMS approval, change is presented to the Technical Advisory Committee (TAC) and the ERCOT Board. Retail Market Change Management

9. Retail Market Organization ERCOT Board of Directors PUCT TAC PRS RMS TTPT Working Group TDTWG Working Group TX SET Working Group Market Metrics Working Group COMET Working Group

10. Data Exchange • Each Market Participant and ERCOT is responsible for Data Exchange Management • NAESB EDM v1.6 is the Data transport protocol • TX SET EDI Guidelines include transaction format and details for the Retail Market • Rules for Transaction timing are included in: ERCOT Protocols, PUC Rules, Retail Market Guide (RMG) • Due to the variety and volume of transactions required for Texas • Market operations, data exchange is a significant requirement

11. TX EDI Transactions

12. TX EDI Transactions Optional Processes

13. Enrollments • Move In • customer at a new premise • specific date • Historical usage • Permit pending (20 day) status • Unexecutable if TDSP not able to perform Meter function • Switch • Customer Changing CR • on or off cycle • Historical Usage • 10 day notification period for all but large C&I • CSA Enrollment • Move out triggers CSA enrollment • No Historical Usage • AREP (Affiliated REP) Enrollment • Drop to AREP triggers enrollment • Ad Hoc Historical Usage Request • Only provided to REP of Record ** Texas is a First In Market

14. Drops • Move Out • Customer moving from premise • specific date • Unexecutable if TDSP is not available to perform Meter function • Force Move Off (Drop) • MVI/Switch by non REP of Record triggers Force Move Off • Drop to AREP • Contract default • Non Payment by Customer if CR has not chosen Disconnect option • Defaulting REP

15. Maintenance (Changes) • Customer Maintenance • Name/phone number/address changes • Initiated by CR • Point to point • ESI ID (Account) Maintenance • Create/Maintain Premise (ESI ID) • Meter Add, Meter Remove, Meter Exchange • Load profile changes • Transaction routes thru Clearinghouse

16. Cancels (Reinstatements) • Cancels • Cancels MVI, Switch, MVO, Drop to AREP, Force MVO • CR initiated or Clearinghouse/Customer Initiated • 2 day blackout period on MVI • 5 day blackout period on Switch • Order must be in review, pending or scheduled status at Clearinghouse • ESI reverts to previous ownership status; other stacked orders stay in place

17. Texas Specific • Competitive Metering • CR Ownership of Customer • Enrollment Order Stacking (allows multiple orders concurrently on a premise) • Premise based vs customer account based • Centralized Clearinghouse • Full Deregulated Market – all customer segments

18. Acronyms and Definitions • REP - Retail Electric Provider • AREP - Affiliate Retail Electric Provider • CR - Competitive Retailer - Includes any type Retail Company • ERCOT - Electric Reliability Council of Texas • MOU/EC TDSP - Municipal (Muni)/Co-op (Cooperative) TDSP • NOIE - Non-opt in entity • RA - Registration Agent • POLR - Provider of Last Resort • PUCT - Public Utility Commission of Texas • TDSP - Transmission and Distribution Service Provider

19. Work in Progress To continue developing workable solutions for deregulated Market processes, it is necessary for Market Participants to be involved and dedicated to the goal. This will ensure processes continue to successfully evolve for the future.

20. Questions ?