TAC Report to the ERCOT Board

1. TAC Report to the ERCOT Board September 16, 2003

2. Summary • Load Profile Guide Revisions • Operating Guide Revisions Approved • PRRs 421, 433, 437, 442, 443, 446, 448 • Delay of True Up Settlements

3. Load Profiling Guide Changes • Developed procedures on how costs for new profile development would be shared by others using the profile. • Participants who have paid for a profile type are paid by future users on a pro rata basis. • Also sets guidelines for conditional approval of new profiles.

4. Operating Guide Revisions • OGRR 132 – Transmission Operator Clarification: Clarifies the responsibilities for Transmission Operators. • OGRR 133 – Section 1 Corrections and Clarifications: Implements Protocol and Operating Guides Reference Corrections, section title corrections, punctuation corrections, corrections to pre-deregulation language. Eliminates inaccuracies and inconsistencies.

5. PRR 421 – Conformance with PUC Rule 25.362 • PUCT adopted new rule 25.362 concerning independent organization oversight, including confidentiality provisions • PRR conforms Protected Information section to the new rule • No impact on computer systems; minimal staffing impact; minimal business practice impacts • Recommended October 1, 2003 effective date

6. PRR 433 – Change REC Deficit Banking Percentage • PUCT increased the deficit banking amount from 5% to 10% for CRs during the first 2 compliance periods • PRR conforms REC provisions to rule change • No impact on computer systems (implemented); minimal staffing impact; minimal business practice impacts; no operations impact • Recommended October 1, 2003 effective date

7. PRR 437 – 867_03 Timeline • Adds timeline to Protocols for TDSP-ERCOT monthly meter read timeline • Computer system changes implemented • Recommended October 1, 2003 effective date

8. PRR 442 – Profile Development Cost Recovery Fee • Conforms Protocols to PUCT Order requiring process to collect a fee from REPs requesting new load profile • No impact on computer systems; impacts staffing and business practices • Recommended October 1, 2003 effective date

9. PRR 443 – Competitive Metering Ownership Implementation • Conforms Protocols to PUCT Order regarding competitive metering and establishes reference to Competitive Metering Guide • No impact on computer systems; impacts staffing and business practices • Recommended October 1, 2003 effective date

10. PRR 446 – Disclosure of OOMC Deployments • Discloses OOMC aggregate data second day after trade day and posting of unit specific information on the 30th day after the trade date • Impact on computer systems; impacts staffing • Recommended effective upon ERCOT staffing for manual workaround/system implementation

11. PRR 448 – BUL Implementation • Clarifies how BUL formulae treat static or dynamically scheduled loads • Clarifies capacity payment calculations • Impact on computer systems; impacts staffing and impacts business practices • Recommended effective upon implementation

12. Other PRR Items • PRR 445 – Amendments Regarding “Urgent” Status was rejected at PRS • The following were withdrawn by author: • PRR 281 – Allowance for Site-Specific Resource Dispatch Instructions • PRR 434 – Adjustment to Allocation of REC Purchase Requirements • PRR 438 – REC Timelines

13. Delay of True Up Settlements • Variances between extracts and SCR 727 data have caused delays in retailers ability to validate settlement data. • ERCOT Staff is working to correct variances, but True Ups continue. • Thus any corrections would be uplifted instead of being properly settled against the market. • Proposal would continue to provide settlement updates, but would allow for True Up after data corrections have been made.

14. Proposed language The Board finds that due to unusual circumstances arising from errors in Data Archive extracts needed by market participants to reconcile retail customer assignments and usage data, ERCOT should delay 2003 True-Up Settlement Statements to allow market participants to verify their settlement statements using complete data extracts obtained from ERCOT. Pursuant to the authority of the Board of Directors Section 9.2.7 of the ERCOT Protocols, all true-ups for 2003 shall be delayed until market participants have a reasonable amount of time to load complete data extracts and analyze the data, and sufficient time to process any alleged variances as follows: (1) 2003 True-Up Settlement Statements will begin no earlier than 120 days from the date that ERCOT provides the first complete SCR 727 data extracts related to 2003 to market participants, as determined by ERCOT, and (2) alleged data variances indicated in the extracts affecting 2003 True-Up Settlement Statements must be submitted to ERCOT in chronological order beginning 90 days from the date that ERCOT provides the first extract related to 2003. Pursuant to the authority of the Board of Directors Section 9.2.5 of the ERCOT Protocols, beginning October 1, 2003, ERCOT shall issue Resettlement Statements beginning with 2003 Trade Days June 10, 11, 12, 13, 16, 17, 19, 20, 21, 22, 24, and 25 and continue thereafter with Resettlement Statements for January 1, 2003, and following Trade Days, until such time as the True Up Settlement Statements for 2003 begin, as provided in this resolution.