MVI/MVO Workshop June 3 – 12, 2002

1. MVI/MVO WorkshopJune 3 – 12, 2002 Workshop Results

2. Objectives • Review most recent proposed MVI/MVO solutions to: • Explore ways to eliminate touch points, • Reduce transactions, • Address any business gaps, • Shorten potential implementation time, • Improve process control. • Recommend to RMS for their approval, Conceptual Recommendations resulting from Objective #1. • Identify potential long term solutions that probably require further discussion before Conceptual Recommendations can be formulated.

3. Approach • Open Stakeholder process involving 11 to 17 companies. • Week 1 • Defined Operational Problems • Listed types of Move-in/out • Reviewed current proposal • Define Guiding Principles • Week 2 • Brainstormed long term solutions • Identified Pro’s/Con’s for Potential Solutions • Discussed Pro’s/Con’s and Developed Conceptual Recommendations and Ideas

4. Types of Outcomes • Set of Conceptual Recommendations that could be: • Included in Next Release after V1.5 or • Implemented by MPs without V1.5 or Protocol changes or • Implemented by MPs with Protocol changes • RMS would be asked to only approve these Conceptual Recommendations understanding PRRs, SCRs or additional details may be required. MVI/MVO working group would be charged with PRR and SCR development. • Set of Ideas requiring further analysis. This effort would be undertaken after the details for approved Conceptual Recommendations are addressed. No RMS approval now. • ERCOT Proposal for interim solutions under certain MVI scenarios.

5. Conceptual Recommendations #1 Greater Transaction Visibility • ERCOT will develop a plan to provide visibility into the Transaction Life Cycle and ESI ID Life Cycle. • MPs will provide their Portal requirements to ERCOT. ERCOT will combine the MPs’ requirements into a project scope of work and then seek market input into the final set of requirements. • Consensus Achieved

6. Conceptual Recommendation #2Cancellation of Pending Switch • MVI/MVO cancels pending Switch Transactions regardless of whether the MVI/MVO effective date is before or after the pending Switch effective date. • Consensus Achieved

7. Conceptual Recommendation #3Holding MVI/MVO • CR Holds MVI/MVO Transaction for X-days before the actual MVI/MVO date. Current market “rule” has a 14 business day window. • Current working group will define what “X-date” is. • Conceptual Recommendation can be implemented immediately once X-date is defined, however it requires the CRs to “self-police” themselves on the X-date. • Long term solution would include a rejection message if the MVI/MVO was submitted too early. • Majority Agreed with some not agreeing

8. Conceptual Recommendation #4 Splitting MVI from Switch • ERCOT forwards 814_16 (MVI Request) to TDSP and does not translate them into an 814_03 (Switch Request). • Only Switches will be translated into 814_03 (Switch Request). • CRs would receive a 814_05 (Enrollment Response) for both Switches and MVI. • CSAs need to be investigated. • Consensus Achieved

9. Conceptual Recommendation #5 Safety Net MVI • Quick Response Team should research if improvements can be made such that an 814_16 (MVI Request) transaction can be processed putting the market model into motion. • A potential Idea is for CRs send their Safety Net MVI to ERCOT using spreadsheets, CSV or other options as deemed appropriate. ERCOT updates their systems and transmits to the TDSPs.

10. Conceptual Recommendation #6 NFI Rejection Codes • NFI rejection text needs to clearly define the reason for NFI rejections. • ERCOT creates the appropriate logic to identify NFI situations and develop associated NFI rejection codes/text. • Consensus Achieved

11. Conceptual Recommendation #7 Expedite ESI ID • TDSPs and ERCOT develop an expedited ESI ID creation process. • Consensus Achieved

12. RMS Vote onConceptual Recommendations

13. Idea #1Eliminate Initial Meter Reading Transaction • ERCOT will review elimination of the 867_04 (Initial Meter Reading) and using the 814_04 (Switch Response) to close the business process instance or other options as appropriate. (BPI).

14. Idea #2 Relaxing NFI Logic • ERCOT to relax NFI logic upon receipt of 814.04 instead of 867.04. • This Idea would establish the business relationship for that ESI ID. This Idea does not affect the establishment of the relationship for settlement purposes. The effective relationship continues to be established via 867.04.

15. ERCOT Proposal Same CR MVI • MVI/MVO working group explored this idea and made the following observations. • Defer further action until ERCOT reports to RMS on 6/14/02 their discussions with TDSPs. • The concept proposed by ERCOT would be interim and optional for any CRs. The proposal would address current market operational problems with the volumes of MVI/MVO when the same CR is involved. If current market conditions change, this Concept may not be viable.

16. Next Steps • RMS approves Conceptual Recommendations. • ERCOT will integrate this workshop’s Conceptual Recommendations into ERCOT’s overall Retail Market Services Initiative Plan. • Develop pre-work and analysis that should be accomplished before commencing requirements definition. • MVI/MVO working group begins to define the detail requirements for each approved Conceptual Recommendation. • PRRs and SCRs will be presented to RMS for approval. • RMS will resolve working group disagreements when they begin defining the MVI/MVO detailed requirements.