Status Update: Retail Open Access for ETI within SPP

2. Status Update: Retail Open Access for ETI within SPP Stakeholder Meeting June 20th , 2008 Austin, TX

3. Solution Goals • Implement ROA for ETI in accordance with Commission directive • Leverage existing ERCOT and SPP systems and rules to make as few changes as possible

4. Activities Completed Since Last Meeting • Determined SCR727 will be used to collect meter data from ERCOT • Began work with SPP Settlements team to develop a list of activities, system changes, and associated complexities as inputs to cost estimates • Determined preferred option for REP interaction (transmission access, scheduling and settlement) with ETI and SPP – REPs interact directly with SPP • Developed list of activities associated with REPS becoming transmission customers

5. REPs as Transmission Customers in SPPMajor Functions • Registration • Each REP will be identified as a Transmission Customer and register as such with SPP • Existing ERCOT processes for registration, testing, data management, and disputes of retail system data will apply to REPs (no significant difference over current ERCOT-REP interaction) • Reservation of Transmission Service and Capacity Adequacy • Load Serving members have responsibility for capacity planning under SPP Criteria 2 • Assumption: ETI will continue to provide this function • Alternatives to this scenario can be discussed and selected prior to implementation

6. REPs as Transmission Customers in SPPMajor Functions – (cont) • Ancillary Services Obligations • REPs will need to procure required Ancillary Services (“AS”). • AS can currently be procured through utility’s tariffs. • SPP is a provider of last resort for AS. • No tariff changes will be required. • Transmission Load Relief • Assumption: ETI would be provider of last resort. • Scheduling • REPs would be required to schedule energy, identify AS and submit resource plans. • SPP’s Balancing Energy Market (EIS) market would be available to resolve shortfalls.

7. REPs as Transmission Customers in SPPMajor Functions – (cont) • Transmission and Distribution Settlements • ETI will need to bill REPs for services provided pursuant to the ETI tariff. • Interaction is similar to the relationship between TDSPs and REPs in ERCOT.

8. REPs as Transmission Customers in SPPMajor Functions – (cont) • Market Settlements • Settlement for REPs will occur within SPP’s existing settlement system. If using zonal pricing, no system changes to the core settlement system. • If more than one zone in ETI area, REPs would have to reserve transmission for each zone. • REPs act as full Market Participants and would receive invoices directly from SPP’s settlement system. • Aggregated ESI ID meter data will be needed within 45 days in order to complete settlements within SPP’s settlement timelines. • A new application/module will need to be built to aggregate data from the SCR727 database.

9. Activities In Progress • Working with SPP team to determine aggregation/data flow processes for SCR767 data • Developing cost estimates for settlement system changes related to data aggregation • Researching credit processes/procedures • Developing options for capacity adequacy

10. Next Steps • Continue work on ROA data flow processes incorporating SCR767 data • Work with Settlements team to drive out high level costs for aggregation processes and application changes. • Research current credit processes and procedures • Expand options for managing capacity adequacy • Identify impacts to SPP staffing in supporting ROA

11. Questions?

12. Beth MillerAccenture484.716.1706beth.miller@ accenture.com