1

Market Operations PresentationBoard of Director’s Meeting

September 16, 2003

2

Market Services – YTD Perspective

3

Client Relations - Wholesale

Wholesale Market Participants

10 Account Managers

Market Participants per Account Manager

Dispute Activity: 3+ / per Account Manager / Day

89 Qualified Scheduling Entities – includes 25 Sub-QSEs

128 Resource Entities

142 TDSPs – includes 130 non opt-in entities

9 QSEs, 12 Resources, 14 TDSPs

4

2003 Year to Date: 5,199

Granted w/ Exceptions, 970

Denied, 3,091

Granted 354

Open 784

Dispute Status

5

Settlement Disputes Genesis

Errors / omissions

Repetitive disputes/ placeholders

Challenges to protocol language

Sometimes used to lodge complaints

Market events often drive up dispute volumes

Disputes required by protocol

SCR 727 load imbalance disputes

February local congestion / market solution issue

6

Client Relations - Retail

Retail Market Participants

6 Account Managers

Market Participants per Account Manager

FasTrak Activity: 10 / per Account Manager / Day

74 Competitive Retailers

12 TDSPs

12 CRs, 2 TDSPs

7

FasTrak 2003 “Day to Day”Issue Stats (as of 09-12-2003)

Total ESI IDs worked to date since January 1, 2003 = 204,883

IssueCount

Issues as a% of Total

In Progress 583 6.09%

Resolved 8,425 88.05%

Rejected 560 5.86%

TOTAL 9,568

IssueCount

Issues as a% of Total

In Progress 1,485 55.79%

Resolved 1,131 42.49%

Rejected 46 1.72%

TOTAL 2,662

Non-ERCOT

ERCOT

Number of ESI IDs not tracked

8

Upcoming Highlights• ERCOT 101 – Retail Market – September 18th

64 people from 26 companies

• Q4 2003 V1.6 Market TestNew CRs: Alliance Power Company

Pegasus Star EnergyProviron Energy LimitedTrizec HoldingPedernales Co-op

• 2004 Market Tests

Flight 0104 – V1.6 for New MPsFlight 0304 – V1.6 for New MPsFlight 0504 – V2.0 MIMO Stacking SolutionFlight 0904 – V2.0 for New MPs

• ProjectsV1.6 Competitive MeteringV2.0 MIMO Stacking SolutionETS Continued Evolution

9

• Market Operations – Top Issues

– Data Extract Variance Tracking– 2002 and 2003 True Ups and Proposed

Resettlements

10

FasTrak Data Extract VarianceIssue Stats (as of 09-12-2003)

Service History Usage

TotalIssues

Issues% of Total

In Progress 622 0 622 44.68%

Resolved 131 0 131 9.41%

Rejected 611 28 639 45.91%

TOTAL 1,364 28 1,392

Service History Usage

TotalIssues

Issues% of Total

In Progress 586 898 1,484 64.55%

Resolved 236 274 510 22.18%

Rejected 102 203 305 13.27%

TOTAL 924 1,375 2,299

Non-ERCOT (CR to TDSP)

ERCOT

number of ESI IDS not tracked

number of ESI IDS not tracked

11

2002 and 2003 True ups

Current Schedule:

2003 True ups

Oct 1 ‘03

2002 True ups

12

Current Schedule:

2003 True ups

Oct 1 ‘03

Proposed Schedule: Oct 1 ‘03 Feb 1 ‘04

2002 and 2003 True ups

2002 True ups

2002 True ups

13

Current Schedule:

2003 True ups

Oct 1 ‘03

Proposed Schedule:

2003 True ups

Oct 1 ‘03 Feb 1 ‘04

min 120 daysuspension

Preserves dispute rights

2002 and 2003 True ups

2002 True ups

2002 True ups

14

Current Schedule:

2003 True ups

Oct 1 ‘03

Proposed Schedule:

2003 True ups

Oct 1 ‘03 Feb 1 ‘04

min 120 daysuspension

New 2003 Resettlements

Preserves dispute rights

Participant cash flow approx the same

2002 and 2003 True ups

2002 True ups

2002 True ups

15

Current Schedule:

2003 True ups

2002 True ups

Oct 1 ‘03

Proposed Schedule:

2003 True ups

2002 True ups

Oct 1 ‘03 Feb 1 ‘04

min 120 daysuspension

New 2003 Resettlements

Preserves dispute rights

Participant cash flow approx the same

Initial resettlements will be for unusual days in June ‘03

2002 and 2003 True ups