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Status Update: Retail Open Access for ETI

within SPP

Stakeholder Meeting

September 16th, 2008

Austin, TX

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Activities Completed Since Last Meeting• Met with ERCOT and confirmed that we can use

existing processes and procedures

Existing SCR 727 extract will provide necessary data

• Received estimated software costs to aggregate ERCOT retail data and make ready for SPP Settlement systems

• Began development of final estimated costs for implementation (system changes, labor, and staffing)

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REPs As TC - FunctionsROA Activity ERCOT Today How it will work in SPPCustomer Registration

• ERCOT manages the retail registration database

• ERCOT tests and qualifies TDSPs and REPs for retail transactions

• ERCOT REPs and TDSPs all interact with each other via various retail transactions

• ERCOT manages disputes over data in the registration system

• ERCOT validates that meter data is settlement ready

• SPP uses existing procedures to register REPs as TC’s

• ERCOT manages the retail registration database and tests and qualifies TDSPs and REPs (same as for ERCOT Region)

• ETI loads ESI Ids into ERCOT’s registration database and populates data associated with ESI IDs

• SPP receives SCR727 via ETI from ERCOT registration database and processes

• REPS will receive load data via TDSP

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REPs As TC - FunctionsROA Activity ERCOT Today How it will work in SPPScheduling • Qualified Scheduling Entities

(“QSEs”) represent REPs and generation owners in ERCOT

• QSEs submit energy schedules and may also submit ancillary services bids

• QSEs settle with ERCOT

• QSEs pass on ERCOT charges to their clients via bilateral agreements to which ERCOT is not a party

• SPP will consider all REPs as Transmission Customers (“TCs”)

• TCs must schedule or settle with SPP or designate an agent to do so

• REPs will not need to have a QSE (no wholesale market interaction with ERCOT)

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REPs As TC - FunctionsROA Activity ERCOT Today How it will work in SPPWholesale Settlements

• For all areas in the ERCOT region, ERCOT performs:

Data Acquisition

Population of database for profiled loads

Data Aggregation

Billing

• If ETI becomes part of ERCOT, ERCOT’s wholesale processes would apply to the ETI area

• SPP receives SCR727 updates via ETI

• ESI ID data must be converted and aggregated for use in SPP’s settlement system

• Data must be loaded into staging area and validated

• Data must then be loaded into SPP’s settlement system

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REPs As TC - FunctionsROA Activity ERCOT Today How it will work in SPPInvoicing • ERCOT invoices QSEs for

wholesale market charges

• TDSPs bill REPs for charges pursuant to their tariffs

• Currently, non-ERCOT REPs pay an annual fee of $1.15 per ESI ID to ERCOT. ERCOT is removing this fee. SPP expects that ERCOT and SPP would negotiate a comparable fee amount for ETI ROA

• SPP invoices TCs (or their agents) for balancing energy and associated fees

• TDSPs bill REPs for charges pursuant to their tariffs

• Any administration fees will be allocated to REPs through SPP settlements

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ROA Implementation Cost Estimates

Item Low High

Registration and Set-up Resources

$520,000 $850,000

Settlement System Changes

$1,275,000 $3,000,000

Miscellaneous Hardware $100,000 $200,000

ERCOT Startup Costs to Implement ROA for ETI*

$198,000 $225,000

Total ROA Implementation Estimates

$2,093,000 $4,275,000

* Includes ERCOT Phase II costs Appendix 9 and estimated one time internal ERCOT development work.

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Annual ROA Maintenance Cost Estimates

Item Low High

Staffing* $375,000 $560,000

Settlement System Fees $150,000 $150,000

Miscellaneous Hardware $40,000 $70,000

ERCOT Fees (est.) $36,000 $65,000

Total Annual Maintenance Estimates

$601,000 $845,000

* Staffing rates are based on the 2009 CBTF rates

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Questions?

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Beth MillerAccenture484.716.1706beth.miller@ accenture.com