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Supporting Retail Electric Deregulation Supporting Retail Electric Deregulation

for Texasfor Texas

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Discussion TopicsDiscussion Topics

• Background and HistoryBackground and History• Texas Market Model OverviewTexas Market Model Overview• Roles and ResponsibilitiesRoles and Responsibilities• Market Change Control and ProcessMarket Change Control and Process• EDI ProcessesEDI Processes

– Customer EnrollmentCustomer Enrollment– Customer DropCustomer Drop– Customer MaintenanceCustomer Maintenance

• Texas SpecificTexas Specific• Work in ProgressWork in Progress• Questions and AnswersQuestions and Answers

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Structured to…

•Support legislation that provides all customers the ability to choose a Competitive Retail Company

•Continued support of customer billing and service needs

•Enable the Settlement of energy in the Wholesale and Retail markets

•Protect the integrity of the electric grid

•Ensure responsibilities and requirements for all Market Processes are identified in documented ERCOT Protocols, Retail Market Guides or PUCT Rules

Background and History

Texas Deregulated Electricity Model

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Texas Market Model Overview

Many internal processes previously owned by the bundled utilities were modified to support retail electric service through Texas electricity deregulation.

These processes are now distributed among three groups:

TDSP - Transmission and Distribution Service Providers

CR - Competitive Retail Company

ERCOT - Electric Reliability Council of Texas

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Market Roles and ResponsibilitiesTDSP

Primary

Ownership for premise

Competitive Retail Co.

Primary

Ownership for Customer

TDSP Primary Responsibilities

•Transmission &

Distribution of Power•Read & Service Meters•Install, repair and

maintain facilities for

delivery of power to the

customer•Bills for Transmission and

Distribution charges

CR Primary Responsibilities

•Talks to customers•Bills customers•Maintains customers•Gains/loses customers•Purchases energy•Settlement processes•Collects from customer•Payment to TDSP•Customer Service Orders (optional)

650 Service Orders: Reread/Meter test

650 Disconnect/Reconnect

820 Payment

650 Service Order Reply: Reread/Meter Tests

650 Disconnect/Reconnect Response

810 Invoice for Wires and Service Charges

Note this is a representation of the TX IOU model (ESP Consolidated), the MOU/EC model in Texas can be an LDC Consolidate model.

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ERCOT Roles and Responsibilities

TD

SPC

RERCOT

• EDI Validation

• Customer Registration/Maintenance Processes (switching, move-ins, move-outs, drops)

• CR Premise Ownership (REP of Record)

• Forwarding consumption from TDSP to CR

• Landlord/Tenant (Continuous Service Agreement) CR Ownership Classification

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Change ManagementEDI implementation guide changes are managed by the Texas SET (Standard Electronic Transactions) Working Group. Market Participants request Texas SET to investigate potential changes to current business processes and EDI structures

• Valid requests are documented in Change Controls• Change Controls contain the business process and EDI transaction changes necessary for the request• Change Controls are discussed and approved at TX SET meetings• Change Controls are published on the TX SET website

It is important to monitor the Texas SET Agendas for pertinent information

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Retail Market Change Retail Market Change ManagementManagement

• Accomplished by Market Participants, ERCOT, and the PUCTAccomplished by Market Participants, ERCOT, and the PUCT• Accomplished through ERCOT Working Groups, ad hoc Task Accomplished through ERCOT Working Groups, ad hoc Task

Forces and Sub-Committees. Forces and Sub-Committees.

ERCOT Retail Market Standing Working Groups include:ERCOT Retail Market Standing Working Groups include:

TTPT TTPT Texas Test Plan Team Texas Test Plan Team

TDTWG TDTWG Texas Data Transport Working Group Texas Data Transport Working Group

TX SETTX SET Texas Standard Electronic Transactions Texas Standard Electronic Transactions

COMET COMET Competitive Metering (dormant) Competitive Metering (dormant)

MMWGMMWG Market Metrics Market Metrics

• Operate under the direction of the Retail Market Subcommittee Operate under the direction of the Retail Market Subcommittee

(RMS). (RMS). • Working groups submit changes to RMS for Market adoption as Working groups submit changes to RMS for Market adoption as

new processes and procedures are necessary. new processes and procedures are necessary. • Upon RMS approval, change is presented to the Technical Upon RMS approval, change is presented to the Technical

Advisory Committee (TAC) and the ERCOT Board.Advisory Committee (TAC) and the ERCOT Board.

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Retail Market OrganizationRetail Market Organization

ERCOT Board of Directors

TAC

PRS RMS

TTPTWorking Group

TX SETWorking Group

Market MetricsWorking Group

COMETWorking Group

TDTWGWorking Group

PUCT

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•Each Market Participant and ERCOT is responsible for Data Exchange Management

•NAESB EDM v1.6 is the Data transport protocol

•TX SET EDI Guidelines include transaction format and details for the Retail Market

•Rules for Transaction timing are included in: ERCOT Protocols, PUC Rules, Retail Market Guide (RMG)

•Due to the variety and volume of transactions required for Texas Market operations, data exchange is a significant requirement

Data Exchange

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TX EDI TransactionsTX EDI Transactions

Customer SwitchCustomer Switch 814_01, 814_02, 814_05814_01, 814_02, 814_05

Customer Move-outCustomer Move-out 814_24, 814_25814_24, 814_25

Customer Move-inCustomer Move-in 814_16, 814_17, 814_05814_16, 814_17, 814_05

CancelsCancels 814_08, 814_09814_08, 814_09

Customer Drop to AREPCustomer Drop to AREP 814_10, 814_11814_10, 814_11

ESI ID ProcessesESI ID Processes 814_20, 814_21814_20, 814_21

Historical Usage/ConsumptionHistorical Usage/Consumption 814_26, 814_27, 867_02814_26, 814_27, 867_02

Maintain Customer InformationMaintain Customer Information 814_PC, 814_PD814_PC, 814_PD

TDSP to CR Invoice/Cancel/Re-TDSP to CR Invoice/Cancel/Re-billbill

810810

Monthly and Initial Meter ReadsMonthly and Initial Meter Reads 867_03, 867_04867_03, 867_04

Suspension of Delivery ServicesSuspension of Delivery Services 650_04650_04

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TX EDI TransactionsTX EDI Transactions

Optional Processes

CSA ProcessesCSA Processes 814_18, 814_19, 814_22, 814_23814_18, 814_19, 814_22, 814_23

AREP EnrollmentAREP Enrollment 814_14, 814_15814_14, 814_15

Service OrdersService Orders 650_01, 650_02650_01, 650_02

Disconnect/Reconnect OrdersDisconnect/Reconnect Orders 650_01, 650_02650_01, 650_02

Suspension of Delivery Services Suspension of Delivery Services Rej RespRej Resp

650_05650_05

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EnrollmentsEnrollments• Move InMove In

– customer at a new premisecustomer at a new premise– specific datespecific date– Historical usageHistorical usage– Permit pending (20 day) statusPermit pending (20 day) status– Unexecutable if TDSP not able to perform Meter functionUnexecutable if TDSP not able to perform Meter function

• SwitchSwitch- Customer Changing CRCustomer Changing CR- on or off cycleon or off cycle- Historical UsageHistorical Usage- 10 day notification period for all but large C&I 10 day notification period for all but large C&I

• CSA EnrollmentCSA Enrollment– Move out triggers CSA enrollmentMove out triggers CSA enrollment– No Historical UsageNo Historical Usage

• AREP (Affiliated REP) EnrollmentAREP (Affiliated REP) Enrollment– Drop to AREP triggers enrollmentDrop to AREP triggers enrollment

• Ad Hoc Historical Usage RequestAd Hoc Historical Usage Request– Only provided to REP of RecordOnly provided to REP of Record

** Texas is a First In Market** Texas is a First In Market

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DropsDrops• Move OutMove Out

– Customer moving from premiseCustomer moving from premise

– specific datespecific date

– Unexecutable if TDSP is not available to perform Meter Unexecutable if TDSP is not available to perform Meter functionfunction

• Force Move Off (Drop)Force Move Off (Drop)

- MVI/Switch by non REP of Record triggers Force Move MVI/Switch by non REP of Record triggers Force Move OffOff

• Drop to AREPDrop to AREP

– Contract defaultContract default

– Non Payment by Customer if CR has not chosen Non Payment by Customer if CR has not chosen Disconnect optionDisconnect option

– Defaulting REPDefaulting REP

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Maintenance (Changes)Maintenance (Changes)• Customer MaintenanceCustomer Maintenance

– Name/phone number/address changesName/phone number/address changes– Initiated by CRInitiated by CR– Point to pointPoint to point

• ESI ID (Account) MaintenanceESI ID (Account) Maintenance- Create/Maintain Premise (ESI ID)Create/Maintain Premise (ESI ID)

- Meter Add, Meter Remove, Meter ExchangeMeter Add, Meter Remove, Meter Exchange

- Load profile changesLoad profile changes- Transaction routes thru ClearinghouseTransaction routes thru Clearinghouse

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Cancels (Reinstatements)Cancels (Reinstatements)• CancelsCancels

– Cancels MVI, Switch, MVO, Drop to AREP, Cancels MVI, Switch, MVO, Drop to AREP, Force MVOForce MVO

– CR initiated or Clearinghouse/Customer InitiatedCR initiated or Clearinghouse/Customer Initiated– 2 day blackout period on MVI2 day blackout period on MVI– 5 day blackout period on Switch5 day blackout period on Switch– Order must be in review, pending or scheduled Order must be in review, pending or scheduled

status at Clearinghousestatus at Clearinghouse– ESI reverts to previous ownership status; other ESI reverts to previous ownership status; other

stacked orders stay in placestacked orders stay in place

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Texas SpecificTexas Specific

• Competitive MeteringCompetitive Metering• CR Ownership of CustomerCR Ownership of Customer• Enrollment Order Stacking (allows multiple orders Enrollment Order Stacking (allows multiple orders

concurrently on a premise)concurrently on a premise)• Premise based vs customer account basedPremise based vs customer account based• Centralized ClearinghouseCentralized Clearinghouse• Full Deregulated Market – all customer segmentsFull Deregulated Market – all customer segments

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Acronyms and DefinitionsAcronyms and Definitions

• REP - REP - Retail Electric ProviderRetail Electric Provider• AREPAREP - Affiliate Retail Electric Provider - Affiliate Retail Electric Provider • CR - CR - Competitive Retailer - Includes any type Retail Competitive Retailer - Includes any type Retail

CompanyCompany• ERCOT - ERCOT - Electric Reliability Council of TexasElectric Reliability Council of Texas• MOU/EC TDSP - MOU/EC TDSP - Municipal (Muni)/Co-op Municipal (Muni)/Co-op

(Cooperative) TDSP(Cooperative) TDSP• NOIE - NOIE - Non-opt in entityNon-opt in entity• RA - RA - Registration AgentRegistration Agent• POLR - POLR - Provider of Last ResortProvider of Last Resort• PUCT - PUCT - Public Utility Commission of TexasPublic Utility Commission of Texas• TDSP - TDSP - Transmission and Distribution Service Transmission and Distribution Service

ProviderProvider

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Work in ProgressWork in Progress

To continue developing workable solutions for To continue developing workable solutions for deregulated Market processes, it is necessary deregulated Market processes, it is necessary for Market Participants to be involved and for Market Participants to be involved and dedicated to the goal. This will ensure dedicated to the goal. This will ensure processes continue to successfully evolve for processes continue to successfully evolve for the future.the future.

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Questions Questions ??