Profiling Working Group August 2, 20061 PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for COPS Meeting August 22, 2006

August 2, 20061

Profiling Working GroupProfiling Working Group

PWG Update Report

By

Ernie Podrazaof Reliant Energy

ERCOT PWG Chair

for

COPS Meeting

August 22, 2006

August 2, 20062


Oil & Gas New Profile Request

• Original filing date 2/28/2003.

• Additional Load Research Requested by ERCOT Staff to support analysis of segment population per the Load Profiling Guide.

• Load Research analysis presented to PWG 3/30/2006.

• ERCOT Staff Recommendation presented to PWG 4/27/2006.

• Additional discussions at subsequent PWG meetings and PWG conference call on 7/19/2006.

• Perhaps as many as 20,000 ESIIDs affected.

August 2, 20063



ERCOT Analysis:

http://www.ercot.com/meetings/pwg/keydocs/2006/0330/Oil_%26_Gas_preliminary_sample_r.ppt

ERCOT Recommendation:

http://www.ercot.com/meetings/pwg/keydocs/2006/0628/Oil__Gas_Profile_Change_Reques.doc

August 2, 20064


Oil & Gas New Profile RequestExisting Rules

PUCT Rule: Sub Chapter F on Metering for section 25.131(e)(3)

http://www.puc.state.tx.us/rules/subrules/electric/index.cfm

ERCOT Protocols: Section 9.9, “Profile Development Cost Recovery Fee for a Non-ERCOT Sponsored Load Profile Segment”

Load Profiling Guide: Section 12, “Request for Profile Segment Changes, Additions, or Removals”

Profile Decision Tree:

August 2, 20065


Oil & Gas New Profile RequestProposed Pending Procedural Changes

1) New Profile ID Segment called “BUSOGFLT” for Business Oil and Gas Flat Profile.

2) CR would submit copy of the Sales Tax Exemption Certificate for the ESI ID which is on file with the CR. In addition, the CR will be required to provide ERCOT with a copy of a Customer Certification to the CR that the Customer holds an official Texas Railroad Commission Operator Number and uses electricity at the premises identified by the ESI ID for the purpose of exploring, producing or transporting oil and/or natural gas extracted from the earth.

August 2, 20066



3) ERCOT would communicate to TDSP the ESIIDs which need a profile change to BUSOGFLT as well as the list of approved CRs who are allowed to use the BUSOGFLT.

4) TDSPs are to execute Profile ID assignment changes in the same fashion as in the annual validation process.

5) TDSPs would monitor compliance that only appropriate CRs are using the BUSOGFLT profile per PUCT and Market Rules.

August 2, 20067



6) If the requestor is to be reimbursed per PUCT Rules and Protocols Section 9.9, then a CR wishing to use the BUSOGFLT profile shall have to pay for a share of the cost to develop this profile. Subsequent CRs using the profile would also pay a share until four(4) years have passed. ERCOT would not handle the payments between parties but would calculate the fee and maintain the CR approved list.

7) If a switch occurred on a premise with the BUSOGFLT profile and reimbursement is required but the new the CR does not wish to share in the reimbursement then the premise profile id assignment shall be changed from BUSOGFLT.

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8) The BUSOGFLT profile follows the premise after a switch unless previous item 7

9) ERCOT during quarterly validations would monitor compliance of the BUSOGFLT assigned premises with the approved CR list and approved premise list and communicate appropriately.

August 2, 20069


Oil & Gas New Profile RequestImpacts

• UFE improvement due to the segment shape of Oil and Gas aggregate population on a more appropriate profile shape.

• ERCOT, TDSP and CRs would need to add BUSOGFLT code to their systems. (No TxSet impact)

• TDSP would need a process to implement PUCT Rule.

• ERCOT settlement would need to add the new shape.

• CR shadow settlement and forecasting systems would need to handle the new shape.

• ERCOT would be required to implement a quality assurance methodology as outlined in the ERCOT recommendation

August 2, 200610


Oil & Gas New Profile RequestEstimated Implementation Timeline

• Depends on Market Approval Process.

• Assuming LPGRR and Profile Decision Tree approvals by December 2006 and following 150 day market notice, possible implementation in May 2007. Otherwise probably the Fall of 2007.

August 2, 200611



VOTEMotion

That COPS recommend to the TAC approval of Oil & Gas New Profile Request

Upon approval, the PWG will submit LPGRR and Profile Decision Tree changes required for implementation

Documents

Profiling Working Group August 2, 20061 PWG Update Report By Ernie Podraza of Reliant Energy ERCOT PWG Chair for COPS Meeting August 22, 2006