Annual Validation Cost Estimates for Energy Industry

RMS RMS Update to TAC Update to TAC DEBBIE MCKEEVER JOHN SCHATZ ONCOR LUMINANT G ENERATION RMS CHAIR RMS VICE CHA IR July 25 TAC Meeting July 25 TAC Meeting

Suspend Business and Residential Annual Validation for 2024 June 6, RMS Meeting, RMS approved Suspension of 2024 Business and Residential Annual Validation - to approve ERCOT's suspension of 2024's Business and Residential Annual Validation until 2025 Primary benefits of suspending Annual Validation for 2024 Reduction of Resource Constraints Resources with extensive knowledge of Retail processes may support Annual Validation, in addition to assigned work, possibly including participation or leading in ERCOT Forums Same Resources are needed for internal projects to support TX SET 5.0 MarkeTrak, Retail Flight Testing Reduction or elimination of Costs associated with System support Manual work hours 2

Annual Validation Cost Estimates The following task categories were considered by TDSPs in determining cost estimates Breakdown to time allocated to Annual Validation Business 2023 Analyze the Initial List from Ercot received via a MT Send to IT to run query to analyze initial accounts and send to BU BU analyzes initial ESIIDs and create final list to Ercot BU sends initial list back to Ercot to removed retired and wrong tariff ESIID s Next step: Begin the Annual Validation process to change the profiles Send list to IT to extract the effective date of the profile BU receives and reviews file Upload file to create the changed profiles Review to make sure the profiles were created If profiles are correct, send profiles our EDI translator Profiles are translated and sent to Ercot BU validates Ercot received 814_20 s Receive list of fallout ESIID s, review, and resend if necessary Final reconciliation for 100% completion AV Validation ESIIDs: Distributed Generation AV Validation ESIIDs: Premise Type Mismatch & Zip Code to Substation Final reconciliation for 100% completion 3

Requested by TAC June 27th Meeting Provide Estimated Cost of Annual Validation for one year for ERCOT and TDSPs ERCOT and TDSPs evaluated internal processes supporting Annual Validation for one year and arrived at the following cost estimates. ERCOT AEP Centerpoint $50,000 Oncor TNMP $25,000 $40,000 $18,000 $7,000 4

ERCOT Protocol 18.4.3.1 18.4.3.1 Validation Process (1) Validation of Load Profile Type and Weather Zone assignments, at a minimum, will be performed as follows: (a) Initial Load Profile ID assignment for opt-in Entities; (b) When a change is made in the Load Profile Type or Weather Zone assignment; (c) One time per year for the Business Load Profiles; and (d) At least one time every three years for the Residential Load Profiles during the Load Profile validation process. (2) Details of the validation process will be specified in the Load Profiling Guide Section 11, Validation of Load Profile ID. (3) Any Market Participant may request temporary changes to the process for validating Load Profile IDs to address unusual circumstances. Such change requests shall be recommended by the appropriate TAC subcommittee and approved by TAC. Change requests as a result of an extreme event such as a hurricane or ice storm may be approved directly by TAC. Such requests, if approved by the TAC, shall be in effect only for the requested year. 5

14-pwg_update_to_r ms_20231107.ppt TAC.pptx update to TAC FINAL.pptx 8. RMS UPDATE TO 2023-08-22 RMS TAC Voting Item RMS requests TAC approval of Suspension of 2024 Business and Residential Annual Validation 6

RMS Update to TAC Technical Advisory Committee (TAC) Meeting August 22, 2023 Debbie McKeever Oncor Electric Delivery RMS Chair John Schatz Vistra RMS Vice Chair

Primary Points AMS Data and Access to AMS Data AMS data is the most accurate, granular usage data available AMS data is available in the Smart Meter Texas Portal (SMTP) only to the REP of Record (ROR), unless a Letter of Authorization (LOA) has been obtained AMS data is rarely used by non ROR for pricing because of the SMTP LOA requirements The LOA process involves validations of ESI, Meter Number, and current REP of Record (including DUNS) to proceed. Timely access of usage data is needed to expedite development of pricing for Customers. 8

Annual Validation is needed today and the foreseeable future ERCOT and TDSPs maintain Load Profiles and Substation assignments for each ESI ID. Load Profiles and Substation assignments are validated through Annual Validation. The following business processes are dependent on accurate Load Profiles and/or Substation assignments. Pricing Developing pricing programs for customers is frequently time sensitive. If AMS data cannot be obtained in time for development of pricing, Load Profiles may be used. Load Forecasting Accurate Profiles support development of accurate load forecasts for new Customers Accurate Profiles allow for accurate aggregation in grouping classes of Customers Procurement Allows for aggregation for accurate hedging and provides a checkpoint to compare AMS Data Validation of Substations Substation assignments are validated through Annual Validation. Accurate Substation assignments is critical to determining the correct Congestion Zone (which is a vital component for determining accurate pricing for customers). Other Uses Non-IDR ESI ids Load Profiles are used for Settlement processes REP Marketing efforts to segregate groups of customers REP Marketing materials and programs 9