TxSET Recommendations• Scope of Meter estimations does not warrant additional

Market Reporting or the addition of Protocol requirements.

• Better utilize existing communication methods between TDSP’s and CR’s that can reduce estimates, i.e.,

• Meters removed, requiring MVO from CR• Meter Obstructed/ Locked/ Inaccessible

• Recommend communication between CR and TDSP remain flexible vs. establishing Protocol requirements.

• Allows flexibility for CR to communicate with Customer, determine timeframes for meter accessibility.

• Allows CR to determine if on-going meter estimation is acceptable, and if not, to contact the TDSP to discuss installation of AMR, phone lines, ITRON, etc to secure actual readings.

1st Quarter 2005 Meter Estimation Validation

• TDSP’s agreed to compile data for 1st Quarter 2005 by month to help validate July 2004 report by TX Set WG

• MMWG found TX Set July report to be higher than 1st Quarter Findings; which would be in-line based on time of year and continuous process improvements

• Again, the TDSP’s consolidated internal estimation codes from field readers, ranging from 15 to 35 unique codes by TDSP

• The review does not distinguish between single and consecutive months estimated - 36% of the 1st Quarter .61% estimated reads have the potential to be consecutive months due to access issues

Report for RMSMay 10, 2005

1st Quarter 2005Monthly View of Meter Estimations

Report for RMSMay 10, 2005

1st QrtAverage Percentage

Meter Obstructed / Locked / Inaccessible 15,014 12,770 11,520 13,101 36.1%Equipment problems 8,574 4,887 5,514 6,325 17.4%Meters removed, pending MVO from CR 1,533 1,026 913 1,157 3.2%Employee Illness / Absent / Injured 5,513 284 2,224 2,674 7.4%Bad / Vicious Dogs 2,566 2,171 2,156 2,298 6.3%Weather 1,718 2,988 1,702 2,136 5.9%Meter read / outside 3 day window 2,424 2,084 2,091 2,200 6.1%Meter Missing / Destroyed 5,898 5,402 5,246 5,515 15.2%Misc. 1,039 662 715 805 2.2%Unsafe conditons 76 52 60 63 0.2%Total Meters Skipped ( Estimated ) 44,355 32,326 32,141 36,274 100.0%Total Meters Read 5,958,425 5,895,184 5,978,466 5,944,025 Percent Skipped (Estimated) 0.74% 0.55% 0.54% 0.610260%

Estimation Reason Jan-05 Feb-05 Mar-05

1st Quarter 2005 Average %Meter Estimations by Reason

Report for RMSMay 10, 2005

37%

18%3%

7%

6%

6%

6%

15%

2%

0%Meter Obstructed / Locked / Inaccessible

Equipment problems

Meters removed, pending MVO from CR

Employee Illness\Absent\Not Completed\Injured

Bad / Vicious Dogs

Weather

Meter read / outside 3 day w indow

Meter Missing / Destroyed

Misc.

Unsafe conditons

July 2004 Comparison to 1Q 2005 Avg Meter data from AEP, CNP, TNMP and TXU ED only

Total sample includes single and consecutive meter estimates

July 2004 1Q 2005 Avg

Meters Inaccessible 27,264 38.9% 15,399 42.4%

Meters estimated due to 3-day 21,358 30.5% 2,200 6.1% Protocol requirement

Equipment Problems / Missing Meters 12,804 18.3% 11,840 32.6%

Weather / Illness / Safety / Misc 6,537 9.3% 5,678 15.7%

Meters requiring MVO from CR 2,092 3.0% 1,157 3.2%

Total Meters Estimated 70,055 100.0% 36,274 100.0%

Total Meters in Sample 5,872,255 5,944,025

Overall Percent Estimated 1.19298% .61026%

Report for RMSMay 10, 2005