Regulatory Update

1
Delivery Service Tariffs IDR Metered Data

• Regulatory Update

2
UCOS Update

• Pilot Project rates were approved April 2001
• Final Order issued in October 2001
• Compliance Tariffs were filed 10 days after
  written order was received
• Approval of Market Open Tariffs is expected at
  the end of November 2001
• The case is currently in the motions for
  rehearing phase
• Final APPEALABLE Order Expected by the end of the
  year
• To download a copy of the TXU Tariff for Retail
  Delivery Service, applicable during Pilot, please
  visit
• http//www.txu.com/us/ourbus/elecgas/txuelectric/r
  atesched/default2.asp
• The TXU Tariff for market open will be available
  upon final approval by the PUCT.

3
Delivery Service Rate Classes

• The TXU Tariff for Retail Delivery Service
  includes 7 rate classes. These classes and their
  corresponding average cent per kWh charge are
• Residential Service 2.165 per kWh
• Secondary Service 3.497 per kWh
• Less Than or Equal To 10 kW
• Secondary Service 1.445 per kWh
• Greater Than 10 kW
• Primary Service 2.257 per kWh
• Less Than or Equal To 10 kW
• Primary Service 0.804 per kWh
• Greater Than 10 kW
• Transmission Service 0.409 per kWh
• Lighting Service Monthly basis per light

4
Delivery Service Rate Structure

• Components of each Rate Class include
• Customer Charge
• Meter Charge
• Transmission System Charge
• Distribution System Charge
• System Benefit Fund
• Transition Charge (Remanded to PUC by TX Supreme
  Ct.)
• Nuclear Decommissioning Charge
• Excess Mitigation Credit (Under review by TX
  Supreme Ct.)
• Transmission Cost Recover Factor (When applicable)

5
Demand Determination

• Transmission System Charges
• Non-IDR Metered
• current month kW
• IDR-Metered
• Average of the previous calendar year 4 Summer
  Months demands coincident with the ERCOT Peak
  (4CP).
• Also applicable to TCRF
• Distribution System Charges
• Higher of
• Current month kW or
• 80 of annual high kW.
• Other Non-bypassable Charges (excluding
  SBF,TCRF)
• Same as Distribution System Charges

6
Discretionary Service Charges

• Discretionary Services are defined as
  customer-specific services for which costs are
  recovered through separately priced Rate
  Schedules
• These rate schedules can be found in Section
  6.1.2 of the TXU Tariff for Retail Delivery
  Service and includes
• Non-Construction related Charges (Section
  6.1.2.1)
• Construction Service Charges (Section 6.1.2.2)
• Distributed Generation (Section 6.1.2.3)

7
Lighting Service

• Street Lights
• TXU Electric will continue to install, own,
  operate and maintain street lighting equipment in
  accordance with the Lighting Service tariff
• Requests for Street Lighting Service must be
  initiated through a request made by the
  appropriate Municipality for such service
• Service for new street lighting requests will be
  provided under the appropriate Street Lighting
  Rate Schedule
• Municipalities must secure energy service for
  Streetlights from their designated Competitive
  Retailer
• Non-governmental entities are not eligible for
  Street Lighting Service and will be provided
  service under a secondary or primary point of
  delivery

8
Lighting Service

• Outdoor Lighting
• As filed in UCOS Case
• TXU Electric has proposed to exit the Outdoor
  Lighting market within 5-years after Market Open
  by collecting a 2.78 Asset Recover Cost per
  light to fund existing outdoor lighting removal.
• Update
• Parties are currently considering the removal of
  Outdoor Lighting as a designated Competitive
  Energy Service. Under the new plan, TXU Electric
  would continue to maintain those EXISTING Outdoor
  Lights indefinitely, thus eliminating the 2.78
  Asset Recovery Cost.

9
Price To Beat Rates

• Price To Beat rates are those TXU Electric TXU
  SESCO rates that were in effect in January of
  1999 less six percent, adjusted for fuel cost
  changes, in accordance with PUCT Substantive
  Rules 25.41
• The Price to Beat is only applicable to customers
  whose maximum demand does not exceed 1 MW
• Interruptible, curtailable, competitive pricing,
  and renewable rates not offered as Price to Beat
• Customers eligible for Price to Beat will be
  served by the affiliated CR (TXU Energy Services)
  if they choose not to shop for service in the
  retail market
• The PTB Headroom Hearing is to be held November
  8-9 with final determination by November 20.

10
Price To Beat Rates

• The following rates are not considered PTB
• Rider I - Interruptible Service
• Rate GTUC - General Service Time-of-Use
  Curtailable
• Rate RTP - Real Time Pricing
• Rate GC - Competitive Pricing
• Rider ED - Economic Development
• Rider ET - Environmental Technology
• Rate S - Standby Service
• Rider ES - Enterprise Zone
• Rate RRE - Residential Renewable Energy
• Rider GSRE - General Service Renewable Energy

11
Price To Beat Fuel Factor
A preliminary determination of the PTB Fuel
Factor was discussed at the Nov. 1 open meeting.

• Initially filed on May 1, 2001
• Updated on October 1, 2001 to reflect changes in
  natural gas prices
• Factors resulting from Nov. 1 discussion
• Secondary 0.024948 per kWh
• Primary 0.024353 per kWh
• Transmission 0.023999 per kWh

12
IDR Metered Data Overview

• Interval Load Data will be made available to any
  authorized party making the request
• A customer with a DR87 type IDR meter will not
  have direct access capability due to technology
  limitations. TXU Electric will provide
  information for these loads in text file format
  (Either in a self extracting exe. file or a
  ZIP file)
• All other IDR Metered customers will be provided
  read-only access upon request and will be given a
  password in order to access the Interval Load
  Data information directly. The customer is
  responsible for obtaining technologies for data
  retrieval purposes.

13
IDR Metered Data Overview

• By the end of the year, all IDR data will be
  posted to a web portal
• Access password will be provided to the customer
• Data will be provided through the web portal as
  self extracting text files for the customers
  billing meter.
• IDR data made available on the web portal is the
  most recent 12-Month history

14
Delivery Service Tariffs IDR Metered Data

• Regulatory Update