Nueces Electric Coop

1
Nueces Electric Co-op Competitive Retailer
Billing Processes

• April 8, 2005

2
Information Disclosure Issue

• In proposed 25.475, Information Disclosures, REPs
  are required to disclose all material terms of
  arrangement with the customer however, for
  consolidated billing, the REPs need to have NEC
  DSPs billing and collection practices to comply
  with 25.475.
• The NEC DSP billing and collection practices are
  already defined and it is the purpose of this
  meeting to help REP operations personnel to
  understand those procedures and processes that
  remain unclear.

3
Agenda

• Member/Customer Billing Options in NEC DSP Area
• The Consolidated Bill Format
• Overview of Consolidated Billing Process
• NEC Billing Cycles Bill Ready Information for
  CRs
• Meter Usage Invoices
• Estimated Meter Reads Invoices
• Continuous Service Agreements (CSAs)
• Clarification of CPR 25.480
• Cancel/ Re-bill Process
• Account Numbers Account Balances
• Consolidated Payment Remittance to CRs
• Operational Issue- LOAs
• Off-Cycle Switches Drops
• TX SET Changes

4
Customer Billing Options

• NEC allowed to bill members directly for NEC DSP
  services (PURA 41.057)
• NEC TDSP consumers have TWO options for billing
• 1- members can choose to receive two (2) bills
  one from NEC and one from the CR
• 2- members can choose to receive one (1) bill
  SENT BY NEC
• If no preference expressed, or CR chooses to not
  inform members about option, default is single
  bill sent by NEC (option 2)
• Consumption/ billing information must be retained
  by NEC to allow allocation return of capital
  credits to members (determined in proportion to
  their use)

5
Consolidated Bill Format

• Energy charges on bill are bundled as in current
  market
• Non-energy fees will be itemized (NEC DSP CR)
• CR logo is allowed but will be in black or blue.

6
Consolidated Bill Format
Q -In proposed 25.479, Issuance and Format of
Bills, it is not clear what rules apply if NEC
DSP is doing the billing. Current rules are
written to impose requirements on the REP. There
is no discussion of how the REPs charges will be
shown on the bill. A-NECs consolidated bill is
designed to meet all requirements for REP bills,
as stated in 25.479.
7
Consolidated Bill Issue

• REPs are given a one-line brand/logo reference
  with associated billing determinants for the
  energy portion of the bill.
• NEC has developed and approved a format for a
  consolidated bill. NEC has provided a sample bill
  to CRs, on request.
• If any CR would like to recommend a different
  consolidated bill format, it may submit a letter
  (containing a sample recommended format, along
  with an itemization of the CRs recommended
  changes and justification for each change) to
  NECs management and board of directors for
  consideration.

8
Transaction flow for Enrollment through First
Consolidated Billing with NEC

• Consumer enrolls with CR CR accepts consumer
• CR sends 814_01 to ERCOT
• ERCOT sends 814_03 to TDSP
• TDSP responds with a 814_04 Same day or Next day
  (depending on when the 814_03 was received and
  the Inbound and outbound process were ran).
• When the account is made active TDSP will send
  867_04 and 814_20 and spreadsheet with
  discretionary charges
• When the Bill-Calc is ran for this accounts
  cycle. An 867_03 will be sent.
• The CR will have three days to get the 810_03
  back to the TDSP.
• On the afternoon of the third day the TDSP will
  run the Interactive bill print and send out the
  current months billed charges for both the TDSP
  and the CR (as long as the TDSP has received the
  810_03 from the CR) If the CR does not make the
  deadline CR charges will have to wait until next
  months bill to be sent.
• When the Payment is made (to make the TDSP whole
  first), then the rest will apply to the CR.
• Once the CR type service has money applied to the
  account, it will be sent out to the CR as an
  820_03 Remittance Advice only.
• Co-op will then cut a check for this amount to
  the CR. 

9
Transaction flow for Enrollment through First
Consolidated Billing with NEC
10
NEC Billing Cycles Bill Ready Information from
CRs

• NEC reads meters in coincidence with billing
  cycles (see 2005 NEC bill cycles on website)
• NEC forwards all kWh usage per cycle to CR
  (867_03)
• CRs reply within 3 days with invoices (810_03)
• NEC mails bill to customer by next business day
  after receiving invoice from CR
• Bill due date is 16 days from the mail date

11
NEC Billing Cycles

• NEC has 5 cycles 2005 calendar is on website at
  http//www.nueceselectric.org/billing.htm
• CR will know the NEC bill cycle by the 814_04.

12
Meter Usage Invoicing

• In the 867_03, meter usage, NEC will send a date
  and time of when the REP must provide NEC DSP
  with REPs 810_03 to insure that it will be on
  the customers bill. What is the timeframe from
  when the REP receives the 867_03 from NEC DSP to
  when the REP must get the 810_03 to NEC DSP? Is
  there an established timeframe?
• The timeframe is 5 days.
• Currently, Protocols dictate that the TDSP has 3
  days from the day that the meter was read to get
  the meter read to ERCOT. ERCOT then has 4 hours
  to get the meter read to the REP. Based on the
  time that a REP has to send the 810_03 to NEC
  DSP, what if there is a delay in the REP
  receiving the meter read and the REP does not
  believe that the allotted time was given to them?
  Can the REP reject the 867_03 with an 824? Will
  NEC DSP allow the REP to send it late? How would
  the REP notify NEC DSP of these situations?
• If the CR knows that there will be a time delay a
  phone call should be made to NEC CR Relations
  (Eloise or Dave).

13
Meter Usage Invoicing

• Will NEC DSP ever hold the REPs transactions
  until the next month if the REP misses the date
  transmitted in the 867_03?
• Transactions are processed and if the bill window
  is missed the REPs bill information will be
  reflected on the next months bill.
• In the 810_03 it states Any cancel/re-bill
  invoices received after the bill window will be
  reflected as an adjustment on the customers bill
  for the next month. This statement is in the
  current and future implementation guides.
• TDSP will send a corrected bill to member if
  error detected immediately after billing,
  otherwise cancel rebill will be reflected as an
  adjustment on the next months bill

14
Meter Usage Invoicing

• If the REP receives the 867_03 usage and it is
  rejected with an 824, are there any timelines
  around when the REP will receive a new 867_03? Is
  the customers bill held up until we receive a
  valid 867_03?
• The timeline is 3 days. There is a possibility
  that the bill could go out incorrectly, but a
  corrected bill will be sent out as soon as the
  cancel rebill is received from the CR.
• The current 810_03 states that After a final
  867_03 and a final 810_03, a REP may discover
  that late payment charges apply to a customer.
  Therefore, the REP may submit another 810_03 to
  the MC TDSP for these late charges. Currently in
  the 2.0a TX SET release, there is no way for a
  REP to send an invoice after the REP has sent a
  final to the Co-op. How will this transactional
  need be accommodated by NEC DSP until 2.1 is
  implemented?
• Yes, the CR will be able to send additional
  charges after the final 810.03.
• In 2.1, the 820_03 allows for the Muni/Co-op to
  be able to send a debit to the REP for instances
  when a customers funds were not available. How
  is this going to be handled until the 2.1 changes
  come in?
• The co-op is able to send a debit payment now.
  The only change in 2.1 is that we are adding code
  to let the CR know what the debit payment is for.

15
Estimated Meter Readings Invoicing

• Will NEC DSP denote on the read transition
  whether the read is estimated?
• Yes
• Does NEC DSP have any rules that limit number of
  consecutive estimated reads that customers may
  receive?
• Yes, after three estimated readings NEC obtains a
  reading.
• If the REP has a technical issue, or for some
  reason the usage is not received by the REP
  however, the REP knows that an invoice needs to
  be sent, can the REP estimate the customers
  usage and send an 810_03? How will the REP
  inform NEC DSP of any estimated invoice?
• CRs cannot estimate usage. Contact CR Relations
  in the event of technical issues that prevent
  receiving usage.

16
Continuous Service Accounts

• Since the 814_18, to establish a CSA, is not
  passed from ERCOT to the Muni/Co-op until 2.1,
  NEC DSP will not know the CSAs REP billing type
  or the REPs account number.
• ERCOT passes the billing type to NEC DSP on an
  814_03.
• The REPs account number is required on the
  820_03, remittance. The billing type is required
  to insure that NEC DSP knows if the REP is going
  to be sending a bill to them or not.
• NEC DSP gets the CR account on the 810_03 and
  holds until the 820_03 is sent back to CR.
• What procedures does NEC DSP have in place to
  accommodate CSAs until the implementation of TX
  SET 2.1?
• We have the service location marked to notify
  owner of a move-out. Which we translate to mean a
  CSA exists and account is returned to owners name.

17
Clarification of CPR 25.480

• In proposed 25.480, Bill Payment and Adjustments,
  it is not clear what payment rules apply if NEC
  DSP is doing the billing. For example, will the
  DSP assess a late fee on behalf of the REP?
• YES
• What happens if there is an over or underbilling
  as a result of an error on the part of the DSP?
• At the time the error is identified, NEC DSP will
  implement the cancel rebill process.
• If the customer doesnt pay the DSP, who can
  order disconnection for non-payment? Can the DSP
  agree to payment arrangements on behalf of the
  REP? .
• NEC DSP orders DNPs for wires charges. NEC DSP
  will not make payment arrangements on behalf of
  the REP.

18
Cancel/ Re-bill Process

• Error is detected
• TDSP sends 867_03 cancel usage via EDI to CR
• CR sends TDSP cancel rebill invoice
• TDSP will send a corrected bill to member (if
  error detected immediately after billing,
  otherwise cancel rebill will be reflected as an
  adjustment on the next months bill)

19
Account Numbers Account Balances

• Account Number
• In the 810_03, it states that the REP is required
  to send its customers account number in the
  invoice transaction. Does NEC keep up with this,
  or do they print this on the customers bill?
• No, NEC does not print REPs account no. on the
  bill.
• This requirement is removed for 2.1, future
  implementation. Do the REPs still need to send
  their customers account number until that time?
• Yes.
• In the 820_03, it indicates that the REPs
  account number is sent from NEC to the REP. What
  procedures does NEC have in place to capture and
  maintain this account number from when the REP
  sends it to NEC on the enrollment transactions?
• While we have the capability to do this, at this
  time, we are not capturing the account no. on the
  enrollment.
• Account Balances
• Will NEC be maintaining the REPs account
  balances, or will the REPs need to send the
  current and previous balances every month?
• Yes, NEC will maintain the REPs account balances
  and will be reflected on the customers next
  months bill as balance forward.

20
Consolidated Payment Remittance Issues

• The REPs need for NEC to provide a detailed,
  end-to-end walk through and documentation for the
  customer payment and remittance process. Detailed
  communication processes need to be developed to
  address the various scenarios related to customer
  payments to NEC DSP such as partial payments,
  and how NEC DSP will communicate with the REP,
  and how payment issues will be resolved related
  to disconnect/reconnect.
• How many days from when the customer pays does
  NEC DSP have to send payment to the REP?
• On the 820_03, remittance advice, there are no
  dates, invoice numbers or customer information.
  When the REP talks to a customer about payment,
  the REP will have no view or information about
  this. The REP will have no dates, check numbers
  or amounts for use in talking with the customer.
  What procedures does NEC DSP have in place to
  address these issues?

21
Payment Options for Customers With Consolidated
Billing

• Cashiers available in main office in Robstown
  with drive thru lane, and cashier available at
  the Ricardo Service Center during regular
  business hours- accept cash, checks, money
  orders.
• 24 hour payment drop box available outside main
  office in Robstown and outside Ricardo Service
  Center.
• Mail picked up at daily in the Robstown Post
  Office (Monday-Friday) and payments post thru the
  remittance machine.
• BillMatrix Corporation telephone and electronic
  check/debit card, credit card or internet. 4.95
  per transaction fee charged to member. Phone
  payments (800-232-8190) or Internet payments
  (www.nueceselectric.org). Payment notification
  sent via e-mail to CR when posted.
• Pay stations nineteen area pay stations. 1.00
  per transaction fee charged to member and payment
  notification is not posted for two (2) business
  days.
• Bank drafting service is available.
• Level Billing member should contact NEC (NEC
  DSP must have 12 months of history with member at
  the premise)

22
Consolidated Payment Remittance

• Regular Payment Process
• When payment is received the coop portion is paid
  first and balance is applied to CR/REP portion of
  bill.
• Remittance advisory (820_03) will be sent to
  CR/REP twice daily.
• Check will be remitted weekly each Monday or if
  holiday the next business day to CR/REP with
  corresponding remittance Tran Trace number
  (820_03).
• Credit balances left after the CR/REP is paid
  will be retained by NEC DSP and applied to the
  next bill.
• Returned checks
• The CR/REP will be notified thru a 820_03 and
  these payments will be debited for the amount of
  the returned check. No fees will be charged to
  the CR/REP by NEC.
• When the member makes good on the returned check
  the CR/REP will be notified by 820_03 and money
  will be credited on that weeks payment.

23
Consolidated Payment Remittance

• Payments on disconnect/reconnect
• Payment must be in full including any
  disconnect/reconnect fee charged by DSP to the
  member.
• Remittance (820_03) will be sent to CR/REP twice
  daily and payment by check will be remitted to
  CR/REP weekly, each Monday or if holiday the next
  business day, with corresponding remittance Tran
  Trace number (820_03).
• Reconnect (650_01 or 650_04) should be sent by
  DSP or CR/REP. Reconnect (650_01) submitted by
  the CR/REP can be rejected (650_02) by the DSP if
  member has not paid the funds due the DSP.
• Refer to DNP Guide for emergency reconnect.

24
Consolidated Payment Remittance

• Dual Bill - Account has been disconnected either
  by the DSP or CR/REP using disconnect (650_04 or
  650_01).
• DSP initiated (650_04)
• Cooperative confirms members satisfactory
  correction of reason for disconnect and releases
  reconnect request to FSR to be completed.
• Payment must be made in the business office
  during regular business hours or thru Bill Matrix
  (payments can be confirmed by telephone).
• Payment must be in full including any
  disconnect/reconnect fee charged to the member
  before a reconnect request can be released to FSR
  for completion.
• Cooperative will submit reconnect (650_04)
  according to TX SET guidelines.
• CR/REP initiated (650_01)
• Cooperative validates in accordance to the DNP
  Guidelines and an internal service order is
  routed and scheduled geographically to the
  appropriate FSR.
• Cooperative completes order and responds to
  CR/REP with a 650_02 in according with the DNP
  Guidelines.
• CR/REP confirms customers satisfactory
  correction of reasons for disconnect and submits
  reconnect (650_01).
• Cooperative receives reconnect (650.01) and
  performs validations including making sure that
  all funds have been paid to the DSP before a
  service order will be released to FSR for
  completion.
• If validation is not complete a reject (650_02)
  with the appropriate code and reason is sent to
  CR.
• Upon successfully validating the reconnect
  (650_01), an internal service order is routed and
  schedule to the appropriate FSR.
• Cooperative completes order and responds to CR
  with a (650_02) within one business day of
  completion.

25
LOAs

• The current LOA process is outlined in the Retail
  Market Guide (RMG). Will NEC be updating this
  information?
• No plans exist at this time to update the
  information.
• Will NEC use the current process that is lined
  out in the RMG for LOA information?
• Yes, however, NEC will also reject the request if
  neither our member on record for the ESI ID, nor
  their spouse, is the signature on the historical
  usage request.
• When may a REP begin sending LOA forms, and where
  should they be sent?
• LOA submission may begin concurrently with the
  release of the mass customer list to CRs. This
  will be approximately 2 weeks after the pending
  approval of PUCT Docket 30633 and thirty days
  before the first phase of the transition of
  customers into competition. Requests should be
  e-mailed to NEC.

26
Off Cycle Switches Drops

• When a REP sends an off-cycle switch, or
  off-cycle drop, will NEC DSP send that charge to
  the customer?
• No, the CR will include the applicable charges on
  its bill-ready invoice and NEC will send a paper
  invoice to the CR for the fee.
• If the customer does not agree with this charge,
  will NEC DSP allow the customer to dispute this
  charge with them and credit the customer for this
  charge?
• No. Since NEC will not be involved in the
  customers request for the switch or the REPs
  decision to drop the customer, the CR will handle
  any billing issues regarding these charges with
  the customers.

27
New TX SET Changes

• There are 49 new TX SET draft requirements for
  entities participating in an MOU/EC territory.
  These will be implemented in the next version of
  TX SET 2.1, which is currently scheduled for the
  Dec. 2005 timeframe. Implementation of these
  requirements is critical to provide for an
  efficient market and positive customer
  experience.
• Yes there are 48 changes, however only 11 of them
  are MOU/EC specific. We agree that these changes
  must be implemented. However, work-arounds are in
  place for all of these issues at this time. All
  NEC DSP and ERCOT systems are operational for CRs
  to successfully operate in the NEC territory
  today.

28

• ADDITIONAL
• QUESTIONS/ DISCUSSION