Texas Nodal Program Update

1. Texas Nodal Program Update Jerry Sullivan TPTF Meeting

2. Agenda Texas Nodal Program Update

3. Overall program status remains amber Cost Nodal Delivery Schedule Scope/ Quality Nodal Delivery Scope / Quality Schedule Cost Green Amber Amber Amber Summary Baseline 1 & 2 were approved by the BoD on July 17 and changes are now being incorporated. Testing Czar being appointed to provide overall testing focus. Increasing End User engagement in User Interface reviews. Confirming ability of key vendors to incorporate Baseline 1 & 2 within original schedule. Evaluating downstream lead/cycle time and productivity for improvements. The program is spending to budget through July’s actuals. Cost at complete dependent on achieving quality and schedule targets. Legend Current product quality is not sufficient for Nodal launch Program is not aligned to protocols Estimate at Complete >$263m + 10% Red Go-live = >30 days+ Most Nodal products currently achieve quality standards Program is aligned to previous protocol version Amber Estimate at Complete < $263m + 10% Go-live = <30 days+ Program is aligned with current protocols All Nodal products currently achieve quality standards Green Estimate at Complete = < $263m Go-live = 12/1/08 Texas Nodal Program Update

4. Schedule Performance – Critical Path Paper copy distributed at meeting http://nodal.ercot.com/about/po/tim/kd/timeline_0803.pdf Texas Nodal Program Update

5. Schedule Performance – key recent milestones completed √ √ √ √ √ Milestone Complete More than 30 days from planned milestone Within 30 days of planned milestone date On schedule Texas Nodal Program Update

6. Schedule Performance – key Future milestones Sep 26, 2007 More than 30 days from planned milestone Within 30 days of planned milestone date On schedule Texas Nodal Program Update

7. The real business of testing and integrating exposes challenges in downstream projects, however we are making major strides • SCED FAT – Completed on schedule • NMMS FAT – Failed with Sev 1 defects and sent back to vendor for evaluation • Improvements in migration and configuration • MMS migration time – reduced from 5 weeks to 3 days • Web Services migration time – 14 days to 3 hours • Issues being addressed: • Implementation of automation tools for configuration and release • Communicating upstream dependencies for architecture and migration Projects EMS, MMS etc FAT RM (Factory Acceptance Test) Integration Project • Improvements in Testing cycle time • 1st Sandbox - 0.25 services / day • 2nd Sandbox - 0.84 services / day • Issues being addressed: • Involvement of ITEST team in upstream activities • Access to stable env to begin test scripts • Testing Czar has been appointed iFAT RM iDev RM (Development and Unit Test of Integration) (Integration Factory Acceptance Test) Integration Testing RM ITEST (Integration Testing) (Pre Early Delivery System) (Early Delivery System) EDS RM Sandbox RM EDS RM eEDS • Improvements in Dev cycle time • 1st Sandbox - 0.5 interface / week • 2nd Sandbox - 1 interface / week • 3rd Sandbox – 10 interface / week • Issues being addressed: • Establishing reusable components • Stabilizing design for NMMS integration • Communicating upstream dependencies Legend Release Management (Manages the migration of applications across hardware) RM ERCOT Testing Phases Gains in productivity and challenges being addressed Texas Nodal Program Update

8. Market Readiness Update – Metric Map Progress Texas Nodal Program Update

9. Market Readiness Update – Metric Map Progress • Market Participant Metrics • QSE with Resources Connectivity to EDS Environment (MP2) • QSE with Resources Upload of SCED Offers to EDS (MP3) • ICCP Point to Point Telemetry Test (MP5) • MP Registration Activities (MP11) • MP EDS-2 Trials Participation (MP14) • ERCOT Internal Metrics • ERCOT Staff Completes Training (E1) • Develop Nodal Operating Guides (E6) • ERCOT Staffed for Texas Nodal Operations (E8) • Develop TN Procedures (E9) • Network Model management Metrics • ERCOT Telemetry Alarm Processing (N1) • The Metric Inventory Document has complete Metric to Date cross-reference. • The Readiness Metrics Dashboard will provide details on when metrics will begin to be measured Texas Nodal Program Update

10. Hall of Fame / Wall of Shame* The following QSEs with Resources secured an EDS3 testing Slot by the August 8 deadline (MP2 / MP3): • Austin Energy • American Electric Power • ANP Funding • Brazos Electric Coop • BP Energy • Calpine Power Management • Coral Power • City Public Services • Direct Energy • Eagle Energy Partners • Exelon • FPL 2/3rd signed up in first three days of scheduling • Formosa • Garland Power and Light • LCRA - Lower Colorado River • NRG • Occidental Power Svcs • Reliant • Rio Nogales • Suez Energy Marketing • South Texas Electric Coop • Tenaska Power Services • Texas Utilities • Westar Hall of Fame • The following QSEs with Resources failed to secure an EDS3 testing Slot by the August 8 deadline (MP2 / MP3): • Constellation Energy • BTU - Bryan Texas Utilities (APX Client) • Fulcrum (APX Client) • IPA Marketing (APX Client) • Scurry Wind (APX Client) • Topaz (APX Client) Wall of Shame Current as of Friday 08.10.2007 * Experience in other countries has proven the Terminology based on Hall of Fame / Wall of Shame to be effective. Texas Nodal Program Update

11. Market Readiness Update – Hall of Fame* The following QSEs and TSPs have Completed 100 percent Point to Point (PtP) Testing As of August 10 (MP5): • AEN - Austin Energy • AEP - American Electric Power • APX • BP Energy • Calpine Power Management • Constellation Energy • CPE - CenterPoint Energy • Exelon • Garland Power and Light • GEUS - Greenville • NRG • OXY - Occidental Power Svcs • Reliant • STEC - South Texas Electric Coop • Suez Energy Marketing • TMPA - Texas Muni Power Auth • OnCor • TXU - Texas Utilities Current as of Friday 08.10.2007 * Experience in other countries has proven the Terminology based on Hall of Fame / Wall of Shame to be effective. Texas Nodal Program Update