Integrated Schedule Review

1. Integrated Schedule Review Nodal PMO TPTF

2. Agenda • Program Changes (Janet Ply) • Preliminary Nodal Integrated Master Schedule (Janet Ply) • Scope (Janet Ply) • Schedule Assumptions (Janet Ply) • Work Remaining by Project (Core PMs) • Integration Activities (Mike Bianco) • EDS Activities (Matt Mereness) • Key Program Milestones (Janet Ply) • Critical Path (Janet Ply) • Next Steps (Janet Ply) Integrated Schedule Review

3. Program Changes • Reorganized the entire program to eliminate project silos; instill accountability; put the right people in the right roles; streamlined delivery • Changed leadership: Ron Hinsley is the Executive Sponsor and the Executive Director; Janet Ply now leads the nodal Program Management Office (PMO) • Projects were reorganized into core and supporting projects; core projects own end-to-end delivery • Developed a Nodal Master Integrated Schedule; identified hundreds of project inter-dependencies that were previously unknown • Developed comprehensive program controls that are used rigorously to manage work • Increased executive involvement in anything that affects program scope • Increased vendor oversight and vendor accountability; have put ERCOT staff onsite and have vendor staff onsite at ERCOT during critical times • Staffing has been reviewed; 108 contractors have left the nodal program since June; 18 contractors have been converted to ERCOT employees • Increased ERCOT home team involvement in several key areas Integrated Schedule Review

4. Restructured Projects • Network Model Management System • Linda Clarke leads this effort • Established data quality teams for the RARF data collection from Market Participants and for “nodalizing” the zonal seed for the network model (Common Information Model (CIM)) • ERCOT Readiness and Transition • Murray Nixon leads ERCOT readiness and transition (i.e. business process development) • EDS • Matt Mereness leads EDS and MP readiness metrics • Enterprise Integration Services, Integration Testing • Combined these projects, renamed to Systems Integration and moved under the PMO • Mike Bianco leads this effort and comes from CAISO • Consolidated the zonal and nodal integration testing teams into one, added structure • COMS team • Hope Parrish, ERCOT Manager, leads this team • Justin Rasberry brought in to oversee Settlements and Billing and Commercial Systems Interfaces (CSI) • Reorganized the Credit Management and Monitoring (CMM) team to accelerate progress Integrated Schedule Review

5. Results of Changes • A high level of executive oversight and involvement • The right people in nodal leadership positions • Strong program controls and processes • Vendor focus • Team member accountability • Sense of urgency to deliver the Nodal program on schedule ERCOT now has Integrated Schedule Review

6. Preliminary Nodal Integrated Master Schedule • In June, PMs replanned the nodal program across all project teams resulting in • An improved understanding of the scope of the work required through go-live, now scheduled for Dec.1, 2010 • A comprehensive understanding of cross project dependencies for the nodal program • A detailed integrated master schedule for the nodal program that is the single source of record for all nodal work to be performed (~5400 activities) • Most importantly, a realistic schedule with a high degree of confidence that the nodal program can be delivered on schedule • Integrated master schedule has undergone numerous reviews and audits • ERCOT has been using this integrated schedule and supporting reports successfully to manage the program and project critical paths • ERCOT needs to incorporate MP activities and feedback, scheduled for TPTF meeting on Tuesday, Dec. 16, before the schedule can be finalized Integrated Schedule Review

7. Scope Nodal program scope included in the integrated schedule Approved requirements and conceptual system design documents All NPRRs approved through Nov.17, 2008 Additional scope to process to be included Remaining business process work Remaining requirements traceability work No impact to the program critical path for this work Note 1: No schedule contingency has been included in the integrated master schedule; any additional scope/effort that is required will go through the nodal change control process and impacts to the schedule and budget will be captured Note 2: Removing and/or clarifying scope that affects any of the nodal systems at this point does not necessarily decrease effort Integrated Schedule Review

8. Schedule Information Integrated Schedule Review

9. Schedule Assumptions No new software vendor releases will be required past what is already planned (remaining scheduled releases will be covered in each individual project) Preserved the EDS durations as defined in the handbooks Market participant activities that were placed on hold are not restarted until the NMMS/EMS/MMS5 systems are on a synchronized model (schema and data set) Market participants will continue to participate in ongoing nodal EDS activities Integrated Schedule Review

10. Work Remaining – NMMS JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 NMMS Remaining Releases Integrated Schedule Review

11. Work Remaining - Model SEP OCT NOV DEC JAN FEB MAR Dec.10: Synchronized Model (v1.21 schema and data set) Jan. 8: Validated Model (v1.21 schema and data set) Mar. 9: Validated Model with Final RARF data (v1.21 schema and data set) 2008 2009 RARF Activities Achieve Production Quality Metric of 98% Dec 31 Zonal Seed “Nodalization & Validation” Dec 10 Model Validation Activities Resolve Data Validation & Downstream Errors in Model v1.21 Jan 8 Validate v1.21 with Final RARF data Mar 9 Integrated Schedule Review

12. Work Remaining – EMS JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 EMS Remaining Releases (1) AREVA Development (2) ERCOT Development Integrated Schedule Review

13. Work Remaining – MMS JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 MMS Remaining Releases Integrated Schedule Review

14. Work Remaining – MMS UI JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 MMS MM UI Remaining Releases Integrated Schedule Review

15. Work Remaining – Outage Scheduler JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 Outage Scheduler Remaining Releases Outage Scheduler Outage Scheduler User Interface Integrated Schedule Review

16. Work Remaining – CRR JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 CRR Remaining Releases Integrated Schedule Review

17. Work Remaining – COMS JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 COMS Remaining Releases Integrated Schedule Review

18. Integration Activities Integrated Schedule Review

19. Outline of Discussion • Breadth of Integration Work • What’s Remaining? • Integrated Releases • Integrated Release 4 Activities • Integrated Release 5 Activities • Operational Readiness Activities Integrated Schedule Review

20. Breadth of the Systems Integration Effort • 120 servers in the integrated test environment • 16 nodal systems and shared services • 36 integration interfaces • 344 functional data flows • End-to-end business scenarios December 10, 2008 Integrated Schedule Review

21. Integrated Release Milestones 0% 2% 5% 50% 100% JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 Integrated Release 1 IR 22% IR 33% (Test/Build/Validation) Integrated Release 2 IR 550% IR 445% (Interface Testing) Integrated Release 3 (Interface + Functional Testing) % of Systems Integration Work Effort by Integrated Release Integrated Release 4 (Functional Integration Testing) Integrated Release 5 (Business Scenario Testing) Integrated Release 1 and 2 are complete Integrated Release 3 is in progress To date, Integration Testing is approximately 4% complete 4% complete Technology and Data Integration Functional Integration/Business Scenarios Market Integration December 10, 2008 Integrated Schedule Review

22. Integrated Release Timeline JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 Integrated Release 1 (Test/Build/Validation) Integrated Release 2 (Interface Testing) Integrated Release 3 (Interface + Functional Testing) (Functional Integration Testing) Integrated Release 4 MMS4 P6, NMMS5, EMS CIM Importer v1.21, CSI 5.5/6.3, MIS10, Int Interfaces MMS4 P7, CMM 3.3/4.1, CRR4, S&B RF1, Int interfaces MMS UI, EMS, NMMS6, OS 2.1, OS UI FP1, CSI 7.0, CDR 4.0, Int Interfaces NMMS7, CMM 4.2/4.3, OS UI FP2, Int Interfaces Integrated Release 5 (Business Scenario Testing) MMS5 Prelim, FT P1 Lodestar, EMS Final, MIS11, Int interfaces MMS5 Final, interface updates Defect fixes Defect fixes Defect fixes Operational Readiness (Application Security) Operational Readiness (Performance and Monitoring) Operational Readiness (Local and Data Center Fail-Over) = Software release migration to i-Test Integrated Schedule Review

23. Integrated Release 4 Activities JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 (Functional Integration Testing) Integrated Release 4 Continue technical interface and data integration (Jan. - Mar. 2009) • Continue testing of MMS input and output interfaces • Continue building integrated data sets • Continue MMS to Settlements and Billing integration for the day-ahead market • Begin operational readiness security testing Begin functional integration testing and operational readiness (Apr. - July 2009) • Perform NMMS, EMS and MMS functional integration testing on validated model (v1.21 schema and data set) • Complete OS, OS and MMS UI integration testing • Demonstrate functional integration and data flow for • CRR to Settlements • MMS to Settlements for RUC and real-time market • EMS to MMS for DAM and RUC • Credit Management • Begin operational readiness performance testing December 10, 2008 Integrated Schedule Review

24. Integrated Release 5 Activities JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 (Business Process Testing) Integrated Release 5 Continue functional integration testing (July - Sept. 2009) • Continue system-to-system functional integration for DAM • Continue work on integrated data set required for business scenario testing • Test for first time all completed nodal systems Begin business scenario testing (Oct. 2009 - Feb 2010) • Regression test functional data flows where required • Conduct bid-to-bill business scenario testing • Run end-to-end system data flow for DAM, RT, SASM, RUC, CRR • Validate end-to-end performance of nodal market timeline • Complete operational readiness testing • Complete system and data readiness to move to EDS December 10, 2008 Integrated Schedule Review

25. Operational Readiness Activities JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2008 2009 2010 Operational Readiness • Performance Testing • System processing, system-to-system data flow, end-to-end business scenarios • Security • Application-level compliance and vulnerability, access control (authentication and authorization) • Monitoring • Infrastructure and server health • Application availability, performance and business-level events • Fail-over • Localized and data center (geographic) fail-over • Daylight Savings Testing • Long day/Short day December 10, 2008 Integrated Schedule Review

26. EDS Activities Integrated Schedule Review

27. Outline of Discussion • Revisit why EDS4 DAM/RUC/Settlements testing stopped • Lessons Learned from EDS in 2007/2008 • Current EDS Delivery Challenges • Details of 2009 Market Activities • Monthly view of 2010 Market Activities Integrated Schedule Review

28. Revisit why EDS4 DAM/RUC/Settlements testing stopped • Behind schedule in delivering a validated model with final RARF data • Significant workarounds put in place but did not solve the integrity problems • DAM results were not meaningful due to data issues • MP involvement declined over time when DAM results were not valid • ERCOT system integration components were not in place Integrated Schedule Review

29. Lessons Learned from EDS in 2007/2008 • ERCOT Benefits • Visibility of market generated bids/offers and submission structures • More production-like testing of Web Services & Market rules • Earlier feedback from Market Participants • Market Benefits • Exercised interfaces with ERCOT • Better understanding of how the technology and rules are implemented • Opportunity for end-users to put hands on the systems • Opportunity to receive and analyze data from ERCOT to load into MP systems • ERCOT Challenges • MP integration was prioritized over internal integration • Throw-away development of work-arounds to overcome system limitations • Project SMEs were pulled to support EDS issues Integrated Schedule Review

30. EDS and Market Activities 2009 2009 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN Registration Resource Transmission equipment registration EDS 2 Release 3Telemetry and SE Focused Input Testing (Telemetry and State Estimator) Training on NOMCR with NMMS6 and Business Rule Validation SEM Go-Live Milestone EDS 2 Release 4NOMCR TSP Verification of Model EDS 3 Release 5 SCED Real-Time Market Required SCED submissions EDS 3 Release 6 LFC Testing Preparation Begin open-loop test activity with QSEs EDS 4 Release 8.3Verifiable Costs Submission of Verifiable Costs for Resources EDS 4 Release 9.1Market Submission Testing All QSEs re-qualify submissions (API and UI)MPIM Production Digital Certificates issuedMPs ensure access and submission of data to EDS4 Integrated Schedule Review

31. EDS and Market Activities 2009 • Test windows for market systems prior to EDS4 commencement • ERCOT and MPs will develop a test plan and schedule for aligning systems in 2009 and begin voluntary periodic windows of market testing • Plan to release next generation of MMS and web services in Q2 2009 • Plan to execute day-ahead, adjustment, and real-time market on a periodic schedule. (e.g. run DAM multiple days and then pause testing (4-6 weeks) to analyze results and prepare for next test sequence) Integrated Schedule Review

32. EDS 2010 Timeline View handout “EDS Project Schedule” for details Integrated Schedule Review

33. Feb 2010 – Resume EDS on integrated systems EDS activities • Execute SCED with the objective of publishing LMPs for 6 months • Publish SCED reports (RT LMPs etc) • Test communication of DAM inputs and outputs • Execute DAM 2 days per week with Market Data • Post AS Obligation, QSE Load Ratio Share, AS plan • Issue DAM Awards and Notifications (Awarded AS, Awarded Energy bid etc) • Publish DAM hourly reports (DAM LMPs, DAM MCPC etc) • Conduct mock CRR annual auction • Publish CRR auction results • Outage Scheduler open to MPs for submissions • Perform Outage Evaluation testing • Publish Outage Scheduler reports (Approved outages, rejected etc) • Publish Available Credit Limit on MIS • Seek TPTF approval for test Network Model to be used for Settlements testing Integrated Schedule Review

34. Mar 2010 – Execute DAM and RUC, publish Settlements for DAM and conduct CRR auction EDS activities • Continue execution of SCED for publishing LMPs for 6 months and publish reports • Continue execution of DAM 2 days per week with Market Data, issue notifications and publish results • Conduct 2 hour LFC test with CIM • Execute HRUC and DRUC 2 days per week with Market Data • Publish RUC results • Committed and decommitted units • Active binding transmission constraints used in RUC • Publish Settlement Statements, Invoices and Extracts for DAM • DAM Settlement and Resettlement Statement • CRR Balancing Account Invoices • DAM Invoice • CARD Invoices • DAM Resettlement Invoice • DAM Late Fee Invoices • DAM Consolidated Operating Day Extracts • DAM Market Operating Day Extracts • Public Reference Data Extract • Settlement Input Data Extract • Conduct OS Performance test • Publish test CRR annual auction results • Conduct Integrated CRR monthly auction Integrated Schedule Review

35. April 2010 – Execute DAM 5 days per week, publish RTM Settlement statements and conduct LFC tests EDS activities • Continue execution of SCED for publishing LMPs for 6 months and publish reports • Publish mock Integrated CRR auction results • Conduct 8 hour LFC test with CIM • Execute DAM and DRUC 5 days per week, issue notifications and publish results • Execute HRUC 4 days per week • Begin SASM execution • Issue SASM notifications • Awarded AS offers • Publish SASM reports • SASM MCPC • Total Ancillary Service procured • Aggregated Ancillary Service Offer • Publish Settlement Statements, Invoices and Extracts for RTM and DAM • RTM Initial, Final, True-up and Resettlement Statement • RTM Initial, Final, True-up and Resettlement Invoice • RTM Consolidated Operating Day Extract (RTM CODE) • RTM Market Operating Day Extract (RTM MODE) • Public Reference Data Extract (PRDE) • Settlement Input Data Extract • Begin testing of Disputes submission process through UI and API Integrated Schedule Review

36. May 2010 – Test full market timeline for 7 days and settle market EDS activities • Continue execution of SCED for publishing LMPs for 6 months and publish reports • LFC test analysis and reporting of results to Market Participants • Continue execution of DAM and DRUC 5 days per week, issue notifications and publish results • Continue execution of HRUC 4 days per week • Continue SASM execution • Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts • Execute full Market timeline for 7 seven days • Produce Settlement statements for the full market timeline • One day dual entry of Outages into Zonal and Nodal systems Integrated Schedule Review

37. June 2010 – Conduct 48 hour LFC test and conduct integrated CIM business process testing EDS activities • Publish RT and DAM settlements for Full market timeline • Execute 48 hour LFC test • Execute EECP test • Continue execution of SCED for publishing LMPs for 6 months and publish reports • Continue execution of DAM and DRUC 5 days per week • Continue execution of HRUC 4 days per week • Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts • Conduct CIM business process testing • 7*24 support of Nodal systems • Validate EDW Compliance Data Access Integrated Schedule Review

38. July 2010 – Verify LMP quality and conduct DAM/RUC/SCED performance test EDS activities • Continue execution of SCED for publishing LMPs for 6 months and publish reports • Complete posting of LMPs for 6 months • Continue execution of DAM and DRUC 5 days per week • Continue execution of HRUC 4 days per week • Continue publishing of DAM and RTM Settlement Statements, Invoices and extracts • Execute DAM/RUC/SCED performance test • Conduct DST Test with Market Participants • Begin verification of MIS compliance with Requirements • Conduct fail-over test(s) Integrated Schedule Review

39. August 2010 – 48 Hour full market timeline test and preparation for 168-Hour test EDS activities • Continue DAM/RUC/SCED performance tests • Execute DST test • Execute 48 hours of full market timeline without Sev 1 or Sev 2 errors • Complete verification of MIS compliance to Requirements • Complete execution of Fail-over tests • Complete verification of Dispute Process • 7 day forecast validations/retraining • Conduct test monthly CRR auction for 168-Hour test • Align for 168-Hour Test • Qualification - QSE declaration of intent to participate in Nodal Integrated Schedule Review

40. Sept 2010 – Completion of 168-Hour test and the Go-Live Period • Upon successful completion of the 168-Hour test, the Texas Nodal Go-Live Procedure will come into effect. • Activities include • Start of Go-Live Period • Readiness declarations by ERCOT and Market Participants • First binding monthly CRR auction • Go-Live Sequence • First binding SASM • Nodal Go-Live • First binding DAM Integrated Schedule Review

41. EDS & Cut-over Plans • EDS 1 Approach: TPTF approved Feb 2008 as being completed - http://nodal.ercot.com/docs/pd/eds/eds1/eds1/eds_1_approach_v2_0.doc • EDS 2 Approach: TPTF Approved May 2007 -http://nodal.ercot.com/docs/pd/eds/eds2/eds2/EDS_2_Approach_v1_00.doc • EDS 3 approach: TPTF approved June 2007 - http://nodal.ercot.com/docs/pd/eds/eds3/eds3dp/EDS_3_Approach_v1.0_061107.doc • SCED Handbook v4: TPTF Approved Feb 2008 - http://nodal.ercot.com/docs/pd/eds/eds3/scedhdbk/eds_3_sced_mp_handbook_v4_0.doc • LFC Handbook v2: TPTF approved April 2008 -http://nodal.ercot.com/docs/pd/eds/eds3/lfchandbook/eds_3_lfc_testing_market_participant_handbook_v2_0.doc • CRR Handbook v2: TPTF approved Jan 2008 - http://nodal.ercot.com/docs/pd/eds/eds3/crrhandbook/eds_crr_testing_mp_handbook_v2_0.doc • EDS 4 Approach: TPTF approved Dec 2007 - http://nodal.ercot.com/docs/pd/eds/eds4/eds4app/eds_4_approach_v1_0.doc • COMS Handbook: TPTF Approved Feb 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/eds4coms/eds_coms_mp_handbook_v1.0.doc • DAM/RUC Handbook v2: TPTF Approved March 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/eds4damrucsasm/eds4_dam_ruc_sasm_mp_handbook_v2_0.doc • Outage Scheduler Handbook: TPTF Approved March 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/eds4os/eds_outage_scheduler_mp_handbook_v1_0.doc • Day-light Savings Test Plan: TPTF Approved July 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/dsttp/eds_dst_test_plan_v1_0.doc • EECP Test Plan: TPTF Approved May 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/eotp/eds_emergency_operations_test_plan_v1_0.doc • 168 Hr Test procedure: TAC Approved July 2008 http://nodal.ercot.com/docs/pd/eds/eds4/168htp/texas_nodal_market_168_hour_test_procedure_v1_0.doc • Single Entry Model Go-Live Procedure: TAC Approved Aug 2008 - http://nodal.ercot.com/docs/pd/eds/eds2/semglp/tnm_sem_go_live_procedure_v1_0.doc • Texas Nodal Market Go-Live Procedure: TAC Approved Jun 2008 - http://nodal.ercot.com/docs/pd/eds/eds4/glp/texas_nodal_market_go_live_procedure_v1_0.doc • TCR to CRR Transition Plan: TAC Approved Nov 2007 http://nodal.ercot.com/readiness/golive/kd/crr_tcr_to_crr_transition_plan_v1_0.doc Integrated Schedule Review

42. Key Program Milestones through Go-Live • View handouts: • Nodal Program Timeline 2009 • Nodal Program Timeline 2010 Integrated Schedule Review

43. Critical Path • Program critical path is the following • NMMS through Jan. 8, 2009 when the validated model (v1.21 schema and data set) is delivered for consumption by downstream systems (e.g. MMS, EMS, and CRR) • MMS5 is critical path from Jan. 9, 2009 – Aug. 24, 2009 • Integrated Release 5 is critical path from Aug. 24, 2009 – Feb. 8, 2010 • EDS is critical path from Feb. 9, 2010 – Dec. 1, 2010 • View handout: Nodal Program Critical Path Integrated Schedule Review

44. Next Steps Integrated Schedule Review

45. Next Steps • Please submit schedule comments/questions to tptfreview@ercot.com • Initial comments can also be shared during a planned schedule discussion at next week’s TPTF meeting • Documents provided to TPTF • Nodal Critical Path • Nodal Program Timelines • EDS Project Timeline • Status Reports • Proposed Review Schedule Integrated Schedule Review