ERCOT PMO Update

1. ERCOT PMO Update Robert Connell Director Program Management March Board of Directors March 8, 2005 (Through 2/28/05)

2. 2005 YTD Project Performance First Quarter Results (to 2/28) Project Process Improvements In 2005 • 4 completed, 4 YTD • 9 in Initiation • 20 in Planning • 21 in Execution • Institute Managed Time Periods • Establish sound schedule management • Expand on Project Metrics – EVM • Establish Risk Management Methodology Project Performance Project Activity

3. Major ERCOT Projects Summary

4. Projects Completed in January 40102 REC Enhancements 30099 Taylor Expansion Projects Completed in February 40042_01 EDW EMMS RSS 30144 EMP 2.2 Upgrade Projects Completed 1st Quarter • Projects Completed in March

5. 8/04 10/04 12/04 1/05 REC Enhancements • Scope: REC Enhancement project was completed to satisfy PUCT Project No. 28407 – Order Adopting Amendments to Subs. Rule 25.173. The Order calls for changes in the REC Final REC Purchasing Requirements (FRRs) and allows for recalculations of previous year’s Final REC Requirement for Competitive Retailers. Requirement 1: Update the methodology and calculation for FRR Requirement 2: Update the methodology and calculation for Final REC Requirement 3: Update the statewide and individual REC requirement reports Requirement 4: Add commas in all numeric fields where needed Requirement 5: Update the CCF calculation to be “As Needed” • Features and Deliverables: Requirements 1-4 listed above were completed Requirement 5 deferred into O&M activity in 2005 based on additional changes in the calculation from PUCT • Current Activity Closed out REC Enhancement project in 1/2005 Business team working with PUCT to improve design of the REC functionality. It is planned to be a 2006 capital project Closeout Initiation Planning Execution 7/04

6. PR-30099 Taylor Expansion • Scope: • Design facilities for short-term, mid-term and long term growth needs. Construct Short-term and mid-term facilities. • Features and Deliverables: • Construct a facility of similar quality and appearance to the MET center and the TCC located in close proximity to the TCC. • Construction of mobile units which will accommodate expected short term growth in 2003 and also provide a buffer prior to building of phase III when and if it becomes necessary. • The relocation of employees, contractors and vendors from outlying areas by 2004 • Design Plans which take into account a longer projected growth rate • Design plans which accommodate both security factors and human factors Ensure availability of reliable, accurate and timely information • Current Activity In Closure Planning 5 Months Execution 12 months Close 1.5 months 9/2003 – 2/2004 2/2004 -2/2005 2/2005 – 3/2005

7. PR-40042_01 EDW EMMS RSS • Scope: Implementation of the EDW EMMS RSS (Replicated Source System) to support the ability to capture intra-day transactions from the EMMS source databases, as well as support the ability to capture information to support point-in-time reporting. The EMMS RSS is a replicated database copy of the source system that will be used to transfer information into the EDW EMMS ODS (Operational Data Store). The EDW EMMS ODS is a separate subproject – 40042_07. • Features and Deliverables: Ensure availability of reliable, accurate and timely information Provide the ability to capture intra-day transactions that will ensure all EMMS data is being captured (and not just a snapshot of data at the end of the day), as well as near real-time data that can then be used to support market monitoring reporting Store the data using point-in-time fields that will allow reporting of historical periods. • Current Activity In production Planning 4 Months Server/Environment Setup - 4 Months Development 2 Months Int & Test 1 Month Production Go-Live and Stabilization 5/19/04-9/8/04 9/8/04-10/27/04 10/27/04-12/3/04 12/3/04-2/16/05 1/5/04-5/19/04

8. Implement SMP/EMP2.2 for EMMS • Scope: Implement the SCADA Management Platform and Energy Management Platform 2.2 from AREVA. Scope includes the following set of approved deliverables: • PR20159 Load Rollover • PR30050 EMS Front-End Replacements (Replace obsolete technology) • PR30074 Enhance STNET Multiple Selected Time Ranges • PR30094 DCP Enhancement (VSAT/TSAT Enhancements) • PR30096 Move PTI Bus Translation to Genesys • PR30170 Implement a selected contingency into Power Flow • PR40099 CTGS Import/Export Dump Utility (ERCOT development) • PR40094 Constraint Activity Manager (CAM v2.2 – ERCOT development) • Features and Deliverables: The SMP product allows ERCOT to retire obsolete technology that is no longer supported by the manufacturer of key communications software that is used to control Frequency. The EMP2.2 product implements new AREVA software releases that includes enhancements in EMS Network Applications that help ERCOT improve reliable grid operations. The ERCOT developed deliverables provides features that help reduce congestion costs. • Current Activity Fully in production as of 2/10/05. Seeking funding approval for missed closing requirements such as retirement of obsolete technology and software issues identified during final User Acceptance Testing. Development 8 Months Planning 8 Months Int & Testing 4 Months Go-Live and Stabilization 4/1/03-11/30/03 12/1/03-8/20/04 9/23/04-1/13/05 1/24/05-Present