1. Information Technology Update ERCOT Board of Director’s Meeting September 20, 2005

2. page 2 Reliability Metrics- EMMS Frequency Control YTD Reliability Metrics Total Availability: 99.990% Total Minutes: 345,600 Unplanned Outage Minutes: 36 Planned Outage Minutes: 0

3. page 3 Reliability Metrics- EMMS Realtime Balancing YTD Reliability Metrics Total Availability: 99.935% Total Intervals: 23,040 Unplanned Missed Intervals: 14 Planned Missed Intervals: 1

4. page 4 Reliability Metrics – Commercial Wholesale Settlements YTD Reliability Metrics Total Availability: 99.670% Total Minutes: 345,600 Unplanned Outage Minutes: 60 Planned Outage Minutes: 1,080

5. page 5 Reliability Metrics – Commercial Invoices YTD Reliability Metrics Total Availability: 99.998% Total Minutes: 345,600 Unplanned Outage Minutes: 6 Planned Outage Minutes: 0

6. page 6 Reliability Metrics – Retail Web Services YTD Reliability Metrics Total Availability: 99.579% Total Minutes: 345,600 Unplanned Outage Minutes: 668 Planned Outage Minutes: 787

7. page 7 Reliability Metrics – Retail Transaction Processing YTD Reliability Metrics Total Availability: 96.615% Total Minutes: 345,600 Unplanned Outage Minutes: 2,281 Planned Outage Minutes: 9,417

8. page 8 Service Level Agreements  Why have a Service Level Agreement?  Correlate cost to service provided  Clear up confusion and perceptions  Improve IT service —Enhance awareness of the customer —Link daily tasks to market impact —Something to measure and build upon  Understand market expectations —System reliability —Outage window expectations —Publish metrics to a standard  Enhance internal expectations —Operating level agreements for support staff —Communicate to our staff customer expectations —Set internal goals to OLAs  Service Level Agreement proposal  Target the Retail Segment  Base first proposal on requirements outlined in protocols, market guides  Affordability and current capabilities will drive SLA  Better define planned outages

9. page 9 Program Management Review  The issue:  Over 70 projects in 2005, more in 2006  Increased focus on project delivery  Time to review the process  Level-set on Program Management maturity  The process  KEMA engagement —Review current PMO process —Perform a Process Maturity Model assessment (PMI standards) —Provide a “best practice” model —Present a plan for moving forward  Anticipated outcome  Goal: Level 4 organization  Plan to be delivered in two weeks  Will show short term (quick hits) and long-term plan  Will aggressively implement changes