1. Texas Nodal Timeline Options, TPTF Jul 11, 2006 1 Timeline Options Trip Doggett TPTF 071106

2. Texas Nodal Timeline Options, TPTF Jul 11, 2006 2 Program CharterTexas Nodal Going-in critical path analysis – 1/1/09 is not feasible. This revised timeline is unconstrained and needs validating through resourced project schedules. Note Over the next few weeks we will be reviewing the schedule to ensure it is based on correct assumptions. ERCOT will also ask for legal advice concerning the implementation date the PUCT established in the protocols order and whether a motion for a rehearing of that order should be filed. ERCOT estimates this review will be completed by June 30. EMS Early Delivery Systems MMS CRR MIS NMMS Commercial Systems ERCOT & MP Readiness Q2 2008Q3 2009Q4 2008Q3 2008Q2 2007Q1 2007Q4 2006Q4 2007Q3 2007Q1 2008Q3 2006Q1 2009 Outage Scheduler EDW “UI in production” Q2 2009 Qualification Freeze EDS 3 (TXMACS 0.3) SCED; MP SCED Offers EDS 4 TXMACS 0.4) with selected MPs EDS 5 (TXMACS 0.5) MMS FATMMS SAT CRR Design, Build, Pre-FATCRR FATCRR SAT Final MP Interface Specs 3/31 MP Registration complete MIS FATMIS SAT 168 hour market trial FATSAT Naming Convention; Requirements, Concept Design CIM-compliant Model (flat file) FATSATNMMS User Interface & business processes ZonalGenesysOperational Common model update process NODAL GO LIVE MIS (EMS/MMS/CRR) Design, Build, Pre-FAT EDW FATEDW SAT Statements Layout Script test Credit Monitoring End of Trials MP Nodal RegistrationMP Financial & Operational Qualification EMS SATEMSEMS FAT EMS Requirements, Conceptual Design MIS SAT MIS (SCED) Design, Build, Pre- FAT MIS FAT MMS Design, Build, Pre-FAT MMS Requirements, Conceptual Design OS SATOS BuildOS FAT OS Requirements, Conceptual Design CRR Requirements, Conceptual Design Commercial Systems Design, Build, Pre-FATCS FATCS SAT EDW Requirements, Conceptual Design SCED SATSCED BuildSCED FAT SCED Requirements, Conceptual Design Registration ready MPSCED Offers Business Requirements complete 10/30 Preliminary MP Interface Specs 12/31 CS FATCS SAT EDW FATEDW SATEDW FATEDW SAT CS Requirements, Conceptual Design EDW Design, Build, Pre-FAT MIS FATMIS SAT Begin MP trial participation “Non-binding settlements” Financial Transfer CS FATCS SAT EDS 4 MP SAT TXMACS 1.0 Live operations MIS FATMIS SAT “CRR Auction for Go Live” Vendors will share detailed design documents with other vendorsfor interface definitions Vendors selection will be done by Mid-June TPTF will hold review meetings as required for approval of requirements and conceptual design documents All systems have to conform with the integrated Data Dictionary Areva’sEMS will handle CIM models ERCOT would need 6 months of integration testing on applicationssuch as MMS, CRR and NMMS To satisfy section 17.3 of the Nodal protocols, ERCOT will deploy COGNOS and SAS to provide PUCT with the ability to generate reports To allow for interface definitions, detailed design documents ofindividual projects can be completed 80 hours after one another. The order of completion will be NMMS–MMS/EMS/SE–CRR/Outage Schedule– Commercial Systems–MIS/EDW The current State Estimator will meet the necessary criteria TDSPswill be trained on new NMMS and there will dual entry of models–into the new NMMS and into GENESYS. ERCOT will have enough staff to handle this work Assumptions affecting the critical path Vendors will share detailed design documents with other vendorsfor interface definitions Vendors selection will be done by Mid-June TPTF will hold review meetings as required for approval of requirements and conceptual design documents All systems have to conform with the integrated Data Dictionary Areva’sEMS will handle CIM models ERCOT would need 6 months of integration testing on applicationssuch as MMS, CRR and NMMS To satisfy section 17.3 of the Nodal protocols, ERCOT will deploy COGNOS and SAS to provide PUCT with the ability to generate reports To allow for interface definitions, detailed design documents ofindividual projects can be completed 80 hours after one another. The order of completion will be NMMS–MMS/EMS/SE–CRR/Outage Schedule– Commercial Systems–MIS/EDW The current State Estimator will meet the necessary criteria TDSPswill be trained on new NMMS and there will dual entry of models–into the new NMMS and into GENESYS. ERCOT will have enough staff to handle this work Assumptions affecting the critical path OTS SAT OTS FAT OTS SAT OTS FAT EDS 3 Data Validation

3. Texas Nodal Timeline Options, TPTF Jul 11, 2006 3 Week ending dates (Friday) Integrated timeline to September Jul 14Sep 15Jul 28Jul 21Jun 16Jun 9Jun 2Jun 30Jun 23Jul 7May 26Sep 8Aug 4Aug 11Sep 1Aug 25Aug 18 NMMS NMMS Vendor T&M ContractMobilize CSD TPTF approval NMMS – Requirements, DSOW, Use Case, Conceptual Design Development CSD TPTF submission Conceptual System Design EMS Proposal Refinement TPTF approval EMS – Requirements, DSOW, Use Case, Conceptual Design Development TPTF submission ContractMobilize IDA Vendors on board 6/30 RUP Training Delivery Vendor demos RUP standards definition Bus process validation Configuration Mg Plan Vendors selected 6/7 Overall architecture 6/7 CSD & Interface doc templates ERCOT Readiness & Transition As-is Org AnalysisOrg Vision & Principles EDS Release Strategy – V0.9 Org OptionsOrg Design EDS Release Strategy – SocializationEDS Release Strategy – V1EDS 3 Release Plan People StrategyCapabilities Planning Testing Strategy Project Staffing & startup Nodal Resourcing TemplateNodal Resourcing Template – V1ERCOT Readiness CriteriaRC link to MPERPOrganization Readiness Plan V1 Draft EDS Release Strategy Testing Strategy EDS Release Strategy TPTF submission EDS3 Release Plan People Transition plans EDW EDW – Architecture definitionEDW – Roadmap definition MMS Reqts TPTF submission MMS – Requirements, DSOW, Use Case Development MMS Vendor T&M ContractMobilize Infrastructure Business Implementation plans Commercial Systems CM - Contract FT - Assessment Reqts TPTF approval Reqts TPTF submission MobilizeCredit Monitoring - Requirements, Use Case Development Financial Transfer - Requirements, Use Case Development Disputes Registration - Conceptual System DesignRegistration - Requirements, Use Case Development Reqts TPTF approval Reqts TPTF submission Settlements & Billing - Requirements, Use Case Development (multiple drops) Resourcing Test Lab Definition Integrated Testing Test Case Template; ProceduresEarly Test Cases (EMS/MMS) Test Script template Test Case template Test lab configuration SAT CriteriaDetailed Planning CRR Requirements, Use Case, DSOW DevelopmentCRR Vendor T&M Contract Resourcing Reqts TPTF submission Clarification Questions to TPTF MP Engagement & Readiness TPTF Review/Approve Nodal PRRs TPTF – Review/Approve Business Requirements & Conceptual Systems Designs Discuss Readiness Criteria with TPTF Use Cases EMMS H/W vendor selection MIS MIS-Posting/Reports/Extracts - Requirements MIS Strategy definitionMIS Roadmap definitionMIS –UI Requirements from applications identified Integration Strategy definitionIntegration Roadmap Integration Existing data center rationalization

4. Texas Nodal Timeline Options, TPTF Jul 11, 2006 4 Week ending dates (Friday) Limited data - Integrated timeline to September Jul 14Sep 15Jul 28Jul 21Jun 16Jun 9Jun 2Jun 30Jun 23Jul 7May 26Sep 8Aug 4Aug 11Sep 1Aug 25Aug 18 EMS Proposal Refinement TPTF approval EMS – Requirements, DSOW, Use Case, Conceptual Design Development TPTF submission ContractMobilize Testing Strategy EDS Release Strategy TPTF submission EDS3 Release Plan MMS Reqts TPTF submission MMS – Requirements, DSOW, Use Case Development MMS Vendor T&M ContractMobilize Commercial Systems CM - Contract FT - Assessment Reqts TPTF approval Reqts TPTF submission MobilizeCredit Monitoring - Requirements, Use Case Development Financial Transfer - Requirements, Use Case Development Disputes Registration - Conceptual System DesignRegistration - Requirements, Use Case Development Reqts TPTF approval Reqts TPTF submission Settlements & Billing - Requirements, Use Case Development (multiple drops) CRR Requirements, Use Case, DSOW DevelopmentCRR Vendor T&M Contract Resourcing Reqts TPTF submission Clarification Questions to TPTF MP Engagement & Readiness TPTF Review/Approve Nodal PRRs TPTF – Review/Approve Business Requirements & Conceptual Systems Designs Discuss Readiness Criteria with TPTF NMMS NMMS Vendor T&M ContractMobilize CSD TPTF approval NMMS – Requirements, DSOW, Use Case, Conceptual Design Development CSD TPTF submission Conceptual System Design Use Cases MIS MIS-Posting/Reports/Extracts - Requirements MIS Strategy definitionMIS Roadmap definitionMIS –UI Requirements from applications identified Course Curriculum & Audience Matrix TPTF submission

5. Texas Nodal Timeline Options, TPTF Jul 11, 2006 5 Early Delivery Systems Communications TPTF MIS Training MP Readiness Q2 2008Q3 2009Q4 2008Q3 2008Q2 2007Q1 2007Q4 2006Q4 2007Q3 2007Q1 2008Q3 2006Q1 2009Q2 2009 Qualification Freeze EDS 3 (TXMACS 0.3) SCED; MP SCED Offers EDS 4 TXMACS 0.4) with selected MPs EDS 5 (TXMACS 0.5) Detail Design Final MP Interface Specs 3/31 MIS FATMIS SAT 168 hour market trial - NODAL GO LIVE MIS (EMS/MMS/CRR) Design, Build, Pre-FAT End of Trials MP Nodal RegistrationMP Financial & Operational Qualification MIS SAT MIS (SCED) Design, Build, Pre- FAT MIS FAT Requirements MPSCED Offers Business Requirements complete 10/30 Preliminary MP Interface Specs 12/31 - MIS FATMIS SAT Statements Nonbinding ” Financial Layout Credit Monitoring Registration ready settlements Transfer EDS 4 MP SAT TXMACS 1.0 Live operations MIS FATMIS SAT “CRR Auction for Go Live” EDS 3 Data Validation Conceptual Design TPTF & MP Timelines