1. July 7, 2008 TPTF Texas Nodal Market Implementation: Metrics Revisions Jerry Sullivan

2. 2 2 Texas Nodal Program UpdateJuly 7, 2008 Agenda: Metrics Revisions IBM Audit ERCOT/MP Metrics Review –Format Changes –Suggested Revisions –Suggested New Metrics Metric Review Schedule Suggested Revisions (details) Suggested New Metrics (details)

3. 3 3 Texas Nodal Program UpdateJuly 7, 2008 IBM Audit IBM conducted an assessment of readiness metrics and determined that a review of several metrics was in order Audit focused on: –Market Participant readiness visibility on the scorecard –Interviews with volunteer Market Participants –Adequacy and coverage of the metrics ERCOT is reviewing all metrics (MPs, EDS, ERCOT Staff, and ORMS) to: –Update criteria –Review RAG rules –Revisit timelines and linkages to the schedule –Ensure accurate and consistent reporting

4. 4 4 Texas Nodal Program UpdateJuly 7, 2008 Format Changes: Existing Metric Format Metric Number – Metric Name Reported By: Indicates if the metric is discoverable by ERCOT, Market Participants, WEMM or any combination thereof. EDS: Indicates the related Early Delivery System, if applicable. Target Completion: Indicates the time period that the metric result will be published. Category: Indicates how the data will roll up functionally in the Readiness Dashboard tool. Metric Description: Provides a description of the metric. Background: Indicates the intent of the metric. Criteria: Outlines the criteria used to determine if the metric has been successfully completed. Provides a concrete measurement standard to evaluate the metric against Reporting Data Sources: Indicates the source of the data to be used when evaluating the measurement standard and or the individual or team responsible for reporting status. ReferencesTP: Cross reference to the Transition Plan TNP: Cross reference to the Texas Nodal Protocols The existing metric format is missing a few key pieces of information

5. 5 5 Texas Nodal Program UpdateJuly 7, 2008 Format Changes: Revised Metric Format Metric Number: Metric Name Reporting Source:Where the data comes fromMetric Active Date:When the metric will be measured Impacted Entities:Which entity types will be measure by the metric Target Completion Date: Scoring Category:Where the metric falls on the scorecard When the metric will be completed Metric Definition Simple text of what the metric will accomplish Metric Criteria Overview of how the metric will be measured RAG Rule For Market Participants Individually – IF APPLICABLE (indicate red/amber/green criteria) For Market Segment (indicate red/amber/green criteria) ReferencesTP:Reference to Transition PlanTNP:Reference to Texas Nodal Protocols The new metric format is more complete and easier to read

6. 6 6 Texas Nodal Program UpdateJuly 7, 2008 Suggested Revisions Through collaborative review efforts between Wholesale Client Services, Account Managers, the Early Delivery System team, and the Project Management Office, ERCOT proposes revisions to the following 18 metrics

7. 7 7 Texas Nodal Program UpdateJuly 7, 2008 Suggested New Metrics Additionally, it has become apparent that there is a need for the following six metrics

8. 8 8 Texas Nodal Program UpdateJuly 7, 2008 Metric Review Schedule In efforts to allow Market Participant involvement, we have drafted the following schedule: MondayTuesdayWednesdayThursdayFriday 7 Presentation of revised format, revised metrics, and new metrics 891011 14 Distribution of change/revision tracker doc. and MP comments 15161718 21 Vote on revised metrics and new metrics 2223 Metric changes reflected on the scorecard 2425 Presentation of TPTF approved metrics to TAC on August 7th Review of revised metrics and new metrics Please send questions/comments to sanderson@ercot.com Further review, consideration of received comments Please send questions/comments to sanderson@ercot.com

9. 9 9 Texas Nodal Program UpdateJuly 7, 2008 Suggested Revisions (details) – Supplemental Document

10. 10 Texas Nodal Program UpdateJuly 7, 2008 Suggested New Metrics (details) – Same Supplemental Document

11. 11 Texas Nodal Program UpdateJuly 7, 2008 Questions ?