August 13-14, 2007 TPTF Meeting Texas Nodal Program Update Jerry Sullivan

2 2 Texas Nodal Program UpdateAugust 13-14, 2007 Agenda ItemPurposePage Program StatusFor Information3 Schedule performanceFor Information4 Changes since the last Market Readiness SeminarFor Information8

3 3 Texas Nodal Program UpdateAugust 13-14, 2007 CostScheduleScope / Quality Legend Summary Overall program status remains amber Green The program is spending to budget through July’s actuals. Cost at complete dependent on achieving quality and schedule targets. Amber Baseline 1 & 2 were approved by the BoD on July 17 and changes are now being incorporated. Red Amber Green Estimate at Complete = < $263m Estimate at Complete < $263m + 10% Estimate at Complete >$263m + 10% Go-live = 12/1/08 Go-live = <30 days+ Go-live = >30 days+ Program is aligned with current protocols Program is aligned to previous protocol version Program is not aligned to protocols Confirming ability of key vendors to incorporate Baseline 1 & 2 within original schedule. Evaluating downstream lead/cycle time and productivity for improvements. Scope/ Quality Schedule Cost Nodal Delivery Nodal Delivery Amber Current product quality is not sufficient for Nodal launch Most Nodal products currently achieve quality standards All Nodal products currently achieve quality standards Testing Czar being appointed to provide overall testing focus. Increasing End User engagement in User Interface reviews.

4 4 Texas Nodal Program UpdateAugust 13-14, 2007 Schedule Performance – Critical Path Paper copy distributed at meeting

5 5 Texas Nodal Program UpdateAugust 13-14, 2007 Schedule Performance – key recent milestones completed MilestonePlanned Date Actual DateComments Start the Point to Point (PtP) Checkout Jun 01, 2007 We have completed 68% of PtP testing with an error rate of 4%. 20 out of 39 MPs (51%) have completed PtP. 46,802 points out of 68,476 (projected) points have been tested. 11,547 points remaining. Start ICCP ValidationJun 01, 2007 Testing on schedule. MMS Security Constrained Economic Dispatch (SCED) Factory Acceptance Testing (FAT) Complete Jun 15, 2007 SCED FAT completed by ERCOT MMS team SCED FAT details (e.g., scenarios, use cases, results) to be reviewed with TPTF tomorrow. Priority 1 Web Services Test Site - “Sandbox” Jun 30, 2007Jul 16, 2007Delay in obtaining design documents from ABB (MMS Vendor). Within 30 days of planned milestone date On schedule More than 30 days from planned milestone √ √ √ √ √ Milestone Complete

6 6 Texas Nodal Program UpdateAugust 13-14, 2007 Schedule Performance – key Future milestones Within 30 days of planned milestone date On schedule More than 30 days from planned milestone MilestonePlanned Date Forecast Date Comments Early EDS 3 SCED ValidationOct 1, 2007 revised to Jul 30, 2007 Aug 24, 2007Delay in migrating and configuring application across environments. EDS 2 State Estimator (SE) Tuning and Verification Sep 01, 2007 PI Consultant was not available on time, but effort is on track. (State Estimator reports delivery mechanism to be determined). Priority 2 Web Services Test Site - “Sandbox” Aug 31, SCED interfaces will be delivered on Aug 31. The rest of the interfaces will be incrementally delivered by Sep 26. Enlist all QSEs with Resources in EDS Oct 01, 2007 Sep 26, 2007

7 7 Texas Nodal Program UpdateAugust 21, 2007 The real business of testing and integrating exposes challenges in downstream projects, however we are making major strides FAT Integration Project Projects EMS, MMS etc iDev iFAT Integration Testing ITEST EDS eEDS Sandbox RM Improvements in Dev cycle time  1st Sandbox interface / week  2nd Sandbox - 1 interface / week  3rd Sandbox – 10 interface / week Issues being addressed:  Establishing reusable components  Stabilizing design for NMMS integration  Communicating upstream dependencies Improvements in Testing cycle time  1st Sandbox services / day  2nd Sandbox services / day Issues being addressed:  Involvement of ITEST team in upstream activities  Access to stable env to begin test scripts  Testing Czar has been appointed Improvements in migration and configuration  MMS migration time – reduced from 5 weeks to 3 days  Web Services migration time – 14 days to 3 hours Issues being addressed:  Implementation of automation tools for configuration and release  Communicating upstream dependencies for architecture and migration  SCED FAT – Completed on schedule  NMMS FAT – Failed with Sev 1 defects and sent back to vendor for evaluation (Factory Acceptance Test) (Development and Unit Test of Integration) (Integration Factory Acceptance Test) (Integration Testing) (Pre Early Delivery System) (Early Delivery System) Legend RM Release Management (Manages the migration of applications across hardware) ERCOT Testing Phases Gains in productivity and challenges being addressed

8 8 Texas Nodal Program UpdateAugust 13-14, 2007 Market Readiness Update – Metric Map Progress

9 9 Texas Nodal Program UpdateAugust 13-14, 2007 Market Readiness Update – Metric Map Progress Market Participant Metrics QSE with Resources Connectivity to EDS Environment (MP2) QSE with Resources Upload of SCED Offers to EDS (MP3) ICCP Point to Point Telemetry Test (MP5) MP Registration Activities (MP11) MP EDS-2 Trials Participation (MP14) ERCOT Internal Metrics ERCOT Staff Completes Training (E1) Develop Nodal Operating Guides (E6) ERCOT Staffed for Texas Nodal Operations (E8) Develop TN Procedures (E9) Network Model management Metrics ERCOT Telemetry Alarm Processing (N1)  The Metric Inventory Document has complete Metric to Date cross-reference.  The Readiness Metrics Dashboard will provide details on when metrics will begin to be measured

10 Texas Nodal Program UpdateAugust 13-14, 2007 Hall of Fame / Wall of Shame* The following QSEs with Resources secured an EDS3 testing Slot by the August 8 deadline (MP2 / MP3): Austin Energy American Electric Power ANP Funding Brazos Electric Coop BP Energy Calpine Power Management Coral Power City Public Services Direct Energy Eagle Energy Partners Exelon FPL 2/3 rd signed up in first three days of scheduling * Experience in other countries has proven the Terminology based on Hall of Fame / Wall of Shame to be effective. Current as of Friday The following QSEs with Resources failed to secure an EDS3 testing Slot by the August 8 deadline (MP2 / MP3):  Constellation Energy  BTU - Bryan Texas Utilities (APX Client)  Fulcrum (APX Client)  IPA Marketing (APX Client)  Scurry Wind (APX Client)  Topaz (APX Client) Formosa Garland Power and Light LCRA - Lower Colorado River NRG Occidental Power Svcs Reliant Rio Nogales Suez Energy Marketing South Texas Electric Coop Tenaska Power Services Texas Utilities Westar Hall of Fame Wall of Shame

11 Texas Nodal Program UpdateAugust 13-14, 2007 Market Readiness Update – Hall of Fame* The following QSEs and TSPs have Completed 100 percent Point to Point (PtP) Testing As of August 10 (MP5):  AEN - Austin Energy  AEP - American Electric Power  APX  BP Energy  Calpine Power Management  Constellation Energy  CPE - CenterPoint Energy  Exelon  Garland Power and Light  GEUS - Greenville  NRG  OXY - Occidental Power Svcs  Reliant  STEC - South Texas Electric Coop  Suez Energy Marketing  TMPA - Texas Muni Power Auth  OnCor  TXU - Texas Utilities * Experience in other countries has proven the Terminology based on Hall of Fame / Wall of Shame to be effective. Current as of Friday