Lead FromThe Front Texas Nodal May 17 th 2006 – Nodal Organization V1.5 1 Getting physical – high-level packaging for delivery accountability Commercial Systems  Settlements/Billing Day Ahead & Real Time market  Calculation and Posting of 15-min Settlement point prices  Invoices  Credit Monitoring  Data Aggregation  Metering  Load Profiling  Commercial System Interfaces  Financial Transfer  AS Obligations Calculations  Validation & Delivery of Invoices & Statements  Settlement Tools  Batch Scheduling  DEV/727  Dispute tools  Registration EDW  Lodestar Replicated Source System (RSS)  EMMS RSS  Lodestar Operational Data Store (ODS)  EMMS ODS  ODS to Consolidated Data Warehouse (CDW)  PUCT Oversight Reports (including MOMS)  Market Reports  Market Data Transparency  EMMS Extracts  727 Extracts  Generation Extracts  Load Extracts  Settlements & Billing Extracts  Lodestar Framework  EMMS Framework  CDW Framework  Compliance  Credit reports (MPs) EMS  SCADA  Outage Scheduler  Network Security Analysis  Load Frequency Control (LFC)  Performance & Reserve Monitoring  Enhancements to Operator Training Simulator (OTS)  Load/RPP Forecasting  Enhancements to SE/ Topology Consistency Analyzer MMS  Day Ahead Market  Supplemental AS Market  Reliability Unit Commitment  Real Time Market  Emergency Operations Enhancements  Price Correction, Administration, and Mitigation  Asset Registration & Dispute Interfaces  EMS/MMS Interfaces  DC Tie CRR  PCR  CRR Auction  CRR/Settlement Interfaces Market Participant Engagement & Readiness  Training – MPs and ERCOT staff  Communications  ERCOT.com Enhancements  Nodal Portal Enhancements  MarkeTrak Enhancements  Market Readiness Criteria  Market Engagement & Participation inc TPTF  Market Readiness Declarations Integration testing  Nodal Testing Tools  Nodal TEST environments  Release Management  Integrated testing  Early Delivery Systems  Production environments Integrated ERCOT Readiness & Transition  Release Strategy  Testing Strategy  ERCOT Readiness Criteria  ERCOT readiness preparations  Market Trials  Pilot  ERCOT Readiness Declarations  Nodal Transition Plan NMMS  Telemetry  Enhancements for State Estimator (SE)  Network Model Management Services  Naming Conventions Integration & Design Authority  Overall Architecture & standards  Integrated business process architecture  SOA Architecture  User Interface standards  RFPs  Quality assurance  Program design issue resolution Note The scope described here is for packaging purposes to identify key projects. The precise scope of each project will be defined in the individual Project Charters and will take precedence. Infrastructure  Hardware  Project dev/test environments  Integration testing environments  EDS environments  Production environments

Lead FromThe Front Texas Nodal May 17 th 2006 – Nodal Organization V1.5 2 Getting physical – the Program organization structure Program Control Rob Connell Implications Those with delivery accountability are core Program Team members. Each needs to produce a Charter, including team & resource requirements. Nodal Program Sponsor Ron Hinsley Nodal Program Director Kathy Hager Nodal Steering Board Note Additional groups and individuals will provide advice and support across the program. These include the Business Analysis team, Procurement, Legal and Finance. Commercial Systems Project Raj Chudgar EMS Project Carlos Gonzales- Perez MMS Project Al Hirsch CRR Project Beth Garza Market Participant Engagement & Readiness Project Trip Doggett Integration Testing Project Glen Wingerd Integrated ERCOT Readiness & Transition Project Steve Grendel NMMS Project Raj Chudgar Integration & Design Authority Jeyant Tamby EDW Project TBC Infrastructure Project Ron Hinsley

Lead FromThe Front Texas Nodal May 17 th 2006 – Nodal Organization V1.5 3 Core Team Roles – DRAFT (1/3) RoleResponsibilities Program Sponsor Board-level customer of the program; ensures it remains aligned with high-level ERCOT business goals and strategy Manages the external environment – TPTF, PUCT, TAC, etc. Chairs the Nodal Steering Board Champions the program and conveys general status/progress/issues to the board Promotes the program across businesses and ensures Executive Leadership commitment to it Resolves policy issues and removes organizational roadblocks Program Director Mobilizes and provides day-to-day direction, business input and support to rest of the core leadership team Communicates to the program sponsor (status, necessary approvals, etc.) Owns the Program Charter and Management Plan Leads the culture change/motivation efforts and buffers team for the rest of the organization Approves/escalates changes to program scope and baseline Troubleshoots critical program roadblocks/issues Performance management for the core team Integration & Design Authority Director Owns the DA Charter Defines & maintains the overall business and technical architecture Mobilizes and manages the DA team Defines high-level business requirements and RFPs (for strategic vendors) Defines and ensures project compliance with design standards Defines and ensures systems compliance with performance requirements Ensure consistency of design with protocols Assures the quality and integrity of detailed business/technical solution throughout the delivery life-cycle Defines/chairs the Integration/Design Assurance forum (including Project and Vendor architects) Anticipates, identifies and resolves cross-program design & integration issues, mobilizing “task forces” (incorporating key Project personnel) as required

Lead FromThe Front Texas Nodal May 17 th 2006 – Nodal Organization V1.5 4 Organization Roles - DRAFT (2/3) RoleResponsibilities Infrastructure Project Manager Owns the Project Charter Mobilizes and manages the project team Manages stage approvals Delivers development, testing, EDS and production environments within the constraints of agreed timescales, budget and releases Manage control of software Manages external project dependencies and interfaces (e.g. into development projects, integration testing) Manages/escalates risks, issues and exceptions Develops and maintains relationship with vendors/internal providers ERCOT Development Project Manager (multiple) Owns the Project Charter Establishes detailed requirements and SOWs (internal and external) Mobilizes and manages the project team Manages stage approvals Delivers project scope to defined standards and (FAT) acceptance criteria within the constraints of agreed timescales, budget and releases Manages external project dependencies and interfaces (e.g. into integration testing) Manages/escalates risks, issues and exceptions Develops and maintains relationship with vendors/internal providers Integration Testing Project Manager Owns the Project Charter Establishes detailed requirements and SOWs (internal and external) Mobilizes and manages the project team Owns the individual Release Plans (driven by the Release Strategy) Manages stage approvals Establishes test environments and tools to support integration testing Establishes the Early Delivery System(s) – handing support to IT operations Manages the external project dependencies, configuration and integration test cycles for all releases within the program

Lead FromThe Front Texas Nodal May 17 th 2006 – Nodal Organization V1.5 5 Organization Roles - DRAFT (3/3) RoleResponsibilities Market Readiness Project Manager Owns the Project Charter Mobilizes and manages the project team Owns and executes the Communication Plan (internal and external) Owns and executes the Training Plan (internal and external) Chairs the Transition Planning Task Force Defines Market Readiness Criteria Manages Market Participant delivery and participation in testing and trials Manages Market Readiness Declarations Integrated ERCOT Readiness & Transition Project Director Owns the Project Charter Mobilizes and manages the project team Defines and maintains the Release Strategy Defines and maintains the Testing Strategy Defines and chairs the Release Management forum Assesses impact and scope of the program (Protocols) on core processes and the ERCOT organization Defines ERCOT Readiness Criteria Defines and chairs the Business Readiness forum Establishes & executes Business and IT Implementation Plans and manages business/IT delivery and participation in testing and trials Manages ERCOT Readiness Declarations Establish Service Level Agreements etc Establishes and executes the Operational Transition plan