TPTF Meeting Texas Nodal Program Update Market Readiness Metrics Update Chris Wilkinson PMO

2 2 Market Readiness Metrics Model UpdateAugust 13, 2007 Market Readiness Update – Metric Map Progress Iteration 1 TPTF Approval Iteration 1 TAC Approval Iteration 1 PROD Release Iteration 2 TPTF Review Iteration 2 TPTF Approval Iteration 2 TAC Approval Iteration 2 PROD Release Iteration 3 TPTF Review Iteration 3 TPTF Approval Iteration 3 TAC Approval ReleaseMetricsTPTF ReviewTPTF ApprovalTAC ApprovalProduction Release Iteration 1MP17/23/2007 8/2/20078/27/2007 Iteration 2 MP2, MP3, MP5, MP11, MP13, E1, E6, E8, E9, N1 8/13/20078/27/ /29/20079/6/2007End of September, 2007 Iteration 3MP6, E3, E5, EMO9, N2, N3, MO4, MO5, MP12 9/10/ /11/20079/24/ /26/200710/5/2007TBD ~ End of November Milestones Key Events Completed Within 30 days of planned milestone date On schedule More than 30 days from planned milestone√ Milestone Complete

3 3 Market Readiness Metrics Model UpdateAugust 13, 2007 Metric Performance as of September 20, 2007 MetricMeasured By StatusComments MP Engagement (MP1) Self Reporting July survey results – Not all questions answered, which is driving overall metric yellow in new scorecard tool. QSE with Resources Connectivity to EDS Environment (MP2) EDS3 Team30 of 30 QSEs secured a testing slot between now and 1 st week of October. 8 QSEs have completed connectivity testing (~ 17 percent complete) QSE with Resources Upload of SCED Offers to EDS (MP3) EDS3 Team30 of 30 QSEs secured a testing slot between now and 1st week of October. 18 QSEs successfully loaded offer (~ 60 percent complete) ICCP Point to Point Telemetry Test (MP5) EDS1 PMAs of 9/14/07 –Completed 94% of PtP testing with an error rate of 4%. –30 out of 39 MPs (77%) have completed PtP. –61,669 points out of 67,720 (projected) points have been tested points remaining. MP Registration Activities (MP11) Client Services 119 RARFs received 34 Ancillary Service Attestations Received 99 percent of generation capacity accounted for MP EDS-2 Trials Participation (MP14) EDS2 PM16 of 16 TSP have Digital Certificates generated EDS2 Release 4 begins 11/1. Within 30 days of planned milestone date On schedule More than 30 days from planned milestone

4 4 Market Readiness Metrics Model UpdateAugust 13, 2007 Metric Performance as of September 20, 2007 MetricMeasured By StatusComments ERCOT Staff Completes Training (E1) ERTNODAL 101 Target: 65% NODAL 101 Actual: 75% Develop Nodal Operating Guides (E6) ERTOn-schedule for October 5 approval by TAC ERCOT Staffed for Texas Nodal Operations (E8) ERTTarget = 2008, 2009, and 2010 Organization Charts developed for 2008 budgeting process Actual = Org Charts Developed and Approved by 65 of 65 departments ERT in process of defining subsequent organization design related deliverables and milestones Develop TN Procedures (E9) ERTEngaged 100% of power system, wholesale market and Corporate groups Started to engage IT Documented 148 Level 3 processes to-date ERCOT Telemetry Alarm Processing (N1) EDS2 PM94% complete Testing running in parallel with PTP Testing( MP5) Alarms categorized and prioritized (color coded) Operators able to monitor NODAL alarms Within 30 days of planned milestone date On schedule More than 30 days from planned milestone