1 C urrent Market Release TX SET V2.0 / Solution to Stacking

2 Move-In/Move-Out Market Solution to Stacking (Texas Set V.2.0) Presented by: Glen Wingerd Friday, May 14 th, 2004

3 Agenda –UAT Testing at ERCOT –Progress –Next Steps MIMO - Market Solution to Stacking

4 UAT Testing at ERCOT –Prior to a Retail Release, ERCOT Retail Testing Team performs comprehensive internal testing referred to as UAT (User Acceptance Testing). –This testing occurs after successful Unit testing and Product testing (sometimes referred to as integration testing) performed by the developers. –These metrics only reflect the UAT testing being performed internally at ERCOT. –UAT does not involve any Market Participants. –These scripts test all systems between NAESB receipt and NAESB transmission. MIMO - Market Solution to Stacking

5 UAT Testing at ERCOT –Progress through day 24 of 25-day UAT test flight: –1969 of 2004 tasks are complete (98.25%) –461 0f 480 scripts are complete (96.04%) Market Coordination Team for the Solution to Stacking

6 UAT Testing at ERCOT –To date, ERCOT has identified 192 defects: 2 - Portal 13 - Paperfree 61 - Siebel 16 – SeeBeyond (TCH/EAI) 100 – Data or documentation –These defects are categorized as follows: 90 – Documentation and Script errors 54 – Bugs (Coding errors requiring application level changes) 26 - Data Setup (ESI ID and/or pre-established Service Instance rows set up incorrectly) 20 – System or Environment configuration 2 – Unknown (Recent defects for which analysis is not complete) Market Coordination Team for the Solution to Stacking

7 UAT Testing at ERCOT –All defects are logged and an analysis occurs to determine what retesting will need to occur. –When defects are repaired, affected test scripts are executed again even if they were successful the first time. –The volume and significance of the defects found is remarkably low for an implementation of this magnitude. –ERCOT Retail Testing Team has not identified anything that would lead us to believe that Stacking will be anything less than a success. –As agreed to at RMS, ERCOT will provide additional details concerning this testing at its conclusion. MIMO - Market Solution to Stacking

8 Progress –All MPs progressing through UAT –Changes to market reports and extracts communicated to DEWG Next Steps –Gather baseline data for Post-Implementation Success Criteria –Distribute details of changes to market reports and extracts –Market Test Flight 0504 Market Coordination Team for the Solution to Stacking

9 Project Overview Summary of Changes: Manage customer expectations by accepting and processing all valid requests. Impact Level Efficiency Communication Competition Business Problem Existing NFI logic forces an unreasonable amount of dependency on labor intensive workarounds. Execution of workarounds are causing synchronization issues between market participants. Lack of synchronization leads to improper billing and mismanagement of customer expectations Solution All valid transactions will be accepted and processed based on a set of market rules. Drop notifications will be sent at a point in time where the proper recipient can be positively identified. Rule based cancellations are sent on a pre- determined timeline with enough time for the recipient to react.

10 Implementation Shutdown Overview Wednesday Midnight Thursday Noon Thursday Midnight Friday Noon Friday Midnight 6 hrs14 hrs6 hrs9 hrs1 am 9 pm6 hrs8 hrs6 hrs 814_01, 814_10, 814_16, 814_24 814_08, 814_12, 814_18, 814_26 8 hrs2 pm hrs 5 pm 650_01 1 hr Legend CRsERCOTTDSPs = Conference Calls 814_20 9 pm6 hrs8 hrs6 hrs 814_PC 2 pm4 hrs Initiating 5 pm 1 hr 810, 650_04

11 Flight 0504 Update

12 Flight 0504 Update Frame 0 (preflight activities) Last test bed delivered to ERCOT 4/30, spreadsheets sent to CRs 5/3 Connectivity testing complete 5/4 Penny tests complete 5/10 Functional acknowledgment tests complete 5/10 Readiness for May 17 th -- We are a go!

13 Flight 0504 Update ERCOT Flight Admin held a web conference call on 5/7 to prepare testing contacts with the tools and methods of communication for Flight Call Agenda: Overview of Checklist Review of Daily Call Format What do I have to be ready for Day 1

14 Flight 0504 Next Steps Next Steps / Progress: Daily kick off call Friday 5/14/04 Transactions start to flow Monday 5/17 at 8:00 am Daily status calls - MANDATORY By June RMS (6/9/04) Market scheduled to be on Day 17 of Flight 0504 –40 total scripts –Two (2) stacking scripts should be complete by the market –Eight (8) non-stacking scripts should be complete by the market By July RMS (7/15/04) Market scheduled to be on Day 42 of Flight 0504 –The last script (STK19) should be complete on Day 42

15 Thank you