Texas Nodal Market Implementation Metric Sub Group Readiness Advisor January 30, 2006

Metric Sub Group Readiness Advisor Contacts Readiness Advisor Team Contacts: Don McCormick – Jesse Harmon –

Metric Sub Group AGENDA Introductions Quick Overview of Readiness Advisor Activities Readiness Advisor Progress To Date Metric Sub Group Activities & Proposed Schedule Detail Review of Nodal Metric Map Review of Participant Comments

Metric Sub Group Readiness Advisor Responsibilities Responsibilities of the Readiness Advisor Metric Development Phase - Current: –Facilitate the development of metrics with the Metric Sub Group and Business Managers (metric owners) as designated by the TPTF and ERCOT Metric Verification Phase - Future: –On an ongoing basis and using the developed metrics as a baseline, examine the evidence submitted for each Metric and render the decision of when the Metric has been verified as met. Follow up with interviews, operational observations and systems operational observations where deemed necessary –Follow up with ERCOT on any outstanding questions or issues that are preventing the completion of Metric verification –Provide regular periodic (monthly) readiness assessments to the TPTF and ERCOT –Produce regular interim reports that cover all milestones and metrics, providing information such as (and not limited to), any observed issues potentially impeding progress –Produce an Executive Report prior to the start of major market milestones (i.e. EDS-1, EDS-3) and send the report to all stakeholders in advance of its final presentation –Produce an Executive Report prior to the transition of the zonal market to the nodal market with a detailed statement of readiness and send the final report to all stakeholders in advance of its final presentation –Provide presentations on readiness to the TAC, TPUC, TPTF and ERCOT as requested

Metric Sub Group Readiness Advisor Progress to Date Metric Development Phase –Where we left off The presentment of the Metric Framework was re-scheduled to this date from the first week in January –Proceeded to meet with Metric assigned ERCOT Business Directors and Business Managers (Metric Owners): Conducted numerous (14+) Business Director / Manager (Owner) meetings presenting the proposed Metric Map and straw-man Metric Definition documents for discussion Most metrics have been assigned to Business Managers (owners) –Metric Development Underway High level approach to metric definition underway pending TPTF approval of the Metric Framework –Metric Framework Metric Map Metric List –Protocol Gap Analysis

Metric Sub Group Overview The primary mission of the Metric Sub Group (MSG) is to provide oversight and direction for the Readiness Advisor Initiative as it applies to the Texas Nodal Market Transition. The prime responsibility of the MSG is the ongoing oversight of the Metric Framework to include: – Vetting the concept of the metric for presentation to the TPTF. This will ultimately result in a vetted metric map for presentation to the TPTF. –Vetting the Metric Definition Documents and any subsequent revisions for presentation to the TPTF. A Metric Definition Document describes the intent of the metric, the timing and actions that must be completed and the identification of the sources of evidence to justify when the metric has met completion. It is assumed that new metrics will be submitted from time to time for the life of the Readiness Advisor Initiative The MSG should consist of market participants (ideally at least 2) from each of the market segments and an ERCOT representative The Readiness Advisor shall chair and provide administrative and technical support to the MSG. The Readiness Advisor Team will not be a voting member of the MSG.

Metric Sub Group Overview The MSG shall meet (optionally in-person and Webex) beginning Wednesday January 30, 2007 on a day designated by the MSG members (suggested bi- weekly). The MSG shall provide the TPTF with updates of its activities. Immediate items for the MSG to address: –Address the proposed metric categories/list for approval / revision

CONTINGENCY (C) ERCOT INTERNAL (D) MARKET MONITOR (IMM) MARKET PARTICIPANTS (MP) COMMERCIAL (CO) CONGESTION REVENUE RIGHTS (CRR) MARKET MANAGEMENT (MMS) ENERGY MANAGEMENT (EMS) NETWORK MODEL MANAGEMENT (N) Border Legend: EDS 1 EDS2 EDS 3 EDS 4 SYSTEMSSYSTEMS Texas Nodal Market Implementation Readiness Advisor Metric Map Metric Development January 25, 2007 DRAFTDRAFT Metric Received by RA Metric LTA Metric Approved Metric Defined Metric Verified Metric Late Metric in Definition Metric Fill Legend: (E)

Metric Sub Group Metric List

Metric Sub Group Metric Definition Document – Example -

Metric Sub Group Next Steps Immediate Next Steps: Vet current list of proposed metrics for presentation to TPTF. This will result in a MSG sponsored presentation of the Metric Framework (Map), to the TPTF