PMO Update to PRS Troy Anderson Program Management Office February 22, 2007

2 PMO Update  Agenda  Recent Project Developments  Project Funding Changes  NPRR Review Status  CBA Review Team

3 PMO Update  Recent Project Developments  EDW Go-Live Project — EDW EMMS Extracts (PR-50005) Scope: Transitioned PUCT, Market and Public EMMS extracts from the legacy Data Archive to the ODS (Operational Data Store) environment utilizing the EIS (Enterprise Information System) Data Delivery Model Deliverables: 4 extracts for Market Participants and 12 extracts for the general public Timeline: January 2005 – January 2007 Go-live was 1/15/2007 Cost: $315k Estimate in mid-2005 was $327k  Transfer of funds from Texas SET 3.0 to TCC2 Finish-out and Annex Construction (see next slides)

4 Managing Project Funding Changes  Process for Managing Changes in Project Funding  Individual CARTs have authority to make project budget changes <$100k  They must still manage within their allocated CART budget  Project budget changes >=$100k go to the ERCOT Strategic Review Team (directors) for review and approval  CARTs bring forward proposals for reallocation of funds (including the CART which was releasing the funds in question)  Project budget changes >=$500k go to the ERCOT Executive Committee for review and approval  Executives act on the SRT recommendation (affirm/change)  Project budget changes >=$1M go to the ERCOT Board of Directors for review and approval  Final ERCOT recommendation goes before the BoD

5  Important Considerations  Every effort is made to NOT negatively impact PUCT and market projects  Projects expected by the market in the current year  Projects just below the cutline are considered for funding  Critical projects emerge between yearly prioritization cycles that need to be addressed on a near-term basis  Market input is derived from project ranking on PPLs and input from appropriate CARTs  Reallocating funds between CARTs is preferred over requesting additional project funding from the BoD  This is especially the case early in the calendar year  Communication of decisions occurs through usual channels  Market Subcommittee reports (PRS, RMS, etc.)  TAC and Board reports Managing Project Funding Changes

6  Texas SET 3.0 Funding Transfer  Texas SET 3.0 was estimated at $1.63M going into Execution  PPL budget was $3.75M  $2.1M variance was reported to SRT by RO CART  Reasons: Project consolidation, reduced external labor, hardware not needed  RO presented a proposal to use some of the funds within RO  CO presented a proposal to use the funds for facilities needs  Build out unfinished TCC2 space, reconfigure cubicles to increase cube count, construct 12,000 sq. ft. annex/warehouse  The SRT and Executive Committee decided the best course of action was to reallocate the funds to CO  No impact to planned RO market projects to be started in 2007; possible, but small, impact to delivery in 2007  These decisions occurred very quickly due to timing constraints relating to the February Board of Directors meeting  Reported to RMS on 2/14  Board to review proposal on 2/20 Managing Project Funding Changes

7 PMO Update  NPRR Review Status  Next 3 slides taken from February 2 TPTF update  They chronicle the assessment of 65 changes with potential impact: — NPRRs (approved, pending, and draft) — Other Potential Change Sources White papers Requirements changes IDA punch list EMS comments  Commitment made to return to TPTF with conclusions and recommendations

8 Change Impact Tabulation Through February 2nd Change Impact Categories: Class 1 = Core Functionality: Code & Internal Processes, All Algorithms, Emergency & Safety Class 2 = Procedural: Business process, Procedures, Display Presentation Class 3 = Minimal: Documentation Only Class 4 = None Type EMSMMSOS MOTE SOTE OTS Total Class Class Class 32 2 Class TBD

9 Change Impact Tabulation Through February 2nd Core Functionality: Code & Internal Processes, All Algorithms, Emergency & Safety Procedural: Business Process, Procedures, Display Presentation Still Under Analysis

10 Change Impact Tabulation Through February 2nd Minimal: Documentation Only None

11 PMO Update  CBA Review Board (CRB)  Market Participants — Manny Munoz, Hal Hughes, Debbie McKeever, Kenan Ogelman, generator market participant to be named  ERCOT Participants — PMO: Troy Anderson, Pat Moast, Elizabeth Mansour — Other ERCOT Teams: Adam Martinez, Paula Feuerbacher, Margaret Sachnik  Meeting Schedule  Monthly teleconference — February (2/15) — March (TBD)

12 PMO Update  CRB Status Report  CBA Review — PRR697 – Posting Requirement Changes Made some changes/improvements  CBA Process Improvements — CBA Process Flow Discussed a draft process flow Program Administration will incorporate suggested changes for review at March meeting — CBA Form Discussed a number of potential enhancements Discussed merit of suggested changes Program Administration will develop a prototype for review at March meeting — Other Investigating a CRB area on ERCOT.com

13 PMO Update  March 2007 Report Items  Recent Project Developments  NPRR Review Status  CBA Review Board Report