1. Texas Nodal Program ERCOT Readiness Update TPTF May 5, 2008

2. Agenda 2  Executive Readiness Survey  Transition Plans  Business Process Model and Procedures  Training  Staffing

3. ERCOT Executive Readiness Survey 3  Conducted monthly for ERCOT.  The ERCOT Executive Readiness Survey as of April indicated GREEN  The ERCOT Executive Readiness Survey as of May indicated GREEN  Next iteration will be published on June 1 st.

4. Transition Plans 4  Transition Plans continue to be updated. Proven to be a useful tool to identify and resolve key issues, staffing and roles/responsibilities.  Transition Plans cover:  Overview –objectives, customer (user) information, reference materials and outstanding issues  Scope of Transition – resources, facilities, hardware, software, documentation, budget, training, roles and responsibilities  Transition Planning – release process, data migration, performance measures and reporting, governance and management approach, problem resolution, documentation strategies, training, sustainability metrics, transition schedule, and gaps  Initial drafts created in February. Latest revision was April 30th. Next update is scheduled for late June, 2008.

5. Business Process Model and Procedures 5  Procedures are being updated along with the Business Process Model.  After consolidation and alignment, there are 544 procedures identified.  Development of procedures has already begun and good progress has been made. Target completion is September 1, 2008 for Nodal impacted departments.  The ERCOT Department Level Procedures Scorecard for the entire enterprise is monitored and updated weekly.  ERT has also created a Key Nodal Processes Dashboard to monitor and track progress.

6. Business Process Model – Key Nodal Processes Status 6

7. Procedures – Procedure Status by Department 7

8. Procedures – Procedure Status by Department (continued) 8

9. Training 9  Department Level and Individual Training plans have been updated.  Training has been divided into 2 components:  Market Courses, and  Applications, Systems and Product Courses  Progress has been steady on training.  Target completion for all courses is September 1 st.  Department Level Training Scorecard is updated weekly.  Scorecard is “GREEN” for April.

10. Training – Applications, Systems and Products 10

11. Training – Applications, Systems and Products 11

12. Training -- Market Courses 12

13. Training -- Market Courses 13 Please Note: Basic Training and 2008 Operator Seminar are the same course

14. Training Scorecard 14

15. Staffing 15  Actively recruiting for 34 Nodal positions.  Transition Plans have crystallized staffing for departments.  Additional positions for 2009 have been opened early to ensure adequate time for recruiting, training, availability for EDS activities and the 168 hour test.  Intern positions have been hired and are targeted to start in Spring/Summer to support activities.  The majority of openings have been addressed within the targeted timeframe.  A few key departments struggle to find resources.  May 1 Staffing Metric: GREEN (>90%)

16. Staffing – Nodal Staffing Status 16  Identified Nodal - Specific Positions in each Division  Actively Recruiting 34 Positions  Additional 2009 Positions have been brought into 2008 and are being recruited Division2008 Authorized 2008 Open 2008 % Filled IT – Nodal Departments IT – Other Total 156 72 228 15 93% Market Ops – Nodal Departments Market Ops – Other Total 91 71 162 891% System Ops – Nodal Departments System Ops – Other Total 131 26 157 1092% System Planning – Nodal Departments System Planning – Other Total 14 27 41 193% Nodal Departments Others TOTAL 392 329 721 3491% *As of May 2, 2008