July 7, 2008 TPTF Texas Nodal Market Implementation: - Market Readiness Metrics Update Jerry Sullivan

2 2 Texas Nodal Program UpdateJuly 7, 2008 Agenda: Market Readiness Metrics Update Status Update –ERCOT Staff Readiness –Market Participants Cycle 4 Survey Update Metric Update –EDS Appendix (see separate file) Metrics Review (see separate file)

3 3 Texas Nodal Program UpdateJuly 7, 2008 Status Update All status levels for overall readiness remain the same

4 4 Texas Nodal Program UpdateJuly 7, 2008 ERCOT Readiness Engagement (green) new survey results came out at the end of June - ERCOT remains fully engaged Training (amber) training efforts are on-going Process (amber) one department in System Operations is behind performance levels Staffing (amber) ERCOT is currently ~95% staffed (98% required for green status) recruitment is on-going Testing (green) no recent developments ERCOT Staff Readiness status is AMBER 15 July 2008 ERCOT Public

5 5 Texas Nodal Program UpdateJuly 7, 2008 Market Participant Readiness Market Participant Readiness status is AMBER Engagement (amber) limited survey response from QSEs and LSEs drives amber status Connectivity (green) several new entrants to the market have been successfully tested Registration and Qualification (amber) MP10 (resource mapping) has, again, improved steadily since the last meeting MP11 (RARF data) – only 5 RARFs have not been received (RARFs representing more than 99.5% of MWs have been submitted) Telemetry (green) no change Training (amber) limited survey response from QSEs drives amber status Trials Participation (green) improvement in MP15 (EDS 3 trials participation) 15 July 2008 ERCOT Public

6 6 Texas Nodal Program UpdateJuly 7, 2008 Cycle 4 Survey Update There were varying degrees of response to the Cycle 4 Survey – QSEs with Resources and TDSPs had 100% response to the Cycle 4 Survey – 87% of QSEs have responded to the survey (up from 72%) – 81% of LSEs have responded to the survey (up from 67%) This limited response is driving several metrics to red – QSEs without Resources are red for MP1, MP12, and MP13 – LSEs are red for MP19 ERCOT Account Managers will continue their outreach efforts to MPs who were non-responsive to the Cycle 4 Survey or who reported negative answers The survey will remain open through August 15 th Updates to the Cycle 4 Survey can be submitted using the excel form found on the metrics website (same process as previous surveys) Cycle 4 Survey Data was reported on the scorecards on June 12th

7 7 Texas Nodal Program UpdateJuly 7, 2008 Metric Updates Metrics will be updated on a weekly basis Changes will appear on the scorecard on Wednesday afternoon You will be notified Tuesday or Wednesday morning if you will be going red Contact us if you notice any inconsistencies Survey data will now be stockpiled and updated on a weekly basis There will not be a “Wall of Shame” in the Board presentation next week

8 8 Texas Nodal Program UpdateJuly 7, 2008 Status Update: EDS EDS 1 (green) no changes EDS 2 (red) state estimator convergence values were consistently higher last week EMO12 (Network Operations Model and SE Performance) is now amber approximately 71 unobservable buses (less than 2%) EDS 3 (amber) Maintained amber status CRR5 (Trial Operation of Annual CRR Auction during Trials) expected to go amber 7/11 EDS 4 (red) waiting on EMS 5 delivery to proceed with EMO3 (Verify Outage Evaluation System Functionality) site fail-over test scheduled for 7/8 EDS status remains unchanged since the last meeting

9 9 Texas Nodal Program UpdateJuly 7, 2008 Questions ?