1 ERCOT Financial Summary For the month ended April 30, 2005 Board of Directors Presentation - May 17, 2005

2 April Financial Dashboard ($ in millions)

3 Financial Dashboard – YTD Operating Expenses ($ in millions)

4 Financial Dashboard – YTD Capital Expenditures ($ in millions)

5 Financial Dashboard – YTD Revenue ($ in millions)

6 Financial Dashboard - Debt ($ in millions)

7 Financial Dashboard – Human Resources

8 Staff and Contractor Summary

9 Financial Dashboard – Time Tracking Time Tracking through April 30, ERCOT employees track and record time expended on approximately 175 operational activities. The activities were mapped to seven corporate goals established by the ERCOT management team.

10 Financial Dashboard – Market Settlement ($ in millions)

11 Financial Dashboard – Cash Flow ($ in millions)

12 Annual Cost Savings - Realized $290,000 cost savings identified in January $112,000 cost savings identified in February $505,000 cost savings identified in March $202,000 cost savings identified in April Favorable interest income realized in the first quarter ($112,000) Renegotiated terms on debt agreements ($76,000) Replace the leased PBX system in the “Blue Building” with one owned by ERCOT and previously used at the HEB plaza ($14,000)

13 Annual Cost Savings - Targeted $150,000+ cost savings targeted Electric service at Taylor facilities Employee expenses New employee expense reimbursement policy Sponsored meetings New meeting management processes Office and storage rental expense Additional targets resulting from employee suggestions and other effort to improve company efficiency

14 Completions by Priority Complete on March 30th Complete on May 12th Audit Total Items HighMediumLowTotalVerified HighMediumLowTotalVerified CAN Audit D&T Internal Controls Ernst & Young Internal Audits Pricewaterhouse Coopers D&T Lawson / Fixed Assets Totals Completion Status By Audit

15 Audit Responses in Progress In Progress by Phase & Priority PhasePriority PhasePriority Audit Total Items PlanningExecution Low/ MedHigh Total 3/30 PlanningExecution Low/ MedHigh Total 5/12 CAN Audit D&T Internal Controls Ernst & Young Internal Audits Pricewaterhouse Coopers D&T Lawson / Fixed Assets Totals

16 Audit Recommendation Follow-up Statistics