Lead from the front Texas Nodal 1 Texas Nodal Market Implementation Overall Traceability Plan June 25, 2007

Lead from the front Texas Nodal 2 Overview Background –What is traceability Goal –Demonstrate complete coverage of Nodal Protocols Plan to get there –Our timeline

Lead from the front Texas Nodal 3 Background: Our plan for traceability Approved Requirement Documents Approved Use Cases Approved Test Cases Approved Test Scripts Traced From Protocols In Requisite Pro In Quality Center The goal of this effort is to demonstrate complete coverage of all Nodal Protocols. The team is focused on ensuring that every Nodal Protocol is accounted for, and has its necessary business requirements traced to them. We have a plan in place to trace all elements from protocols to test results: Test Results Traced From

Lead from the front Texas Nodal 4 Sample Requisite Pro Status Report Descriptive Only Drives ERCOT Requirement MP-related only ALL Protocol Subsections Partially traced to requirements Not traced Project COMS EMS MIS MMS CRR NMMS This traceability effort is aimed at Baseline 2 Every protocol has been scanned to ensure coverage Protocols that Drive ERCOT Requirements are then analyzed to determine if a business requirement covers the protocol and if the protocol is fully covered by the requirement IDA assigns the Not Traced and Partially Traced protocols to the relevant projects Goal: Demonstrate complete coverage of Nodal Protocols Breakdown Assigned to Example of Requisite Pro reports Not Nodalized Not Nodalized Sections: 11, 13, 14, 15, 18, 19, 20, 21, 22A, 22B, 22C, 22D, 22E, 22G, 22I, 22J, 23 Fully traced by requirements

Lead from the front Texas Nodal 5 Assumptions during analysis phase: 1. Requisite Pro is frozen as of 06/01/07 for initial analysis effort. 2.Projects are actively engaged in reviewing requirements and updating versions to create protocol coverage. 3.Gaps will continue to grow as clean up activities run in parallel; will decrease after steady state is established. 4.Change control process to be established after completion of Baseline2 is complete. 5.Steady State iterations will start in approximately September Start analysis of content in ReqPro All protocol subsections tagged Assign untraced protocols to project teams Review partial protocol coverage with CRR and MIS Unfreeze ReqPro Start weekly status reports on Requirements Traceability “ReqPro Status Reports” 06/29/07 06/25/07 Start of steady state iterations** On-going gap analysis, which includes: -Investigation of not traced protocols -Protocol true-up to Baseline2 -Align to EDS releases -Investigation of partially covered protocols 06/01/07 Baseline Days Plan to get there: timeline We plan to reach steady state two months after Baseline2 is established.

Lead from the front Texas Nodal 6 A preliminary look at some of our status reports: Category Drives ERCOT RequirementMarketDescriptiveTotal Number of Protocol Subsections Percentage90%5% 100% Status of all Nodal Protocols: Number of traced subsections SectionDescription Partially traced subsections Fully traced subsections Number of Untraced subsectionsTotal Section 1Overview Section 3Management Activities for the ERCOT System Section 4Day Ahead Operations Section 5Transmission Security Analysis and Reliability Unit Commitment (RUC) …………… Status of Protocol Coverage by Section: Status of all Protocols (Nodal and Not Nodalized):

Lead from the front Texas Nodal 7 Questions?