ERCOT PMO Update Robert Connell Director Program Management Board of Directors Update February 2005

Major ERCOT Projects Summary ProjectTotal BudgetActual 01/31Metrics Duration/Information (Sponsor)Phase/Scheduled CompletionScheduleBudget Taylor Building ( )$12.9M$10.5M Construction Complete. (S. Jones)Closing Phase/1st Qtr 2005 EMMS Release 4 ( )$7.6M$5.2M 20 separate projects over 14 mos. (S Jones)Execution Phase/2 nd Qtr 2005 Service Oriented Architecture ( )$6.0M$4.1M 3 separate projects over 12 mos. (R Giuliani)Execution Phase/4th Qtr 2005 Enterprise Data Warehouse ( )$2.9M$1.9M 9 separate projects over 36+ mos. (R. Giuliani)Execution Phase/4 th Qtr 2005 Ercot.com Improvements ( )$2.0M$132K Undergoing Initial Review (R Giuliani)Initiation Phase/4 th Qtr 2005 Market Oversight Monitoring System ( )$1.9M$1.6M 3 separate projects over 12+ mos. (S. Jones)Execution Phase/4 th Qtr 2005 Enhancements to SCR727 ( )$1.9M$0M Preliminary Planning over 12 mos. (R Giuliani)Planning Phase/1st Qtr 2006 Lodestar 3.7 Upgrade ( )$700K$473K On Track for March Deployment (R. Guiliani)Execution Phase/1 st Qtr 2005

System Ops 2005 Release Plans System and Market Operations PUCT Market Oversight Division Qualified Scheduling Entities Transmission Service Providers Energy and Market Management Texas Market Link Settlements and Billing Market Oversight Monitoring EDW/Business Intelligence StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release SO 5 Release 4A (2004 Carry) Special Protection Schemes (1.2) Improve Data Elements for Local Constraints & OOMs (1.1) PRR359 Improved Resource Plan (1.2) Unit Specific Bid Limits based on Generic Costs (1.1) AS Simultaneous Selection (1.1) OOM Participation in Providing Ancillary Services (1.1) PRR413 - Optimization for the Whole Operating Day in RPRS Procurement Process (1.1) PUCT Upgrade SPD (1.1) PRR422 - OOM Zonal Dispatch Instructions (2.2) PUCT Add Corrected MCPEs to the MOS dbase and pass to MMS (1.1) Improve Power System Model Maintenance via Database Archive Comparison (1.1) EMMS Parameters Capture for MMS Reclear Fidelity (1.1) Improvements to VSA/DSA (2.2) (1.1) Release Overload Reports (1.1) Overlimit Reports(1.1) AVR Validation (1.1) Near Miss Indicator (1.1) Congestion Mgmt Reports (1.1) MOMs Enhancements (1.1) DC Tie Tracking Automation (1.1) DC Tie Automation PH II (1.1) Aggregation of Combined Cycles (1.1) Improve Reliability of Freq Input (1.1) Operator Training Simulator (1.1) RT Market Ramp Rate(1.1) EMMS SPR Enhancements (1.2) CSC Thermal Volt Limits (1.1) MOMs Enhance to AREVA (1.1) Release SO 3 Release 3 (2004 Carry) PR EMP 2.2 Upgrade (1.0) PR Enhance STNET Multiple Selected Time Ranges (1.1) PR Implement Selected Contingency in PF (1.1) PR ESCA to PTI Download (1.1) PR Load Rollover during line outage (1.1) PR CTGS Import/Export Dump Utility (1.0) Release SO 4B Release 4b (2004 Carry) Dynamic Ratings (1.3) Outage Scheduler Phase II (1.0) Incident Report (1.0) Daily Operations Report (1.0) RTCA Archiving (1.0) Remote Access to Study Cases (1.0) RAPC Modeling (1.0) Performance Monitoring for SCADA/SE (1.0) Release SO 4A

Retail Ops 2005 Release Plans Release RO 5.1 PR-40066_03 Siebel Upgrade (1.1) PR Retail Testing Website (1.1) Retail Transaction ProcessData Transparency and Rptg EDIMRetail Market Services Retail Client ServicesRetail Market Reporting ESI ID Retail – WS Sync Retail Market Testing Siebel EAI (SeeBeyond/TIBCO) TCH PaperFree Market Testing StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release RO 5.3 Release RO 5.2 PR ERCOT.com (1.1) PR SIR Enhancements (1.2) PR Texas SET 2.1 (1.1) Release 5.3 PR SCR 738 (1.1) Enhancements to Fast Trak PR Potential Load Loss (1.2) PR PRR 312 Enhance ESI ID Lookup (1.2) Release RO 5.1 Release RO 5.2 Release RO 6.0 SOA Release RO 6.0 PR Service Oriented Architecture (1.1) Including sub-projects of PR-50121

MO 2005 Release Plans Release A PR-40066_01 Lodestar 3.7 Upgrade (1.0 – 2004 carry) Settlements/Billing Load Profiling Data Aggregation Data Management Lodestar MV90 TCR/REC TGR StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release “C” Release B PR SCR 727 Phase 2 (1.1) PR SIR Enhancement (1.0 – 2004 carry) PR EPS/RID Meter Data Extracts (1.0 – 2004 carry) EMMS Release 4 (4 MO projects) PR RMR Automation (1.0 – 2004 carry) PR TCR Report Enhancements (1.0 – 2004 carry) MR PRR515 Disclosure of Local Congestion (1.0 – 2004 carry) PR Zero Charge Enhancements (1.0 – 2004 carry) ER SIR Enhancement 5.2 ER SIR Enhancement 5.3 Release C PR SCR 740 Enhancements to SCR 727 (1.2) EMMS Release 5 (TBD projects) ER SIR Enhancement 5.4 MR Enhance ESI-ID Look-up Function (1.2) Release “A” Release “B” TCR/REC TGR Wholesale Client Relations Settlement Metering

Corporate Ops 2005 Release Plans Release CO 5.1 PR Portfolio/Project Mgt (1.1) PR Lawson SIR Enhancements (1.1) Legal, HR, & Finance PMO ERCOT Employees Lawson Finance, Procurement, & HR MS Project Server New Document Management System Budgeting Tool StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release CO 5.3 Release CO 5.2 PR Collateral Calculation(1.1) PR Lawson SIR Enhancements (1.1) Release CO 5.3 PR Lawson SIR Enhancements (1.1) Release CO 5.1 Release CO 5.2

IT Ops 2005 Release Plans Release IO 5.1 PR 40042_01 EDW EMMS RSS (1.0) PR 40042_04 EDW Lodestar ODS (1.0) PR 40042_06 EDW Std L* Extracts(1.0) PR EDW EMMS ODS (1.0) PR EDW BI Foundation P2 (1.1) PR VeriSign (TML) (1.0) PUCT, Market, ERCOT EDW, EAI, & TML IT Infrastructure Facilities StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release IO 5.3 Release IO 5.2 PR BI Reporting Tool (1.1) PR EDW EMMS Reports (1.1) PR Capacity True Up (1.1) PR Disk Based Backup (1.2) PR Altiris DC Impl. (1.2) PR EDW BI Foundation P2 (1.1) Release IO 5.3 PR User Provisioning and Password Mgt (1.2) PR EDW BI Foundation P2 (1.1) Release IO 5.1 Release IO 5.2