ERCOT PMO Update Robert Connell Director Program Management May Board of Directors May 17, 2005 (Through 4/30/05)

April 2005 ERCOT Confidential 2005 YTD Project Performance Project Process Improvements In 2005  3 completed, 17 YTD  3 in Initiation  24 in Planning  23 in Execution  Instituting Managed Time Periods  Expand on Project Metrics – EVM  Establishing Risk Management Methodology Project Activity Project Performance Second Quarter Results (to 4/30)

April 2005 ERCOT Confidential Major ERCOT Projects Summary ProjectTotal BudgetActual 4/30Metrics Duration/Information (Sponsor)Phase/Scheduled CompletionScheduleBudget EMMS Release 4 ( )$9.7M$6.9M 20 separate projects over 14 mos. (S Jones)Execution Phase/2 nd Qtr 2005 Service Oriented Architecture ( )$5.6M$4.4M 8 Architecture projects over 30 months (R Giuliani)Planning Phase/4th Qtr 2006 Commercial System Upgrade ( )$4.7M$4.4M separate upgrade projects. (R Giuliani)Execution Phase/3rd Qtr 2005 Market Oversight Monitoring System ( )$1.9M$1.0M 3 separate projects over 12 mos. (S. Jones) Execution Phase/3rd Qtr 2005 ERCOT.com Improvements$1.2M$204K Project to establish Search Engine, improve on Content Management, Navigation, and content organization (R. Guiliani) Planning Phase/4 th Qtr 2005

April 2005 ERCOT Confidential Large Project Update Large Capital Projects for Board Action in May MO – PR50024 – Enhancements to Market Extracts MO – PR50024 – Enhancements to Market Extracts Project over $1M moving to Execution Project over $1M moving to Execution Inform F&A, Board Resolution language for executive session provided Request to proceed with Project IO – PR50022 – Infrastructure for 2005 Executed Capital Projects Project Initially over $1M, under $1M moving to Execution Project Initially over $1M, under $1M moving to Execution Inform F&A, Request to proceed with blade purchase IO – PR50125 – 2005 Storage to Support Ongoing Operations Project over $1M moving to Execution Inform F&A, Board Resolution language for executive session provided Request to proceed with Project and Vendor contract SO – PR – EMMS R4 Change Control for AREVA Task Order 22 Inform F&A, Board Resolution language for executive session provided Request to increase AREVA contract “Not To Exceed” amount

April 2005 ERCOT Confidential Projects Completed 2 nd Quarter  Projects Completed in April  Remote Access to Study Cases  EDW Lodestar ODS  Siebel 7.7 Upgrade

April 2005 ERCOT Confidential Remote Access to Study Cases Remote Access to Study Cases  Scope of PR-30129: To improve collaboration with the Transmission Operators (TOs) in accurate network modeling, a prototype system has been developed to provide access to limited production data through the EMMS Market Operations Test Environment (MOTE). An accurate network model is essential to the analysis of congestion which often has a direct impact on ERCOT energy prices.  Features and Deliverables:  The solution will allow TOs to remotely and securely access network study cases in the EMS component of the MOTE. The cases include State Estimator solution and network diagrams.  The cases are updated as and when changes occur in the production system.  TOs will be able to execute Load Flow and Contingency Analysis study applications in MOTE.  TOs will thus be able to work in conjunction with ERCOT modeling engineers to tune the network model, enhancing its accuracy and efficiency.  Demonstrate the Prototype system for technical feasibility and security assurance  TOs will be able to access the system on business days during normal working hours.  Current Activity – May, 2005 Rolled Out on April 28 th as planned. The system is in the stabilization period. TO access requests are being processed as and when received. 5/04-6/04 Planning 2 Months Development 8 Months Int & Test 2 Months Production Go-Live and Stabilization 7/26/04-3/31/052/07/05-4/15/054/28/05-5/26/05

April 2005 ERCOT Confidential Enterprise Data Warehouse LodeStar  Scope of PR : The implementation of the 40042_04 is one of the main deliverables for the Enterprise Data Warehouse (EDW). The project involved the implementation of the EDW Operational Data Store (ODS) and the transition of the current Data Archive to the ODS.  Features and Deliverables:  Current Lodestar historical trade date data is included  New data is populated in near real time, including intra-day transactions  Current Activity – April In production 3/1/04-3/31/04 Planning 1 Months Dev & Data Archive Migration - 6 Months Int & Test 5 Months Production Go-Live and Stabilization 4/1/04-9/30/0410/1/04-2/13/052/14/05-4/18/05

April 2005 ERCOT Confidential Siebel 7.7 Upgrade Siebel 7.7 Upgrade  Scope of PR-40066_03: The scope of this project was two-fold; to get the application running on an Oracle 9i database and to have a fully supported version installed – upgrading from v6.5 to v7.7. This project is part of the original CASUP project, PR  Features and Deliverables:  The current Siebel implementation is successfully running on the 7.7 version  The current Siebel DB has successfully been upgraded to Oracle 9i  All current Siebel applications and Oracle DB functionality has been retained and is operational  All current functionality (e.g., MIMO) has been retained and is operational  All interfaces to Lodestar successfully operate after the upgrade with no loss of performance  All interfaces to EDIM Tools successfully operate after the upgrade with no loss of performance  Current Activity – May, 2005  Went live on April 15 th - 18 th with main 7.7 application as planned.  Were not able to go-live with eServices, which moves disputes from TML database to Siebel, because a hardware issue. No loss of current functionality.  Plan to complete eServices implementation in May /04-12/04 Planning 8 Months Development 3 Months Int & Test 1 Month Production Go-Live and Stabilization 1/05-3/053/05-4/054/05-5/05