2008 Project Prioritization Review Troy Anderson ERCOT Program Management Office

Project Priority List / Funding Level Review 2008 Project Prioritization Approval Status –CO (Corporate Operations) approved by CO CART on 6/14 –IO (IT Operations) approved by IO CART on 5/28 –MO (Market Operations) approved by COPS on 6/11 –RO (Retail Operations) approved by RMS on 6/13 –SO (System Operations) reviewed by ROS on 6/14 ( vote likely) WMS review and approval takes place on 6/20 –PRS review and approval on 6/21 On track for: –TAC review and approval on 6/28 All lists were reviewed by the ERCOT Executive Committee on 6/4 and 6/11

Project Priority List / Funding Level Review 2008 Project Budgets and Counts by Program Area and Priority Program Area Budget RequestProject Count Previously Approved CriticalHighHigh/Med CO $ 9,750, IO $ 10,400, MO $ 1,200, RO $ 6,100, SO $ 50, Subtotal $ 27,500, Nodal $ 5,300, Total $ 32,800, Counts By Priority (above line)

Project Priority List / Funding Level Review 2008 Project Budgets by Program Area and Priority Program Area Budget Request Previously Approved CriticalHigh CO $ 9,750,000 $ 1,145,000$ 3,345,000$ 5,260,000 IO $ 10,400,000 $ 0$10,400,000$ 0 MO $ 1,200,000 $ 150,000$ 0$ 1,050,000 RO $ 6,100,000 $ 2,850,000$ 1,000,000$ 2,250,000 SO $ 50,000 $ 0 Subtotal $ 27,500,000 $ 4,195,000$14,745,000$ 8,560,000 Nodal $ 5,300,000 $ 0 Total $ 32,800,000 $ 9,495,000$14,745,000$ 8,560,000 Budgets By Priority (above line)

Project Priority List / Funding Level Review 2008 Project Prioritization Notes by Program Area –CO Large number of projects in multiple areas Strong focus on security and process improvement –IO Keeping up with computing infrastructure needs –MO Focus on Demand Response projects –RO Funding request is similar to previous years Several projects anticipating PUCT rulemakings –SO Reduced budget request due to Nodal No new projects are proposed for 2008 (two are being carried over for the closing phase) Market lists posted at: –

Project Priority List / Funding Level Review CO Project Highlights Project TypeBudgetCount Facilities – Taylor Sys Ops Control Room (Display System Replacement and Two Story Expansion) $ 3,650,0002 Document Management / Workflow / Reporting $ 1,950,0008 Cyber-Security $ 1,225,0005 Technology Upgrades $ 1,075,0008 Physical Security $ 975,0003 Other Projects $ 875,0004 Total Funding Request $ 9,750,00030 Total Unfunded Projects $ 2,200,00010

Project Priority List / Funding Level Review IO Project Highlights Project TypeBudgetCount Blade Refresh and Other Hardware Replacement $ 3,850,0004 Add Storage Capacity $ 3,500,0002 Minor Capital $ 1,500,0001 Infrastructure Monitoring Enhancements $ 1,400,0002 Other Projects $ 150,0001 Total Funding Request $ 10,400,00010 Total Unfunded Projects $ 5,740,0008

Project Priority List / Funding Level Review MO Project Highlights Project TypeBudgetCount COMS Extract, Report, and Web Services Monitoring & Usage Stats $ 425,0001 Direct Load Control / Lagged Dynamic Samples $ 425,0001 ERCOT System Throughput for IDR (Advanced Metering) $ 200,0001 Application Upgrades $ 150,0001 Total Funding Request $ 1,200,0004 Total Unfunded Projects $ 00

Project Priority List / Funding Level Review RO Project Highlights Project TypeBudgetCount PUCT Rulemakings $ 2,000,0004 Internal ERCOT Process Automation and System Design Enhancements $ 1,760,0009 Retail Application Upgrades $ 1,000,0001 MarkeTrak Enhancements $ 700,0002 EDW (Enterprise Data Warehouse) $ 640,0002 Total Funding Request $ 6,100,00018 Total Unfunded Projects $ 00

Project Priority List / Funding Level Review SO Project Highlights Project TypeBudgetCount Mid Term Load Forecast Enhancements - Phase II $ 25,0001 Improvements to VSA/DSA - Phase II $ 25,0001 Total Funding Request $ 50,0002 Total Unfunded Projects $ 00

Project Priority List / Funding Level Review Next Discussion Steps –Introduction of DPO Managers –Project reviews Review of large projects in CO and IO CARTs Detail MO and RO information is available from the COPS and RMS presentations –Open discussion on PPLs Priorities Ranks Cutlines Individual projects Motion to Approve 2008 Project Priority Lists –As amended by PRS, if necessary