Nodal Readiness and Transformation Metrics Discussion June 22, 2009 NIT Meeting 06/18/2009 Brandon McElfresh Readiness and Transformation, Metrics Lead

Nodal Metrics – Overall State Currently there are 84 Metrics with 155 underlying measurements  61 ERCOT Metrics/23 MP Metrics;  77% of the metrics have untested processes for collecting data;  Metric Start/End dates not in Integrated Project Schedule;  3 Full-time resources were needed not including resource time from Client Services and Market Trials teams Other ISOs  Cal ISO–33 metrics in 21 areas, MISO–126 metrics in 10 areas;  ERT plans to consult these other ISOs. Opportunity to  Eliminate redundancy (30 Metrics already identified);  Minimize overhead necessary for reporting;  Simplify reporting for NIT, TAC, and the Board. Proposal  SEM Go-Live to use separate dashboards;  RAT to present improved Metric proposal at the Sept ‘09 NIT meeting;  Metrics reporting to start in Oct/Nov ‘09 to prepare for intense activity during Market Trails. Nodal Readiness Scorecard 2 Nodal Metrics Inventory

Metrics – Initial Observations ObservationOpportunity C1-C10 – Metrics for Contingency Plans for each application. CO3, CO5, CO6, CO7, CO8 – Metrics for RTM, DAM, and CRR Statements and Invoices. E10, E11, E3 – Metrics for EDW Access and Accuracy. E6, E9 – Metrics to develop operating guides and procedures. E7, IMM1 – Metrics for Independent Market Monitor functionality. MO7, EMO13 – Metrics for Facilities Readiness. EM01, MP10, MP11, MP18 – Metrics for registration of Market Participants. MP2, MP3, MP8, MP15A – Metrics for ED3 participation and submission of SCED offers. R0, R1, R2 – Metrics to declare ERCOT and Market Participants ready for Go-Live. MP5, EMO5 – Metrics ICCP Telemetry test and verification of ACE performance are complete. MP17, MP22 – Metrics for MP Qualification Consolidate into one Contingency Plan metric (- 9 Metrics). Move all of the statement and invoice verification into the CO1 “Settle Market for 7 Days” test (- 5 Metrics). Consolidate to one EDW metrics (- 2 Metrics). Consolidate into one Readiness Documentation Metric (- 1 Metric). Consolidate to one IMM Metric (-1 Metric). Consolidate to one Facilities Metric (-1 Metric). Consolidate into one Registration Data Metric (- 3 Metrics). Consolidate to one metric for EDS3 Participation and successful submission of SCED offers (-3 Metrics) Consolidate to one metric to Nodal Readiness for Go- Live (-2 Metric) Mark MP5 and EMO5 as complete on the Metrics dashboard (-2 Metrics. Consolidate into one Qualification Metric (-1 Metric) 3 By just eliminating redundancy we can retire 30 Metrics

Metrics – Next Steps 4 Included below is a list of activities needed to reintroduce the Nodal Metrics Program Inventory metrics and verify the existing owners; Redesign and consolidate metrics based on feedback from owners. Determine whether the metrics still represent relevant milestones in the program; Consult resources with metrics experience; Work with Market Trials project team to map Metric Start/End dates to Market Trials Milestones; Work with the Master Schedulers to associate modified metrics with milestones on the Integrated Program Schedule; Ensure that changes to the metrics reporting process are communicated to and approved by the Nodal Program, Wholesale Client Services, and any other key stakeholders; Present the modified metrics and reporting process to NIT for feedback at September meeting; and Begin reporting the metrics in October/November 2009 in preparation to ensure preparedness for February 2009 Market Trials.