PMO Update to PRS Troy Anderson ERCOT Program Management Office June 17, 2010

2 PMO Update - Agenda –2010 Project Spending Update As of 6/10/2009 –Nodal Parking Deck As of 6/10/2009 –Project Implementations May 2010 –2011 Project Prioritization Schedule Revision

Project Spending Update – 6/10/2010 CARTInitial BudgetCurrent BudgetSpending Forecast CO $ 1,150,000 $ 1,182,628 IO $ 1,450,000 * $ 765,000$ 858,493 MO $ 1,500,000$ 1,297,649$ 1,009,035 RO $ 1,900,000$ 1,892,118$ 1,584,962 SO $ 150,000$ 144,068$ 101,366 Minor Cap $ 750,000 * $ 1,435,000$ 1,435,000 Released but Not Yet Reallocated $ 0$ 5,932$ 0 Subtotal $ 6,900,000$ 6,689,767$ 6,171,484 Met Center Replacement $ 31,900,000 ** $ 37,600,000$ 37,600,001 Data Center Hardware $ 7,500,000 ** $ 7,900,000$ 8,122,940 Grand Total $ 46,300,000$ 52,189,767$ 51,894,425 * Transfer from IO to Minor Cap for licenses ** Transfer from Met Center to DC Hardware for telecom equipment

4 Nodal Parking Deck - Approved by Board of Directors Source Document TitlePriority Current Status NPRR131Ancillary Service Trades with ERCOTHigh BoD Approved 1/19/2010 NPRR181FIP Definition RevisionHigh BoD Approved 1/19/2010 NPRR153 Generation Resource Fixed Quantity Block Offer Medium BoD Approved 1/19/2010 NPRR164 Resubmitting Ancillary Service offers in SASM Medium BoD Approved 1/19/2010 SCR755ERCOT.com Website EnhancementsMedium BoD Approved 2/16/2010

5 Nodal Parking Deck – Pending Approval Source Document Title Suggested Priority Current Status NPRR146ICCP Telemetry Information SubmittalsHigh Pending at Board TAC approved 6/3/2010 NPRR207Unit DeselectionHigh Tabled at TAC PRS approved 4/22/2010 NPRR210 Wind Forecasting Change to P50, Synchronization with PRR841 High Pending at Board TAC approved 6/3/2010 NPRR222Half-Hour Start Unit RUC ClawbackHigh Pending at Board TAC approved 6/3/2010 NOGRR034 Rescind Telemetry Performance Calculation Exclusions TBD Pending at ROS OWG approved 5/19/2010 SCR756 Enhancements to the MarkeTrack Application Critical Pending at Board TAC approved 6/3/2010 SCR759 acLineSegment Name Length Increase in Information Model Manager TBD Pending at ROS The following items were removed from the Parking Deck in the past month: None

6 Nodal Parking Deck –Additional Items for Consideration 19 April 2010 Title Current Status Wind Cost AllocationHigh level impact assessment of two options is near completion Deferred NOGRR025 ReportsDraft NPRR in progress to gray-box reports planned for delivery after Nodal go-live NMMS APIFunctionality to be considered for post-go-live development CRR APIFunctionality to be considered for post-go-live development MMS Multiple Network ModelsFunctionality to be considered for post-go-live development Add PSS Status to RARFAutomation of manual process as a result of NPRR156 Automated Default Uplift InvoiceAutomation of manual process as a result of NPRR221 EILS EnhancementsAutomation of manual process Price Validation Tool (PVT) EnhancementsEnhancements to be identified during market testing and Nodal implementation

7 PMO Update - YTD 2010 Project Implementations January 2010 –None February 2010 –COPR-80047_02 DAM Control Center –IOPR-90009_01 Infrastructure Monitoring Enhancement (Remedy Phase 3) March 2010 –ROPR-90024_01POLR Rule and Expedited Switch –POLR Rule portion –Expedited Switch delivered in August 2009 –SOPR-90002_01Large Wind Power Production Ramp Forecasting April 2010 –RO PR-90011_01AMS Meter Flag –ROPR-50088_01Data Research and Reporting (Phase 1) –SOPR-50029_01Improvements to VSA/DSA Phase II –COPR-60029_01Enterprise Records Management Framework

8 PMO Update - YTD 2010 Project Implementations May 2010 –None June 2010 (projected) –IOPR-90010_01Monitoring & Reporting Tools –MOPR-90006_01Information Lifecycle Management (Phase 1) July 2010 (projected) –DCPR-10016_01Network Gear (Phase 1) August - December 2010 (projected) –IOPR-80001_01Met Center Disposition –DCPR-10015_01Telcom Equipment –DCPR-10016_01Network Gear (Phase 2) –COPR-10028_01Physical Security project

Project Prioritization Schedule – Revised April 2010 –CARTs develop draft 2011 project lists May 2010 –Initial review at market subcommittees MO-COPS(May 11) RO-RMS(May 12) SO-ROS, WMS(May 13 / May 19) June 2010 –Approval/endorsement by market subcommittees MO-COPS(June 8) RO-RMS(June 9) July 2010 –Approval/endorsement by market subcommittees SO-ROS, WMS(July 10 / July 21) CO, IO, MO, RO, SO – PRS(July 22) August 2010 –Approval/endorsement by TAC(August 5) –Available for F&A and Board review(August 17)

Project Prioritization – Updates Reason for Change to Approval Schedule –ERCOT revised the target date for approval of the 2011 budget from September to November –This additional time will allow ERCOT to further refine the cost estimate for Nodal stabilization and resolve any remaining questions relating to other proposed projects on the PPL Preview of Project Funding Request –Project funding request composed of 3 primary components (including current estimates): Nodal Stabilization and Release Planning$30M Data Center Hardware Purchase$47M Other Projects$TBD –An effort is underway to reduce 2011 project costs in order to minimize impact on ERCOT funding requirements