1. 1 ERCOT Financial Summary For the month ended April 30, 2005 Board of Directors Presentation - May 17, 2005

2. 2 April 2005 - Financial Dashboard ($ in millions)

3. 3 Financial Dashboard – YTD Operating Expenses ($ in millions)

4. 4 Financial Dashboard – YTD Capital Expenditures ($ in millions)

5. 5 Financial Dashboard – YTD Revenue ($ in millions)

6. 6 Financial Dashboard - Debt ($ in millions)

7. 7 Financial Dashboard – Human Resources

8. 8 Staff and Contractor Summary

9. 9 Financial Dashboard – Time Tracking Time Tracking through April 30, 2005. ERCOT employees track and record time expended on approximately 175 operational activities. The activities were mapped to seven corporate goals established by the ERCOT management team.

10. 10 Financial Dashboard – Market Settlement ($ in millions)

11. 11 Financial Dashboard – Cash Flow ($ in millions)

12. 12 Annual Cost Savings - Realized $290,000 cost savings identified in January $112,000 cost savings identified in February $505,000 cost savings identified in March $202,000 cost savings identified in April Favorable interest income realized in the first quarter ($112,000) Renegotiated terms on debt agreements ($76,000) Replace the leased PBX system in the “Blue Building” with one owned by ERCOT and previously used at the HEB plaza ($14,000)

13. 13 Annual Cost Savings - Targeted $150,000+ cost savings targeted Electric service at Taylor facilities Employee expenses New employee expense reimbursement policy Sponsored meetings New meeting management processes Office and storage rental expense Additional targets resulting from employee suggestions and other effort to improve company efficiency

14. 14 Completions by Priority Complete on March 30th Complete on May 12th Audit Total Items HighMediumLowTotalVerified HighMediumLowTotalVerified CAN Audit72 2214306639 2214306639 D&T Internal Controls109 22502711 34604018 Ernst & Young35 1010112 1010116 Internal Audits37 24222817 24222824 Pricewaterhouse Coopers10 51060 51063 D&T Lawson / Fixed Assets18 21030 62080 Totals Completion Status By Audit 281101 853224 141 69 2632 159 90

15. 15 Audit Responses in Progress In Progress by Phase & Priority PhasePriority PhasePriority Audit Total Items PlanningExecution Low/ MedHigh Total 3/30 PlanningExecution Low/ MedHigh Total 5/12 CAN Audit72 60606 60606 D&T Internal Controls109 344877582 76266369 Ernst & Young35 204024 717024 Internal Audits37 09189 09189 Pricewaterhouse Coopers10 31224 22224 D&T Lawson / Fixed Assets18 15051015 285510 Totals 281 24 78 21 62 1191402098 102 122

16. 16 Audit Recommendation Follow-up Statistics