1. Ken Shoquist VP, CIO Information Technology Board Meeting October 2003
ERCOT IT Update
Ken Shoquist
VP, CIO Information Technology
Board Meeting
October 2003

2. Agenda
Metrics
Cost Savings
Efficiency
Effectiveness
Portal
Summary

3. Metrics Identified opportunities for improvement
Maintain reporting of key metrics
IT Blue Book
Developed and in use
Measuring key indicators
Net for September
EMMS
Acceptable levels
Missed 3 intervals in September
Transaction Processing
Market volume slightly down by 7% (seasonal)
Average processing time continues to decrease
Settlements
All-time high of 7351 in September
75% volume increase in 8 months
Project Management
4 projects completed in September
23 in process
Schedule slips from EMMS vendor for ERCOT and PUC projects forecasted

4. $ 10.57M Cost Savings Three-Year Projected Savings Vendors Savings %
Market Flow Thru
Consultant and Contractor Rates
(Capital $) A
20.0
1,800K B
22.5
50K C
17.5
364K
Communications (WAN)
46.0
265K
40%
54.0
645K
Service/Support Agreements
1,000K
100%
Annual Savings
$4,124,000
Three-Year Projected Savings
$ 10.57M

5. Business Value = Efficiency
Requirements Training
Drive down consulting costs
Prepare us for future projects; i.e., Texas Nodal
Progress
Tools purchased to support consistent development methodology
Implementing tools for enterprise project management
Opportunities
Weakness in transition of software from test to production
Production processes continue to be a significant focus area
Example: failure of portal implementation
New Key Management in Place
Tony Dulin, Manager System Engineering & Administration
Carlos Gonzalez-Perez, Manager EMMS Production
Business
Value
Skillfulness in avoiding wasted time and effort
and
The ratio of the output to the input of any system =

6. Effectiveness Effective EMMS Systems Effective Commercial Systems
Improving network modeling with more effective use of state estimator for improved reliability
Focusing on production processes
Effective Commercial Systems
Focus on commercial systems architecture/Reliability – Requirements underway
CIG (Common Interest Group) Texas architecture group in process
ISO architecture meeting held at ERCOT last week
Effective Server Consolidation & Automation
Consolidation – effective staffing ratio, avoid expanding costs
Automation – effectively build and manage servers
Virtualization – effectively utilizes server assets
Effective Security Practices
ERCOT CIP meetings progressing
Secured infrastructure = high value

7. CIP Advisory Group
Critical Infrastructure Protection Advisory Group Meeting held October 13
Unanimous agreement on importance of group
Base charter created, modifications being made
Providing advice, assistance and best practices
Companies volunteering time and energy
BP Energy
Reliant
TXU
Steering Committee & Group
Proposed steering committee from Generators (6), Transmission (2), QSE (4), ERCOT (1)
Group membership – open to all ERCOT market entities
Working task groups created from group membership
Working task groups (examples)
Regulation compliance
Texas market standards
CenterPoint
LCRA
ERCOT
Trending Analysis & Reporting
Confidentiality

8. Texas Market Link – Summary
Background
TML migration began Friday, 10/3 and completed Sunday, 10/5, as scheduled
Stability issues reported on Monday morning 10/6 at 7:45 AM
Efforts to research TML stability issues halted at 9:30 AM
TML backed out and pre-migration portal restored
Wholesale functionality (excluding Rpt Explorer) available by 10:30 AM
Retail functionality (excluding Rpt Explorer) available by 6:00 PM
Full functionality for Report Explorer not available until 10/9
Root Cause
Migration produced issues in Production that did not exist in Test
Proposed Migration Solution
Team will expand load tests to identify/correct potential issues
For migration, MPs will be pointed to the new TML servers at cut-over
Target re-launch and potential pilot date based on Market and User input
Separate incident with the Commercial Applications API
Impacting MP ability to extract commercial reports programmatically
Cause: Hardware failure twice
Issue: Unable to regain full functionality restored without rebuilding modules
Manual solution via portal in place
Redeploy commercial API functionality within 2-3 weeks

9. Summary Good progress in renegotiation of major contracts,
several key contracts remaining to rework/establish.
Major focus areas:
EMMS vendor product delivery schedule issues
Production process and procedures
Server consolidation
Commercial Systems Architecture Project
Delivery of new Portal