1. Commercial Applications Systems Upgrade Project - Project Update & Recommendations Project Sponsor Team Jim Galvin – Director, Market Operations Richard Gruber – Director, Market Services Kevin Judice – Director, IT Development Board Meeting March 2004

2. DRAFT 2 CASUP Project  The CASUP project began in October 2003 to: Evaluate the core systems that comprise the commercial systems platform – Lodestar, PaperFree, SeeBeyond (TCH) and Siebel. Develop a set of business and technical requirements using a process that includes representatives from both business and IT. Evaluate existing commercial software applications and other options that may better meet ERCOT’s functional and cost-of-ownership requirements.

3. March 2004 DRAFT 3  Business Requirements for Commercial Systems Used an agile approach, including the Rational Unified Process (RUP) and Joint Requirements Planning (JRP) sessions, to capture and articulate requirements. Completed Enterprise Business Model (EBM). Completed Business Use Cases. Requirements Gathering  Technical Specifications for Commercial Systems Completed Supplementary Specification. Completed Technical Architecture Design.

4. March 2004 DRAFT 4 Product Evaluation  Commercial Systems Software Product Evaluation Request for Qualification (RFQ) process completed: 19 responses received. Responses evaluated by Project Leadership Team and rated using weighted scoring. List categorized and shortened to:  Aggregation & Settlements: Alstom/Areva (Eterra), ICF, OM  Full Solution: Excelergy, Lodestar, SAP  Retail: Siebel Product demonstration process completed: Demos focused on functional, technical and rough cost criteria. Products evaluated by ERCOT managers and SMEs - rated using weighted scoring. Enterprise Application Integration (EAI) product evaluation process constructed. Solution Option alternatives developed by CASUP Team.

5. March 2004 DRAFT 5 Solution Options  Option 2 – Upgrade Lodestar and Siebel  Option 1 – Lodestar Proof-of-Concept  Upgrade Lodestar Wholesale to v4.0 with an interim upgrade to v3.7.  Upgrade Siebel to v7.0.  Develop and implement enterprise-wide application integration strategy.  Upgrade Lodestar Wholesale to v4.0 with an interim upgrade to v3.7.  Upgrade Siebel to v7.0.  Develop and implement enterprise-wide application integration strategy.  Conduct a Proof-of-Concept (POC) to investigate using Lodestar to support Retail business functions. (POC anticipated to begin no sooner than Oct/Nov ’04 due to other near-term resource demands.)  Option 3 – Eterra Proof-of-Concept  Upgrade Siebel to v7.0.  Upgrade Lodestar Wholesale to v3.7.  Develop and implement enterprise-wide application integration strategy.  Conduct a Proof-of-Concept to investigate using Eterra to support Wholesale business functions. Based upon product evaluation results, the CASUP team developed 3 viable solution options: