1. PMO Update to PRS Troy Anderson Program Management Office April 20, 2007

2. 2 PMO Update  Agenda  Recent Project Developments — URC for Uncontrollable Resources (PRR426)  2008 Project Prioritization — Process — Continuous Analysis Review Team (CARTS) Budgets — Schedule of activities  Cost/Benefit Analysis Review Team — Updated process flow and form  Nodal Protocol Revision Requests Review Status

3. 3 PMO Update  March Project Updates  PRR426 – URC for Uncontrollable Resources — Project cancelled on Market Operations PPL — Effects boxed language in the following sections 4.4.4, Notification to QSEs of Ancillary Service Obligations 6.3.1, ERCOT Responsibilities 6.8.2.3, Energy Payments — Process will continue to be done manually in lieu of a system change in Lodestar

4. 4 PMO Update  2008 Project Prioritization  Same process as last year — “Guiding Principles” still in effect — Divisional PPLs — Priorities and Ranks — Impact Analysis and CBA required for new additions  Initial 2008 CART Budgets (as proposed during 2007 project prioritization) — Commercial Operations$ 2.0M — IT Operations8.0M — Market Operations0.3M — Retail Operations5.0M — Systems Operations0.5M Totals$ 15.8M

5. 5 PMO Update  2008 Project Prioritization  Schedule — May - Development of 2008 CART PPLs and supporting documents — June Approval by market subcommittees MO-COPS(June 11) RO-RMS(June 13) SO-WMS(June 20) CO, IO, MO, RO, SO – PRS(June 21) Approval by TAC (June 28) — July - Initial review at Finance & Audit Committee (July 17) — August - Available for Board review

6. 6 PMO Update  CBA Review Board (CRB)  Market Participants — M. Munoz, H. Hughes, D. McKeever, K. Ogelman, R. Jones — New Additions: S. Bowling, J. Garcia  ERCOT Participants — PMO: T. Anderson, P. Moast, E. Mansour — Other ERCOT: A. Martinez, P. Feuerbacher, M. Sachnik  Meeting Schedule  April (4/12, 4/16)  May (5/11)  Decided it was prudent to schedule special CRB meetings when necessary to provide input on CBAs in development by market subcommittees

7. 7 PMO Update  CRB Status Report  CBA Review — No CBAs to review this month  CBA Process Improvements — CBA Process Flow Revised draft process flowchart Ready for PRS review — CBA Form Reviewed enhanced CBA form Used PRR672 (Retail Market Timing Necessary for PUCT Project 29637 – Phase 1) as a test case with the new form Ready for PRS review — Latest Information http://www.ercot.com/calendar/2007/04/20070412-CRB.html Process Flow v8 CBA Form v6

8. 8 PMO Update  NPRR Review Status  Review process continues  NPRRs have been grouped for implementation synergies and efficiencies  At the March PRS meeting, the Nodal PMO presented a revised internal ERCOT process for assessing the impact of NPRRs  Are there any further questions?  Does PRS agree with the approach?

9. 9 PMO Update  May 2007 Report Items  Recent Project Developments  2008 Project Prioritization  CBA Review Board Report  NPRR Review Status