1. ERCOT PMO Update Robert Connell Director Program Management Board of Directors Update February 2005

2. Major ERCOT Projects Summary ProjectTotal BudgetActual 01/31Metrics Duration/Information (Sponsor)Phase/Scheduled CompletionScheduleBudget Taylor Building (2004-2005)$12.9M$10.5M Construction Complete. (S. Jones)Closing Phase/1st Qtr 2005 EMMS Release 4 (2004-2005)$7.6M$5.2M 20 separate projects over 14 mos. (S Jones)Execution Phase/2 nd Qtr 2005 Service Oriented Architecture (2004-2005)$6.0M$4.1M 3 separate projects over 12 mos. (R Giuliani)Execution Phase/4th Qtr 2005 Enterprise Data Warehouse (2003-2005)$2.9M$1.9M 9 separate projects over 36+ mos. (R. Giuliani)Execution Phase/4 th Qtr 2005 Ercot.com Improvements (2004-2005)$2.0M$132K Undergoing Initial Review (R Giuliani)Initiation Phase/4 th Qtr 2005 Market Oversight Monitoring System (2004-2005)$1.9M$1.6M 3 separate projects over 12+ mos. (S. Jones)Execution Phase/4 th Qtr 2005 Enhancements to SCR727 (2005-2006)$1.9M$0M Preliminary Planning over 12 mos. (R Giuliani)Planning Phase/1st Qtr 2006 Lodestar 3.7 Upgrade (2004-2005)$700K$473K On Track for March Deployment (R. Guiliani)Execution Phase/1 st Qtr 2005

3. System Ops 2005 Release Plans System and Market Operations PUCT Market Oversight Division Qualified Scheduling Entities Transmission Service Providers Energy and Market Management Texas Market Link Settlements and Billing Market Oversight Monitoring EDW/Business Intelligence StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release SO 5 Release 4A (2004 Carry) 30085 Special Protection Schemes (1.2) 40049 Improve Data Elements for Local Constraints & OOMs (1.1) 30131 PRR359 Improved Resource Plan (1.2) 40050 Unit Specific Bid Limits based on Generic Costs (1.1) 30140 AS Simultaneous Selection (1.1) 40051 OOM Participation in Providing Ancillary Services (1.1) 30161 PRR413 - Optimization for the Whole Operating Day in RPRS Procurement Process (1.1) 40062 PUCT Upgrade SPD (1.1) 30163 PRR422 - OOM Zonal Dispatch Instructions (2.2) 40072 PUCT Add Corrected MCPEs to the MOS dbase and pass to MMS (1.1) 40092 Improve Power System Model Maintenance via Database Archive Comparison (1.1) 40048 EMMS Parameters Capture for MMS Reclear Fidelity (1.1) 40096 Improvements to VSA/DSA (2.2) 30183-99 (1.1) Release 5 30028 Overload Reports (1.1) 30029 Overlimit Reports(1.1) 50016 AVR Validation (1.1) 50044 Near Miss Indicator (1.1) 30105 Congestion Mgmt Reports (1.1) 50002 MOMs Enhancements (1.1) 40036 DC Tie Tracking Automation (1.1) 50020 DC Tie Automation PH II (1.1) 50008 Aggregation of Combined Cycles (1.1) 50021 Improve Reliability of Freq Input (1.1) 40090 Operator Training Simulator (1.1) 30018 RT Market Ramp Rate(1.1) 50040 EMMS SPR Enhancements (1.2) 30084 CSC Thermal Volt Limits (1.1) 50003 MOMs Enhance to AREVA (1.1) Release SO 3 Release 3 (2004 Carry) PR-30144 EMP 2.2 Upgrade (1.0) PR-30074 Enhance STNET Multiple Selected Time Ranges (1.1) PR-30170 Implement Selected Contingency in PF (1.1) PR-30096 ESCA to PTI Download (1.1) PR-20159 Load Rollover during line outage (1.1) PR-40099 CTGS Import/Export Dump Utility (1.0) Release SO 4B Release 4b (2004 Carry) 30016 Dynamic Ratings (1.3) 40084 Outage Scheduler Phase II (1.0) 40086 Incident Report (1.0) 40101 Daily Operations Report (1.0) 40100 RTCA Archiving (1.0) 30129 Remote Access to Study Cases (1.0) 40113 RAPC Modeling (1.0) 40098 Performance Monitoring for SCADA/SE (1.0) Release SO 4A

4. Retail Ops 2005 Release Plans Release RO 5.1 PR-40066_03 Siebel Upgrade (1.1) PR-40019 Retail Testing Website (1.1) Retail Transaction ProcessData Transparency and Rptg EDIMRetail Market Services Retail Client ServicesRetail Market Reporting ESI ID Retail – WS Sync Retail Market Testing Siebel EAI (SeeBeyond/TIBCO) TCH PaperFree Market Testing StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release RO 5.3 Release RO 5.2 PR-40106 ERCOT.com (1.1) PR-50026 SIR Enhancements (1.2) PR-40034 Texas SET 2.1 (1.1) Release 5.3 PR-50007 SCR 738 (1.1) Enhancements to Fast Trak PR-50023 Potential Load Loss (1.2) PR-50025 PRR 312 Enhance ESI ID Lookup (1.2) Release RO 5.1 Release RO 5.2 Release RO 6.0 SOA Release RO 6.0 PR-50121 Service Oriented Architecture (1.1) Including sub-projects of PR-50121

5. MO 2005 Release Plans Release A PR-40066_01 Lodestar 3.7 Upgrade (1.0 – 2004 carry) Settlements/Billing Load Profiling Data Aggregation Data Management Lodestar MV90 TCR/REC TGR StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release “C” Release B PR-40007 SCR 727 Phase 2 (1.1) PR-40075 SIR Enhancement (1.0 – 2004 carry) PR-30026 EPS/RID Meter Data Extracts (1.0 – 2004 carry) EMMS Release 4 (4 MO projects) PR-40093 RMR Automation (1.0 – 2004 carry) PR-40015 TCR Report Enhancements (1.0 – 2004 carry) MR-40108 PRR515 Disclosure of Local Congestion (1.0 – 2004 carry) PR-40104 Zero Charge Enhancements (1.0 – 2004 carry) ER-50010 SIR Enhancement 5.2 ER-50011 SIR Enhancement 5.3 Release C PR-50024 SCR 740 Enhancements to SCR 727 (1.2) EMMS Release 5 (TBD projects) ER-50012 SIR Enhancement 5.4 MR-50025 Enhance ESI-ID Look-up Function (1.2) Release “A” Release “B” TCR/REC TGR Wholesale Client Relations Settlement Metering

6. Corporate Ops 2005 Release Plans Release CO 5.1 PR 30143-02 Portfolio/Project Mgt (1.1) PR 50015 Lawson SIR Enhancements (1.1) Legal, HR, & Finance PMO ERCOT Employees Lawson Finance, Procurement, & HR MS Project Server New Document Management System Budgeting Tool StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release CO 5.3 Release CO 5.2 PR 50017 Collateral Calculation(1.1) PR 50015 Lawson SIR Enhancements (1.1) Release CO 5.3 PR 50015 Lawson SIR Enhancements (1.1) Release CO 5.1 Release CO 5.2

7. IT Ops 2005 Release Plans Release IO 5.1 PR 40042_01 EDW EMMS RSS (1.0) PR 40042_04 EDW Lodestar ODS (1.0) PR 40042_06 EDW Std L* Extracts(1.0) PR 40042-07 EDW EMMS ODS (1.0) PR 50001 EDW BI Foundation P2 (1.1) PR 40107 VeriSign (TML) (1.0) PUCT, Market, ERCOT EDW, EAI, & TML IT Infrastructure Facilities StakeholdersSystems Q2 ‘05Q3 ‘05Q1 ‘05Q4 ‘04Q4 ‘05Q1 ‘06 Release IO 5.3 Release IO 5.2 PR 50004 BI Reporting Tool (1.1) PR 50005 EDW EMMS Reports (1.1) PR 50013 Capacity True Up (1.1) PR 50027 Disk Based Backup (1.2) PR 50028 Altiris DC Impl. (1.2) PR 50001 EDW BI Foundation P2 (1.1) Release IO 5.3 PR 50034 User Provisioning and Password Mgt (1.2) PR 50001 EDW BI Foundation P2 (1.1) Release IO 5.1 Release IO 5.2