1. April 23 2007 TPTF Meeting Texas Nodal Program Update Jerry Sullivan Executive Director, Texas Nodal Program

2. 2 2 Texas Nodal Program Update23 April 2007 Agenda ItemPurposePage Overall Program StatusFor Information3 Nodal Audit ResponseFor Information4 Nodal Progress HighlightsFor Information5 Nodal ScheduleFor Information8 Scope change controlFor Information10

3. 3 3 Texas Nodal Program Update23 April 2007 Scope / QualityScheduleCost Legend Summary As reported on March 8, program is Amber but is being assessed continually Amber Latest monthly committed cost and forecasts are under by 10% of budget to date. Funding for Identity Management and change controls being defined. Amber Backlog baseline established & impacts categorized. Projects conducting vendor negotiations to assess cost & schedule impact. QA plans and metrics in definition – baseline target for end of April. Red Amber Green Estimate at Complete = <$248m Estimate at Complete = $248 - $263m Estimate at Complete = >$263m Go-live = 12/1/08 Go-live = <30 days+ Go-live = >30 days+ Program is aligned with current protocols Program is aligned to previous version of protocols Program is not wholly aligned to protocols ERCOT / MP web services specifications issued on time. Approach to EDS 2&3 trials completed and submitted to TPTF for approval. Confidence in schedule delivery needs to be improved, working on early releases of EDS 3 trials.

4. 4 4 Texas Nodal Program Update23 April 2007  All IBM recommended actions from December 2006 completed.  The high-level recommendations were:  Modify the Role of the Nodal PMO  Update Program Forecasts and Consider a Higher Cost Contingency  Engage Internal Stakeholders in the Nodal Program  Increase the Frequency of Integration Discussions  Modify the Tools & Techniques Used for Risk & Issue Management  Provide Consistent Work Plan Structure with More Tracking Information  Complete Change Requests in a Timelier Manner  Already working on IBM’s next report’s recommendations. Note: Higher cost contingency considered but not yet needed. The PMO has completed recommended actions by IBM from December 2006… We have fully discharged the actions recommended by the December 2006 review

5. 5 5 Texas Nodal Program Update23 April 2007 March / April Major Program Highlights EIP: “Bell Ringer” Nodal event: Published Web Service interfaces milestone met on 3/31/2007 –MPs data definition for automated (API) communication with ERCOT. –Defining point for MPs since this is when they can start building systems to interface with ERCOT EIP: Two way communications messaging and 3-part offer interface exposed to Market Participants on 3/22/2007 MER: Launch 1 st web-based training module (ERCOT Nodal 101) 3/23/2007 MER: MIS Prototypes delivered ahead of schedule NMMS: Phase 1a delivered to ERCOT development on schedule 4/12/2007 Program: Major vendor issues solved: –Nexant (CRR) – SOW and NDA agreements –UISOL (EIP) –SOW for integration –Areva (EMS) – SOW for data importer and exporter Program: Requirements approved by TPTF –EMS requirements approved 3/1 –EDW Section 17 requirements submitted 3/22 –EDW Section 8 requirements to be submitted in May 2007

6. 6 6 Texas Nodal Program Update23 April 2007  Program Management Office (PMO) –Launched 1 st version of Nodal Balanced Scorecard –Presented to PRS on Scope Change Control Process. –Worked with Change Control to define Nodal scope baseline.  Integration Design Authority (IDA) Package –Presented QA Nodal Leadership Summary –MIS and majority of COMS component use cases approved  Commercial Systems Package (COMS) –181 use cases completed. –3056 test cases have been created.  Network Model Management System/Network Model Package (NMMS) NMMS –Delivered Phase 1a (first code drop) on schedule to ERCOT development –Transitioned Network Model and Telemetry Project to operations and EDS –Implemented Measurement weight changes into current zonal production environment  Energy Management System Package (EMS) –Delivered Use Cases to IDA and Operations –Completed Zonal Migration Code Merge Activities –Completed EMP 2.3 Testing Activities –Completed contract for CIM importer/exporter  Management System/SCED Package (MMS) –Outage Scheduler CSD in review with TPTF  Enterprise Data Warehouse Package (EDW) –Protocol 17 requirements doc submitted to TPTF –EDW Project CSD doc submitted to TPTF –Draft requirement specification for State Estimator and SCADA completed. Progress this Month to date  Enterprise Integration Package (EIP) –The External Interfaces Specification deliverable was completed ahead of schedule and submitted to TPTF and MPs –EIP QA Plan was approved by the QA Review Board –Completed EIP build vendor selection. Contract negotiations underway  Market Participant Engagement & Readiness Package (MER) –Google appliance installed, tested, evaluation results being documented. –Dashboard Portlet End to End POC completed using a mocked up web service. –The MIS Production Test environment finalized and stood up.  Integrated Readiness & Transition Package (IRT) –LMS Training Registration process rolled out to ERCOT employees –Assessed PUC staff sizing analysis drafted approach for engagement. –Sandbox: QSEs Connected to Who Am I: 14; QSEs Connected to Boomerang: 1 Readiness Advisor –TPTF Approved: 10 additional metrics –Ready for TPTF Approval: 14 additional mtrics  Infrastructure Package (INF) –Environments completed: EIP Development environment; EIP Product Test Environment; NMMS Development environment  Integrated Testing Package (INT) –Verified VPN Access has Passed the Security Signoff –Received final approval for external testing configuration via guest network –Worked with Sandbox Testing Team to streamline testing process –Draft of Test Data GUI interface completed  Congestion Revenue Rights (CRR) –Held Phase II Kickoff –Nexant completed all deliverables associated with first Phase II milestone, MS-0.

7. 7 7 Texas Nodal Program Update23 April 2007 The short-term milestones are mostly on track Control MilestoneBaselineActual/F’castComment Requirements approval10/31/20063/31/2007EDW IMM requirements submitted to TPTF on 3/22. Currently incorporating feedback, vote to take place on 4/23. EDW Compliance requirements to be submitted on 5/7. EDS 1 Start5/15/20074/01/2007EDS1 started early as part of a phased approach to testing Enterprise Integration Build Vendor Selected 3/31/20074/12/2007Vendor orals completed and selections made. Negotiations have begun. Sandbox Release Plan4/30/2007 IRT and EIP teams working to identify key features to be exposed to MPs EMS CSD Submitted to TPTF 4/30/2007 On schedule COMS Dispute CSD submitted to TPTF 5/31/2007 On Schedule

8. 8 8 Texas Nodal Program Update23 April 2007 We are working to “start early” EDS to encourage earlier MP involvement – quality and support expectations must be managed appropriately  Software versions used for “early” EDS testing will not have completed our full quality cycle  EDS Software versions will have known defects that will be corrected under rigorous release management schedules  Emergency issues (e.g. servers down) will also have reduced service level agreements during “early” EDS timeframe  MPs that are “early adopters” will be encouraged to review the current ERCOT defect list to reduce submission duplication  This applies particularly to EDS 3 and especially software deliveries in MMS, EMS, CRR, and integration  System availability, quality of LMPs and other data, and support responses will improve over time

9. 9 9 Texas Nodal Program Update23 April 2007 We are working to confirm the implications of the revised schedule on environments, support

10. 10 Texas Nodal Program Update23 April 2007 We are working through impact assessment leading to change requests for “Baseline 1” synchronization of all projects… 40 of the 65 (65%) items have at least 1 project with a high or a medium impact (category 1 or 2) 25 of the 65 (35%) items have all projects with a minimal or no impact (category 3 or 4) Impact categorization continues for new items to get ahead for the next synchronization – work in progress Backlog list of 65 items including –  Approved NPRRs  Draft NPRRs  White Papers Baseline 0 (May, 2006) Ongoing NPRRs & white papers The “Impact Categorization Matrix” helps triage the impacts for all the items across all the projects Baseline 1 (March 1, 2007)

11. 11 Texas Nodal Program Update23 April 2007 The process is designed to meet both NPRR/PRS and Nodal Change Control needs and focus on material changes Draft NPRRs not seeking additional funds and essential for Go-live will be accepted within existing budget Draft NPRRs being tabled if found not essential for Go-Live After evaluating the change request (detailed cost, schedule and system impact) the Nodal steering board may defer (boxed if approved by the board or tabled otherwise) it until post go-live. The Impact assessment team will report the status of NPRRs to TPTF, PRS, and the Nodal Steering Board on a periodic basis 123 The internal forward looking process of assessing change…