1. ERCOT PMO Update Robert Connell Director Program Management April Board of Directors April 19, 2005 (Through 3/31/05)

2. March. 2005 2005 YTD Project Performance Project Process Improvements In 2005  14 completed, 14 YTD  6 in Initiation  23 in Planning  23 in Execution  Instituting Managed Time Periods  Expand on Project Metrics – EVM  Establishing Risk Management Methodology Project Activity Project Performance First Quarter Results (to 3/31)

3. March. 2005 Major ERCOT Projects Summary ProjectTotal BudgetActual 4/11Metrics Duration/Information (Sponsor)Phase/Scheduled CompletionScheduleBudget EMMS Release 3 (2003-2004)$8.3M 17 separate projects over 14 mos. (S. Jones)Implementing in February EMMS Release 4 (2004-2005)$9.7M$6.0M 20 separate projects over 14 mos. (S. Jones)Planning Phase/2 nd Qtr 2005 Service Oriented Architecture (2004 -2006)$5.8M$4.4M 8 Architecture projects over 30 months (R. Giuliani)Planning Phase/4th Qtr 2006 Commercial System Upgrade (2003-2005)$4.7M$4.1M separate upgrade projects. (R. Giuliani)Execution Phase/3rd Qtr 2005 Market Oversight Monitoring System (2003-2005)$1.9M$1.0M 2 separate projects over 12 mos. (S. Jones) Execution Phase/3rd Qtr 2005 ERCOT.com Improvements$1.2M$204K Project to establish Search Engine, improve on Content Management, Navigation, and content organization (R. Giuliani) Planning Phase/4 th Qtr 2005

4. March. 2005 Projects Completed 1 st Quarter  Projects Completed in January  40102 Renewable Energy Credits Enhancements  30099 Taylor Building Expansion  Projects Completed in March  30016 Dynamic Ratings  40066-01 Lodestar 3.7 Upgrade  40112-05 Market Monitoring ISR System Enhancements  Projects Completed in February  40042_01 EDW EMMS RSS  30144 EMP 2.2 Upgrade (8 Projects) 1. PR20159 Load Rollover 2. PR30050 EMS Front-End Replacements (Replace obsolete technology) 3. PR30074 Enhance STNET Multiple Selected Time Ranges 4. PR30094 DCP Enhancement (VSAT/TSAT Enhancements) 5. PR30096 Move PTI Bus Translation to Genesys 6. PR30170 Implement a selected contingency into Power Flow 7. PR40099 CTGS Import/Export Dump Utility (ERCOT development) 8. PR40094 Constraint Activity Manager (CAM v2.2 – ERCOT development)

5. March. 2005 EMS Dynamic Ratings EMS Dynamic Ratings  Scope of PR-30016: The Dynamic Ratings project allows Transmissions Providers (TDSPs) to maintain “dynamic” line ratings that take into account real-time ambient temperature, adjusting a given line’s rating up or down, as appropriate. This will allow additional capacity to be scheduled across those lines in cooler temperatures. An estimated savings of up to $33 million per year in congestion cost is possible by implementing the real-time dynamic rating program.  Features and Deliverables:  Transmission Operators are able to update the transmission line ratings every 5 minutes via ICCP. The ratings can be updated in the forms of MVA, AMP or ambient temperature.  The day-ahead CSC limit calculations will use the ERCOT weather-zone or weather station forecast temperatures to enter a “look-up” table in order to determine the transmission line ratings.  Automated dynamic-rating service upload and verification process to reduce errors.  Emergency dynamic rating update process.  Dynamic ratings are posted on the TML (portal) which will be used as real-time dynamic ratings.  Current Activity - April In production since March 3 rd as planned. The application is in the stabilization period. Some minor corrections are being applied for the data publication on Portal. 6/2/04-6/28/04 Planning 1 Month Development 6 Months Int & Test 2 Months Production Go-Live and Stabilization 6/28/04-12/30/041/3/05-3/2/053/3/05-4/18/05

6. March. 2005 Lodestar 3.7 Upgrade  Scope of PR-40066-01: The Lodestar 3.7 Upgrade Project is one of the results of the Commercial Applications Systems Upgrade Project (CASUP, PR-30082_02) recommendation to perform an upgrade of Lodestar to the most current general release version. Part of the CASUP recommendation was to perform an iterative upgrade of Lodestar, this project moves ERCOT from the Lodestar version 2.25 to version 3.7. Requirement 1: Conduct Planning, Analysis, Design and Execution to upgrade production Lodestar to version 3.7 for the following products: LODESTAR Profile & Settlement System™, (LPSS™), BillingExpert®, and Financial Management Extension™ Requirement 2: Baseline and compare Lodestar version 2.25 performance to Lodestar version 3.7 performance. Requirement 3: Thick Client implementation  Features and Deliverables:  Upgraded Lodestar v2.25 to v3.7 in test environments and Production  Changed LSCHANNELCUT DATA Table from Long Raw to BLOB  Added LSTIME and LSUSER columns to all tables (audit fields)  Preliminary results show “Generate Settlement Statements” has been reduced by fifty percent (to settle three trade days reduced from eight hours to four hours  Current Activity: System stabilization and Obtaining Project Signoff 4/04 5/04 InitiationPlanningExecution Closeout 7/043/054/05

7. March. 2005 Market Monitoring System ISR  Scope of PR-40112-05: Potomac Economics will complete the following items that were specified by the Market Monitoring group of the PUCT in 2004. These changes are to the MOM Indices, Screens, and Reports product.  Features and Deliverables: ReportingPush” reports via e-mail ReportingInterval Level Daily Reporting ReportingDaily Summary Sheet ReportingAdd QSE bid data to reports. Screens & IndicesResource Plan Metrics Screens & IndicesSupplemental resource information. ReportingReport modifications for reserve schedules, awards, and availability  Current Activity - April Product completed and currently in stabilization DevelopmentGo-Live and Stabilization Jan 2005 – March 2005 3/31/205 4-21

8. March. 2005 Enterprise Data Warehouse EMMS  Scope of PR-40042-01: Implementation of the EDW EMMS RSS (Replicated Source System) to support the ability to capture intra-day transactions from the EMMS source databases, as well as support the ability to capture information to support point-in-time reporting. The EMMS RSS is a replicated database copy of the source system that will be used to transfer information into the EDW EMMS ODS (Operational Data Store). The EDW EMMS ODS is a separate subproject – 40042_07.  Features and Deliverables: Ensure availability of reliable, accurate and timely information Provide the ability to capture intra-day transactions that will ensure all EMMS data is being captured (and not just a snapshot of data at the end of the day), as well as near real-time data that can then be used to support market monitoring reporting Store the data using point-in-time fields that will allow reporting of historical periods.  Current Activity - March In production 1/5/04-5/19/04 Planning 4 Months Server/Environment Setup - 4 Months Development 2 Months Int & Test 1 Month Production Go-Live and Stabilization 5/19/04-9/8/049/8/04-10/27/0410/27/04-12/3/0412/3/04-2/16/05

9. March. 2005 Implement SMP/EMP2.2 for EMMS  Scope of Release PR-30114 Projects: Implement the SCADA Management Platform and Energy Management Platform 2.2 from AREVA. Scope includes the following set of approved deliverables: 1.PR20159 Load Rollover 2.PR30050 EMS Front-End Replacements (Replace obsolete technology) 3.PR30074 Enhance STNET Multiple Selected Time Ranges 4.PR30094 DCP Enhancement (VSAT/TSAT Enhancements) 5.PR30096 Move PTI Bus Translation to Genesys 6.PR30170 Implement a selected contingency into Power Flow 7.PR40099 CTGS Import/Export Dump Utility (ERCOT development) 8.PR40094 Constraint Activity Manager (CAM v2.2 – ERCOT development)  Features and Deliverables: The SMP product allows ERCOT to retire obsolete technology that is no longer supported by the manufacturer of key communications software that is used to control Frequency. The EMP2.2 product implements new AREVA software releases that includes enhancements in EMS Network Applications that help ERCOT improve reliable grid operations. The ERCOT developed deliverables provides features that help reduce congestion costs.  Current Activity - March Fully in production as of 2/10/05. Seeking funding approval for missed closing requirements such as retirement of obsolete technology and software issues identified during final User Acceptance Testing. 4/1/03-11/30/03 Planning 8 Months Development 8 Months Int & Testing 4 Months Go-Live and Stabilization 12/1/03-8/20/049/23/04-1/13/051/24/05-Present

10. March. 2005 REC Enhancements  Scope of PR-40102: REC Enhancement project was completed to satisfy PUCT Project No. 28407 – Order Adopting Amendments to Subs. Rule 25.173. The Order calls for changes in the REC Final REC Purchasing Requirements (FRRs) and allows for recalculations of previous year’s Final REC Requirement for Competitive Retailers. Requirement 1: Update the methodology and calculation for FRR Requirement 2: Update the methodology and calculation for Final REC Requirement 3: Update the statewide and individual REC requirement reports Requirement 4: Add commas in all numeric fields where needed Requirement 5: Update the CCF calculation to be “As Needed”  Features and Deliverables: Requirements 1-4 listed above were completed Requirement 5 deferred into O&M activity in 2005 based on additional changes in the calculation from PUCT  Current Activity - February Closed out REC Enhancement project in 1/2005 Business team working with PUCT to improve design of the REC functionality. It is planned to be a 2006 capital project 7/04 8/04 InitiationPlanningExecution Closeout 10/0412/041/05

11. March. 2005 Taylor Building Expansion  Scope of PR-30099:  Design facilities for short-term, mid-term and long term growth needs. Construct Short-term and mid-term facilities.  Features and Deliverables:  Construct a facility of similar quality and appearance to the MET center and the TCC located in close proximity to the TCC.  Construction of mobile units which will accommodate expected short term growth in 2003 and also provide a buffer prior to building of phase III when and if it becomes necessary.  The relocation of employees, contractors and vendors from outlying areas by 2004  Design Plans which take into account a longer projected growth rate  Design plans which accommodate both security factors and human factors Ensure availability of reliable, accurate and timely information  Current Activity - February In Closure 9/2003 – 2/2004 Planning 5 Months Execution 12 months Close 1.5 months 2/2004 -2/20052/2005 – 3/2005