1. 1 ERCOT Financial Summary For the Month Ended February 28, 2005 ERCOT Board of Directors March 15, 2005

2. 2 February 2005 - Financial Dashboard

3. 3 Change in Consultant Count Track consultants performing work that might otherwise be performed by an ERCOT staff person Begin excluding: Security guards Outside legal counsel External audit staff Continue excluding: Consultants working off-site such as resources supporting EMMS systems and projects

4. 4 Staff and Contractor Summary

5. 5 Annual Cost Savings - Realized $290,000 cost savings identified in January $110,000 cost savings identified in February Electrical and cabling services - $62,000 Hired ERCOT staff to perform cabling services rather than have contractor do this long-term, on-going electrical and cabling work Audiovisual equipment services - $50,000 Cycle use of control room projectors to extend light bulb life and save approximately 25% of the annual 2005 budget

6. 6 Annual Cost Savings - Targeted $400,000 cost savings targeted Timing of New Hires Evaluation of timing and need for budgeted positions Cell phone and telecommuting expenses Aim to reduce usage and rates Computer purchases Consolidation of configurations Negotiation of better pricing Reevaluation of assumed need New banking relationship and/or terms Coffee and vending services

7. 7 Annual Cost Savings - Targeted Additional cost savings targets Employee expenses New employee expense reimbursement policy Conference call and Web-Ex Evaluate usage, contracts, and alternatives Office supplies Competitively bid office supply contract Additional targets resulting from employee suggestions and other effort to improve company efficiency

8. 8 Draft Internal Control Management Plan Work Plan To be developed with Deloitte & Touche (GANTT chart with milestones that will be reported against)

9. 9 Review of Internal Controls Deloitte & Touche review continues Final report expected to be issued on March 15, 2005 Address the final report at next month’s status report to the Commission

10. 10 Completion Status By Audit PriorityNumber Complete On: AuditTotal ItemsHML8-Feb21-Feb14-Mar CAN Audit722220306066 D&T11197140151828 E&Y353410610*8 Internal Audit3732322628 PWC10721566 2651924033112128136 * 2 items determined to be Non-Actionable

11. 11 Completion Status By Business Unit PriorityNumber Complete On: Bus UnitTotal ItemsHML8-Feb21-Feb14-Mar Corp. Comm.2200222 Cyber Scty26 00040 Fin. & Acct.9887101242332 HR2618621016 Legal5500011 Mkt Ops125526 Officers211920434 Tech. Services75301728666769 2651924033112128136 * 4 items moved to other Business Units

12. 12 In Process Status By Audit AuditItems RemainingPlanningExecution 2/8/20052/21/20053/14/20052/8/20052/21/20053/14/2005 CAN Audit6 of 720661200 D&T91 of 11163 35282948 E&Y27 of 353626 531 Internal Audit9 of 370001199 PWC4 of 10432112 Totals137 of 2651039869574260

13. 13 In Process StatusBy Business Unit Bus UnitItems RemainingPlanningExecution 2/8/20052/21/20053/14/20052/8/20052/21/20053/14/2005 Corp. Comm.0 of 2000000 Cyber Scty26 of 263526 000 Fin. & Acct.73 of 9844452829 40 HR10 of 263411069 Legal4 of 5522522 Mkt Ops0 of 12000600 Officers18 of 211538439 Tech. Services6 of 75126220 Totals137 of 2651038271564260