1. Retail Operations 2008 Fund Release Proposal Retail Market Subcommittee June 11 th, 2008 Hope Parrish Market Operations Division Projects Organization

2. June 11, 2008Page 2 2 RO 2008 Fund Release Proposal Overview Review of Projects approved in support of Advanced Metering Review Historical Artifact – Large Infrastructure Project Review Comments for reallocation of funds Review of Current RO 2008/2009 Projections and Fund Release Proposal

3. June 11, 2008Page 3 3 Projects Approved in Support of Advanced Metering RO 2008 Fund Release Proposal

4. June 11, 2008Page 4 4 2008 Projects in Support of Advanced Metering - Approved

5. June 11, 2008Page 5 5 2009 Projects in Support of Advanced Metering - Approved

6. June 11, 2008Page 6 6 Historical Artifact Large Infrastructure Project RO 2008 Fund Release Proposal

7. June 11, 2008Page 7 7 Historical Artifact – Large Infrastructure Project (RO) PR50121_07: Service Oriented Architecture - Retail Business Processes Description: Build Retail Business Process in a new TIBCO Infrastructure. “Software and Solution were known at time of Initiation” Deliverables: Build and Install 12 Servers (including cabling, ports, and storage) Create New Database and transition 4 Terabytes of data into 2 databases Create 15 Web Services Create 10 TIBCO Adapters Create 160 TIBCO Integration Components Project Duration (excludes software selection process) Initiation06/2005 - 08/20052 Months Planning08/2005 - 05/20069 months Execution05/2006 - 03/200710 months **Go-Live = 12/2006 Expenditures (TTL Project Estimate = $3.1M 2005 Expenditure2006 Expenditure2007 Expenditure $303,941 $1,805,131 $676,138 Total Spend= $2.8M

8. June 11, 2008Page 8 8 RMS Comments: Issues Related to Fund Release Proposal RO 2008 Fund Release Proposal

9. June 11, 2008Page 9 9 ERCOT Seeking RMS endorsement for partial release of RO Variance to the SRT for appropriate reallocation in 2008 RMS Request for Comment: 1. Should any of this release be used to reduce the $8M facilities request 2009? –ERCOT: 2009 Efforts for Met Center Project cannot be expedited to 2008, therefore would not reduce the $8M request for 2009. 2.Should any of this money be allocated to the Advanced Metering Implementation study, planning and execution efforts in 2008? (Note: ERCOT is facilitating a study effort and RFP to support development of a central repository/database to accommodate 15 minute interval meter usage data provided by TDSP advanced metering systems and to support increased granularity and accuracy of market settlement processes). –ERCOT: There are sufficient funds allocated currently for 2008 and 2009. ERCOT will support Advanced Metering Projects as details are defined. If additional funding is needed ERCOT will seek available funding options in the following order: CART > SRT > F&A > Board > PUC 3.Should any of the variance dollars be applied towards improvements to Retail systems performance degradation? –ERCOT: Any current performance issues are covered under Operating Costs. New Enhancements / Projects can be requested at anytime by a Market Participant thru the SCR process. Performance enhancements can be defined in requirements gathering. 4.Should funds be used to champion a new test environment? –ERCOT: A new Test environment is dependent on the Taylor DataCenter Expansion that is included in the scope of the Met Center project. Market Participants can champion this request by submitting an SCR.

10. June 11, 2008Page 10 10 RO 2008/2009 Projections RO 2008 Fund Release Proposal

11. June 11, 2008Page 11 11 RO 2008/2009 Projections - 2008 Approved RO PPL Planned and Unplanned 2007 Carry-over Projects (Green Shaded Area) Projects ABOVE the current Capability Line (Orange Shaded Area) Projects BELOW the current Capability Line (Yellow Shaded Area)

12. June 11, 2008Page 12 12 RO2008/2009 Projections - 2009 Approved RO PPL 2009 Initiatives List Approved at May Board Meeting (subset of new and deferred 2008 projects)

13. June 11, 2008Page 13 13 RO PPL Budget ActivityAmountNotes/comments Approved RO Capability Line Budget Funding $6.1MCurrent approved RO funding allocation Designates where the capability line falls Current Forecast Spend of projects above the Capability Line ~$2.3MBased on current expectations and run rates for active and not started projects above the capability line Budget Variance~$3.8MBudget Variance is difference between RO Capability Line Budget Funding and Current Forecast Spend of projects above the Capability Line $1M due to consolidation of PR60008 Ts&Cs and Performance Measures $2.2M due to projects deferred $600K due to project underspend REQUEST: ERCOT Seeking endorsement from RMS to release $2.27M to SRT to reallocate as appropriate. Will still leave a $1.5M variance to monitor in 2008. 2008 RO Fund Release Proposal

14. June 11, 2008Page 14 14 Questions / Contact Hope Parrish Project Manager, MO DPO Market Operations Divisional Projects Organization ERCOT (512) 248-6522 hparrish@ercot.com