1. Lead from the front Texas Nodal http://nodal.ercot.com 1 Texas Nodal Market Implementation Integration Update October 24, 2006 Daryl Shing, Enterprise Architecture

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 Integration Approach Select an Integration vendor for Requirements, Design and Quality Assurance. Define an overall strategy that provides a means to select the best integration approach for integration points based on the requirements. Define the high level scope of integration effort using: a)Systems of Systems Architecture (SoSA). b)Project Integration Requirements Template. Demonstrate the viability of the integration approach through a Proof of Concept. Build an integration team structure that can work iteratively in an agile manner.

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 Current Status Selected Utility Integration Solutions, Inc. (UISOL). Completed the Nodal EI Strategy. Completed SoSA final draft and submitted to TPTF. Final signoff due November 7, 2006. Due to complete the Domain Model (Entity Level) Draft by the end of October. Short listed two EI Project Managers. Completed the Final Draft of the Proof of Concept requirements and design. Completed the Final Draft of the test cases. Completed development of two integration Common Services (Exception Handling and Auditing). Due to complete the Proof of Concept build November 30th. Integration Project Integration Proof of Concept

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 Scope for the Proof of Concept NMMS EDW MIS Commercial Systems Retail CRR MMS EMS Message Bus Common Services Bulk Data Integration Patterns Real Time Integration Patterns Message Based Integration Patterns Database to Database Integration Patterns Monitoring and Management Pre- Processor Out of Scope In Scope 10 - Simple cases 3 - Medium cases 1 - Complex case 14 Bill Determinants

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 Proof of Concept Design Source Load Validator Source Loader Bill Determinant Outputer Process Orchestrator Common Services Settlement Interface & Bill Determinant Processes Market Bill Determinant Creator Market Bill Determinant Verifier Source System Market Pre Calculator Quality Reporting “Billing Determinant” Data Mgt UI “Configuration” Data Mgt UI Staging Data Billing Determinant Data Configuration Data Notifications Process Scheduling Exception Handling AuditingMonitoring Disaster Recovery Settlements (LSE File) Shadow Settlements (excel) Pseudo MMS Staging Tables

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 Next Steps Complete six, seven week iterations over the next 3 months using the process refined in the Proof of Concept. Goal over the next three months is to have one or more integrations designed, developed and tested for all major systems: a)Reduces risk by addressing the highest risk integration points early, including external interfaces to the market. b)Allows for a flexibility; Teams can adjust quickly to meet project needs. c)Provide deeper understanding of the integration scope. Utilize UISOL and ERCOT resources to complete these iterations and, as part of this phase, develop a plan to resource the complete implementation using a combination of ERCOT resources, UISOL and build partners.

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 Scope for the Three Month Phase NMMS EDW MIS Commercial Systems Retail CRR MMS EMS Message Bus Common Services Monitoring and Management Pre- Processor Bulk Data Integration Patterns Real Time Integration Patterns Message Based Integration Patterns Database to Database Integration Patterns Out of Scope In Scope

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 Draft Schedule

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 Risks The integration vendor has extensive experience with ISO integrations and has a high-level view of the integration requirements for Nodal, but until the integration team completes the six, seven week iterations, the details of all integration points will not be known. Ability to ramp up resources to staff later phases. To complete the requirements and detailed design will require coordination and availability of resources across all project teams.