Enterprise Operations April 15, 2003

1. Enterprise Operations April 15, 2003

2. Agenda • Accomplishments Year-to-Date • Systems Operations Update • Project Updates • Package Products • Summary

3. Year-to-Date IT Accomplishments • Delivery & Operations • Staffing – Made significant progress in acquiring skilled resources. Acquired 2 managers and 4 staff • System Monitoring and Reporting improvements including performance metrics and incident reporting • Policies and Procedures – Developed for system testing, change control and source code management • Implementation and support of 80 System Investigation Requests and 356 System Change Requests • Project Management Team • Staffing of senior project managers complete • Average utility experience 9 years • Average project management experience 13 years • Average IT experience 15 years • Formal weekly project reviews in place • Strengthening project reporting tools

4. Year-to-Date IT Accomplishments (Continued) • Technology Services • Commercial Applications DR Project: Synchronous Data Mirror Established in “Blue Building”; MET Center Computer Room Expansion Completed; Fiber link between sites completed. • Facilities Expansion Project: Established and chairing ERCOT Facilities Expansion Steering committee; Project Manager and Architect under contract to perform feasibility analysis. • Consolidation of Taylor Plaza network using new fiber link from Settlements to HEB saving $90,000 per year • Development and Architecture • Service Request and Dispute System deployed to ERCOT/market • Portal platform selected (Yahoo/Tibco) and Phase 1 launched • Transaction Services Performance Improvements • ETS/GISB project delivered on time/ on budget • ETS part 1 delivered to PUC and MPs • Statement and Invoicing process performance improvement • Invoicing: 8 hrs => 1 hr / Statement: 70 min => 50 min per run

5. Year-to-Date IT Accomplishments (Continued) • EMMS • Release 1.5 Migrations to Production • Multiple A/S Markets • Multiple RPRS Markets • LAAR Active Flag • Notification of Adjusted Schedules • Resolved CB mapping problems in Real Time Network Analysis (SE Tuning) • New and Direct Weather Data Path for EMMS • Successfully implemented and supported the new schedule Smoothing Algorithm • Study Network Applications one lines for all users • Security & Data Management • Intensive security cyber audit completed • Established security roadmap • Began reengineering of data archive • Improved performance of mainline databases

6. System Incident Reports Transaction Throughput Total Transactions: 32,136,433 Systems Highlights Daily Transaction Throughput Systems Operations Summary – March 2003 • Pre TX SET 1.5 release • Data Center Move • Server Upgrades • GISB Migration • Portal Disputes Implementation

7. Process Performance – March 2003 Initiating Transaction Completing Transaction

8. Delivery & Operations Staffing • TotalAverage • Utility Experience 39 yrs 10 yrs • IT Experience 67 yrs 14 yrs • Data Center and • Operations Experience 54 yrs 17 yrs • Experience from diverse markets / industries: • Southern California Edison • Central and South West Services • Enron Corp • American Airlines / SABRE, Inc.

9. ERCOT Systems Projects • Individual Projects have been Initiated Based on Market and ERCOT Prioritization Process • 33 Projects Currently Active • 6 Completed in March, 4 On Schedule to complete in April • Significant Projects being completed this month • Texas Set Version 1.5 with Related changes – Complete • Disaster Recovery for Commercial Applications – End of April • Remaining Prioritized Projects being Grouped as Logical Releases • Releases will Reflect Market Priorities • Releases will Include System, Architecture and Infrastructure Improvements

10. TX SET 1.5 Project • Implementation success • Activities began 4/10 and ended 4/13 • Next steps • Continue to monitor production activity • Conduct lessons-learned meeting on 4/21 • Key project team members – Over 60 Personnel from ERCOT • 34 Market Participants • Over 60 Personnel from ERCOT • Project Mgmnt – Dave Odle Dave Farley & Team • Flight Test Administration – Karen Bergman Lynn Wyatt & Team • ESI ID Data Integrity Management Team Cagle Lowe & Team • Client Services Team Carol McDonald & Team • Daryl Cote & Structure/Blueware Team Scott Middleton & Team • Victoria Johnson & Release Mgmt Team Mohan Yegonni & Team • Dave Farley & Team David Johnson & Team • Lynn Wyatt & Team Chris Douglas & Team

11. Product version list

12. Package Product Platform Issues • Currently utilizing outdated versions of many application products • Some instances of unsupported versions • Highly customized implementations raise Total Cost of Ownership especially in the areas of upgrades and maintenance • Underutilized application components • Architecture strategy being worked to handle upgrades/replacements. • Project Enhancements will be bundled with Upgrades/Replacements • Reduce breadth of skill sets • Reduce integration touch points/Simplify Architecture

13. Summary • Development • 48 % staff level - Full time recruiter in place to fill positions and limit dependence on consultants. • Commercial Systems Release Roadmap in draft form waiting decisions on application version upgrades or replacement. • Vendor management continues to be key focus item • Project Management • Positive results beginning to be seen • Production/Operations • Newest part of organization; Good hires • Focus on refining processes, procedures and automation