Nodal Status Report: Program Update

1. Nodal Status Report:Program Update Ron Hinsley TPTF

2. Agenda • Health Indicators • Highlights • Nodal Reporting Structure • Staffing • Top Risks / Issues • NPRR 146 • Cost Nodal Status Report - Program Update

3. Health Indicators Note: health indicator measures are located in the appendix Nodal Status Report - Program Update

4. Highlights • Reminder: the program posts weekly status reports to the nodal website: http://nodal.ercot.com/docs/po/index.html • Resource Asset Registration Form (RARF) data is now 97% accurate, up from 90% • The remaining 3% is spread across about 50% of the RARFs, which means RARF’s that still have issues have few errors and are generally very minor • EDS is working individually with MPS to correct remaining errors • Market Readiness Resource Entity Scorecard launched on Nov. 6 • This is an online tool for Resource Entities to report market readiness for transitioning to the nodal market • The scorecard tracks progress in three areas: • MP10 - Mapping of Resources to Resource Nodes and Resources to EPS Meters • MP11 - MP Registration Activities • MP21 - Wind Generation Resources ICCP Telemetry (if applicable) Nodal Status Report - Program Update

5. Highlights – 2 • No tasks on the program critical path are currently behind schedule • Core Projects • NMMS Validation Rules Set 1 Implemented • EMS CIM Importer completed Functional Acceptance Test (FAT) on data model 1.20 on Nov. 5. AREVA is addressing one performance issue • MMS4 patch 4 FAT testing completed on schedule • Defect update – no change since last time • Utilicast, the company that will conduct Nodal program audits, is onsite the week of Nov. 10 Nodal Status Report - Program Update

6. Nodal Reporting Structure Executive Sponsor* Ron Hinsley * Accountable for program schedule and budget Quality Assurance: Joyce StatzTesting Czarina:Eileen Hall TPTF Chair: Joel Mickey IT Governance Executive Program Director Ron Hinsley Nodal Program Controller AaronSmallwood Infrastructure David Forfia Program Mgmt Office Janet Ply Early DeliverySystems/MP Readiness • Matt Mereness ERCOT Readiness Murray Nixon Network Model Mgmt System Linda Clarke Energy Management System Manuel Atanacio Congestion Revenue Rights System Rachelle Zani Market Systems Murray Nixon Commercial Systems Hope Parrish Systems Integration Mike Bianco Enterprise Data Whse Shawna Jirasek MIS Portal Brett Economides Current Day Reports Naresh Chunduri Market Mgmt SystemJeff Robinson Outage SchedulerSankara Krishnaswamy Independent Market MonitorTBD S&B and CSIJustin Rasberry CMMHope Parrish FTPhyllis Encinias Reg/DisputesClay Katskee Integration SvcsBrian Brandaw Integration TestingTom Baum Operational ReadinessTBD E2E Integration MgmtKen Kasparian Nodal Status Report - Program Update

7. Staffing Staffing for nodal continues to trend down for contractors while holding fairly steady for ERCOT employees Nodal Status Report - Program Update

8. Top Risks / Issues Nodal Status Report - Program Update

9. NPRR146 - ICCP Telemetry Information Submittals Primarily an NMMS impact Impact Summary Project Budget – Total impact - $500k-$1M NMMS software changes - $100k-$250k NMMS schedule delay (2 months) - $500k-$1M Schedule 4 month delay to Single Entry Model (SEM) 2 month delay to NMMS project Risks to Nodal Program Significant staffing constraint for EMMS IT operations due to SEM go-live period moving into same timeframe as EDS build-out. Impact to Outage Scheduler project as RDFID’s associated with equipment do not become static until the last zonal feed. Reduced window for TSPs to synchronize and validate models prior to 168 hour test (nodal go-live – 3 months). Potential schedule risk to the overall nodal program as delay in NMMS and SEM could impact critical path. Resource impacts to the nodal project teams and supporting business groups as new business processes are needed to support the change in telemetry submittal to 15 days. 9 October 13, 2008 Nodal Status Report - Program Update Nodal Status Report - Program Update

10. NPRR146 - ICCP Telemetry Information Submittals (Cont..) ERCOT post nodal go-live impacts This NPRR results in significant changes to ERCOT business process due to the change in the telemetry submittal to 15 days. There will be staffing impacts to ERCOT operations post nodal go-live to continue supporting these new business processes. These include, developing processes for performing the daily routines and the additional time to process additional NOMCR’s required. 10 October 13, 2008 Nodal Status Report - Program Update Nodal Status Report - Program Update

11. Cost: Element Summary Nodal Program Cost Element Summary ($ Millions) Through September 2008 Variance (over)/under Cost Element Budget Actual Budget Internal Labor $ 42.4 $ 42.8 $ (0.4) External Labor 167.1 177.1 (10.0) 60.5 61.6 (1.1) Hardware / Software 11.2 7.2 4.0 Travel and Other $ 281.2 $ 288.7 $ (7.5) Subtotal Finance Charge 9.6 10.6 (1.0) Total $ 290.8 $ 299.3 $ (8.5) No change from last time; October numbers not ready yet. When the integrated schedule has been finalized and the financial impact determined we will incorporate this into an updated forecast. Nodal Status Report - Program Update

12. Appendix Nodal Status Report - Program Update

13. Health Indicator Measures Nodal Status Report - Program Update

14. Questions? Nodal Status Report - Program Update