ERCOT Market Meeting Support Improved Meeting Support for More Efficient Resource Utilization

1. ERCOT Market Meeting SupportImproved Meeting Support forMore Efficient Resource Utilization

2. Drivers • ERCOT’s governance model (GM) is a key cornerstone to its overall market success • GM requires a large commitment of key resources from ERCOT, PUCT, and Market Participant’s • Like all stakeholders, ERCOT Staff is being asked to do more with less, be more efficient and effective, control staff additions • ERCOT Staff is expected to deliver a range of GM services at a high level and consistently • Many issues cross multiple functional areas, requiring significant cross impact analysis and coordination

3. ERCOT Staff Goals Professional support of the MP market meeting structure • Consistentexecution • Efficientlymeet the needs of the participants and Staff • Right resourcesavailable given the body type and agenda • Sound preparation of ERCOT presentations and positions • Timely and precise communication with stakeholders • Early identification of issues and coordination across ERCOT • ID, coordinate, analysis/impact, position development,… • Maximize utilization of ERCOT facilities

4. A Significant Commitment Indeed… In 2004 - Over 600 ERCOT MP meetings: • Approximately $700,000 in outside facilities and meals for meetings coordinated through ERCOT • Well more than 100 skilled or highly skilled ERCOT Staff called on to contribute to GM process. 25 - 30 FTE’s demanded by meeting volume and ERCOT service responsibilities. • ERCOT costs to support GM estimated at $4-5mm/year • Staff (loaded), plus facilities (depr., util., taxes, insur.) • MP & PUCT costs to support GM (if 3x) = $12 - 15mm • Staff (loaded), T&E, consultants/counsel,….

5. but, the Return is Great • Fair and open forum – democratic decision making • Stakeholder driven agenda and accountability • Deliberative, advance notice, no surprises • Transparent via published agendas, minutes and votes • Opportunity to ensure no issues are avoided • Expected business outcomes: • Continuous improvement to the Texas electric market • Value of market benefits in excess of cost to change ERCOT rated the #1 competitive electric market in N. America !

6. Feedback from MP’s Staff support performing well in many areas, could improve in other areas: • Designate and publish to each committee’s website a lead and alternate Staff person to attend and be responsible to each body • Ensure there is a cross functional “internal ERCOT review” before staff present views in MP forums(“part of the problem may be a lack of consistency in who attends, which can lead to internal communication problems”) • Prepare meeting locations in advance of the posted start time • Prepare and distribute minutes of each TAC, Subcommittees, Task Forces and Work Groups(“it is not fair to ask someone who is representing their company to be saddled with note taking”) • Limit the number of employees that attend various meetings – only those that have a direct responsibility to the meeting or the agenda

7. Principal Change • One, named ERCOT Staff member for each standing body • responsible to serve the needs of the committee in pursuit of its mission, and • To coordinate internally, the broader ERCOT Staff in support of the body • Defined role and responsibilities • Part of individual performance goals • Plan regular check points with body leadership and committee

8. The Right Type of Contribution to the Governance Model and The Right Level of Coordination within ERCOT Key Contribution to Market Key Coordination w/in ERCOT Policy Making Support Board of Directors Executive Team Change Management of Protocols and other Mkt. Rule Documents PRS, TAC Executive Team Functional Directors & Officers plus CS, Rules and RA Business, Market and R&R Impacts WMS, RMS ROS, COPS Appropriate Business Managers Task Forces, Working Groups Functional Expertise

9. Resource Requirements for TAC/Subcommittee Meeting Process Chair Meeting Infrastructure ERCOT Meeting Prep (internal) ERCOT Meeting Prep (external) Meeting Day Coordination Post Meeting • Minutes – Draft – SS (AB) • Incorporate Comments – SS (AB) • Publish/Distribute for Comment – SS (AB) • Publish Internal Summary/Action Items –MM • Contact key ERCOT Staff on assignments and emerging issues – MM • Update and publish final presentations to web – SS (AB) • Email Vote Facilitation – SS (AB) • Notice/deadline • Compiling votes • Result notice • Review/Approve costs meeting costs (room, catering, AV) – SS (BA) • Offsite service/quality assessment – SS (BA) • Schedule Meeting Spaces – SS (BA) • Manage Acquisition – SS (BA) • AV Requirements • Catering • Communications • Post on Web Calendar – SS (BA/AB) • Facilitate Scheduling/Coordinate Conflicts – SS (BA) • Coordinate presentation materials from internal authors – MM • Schedule Preparation Meeting – MM • Anticipate, Discuss, Establish ERCOT answers – MM • Notify/Discuss Emerging Issues – MM • Distribute/Post ERCOT Presentations – SS (AB) • Follow up with external presenters – MM • Receive/Distribute Presentations – SS (AB) • Post presentations to web – SS (AB) • Sign in Sheets/Record Attendance into Minutes – SS (AB) • Tent Cards/Set-up – SS (AB) • Receive and Manage Proxies/Alt. Reps – SS (AB) • Presentation Setup/Preparations – MM • Meeting Minutes – SS (AB) • Coordinate Tech Support – SS (BA) • Internal Summary/Action item development – MM • ERCOT Presentations – SME/MP/MM • Response to Market Inquiries – SME • Voting – SS (AB) • Facilitate lunch focus group/intrameeting groups – MM • ERCOT Charge Approval (offsite) – MM • ERCOT Input coordination – MM • Quality/Feedback process, compilation, tracking -MM Final Briefing • Schedule meeting – MM • Facilitate Conference Bridge – MM • Internal Coordination – MM • Meeting Notice – MM • Co-Facilitate Meeting - MM Agenda • Notice for Call (market and internal) – SS (AB) • Create Draft Agenda –SS (AB) • Review action items from prior meeting – MM • Co-facilitation of Agenda Call – MM • Finalize Agenda – SS (AB) • Notify Specific ERCOT Staff – MM • Internal Communication (internal clients/requested participants) – MM • Distribute Agenda and post to web – SS (AB)

10. Market Meeting/Committee Support Key ERCOT Roles • “Core Team” • Assigned responsibilities • Standing role • Accountable to both market • body and ERCOT team • Alternates named • Focus: coordination, communication, continuity of support for both committee and staff • ERCOT Experts • As requested by body via CT • Dictated via agenda, or • As assigned by a Manager, • Director or Officer • Not a standing role • Focus: expertise, analysis, facts to aid market decision making process +

11. Market Meeting Support Key Clients Core Team ERCOT Coordination Key Clients Board of Directors Corp Sec’y, Officer Team, Legal Executive Team Rules, SS, Legal PRS, TAC Executive Team Bus. Manager, Rules, SS Impacted Directors & Officers plus CS, Rules and RA WMS, RMS ROS, COPS Task Forces, Working Groups AM, SME or SME, AM Functional Business Managers Underlined position = performs ERCOT Staff Meeting Management role

12. 2005 Committee Assignments TAC : MM - Cheryl Moseley, SS - Ann Boren, Legal - Mark Walker PRS : MM - Cheryl Moseley, SS – Market Rules Team, Legal – Andy Gallo ROS : MM - Steve Myers, SS - Ann Boren, Rules – Nieves Lopez WMS : MM - Ted Hailu, SS - Ann Boren, Rules – Nieves Lopez COPS : MM - Ted Hailu, SS - Ann Boren, Rules - Diana Zake RMS : MM - Dale Goodman, SS - Ann Boren, Rules - Sonja Mingo Note: Brittney Albracht performs facilities and meeting services coordination

13. 2005 Committee Assignments – ERCOT Staff Next Steps During Q1 MM to coordinate/establish assignments to TF and WG’s Establish back up for minutes taking at TAC and Subcommittee’s Resolve TF and WG documentation need, responsibility and resource req. During Q2 MP feedback checkpoint at TAC and Subcommittee level Further improve coordination across ERCOT Staff supporting MP’s on cross functional initiatives During Q3 MP feedback checkpoint at TF and WG level

14. 2005 Facilities Coordination • TAC, Subcommittees and TNT • Basically little change to existing process • Schedule as far forward as necessary • Seek best match of facilities with needs (size, AV,) • Look to minimize outside facilities utilization via scheduling cooperation • Working groups and task forces • Schedule up to two months forward • Match facilities to needs • Use ERCOT facilities at preferred location first (Austin), use low-cost adjacent hotel space second if preferred location not available, use ERCOT alternate locations (Taylor) third • Operator training in April creates the need for flexibility from committee Chairs that month. Thanks in advance for your assistance.

15. Possible Continuous Improvement Ideas • In TF & WG meetings, ERCOT Staff introductions and identification of your reason for being at the meeting (contributor/observer and area of interest) • At end of all meetings, quick check point survey (verbal w/ input documented and retained): • What worked well today? • What did not work as well as you would have expected? • How could the next meeting be improved? (need actionable input) • Start each agenda call with the feedback from last meeting and discuss how to improve the next meeting to address concerns

16. Possible Continuous Improvement Ideas • Establish a tracking mechanism regarding committee, TF and WG agenda items, workflow, assignments, next steps • Implement cost/benefits criteria and analysis for non-administrative protocol and guide changes • Update and standardize format and detail regarding committee, TF and WG “key documents” • Publish key docs on web site including: procedures, mission and scope, voting members, chair and vice chair (as appropriate for body type), ERCOT Staff assigned

17. Questions and Suggestions?