Proposed AMIT SMT Methodology and Release Strategy

1. Proposed AMIT SMT Methodology and Release Strategy March 9, 2010

2. Objectives • Review Proposed Enhancements to AMIT SMT Methodology • Review proposal for Change Control Process for SMT Application Development • Review proposal for Issue Escalation Process • Review and Gain Consensus on Proposed AMIT Process Methodology and Next Steps

3. AGENDA • Proposed Enhancements to AMIT SMT Methodology • Enhanced Methodology Overview • New Scope Phase and Scope Deliverables • Technical Design Phase New Deliverable • Proposed Change Control Process • Change Control Process • Change Control Form • Proposed Issue Escalation Process • Proposed AMIT Methodology and Next Steps • Release 1 Functionality Matrix • Release 1 Business Process Flows • Release 1 Business Technical Flows • Release 2 Critical Success Factors • Future Business Requirements Review and Prioritization

4. SMART METERTEXAS Proposed Enhancements to Smart Meter Texas Methodology

5. Enhanced Methodology Overview COMMUNICATIONS Scope - AMIT Functionality Matrix and Priorities Business Functional Flows Business Process Inventory Release Critical Success Factors * Enhanced Deliverables in Red * Existing Deliverables in Black Market Email Notices SMT Status meetings AMIT meetings Business Analysis - AMIT Business Requirements Use Cases Functional Design – SMT Team Requirements Traceability Matrix Interfaces Logical Data Model User Interface Design – AMIT &SMT Team Prototype OR Mock Up Technical Design – AMIT & SMT Team Technical Requirements Definition and Flows Technical Specifications Physical Data Model Physical Design / Build / Test – SMT Team Detail Code Design Code – Unit Test Data Base Design / Schemas Market Email Notices SMT Status meetings AMIT meetings UAT Test – SMT Team Test Plan Test Scripts COMMUNICATIONS

6. New Scope Phase and Scope Deliverables • The Scope Phase Provides the Following: • Defines Solution Purpose and Functionality • Provides Foundation for Release Management and Change Control • Provides Direction and Priorities for the Business Analysis phase and all Subsequent Phases • Facilitates Consensus and Common Understanding Among Participants • Defines Release Critical Success Factors COMMUNICATIONS Scope Business Analysis Functional Design User Interface Design p Technical Design Physical Design / Build / Test UAT Test COMMUNICATIONS

7. New Scope Phase and Scope Deliverables • Functionality Matrix Example Deliverable: R1 • limited to 1 Admin • unavailable

8. New Scope Phase and Scope Deliverables • Business Functional Flow Example Deliverable:

9. New Scope Phase and Scope Deliverables • Release Critical Success Factors Example Deliverable: • Release Critical Success Factors for Smart Meter Texas Release 1 • The solution must provide a common web portal • The user online interface must be intuitive and easy to use by consumers • The solution must provide a secure environment for confidentiality, user access and data transfer • The solution must provide the information necessary in which the customer can make an informed decision regarding consumption • The solution must be provide a common format to manage meter and In-Home Device functions • The solution must be based on existing open industry standards • The solution must be based on a common interoperable platform

10. Technical Design Phase New Deliverable • Technical Requirements Definition and Flow: Typical information • Portal access, Web service, FTP • Push to REP, Pull from SMT • Non-functional requirements

11. SMART METERTEXAS Proposed Change Control Process

12. Change Control Process AMIT Reviews Change Control Detail Requests at 1st Monthly AMIT Market Change Control Meeting AMIT or Market Participant Fills Out and Submits Change Control Detail Request to PUCT PUCT Assigns Change Control Number and Enters in Change Control Log AMIT Approve / Reject AMIT Defines Priority and Potential Release for Change at 1st Monthly AMIT Market Change Control Meeting SMT Team Submits Impact Analysis Including the Time Estimate, and Cost Estimate to PUCT SMT Team Conducts Impact Analysis Including: Functions Impact, Time Estimate, and Cost Estimate Approve Reject PUCT Approve / Reject Archive Change Control Detail Request and Mark Change Control Log as Rejected Refine Priority and Define Release for Change During the 2nd Monthly AMIT Market Change Control Meeting Review Change Control Detail Requests & Impact Analysis at the 2nd Monthly AMIT Market Change Control Meeting Approve Reject Market Approve / Reject Poll Market to Identify if a Market Participant Wishes to Fund the Change Acquire Signatures on Approved Change Control Form and Submit to SMT Team for Project Planning Approve Archive Change Control Detail Request and Mark Change Control Log as Rejected Reject

13. Change Control Form – Detail Request from Market

14. Change Control Form – Impact Analysis

15. Change Control Form – Time and Cost Estimates

16. Change Control Form – Approve or Reject Sign Off

17. SMART METERTEXAS Proposed Issue Escalation Process

18. Proposed Issue / Requirements Clarification Escalation Process for Application Development COMMUNICATIONS Market Email Notices SMT Status meetings AMIT meetings SMT Team or AMIT Fills Out and Submits Issue or Clarification Description Form to PUCT AMIT Submits Resolution to SMT Team Jenina Manages Issue or Clarification Documentation for Review at Next AMIT Meeting SMT Team Develops Proposed Resolution Options with Impacts to Timeline and Cost AMIT Reviews Issue and Selects / Refines Resolution Option Market Email Notices SMT Status meetings AMIT meetings COMMUNICATIONS

19. SMART METERTEXAS Next Steps

20. Proposed AMIT Methodology and Next Steps • Release 1 Functionality Matrix • Release 1 Business Process Flows • Release 1 Business Technical Flows • Release 2 Critical Success Factors • Future Business Requirements Review

21. Thank You For The Opportunity To Discuss SMART METER TEXAS