Texas Nodal Program ERCOT Readiness Update

1. Texas Nodal Program ERCOT Readiness Update TPTF May 5, 2008

2. Agenda • Executive Readiness Survey • Transition Plans • Business Process Model and Procedures • Training • Staffing 2

3. ERCOT Executive Readiness Survey • Conducted monthly for ERCOT. • The ERCOT Executive Readiness Survey as of April indicated GREEN • The ERCOT Executive Readiness Survey as of May indicated GREEN • Next iteration will be published on June 1st. 3

4. Transition Plans • Transition Plans continue to be updated. Proven to be a useful tool to identify and resolve key issues, staffing and roles/responsibilities. • Transition Plans cover: • Overview –objectives, customer (user) information, reference materials and outstanding issues • Scope of Transition – resources, facilities, hardware, software, documentation, budget, training, roles and responsibilities • Transition Planning – release process, data migration, performance measures and reporting, governance and management approach, problem resolution, documentation strategies, training, sustainability metrics, transition schedule, and gaps • Initial drafts created in February. Latest revision was April 30th. Next update is scheduled for late June, 2008. 4

5. Business Process Model and Procedures • Procedures are being updated along with the Business Process Model. • After consolidation and alignment, there are 544 procedures identified. • Development of procedures has already begun and good progress has been made. Target completion is September 1, 2008 for Nodal impacted departments. • The ERCOT Department Level Procedures Scorecard for the entire enterprise is monitored and updated weekly. • ERT has also created a Key Nodal Processes Dashboard to monitor and track progress. 5

6. Business Process Model – Key Nodal Processes Status 6

7. Procedures – Procedure Status by Department 7

8. Procedures – Procedure Status by Department (continued) 8

9. Training • Department Level and Individual Training plans have been updated. • Training has been divided into 2 components: • Market Courses, and • Applications, Systems and Product Courses • Progress has been steady on training. • Target completion for all courses is September 1st. • Department Level Training Scorecard is updated weekly. • Scorecard is “GREEN” for April. 9

10. Training – Applications, Systems and Products 10

11. Training – Applications, Systems and Products 11

12. Training -- Market Courses 12

13. Training -- Market Courses Please Note: Basic Training and 2008 Operator Seminar are the same course 13

14. Training Scorecard 14

15. Staffing • Actively recruiting for 34 Nodal positions. • Transition Plans have crystallized staffing for departments. • Additional positions for 2009 have been opened early to ensure adequate time for recruiting, training, availability for EDS activities and the 168 hour test. • Intern positions have been hired and are targeted to start in Spring/Summer to support activities. • The majority of openings have been addressed within the targeted timeframe. • A few key departments struggle to find resources. • May 1 Staffing Metric: GREEN (>90%) 15

16. Staffing – Nodal Staffing Status *As of May 2, 2008 • Identified Nodal - Specific Positions in each Division • Actively Recruiting 34 Positions • Additional 2009 Positions have been brought into 2008 and are being recruited 16