September 10, 2007TPTF Meeting

Texas Nodal Program Update

Jerry Sullivan

2Texas Nodal Program UpdateSeptember 5, 2007 2

CostScheduleScope / Quality

Legend

Summary

Overall program status remains amber

Green

Additional costs (Integration, Release Management, MMS, BL 1 & 2, and

Internal Allocation) exceeding existing contingency and savings

Amber AmberCurrently fully aligned with protocols.

15 NOGGRs identified with no

impact. Remaining 15

being reviewed for cost and

schedule impact

Red

Amber

Green Estimate at Complete = <$263m

Estimate at Complete = < $263m + 10%

Estimate at Complete = >$263m + 10%

Go-live = 12/1/08

Go-live = <30 days+

Go-live = >30 days+

Program is aligned with current protocols

Program is aligned to previous protocol version

Program is not aligned to protocols

Current EDS 1-3 milestones being achieved and are on track. Significant amount of work taking place in next 3

months.

EDS 4 milestones at risk due to MMS schedule.

Scope/Quality

Nodal

Cost

ScheduleScope/Quality

Schedule

Cost

Nodal Delivery

Nodal Delivery

Amber

Current product quality is not sufficient for Nodal launch

Most Nodal products currently achieve quality standards

All Nodal products currently achieve quality standards

Significant design issues still open

with MMS solution.

100% Success Rate in EDS3 R5

QA plans for EMS, MMS, OS still need

work

3Texas Nodal Program UpdateSeptember 5, 2007 3

Tactical deliverables and actions

# Topic Solution/Action

1 MMS • Vendor high-level schedule puts the Nodal Program schedule at risk.• Critical design issues need to be addressed rapidly by ERCOT/vendor – 75% “high” and “medium” category items resolved by 9/6. Focusing on the

remaining 25% this week. Possible schedule impact qualified by 9/7.• Commercial implications to follow• Mutual detailed plan is being developed to sustain viability of work going forward

2 Sandbox (8/31)Priority 2 Web Services

• Milestone met; market notice sent on 8/30

3 EDS 2 (9/4)State Estimator and Telemetry

• Release of EMS 2B and 2C to EDS environment planned for 9/6 (we’ll make this date)• FAT Testing: Transformer Tap Estimation may need major fix from AREVA – necessary to support SE performance requirements by October• Interim solution for delivery of SE Reports being developed (reports required in Oct/Nov)

4 EDS 1 (10/1) • Confidence in achieving the milestone is High: 79% complete with P2P• All QSEs will be completed and tested by 10/1, except for Austin Energy (currently upgrading their EMS)• Working to train Grid Ops to backfill for summer students returning to school• Fail-over test to occur in September; drafting requirements for MPs

5 EDS 3 (11/1)EMS interfacing with SCED

• Confidence in achieving the milestone is Medium• EMS integration code delivered; FAT testing this week• MMS delivery of interfaces, confidence is High as result of EMS interface status • Delivery of SCED reports, confidence is low – cross-project effort launched to expedite delivery • Developed consolidated list of data elements, assigning responsible parties for delivery (Network Model, Registration, EMS, MMS)

6 EDS2 R4 (11/1)NMMS NOMCR

• Confidence in achieving the milestone is Medium, with known challenges (data reconciliation and validation, AREVA load capabilities, MP availability)

• Phase 1c delivery at end of Sept 2007 being pushed to Mid-Oct; Defining testing approach to leverage system functionality in the order it’s delivered

4Texas Nodal Program UpdateSeptember 5, 2007 4

Time line update

Energy Management System (EMS)

EDS

Market Management System (MMS)

Congestion Revenue Rights (CRR)

Market Information System (MIS)

Network Model Management System (NMMS)

Commercial Systems (COMS)

ERCOT / MP Readiness & Implementation

Enterprise Integration (EIP)

Enterprise Data Warehouse (EDW)

Infrastructure (INF)

CIM

RT FAT

FAT

CMM

S&B Build S&B FAT

FAT

EDS 1

EDS 3EDS 4

Single Entry Model3/31/

RT Market12/01

DA Market12/08

168 Hour Trials

DAM, RUC, SASM S&B Interfaces Build and FAT

SCED, CRR Interfaces Build and FAT

Currently re-planning

Currently re-planning

Readiness Metrics

Start MP Registration

Build Dev Environments

Build ITest & EDS1/2 Build EDS 3

Build ITest

Build EDS 4 and Fail-Over Env

SCED Interfaces, RLC LFC

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

RPP, LF Study Apps

SE & TelemetryICCP Upgrade

DAM, RUC, SASM Build and BL 1 & 2 changes DAM, RUC, SASM , CIM FAT VDI, DC Tie

Financial Transfer FAT Disputes FAT

UI, NOMCR EDS 2 FAT

CIM Importer

EDS 2

CRR Auction10/15

Today

Key

Milestone Complete √

FAT Start

FAT end

EDS Start

EDS End

Go-Live

Acronym KeyFAT – Factory Acceptance Testing

EDS – Early Delivery System

I test – Integration Testing

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