Program Management Office Update

1. Program Management Office Update Janet Ply July 21, 2008

2. Agenda • Restructured Nodal Program Organization • Nodal Integrated Program Schedule Status • TPTF Activities • Home Team Engagement and Activities • Project Updates • Questions

3. Restructured Nodal Program Organization Now that the program is in early stages of systems integration, a different model is needed to support integration of multiple, large projects at the program level to ensure successful delivery. • Core projects: major nodal systems including NMMS, EMS, MMS, CRR and Commercial Systems • Core project managers accountable for end-to-end delivery of the systems and direct the activities of the supporting projects • Supporting projects: projects spanning across all core projects • Rigorous program and budget controls, resource management and release management

4. Restructured Nodal Program Organization Executive Sponsor Ron Hinsley Quality Assurance:Eileen Hall Finance: Aaron Smallwood TPTF Liaison: Joel Mickey IT Governance Executive Program Director (Acting) Ron Hinsley Program Mgmt Office Janet Ply Business Ownership Division VPs Readiness & Transition (MER/ERT) Karen Lamoree Early Delivery Systems Daryl Cote Infrastructure David Forfia CORE NODAL PROJECTS Network Model Management System Linda Clarke Market Management SystemOutage Scheduler Murray Nixon Congestion Revenue Rights System Stacy Barry Commercial Systems Raj Chudgar Energy Management System David Hackett SUPPORTING NODAL PROJECTS Current Day Reports Naresh Chunduri Enterprise Data Warehouse Sankara Krishnaswamy Market Information System Portal Brett Economides Enterprise Architecture Brian Cook Integration Stephen Kerr Integration Testing Ken Kasparian Readiness & Transition(MER/ERT) Karen Lamoree Early Delivery Systems Daryl Cote Infrastructure David Forfia

5. Core Projects Integrate Supporting Project Activities NMMS EMS CRR COMS MMS/OS • Worked well prior to integration • Allowed multiple work streams to be completed SUPPORTING NODAL PROJECTS I- TST EIP CDR EDW MIS INF • Allows core projects to manage dependencies for supporting projects • Enables start-to-finish functionality for releases • Ensures accountability for program-level delivery • Supports the integrated schedule approach CORE NODAL PROJECTS

6. Nodal Integrated Program Schedule Development Status • Accomplishments to Date • Completed “Plan for a Plan” and executing against it • Identified interfaces and dependencies across core projects; significant progress across supporting projects • Identified program level gaps and included in schedules • Enhanced individual project schedules • Completed initial development of “Go-Live” Sequence • Developed more comprehensive view at the program level across the teams

7. Nodal Integrated Program Schedule Key Dates • Remaining Schedule Development Activities • Complete core project schedules with dependencies • Complete supporting project schedules • Integrate core project schedules • Integrate supporting project schedules into overall integrated schedule • Refine integrated schedule • Review with ERCOT executives and refine • Provide draft integrated schedule to TPTF • Review with TPTF • Complete schedule refinement and optimization • Prepare communication for Board meeting • Present integrated schedule to ERCOT Board July 21 July 23 July 23 July 25 Aug. 4-8 Aug. 8-15 Aug.18 Aug. 25 Sep. 5 Sep. 5 Sep. 16

8. Sample Schedule Milestones Example milestones to be communicated to MPs: Approximately 150 milestones Schedules and milestones dynamically linked – change to a date in one schedule automatically updates dates for dependent activities and milestones

9. Upcoming TPTF Activities • Review and comment on the integrated master schedule • Review and approve several requirements documents that need to be updated to reflect post-Baseline 2 changes • Review and approve revised EDS Handbooks that reflect changes from integrated schedule • Review current status of MMS-deferred items

10. Home Team Engagement EDS is the final transition from nodal to the home team. EDS is executed by home teams. Examples: • Remainder of EDS 2 Release 3 State Estimator and Telemetry has been transitioned to EMMS Production Support and Advanced Network Application groups. • Recent LFC test conducted by System Operations – only 5 of 50 involved were contractors • CRR, DAM/RUC, and NOMCRs have already transitioned to home teams

11. Nodal and the Home Teams • Program is clarifying home team and nodal roles • Home teams are actively involved in reviewing and approving the project schedules and budgets • Program is identifying home team SMEs and backfilled resources to ensure adequate staffing levels for transition • Nodal project and home teams are reviewing transition plans to identify potential gaps • Executive committee will review budget issues related to transitioning nodal activities to home team for consistent approach

12. NMMS Update • NMMS Software (Siemens) Releases • Currently testing: • Outage selection for CRR and Planning Models • PTC enhancements to support PTI topology • PTI Release 2 (distribution system reduction, temperature rating sets, contingency data exports) • August Release • PTI Release 3 (connectivity node to bus processing, 3-winding transformers, contingency data export, reporting capabilities) • October Release (potentially 1 additional Release) • Auto Model Build Scheduler • MIS Posting Folder Structure • Historical Models • Reports • Outage Enhancements • Data & Schema Activities • CIM Schema Release V1.18 • Supporting schema data population for EMS & MMS • Identifying validation rules • Preparing Data Validation Whitepaper • Finalizing CIMTool Demo for NDSWG

13. EMS Recent Accomplishments Recent completions – completed EMS FAT and released to down stream systems • Requirements Qualification Test (RTQ) • Study State Estimator • Dynamic Ratings Applications Interface/Enhancements • Transmission Constraints Managements (TCM) Enhancements • Outage Scheduling API in Forced Outage Detection (FOD) • Current Operating Plan (COP) API in FOD • Frequency Source Selection (Multiple Frequency Source selection) • Study Server • Mid Term Load Forecast (MTLF) • Operator alarm reconfiguration • Operator displays enhancements • Interfaces to EMS current day reports, telemetry and state standard reports, and EMS billing and settlements

14. EMS Update EMS has completed all functionality testing and released the functionality to ITEST/EDS except: • EMS CIM Importer – still testing at AREVA • Iterating with NMMS to get fidelity in the data model to complete validation and run the EMS applications • Testing with AREVA to identify and resolve issues • ERCOT staffing on-site • Outage Evaluation (OE) – Testing at ERCOT (Post FAT bug fix phase) • New, complex tool, multiple hours analysis; delays associated with tuning the model, verifying the software and tuning the software • Embodies Dynamic Remedial Action Plan (DRAP), VSS, and the management of multiple models (multiple time period within each model) • Voltage Support (VSS) – Testing at ERCOT (Post FAT bug fix phase) • New, equivalent to SCED in the reactive domain but more complex due to the non-linearities • Transient Stability/Voltage Stability Analysis Tools (TSAT/VSAT) • Completed Vendor FAT in February (delayed FAT due to hardware setup and priority) and FAT testing is active • Alerts and Notification – Development in progress • Changes related to SIG papers – in analysis • Remaining interfaces (e.g., DAM/RUC, reports, replication) in progress

15. Questions?