1

Enterprise Operations

April 15, 2003

2

Agenda

Accomplishments Year-to-Date

Systems Operations Update

Project Updates

Package Products

Summary

3

Year-to-Date IT Accomplishments

Delivery & Operations Staffing – Made significant progress in acquiring skilled resources. Acquired 2

managers and 4 staff System Monitoring and Reporting improvements including performance metrics and

incident reporting Policies and Procedures – Developed for system testing, change control and source

code management Implementation and support of 80 System Investigation Requests and 356 System

Change Requests

Project Management Team Staffing of senior project managers complete Average utility experience 9 years Average project management experience 13 years Average IT experience 15 years Formal weekly project reviews in place Strengthening project reporting tools

4

Year-to-Date IT Accomplishments (Continued)

Technology Services Commercial Applications DR Project: Synchronous Data Mirror Established in

“Blue Building”; MET Center Computer Room Expansion Completed; Fiber link between sites completed.

Facilities Expansion Project: Established and chairing ERCOT Facilities Expansion Steering committee; Project Manager and Architect under contract to perform feasibility analysis.

Consolidation of Taylor Plaza network using new fiber link from Settlements to HEB saving $90,000 per year

Development and ArchitectureService Request and Dispute System deployed to ERCOT/market Portal platform selected (Yahoo/Tibco) and Phase 1 launchedTransaction Services Performance Improvements ETS/GISB project delivered on time/ on budget ETS part 1 delivered to PUC and MPs Statement and Invoicing process performance improvement

Invoicing: 8 hrs => 1 hr / Statement: 70 min => 50 min per run

5

Year-to-Date IT Accomplishments (Continued)

EMMS Release 1.5 Migrations to Production

Multiple A/S Markets Multiple RPRS Markets LAAR Active Flag Notification of Adjusted Schedules

Resolved CB mapping problems in Real Time Network Analysis (SE Tuning) New and Direct Weather Data Path for EMMS Successfully implemented and supported the new schedule Smoothing

Algorithm Study Network Applications one lines for all users

Security & Data Management Intensive security cyber audit completed Established security roadmap Began reengineering of data archive Improved performance of mainline databases

6

Systems Operations Summary – March 2003

0

100

200

1 12 23

Inbound

Outbound

Total

Daily Transaction Throughput Systems Highlights

System Incident ReportsTransaction ThroughputTotal Transactions: 32,136,433

• Pre TX SET 1.5 release

• Data Center Move

• Server Upgrades

• GISB Migration

• Portal Disputes Implementation0

500000

1000000

1500000

2000000

2500000

3000000

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31

Tra

ns

ac

tio

ns

Inbound Outbound814 1,153,111 1,248,472867 7,072,635 7,103,830824 60,378 60,669997 7,151,216 8,286,122Totals 15,437,340 16,699,093

0

2

4

6

8

10

12

Mar-03 Apr-03 May-03 Jun-03

Total Closed Open

7

Business Process

Move

In

Move

Out

Switches Meter Reads ESI ID Maint, Add,

Retire

Settlement Statements

and Invoices

Protocol 5 hours 5 hours 24 hours 1 business day 1 business day Midnight

Process

814_16 to

814_03

814_24 to

814_03

814_01 to

814_02,03

867 814_20

pass-thru

Statements

Quantity 169,953 110,623 55,316 6,661,635 197,481 2551

Protocol % 95.5 95.5 99.97 Future metric Future metric 90.3

Protocol 5 hours 5 hours 12 hours 1 business day 1 business day Weekly

Process 867_03 867_04 867_03 867_03 867_04814_20 to

814_21Invoices

Quantity 100,039 158,314 114,709 49,824 48,992 6,661,635 197,481 221

Protocol % 98.3 94.6 98.4 97.3 93.4 Future metric Future metric 100.0

Process Performance – March 2003In

i tiat

i ng

Tr a

nsa

ctio

nC

omp

leti n

g T

r an

sact

ion

8

Total Average

•Utility Experience 39 yrs 10 yrs

•IT Experience 67 yrs 14 yrs

•Data Center and Operations Experience 54 yrs 17 yrs

•Experience from diverse markets / industries:Southern California EdisonCentral and South West ServicesEnron CorpAmerican Airlines / SABRE, Inc.

Delivery & Operations Staffing

9

ERCOT Systems ProjectsERCOT Systems Projects

Individual Projects have been Initiated Based on Market and ERCOT Prioritization Process

• 33 Projects Currently Active

• 6 Completed in March, 4 On Schedule to complete in April

Significant Projects being completed this month

• Texas Set Version 1.5 with Related changes – Complete

• Disaster Recovery for Commercial Applications – End of April

Remaining Prioritized Projects being Grouped as Logical Releases

• Releases will Reflect Market Priorities

• Releases will Include System, Architecture and Infrastructure Improvements

10

TX SET 1.5 Project Implementation success

Activities began 4/10 and ended 4/13 Next steps

Continue to monitor production activity Conduct lessons-learned meeting on 4/21

Key project team members – Over 60 Personnel from ERCOT 34 Market Participants Over 60 Personnel from ERCOT

• Project Mgmnt – Dave Odle Dave Farley & Team• Flight Test Administration – Karen Bergman Lynn Wyatt & Team• ESI ID Data Integrity Management Team Cagle Lowe & Team• Client Services Team Carol McDonald & Team• Daryl Cote & Structure/Blueware Team Scott Middleton & Team• Victoria Johnson & Release Mgmt Team Mohan Yegonni & Team• Dave Farley & Team David Johnson & Team• Lynn Wyatt & Team Chris Douglas & Team

11

Product version list

Product Prod Version Current version Delta

SeeBeyond 4.1.2 4.5.3 (5.0 pend) V-2

Paper Free 2.8.3 4.0 V-2

Informatica 1.7.1 6.x V-2

Top Tier 4.0 SAP Portal

(Top Tier no longer product offering)

Replaced

Lodestar 2.25 3.51 V-2

Siebel 6.3.0 7.5.2 V-1

12

Package Product Platform Issues

• Currently utilizing outdated versions of many application products

• Some instances of unsupported versions

• Highly customized implementations raise Total Cost of Ownership especially in the areas of upgrades and maintenance

• Underutilized application components

• Architecture strategy being worked to handle upgrades/replacements.

• Project Enhancements will be bundled with Upgrades/Replacements

•Reduce breadth of skill sets

•Reduce integration touch points/Simplify Architecture

13

Summary

•Development

•48 % staff level - Full time recruiter in place to fill positions and limit dependence on consultants.

•Commercial Systems Release Roadmap in draft form waiting decisions on application version upgrades or replacement.

•Vendor management continues to be key focus item

•Project Management

•Positive results beginning to be seen

• Production/Operations

•Newest part of organization; Good hires

•Focus on refining processes, procedures and automation