ERCOT IT Update

Ken Shoquist VP, CIO Information Technology

May Board Meeting

Systems Summary

Daily Transaction Throughput Systems Highlights

System Incident ReportsMonthly Transaction ThroughputTotal Transactions: 34,597,466

• TX SET 1.5 Release complete and successful

• Disaster Recovery Test executed successfully

• Settlement statement runtime reduced 50%

• Load Profiling runtime reduced 50%

• Increased EDI inbound processing throughput

• SCR 727 supplemental runs performed in parallel with normal operations

Inbound Outbound814 1,615,604 1,866,601867 6,731,858 8,221,606824 14,789 18,323997 7,766,435 8,362,250Totals 16,128,686 18,468,780

0

2

4

6

8

10

12

Mar '03 Apr '03 May '03 Jun '03

New this Month Closed this Month Currently Open

0

500000

1000000

1500000

2000000

2500000

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

April 2003

Tran

sact

ions

In Out Total

Performance Trends

Switch Process

90%

95%

100%

March April% w

ithin

Pro

toco

l

Initiating Txn - 814_01 to 814_03Completing Txn - 867_03 to 867_03Completing Txn - 867_04 to 867_04

Settlement Statements & Invoices

85%

90%

95%

100%

March April

% w

ithin

Pro

toco

l

Statements Invoices

Move-In Process

90%

95%

100%

March April

% w

ithin

Pr

otoc

ol

Initiating Txn - 814_16 to 814_03Completing Txn - 867_03 to 867_03Completing Txn - 867_04 to 867_04

Move-Out Process

90%

95%

100%

March April% w

ithin

Pro

toco

l

Initiating Txn - 814_24 to 814_03Completing Txn - 867_03 to 867_03Completing Txn - 867_04 to 867_04

Solution OverviewOverall Architecture

Market System

Energy Mngt. System

Technical Operations

Load Profiling

Data Acq.

Commercial Operations

On-line Portal (Private & Public Information)

Programmatic Interfaces

Settlement/Bill

Data Aggr.

DataArchive

&Data

Warehouse

ERCOT WAN(or)

Public Internet

Registration

Transaction Clearinghouse

Solution OverviewCommercial Operations

eEXCHANGE

eEXCHANGE

eGATE

eGATE

LODESTARLODESTAR

SiebelSiebel

SAP PortalSAP Portal

TDSP&

Retailers

TDSP&

Retailers

WANor

Internet

PAPERFREE

PAPERFREE

EDI/XML Mapping & Validation

Transaction Lifecycle

Management(SeeBeyond)

Enterprise Architecture Integration

(SeeBeyond)

Integrated Market Portal

Data Aggr., Settlement &

Billing

Registration & Dispute

Management

Transaction Clearinghouse

Solution Overview“To-Be” Architecture

eEXCHANGE

eEXCHANGE

eGATE

eGATE

LODESTARor

Excelergyor

Custom

LODESTARor

Excelergyor

Custom

Yahoo PortalYahoo Portal

TDSP&

Retailers

TDSP&

Retailers

WANor

Internet

PAPERFREE

PAPERFREE

EDI/XML Mapping & Validation

Transaction Lifecycle

Management(SeeBeyond)

Enterprise Architecture Integration

(SeeBeyond)

Integrated Market Portal

Data Aggr., Settlement &

Billing

Registration & Dispute

Management

Settlement / Registration Selection

ERCOT has multiple directions it could take regarding Settlements, Registration, and Transaction Management:

1. Modified Lodestar Solution (with upgrade)2. Implement Excelergy Solution 3. Implement Custom Solution

Considerations (costs, risks, and impacts) for alternatives:• Development (labor, licensing, hardware)• Integration (reliability, transaction integrity, scalability)• Maintenance (personnel skill-set, technology, vendor support)• Operation (transaction transparency, performance, security)• Business Impact (conversion, operation)

The goal is to reduce Total Cost of Ownership (TCO) while meeting the needs of the market.

Application MonitoringPerformance MetricsAvailability

Time and Cost to Market

Product Quality, Productivity

Manage Risk

Release & Project Delivery

Measurementvia service levelsBusiness Feedback

RequirementsResource EstimationProject Priorities

ITITOperationsOperations

ITITDevelopmentDevelopment

ERCOT ERCOT BusinessBusiness

Project Management & Development Process

Support Texas MarketStrategic PlanningCost Effectiveness

Customer Satisfaction

Change Management

IT Project Updates

0

5

10

15

20

25

30

35

Jan Feb Mar Apr

Completed In Planning In Progress

0%

20%

40%

60%

80%

100%

1st Qtr 2nd Qtr

On Time On Budget

Monthly Activity Project Performance

• For the 50 Priority-1 Projects:• 18 complete,• 20 in progress, and• 12 in planning

• The 18 projects completed in the first quarter include projects started in the last quarter of 2002

0

5

10

15

20

25

30

35

Jan Feb Mar Apr

Active Planned

IT Project Updates

Highlights of Completions

• TX Set V1.5

Market coordination was key success factor

• Disaster Recovery

Confident that we will beat the 48-hour recovery requirement

Project Team Recognitions James Whitlock Jason VanDerMark

Trending Information:• Project Management staff added in

1st Quarter

Project Activity

Upcoming Projects for ERCOTUpcoming Projects for ERCOT

Energy Management Systems

• Oracle 9i upgrade of EMMS• QSE Testing

Increase availability Increase functionality

Enterprise Operations

• Document management• Portal replacement• Portfolio management software

Settlement & Billing

• BUL / LAAR• Load Research Sampling / DLC

TX Processing

• EDI Pipeline Hardening• MIMO Short Term

ERCOT Employee Directory

• No longer on ERCOT.com

• Moved to a secure location

• Now located on ERCOT’s portal

• Requires use of digital certificate to access• ERCOT security desk available to route calls

Texas Electric Market