1

Project Update for RMS

August 5, 2014

2

2014 Project Update – Agenda

– Project Portfolio Update• Project Highlights – Retail• 2014 Project Spending Update• Planning Next Set of Project Bundles• 2014 Release Targets• 2015 Release Targets• Questions?

Location of Project Priority List (PPL): http://www.ercot.com/services/projects/index

3

Project Highlights – Retail

• 2014 Release 4 Go-Lives (July 2014) In Flight– SCR756 – MarkeTrak Enhancements – Remaining SCR756 Items

• Originally planned for implementation on 7/26/2014

• Rescheduled to Sunday, 8/17/2014

• Final phase of SCR756 implementation

• “Recent” Retail Project Activity– 2012

• Texas SET 4.0

– Included 1st phase of SCR756

– 2013

• MarkeTrak Upgrade

• NPRR457 – Daily Update of New ESI IDs and AMS Meter and Switch Hold Indicators Changes

– 2014

• 2nd (final) phase of SCR756

Note: Projected Go-Live dates are subject to change.Please watch for market notices as the effective dates approach.

4

2014 Cash Flow Projection – Approved Projects

2014 project budget = $25M

`

Actual Actual Actual Actual Actual Actual Forecast Forecast Forecast Forecast Forecast ForecastJan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

In-Flight 1,539,353 2,565,032 2,535,801 3,246,945 2,583,749 2,138,189 3,076,491 1,525,249 1,049,462 983,782 616,278 550,572 Not Started - - - - - - 99,944 491,549 561,643 577,128 587,403 429,945

Monthly Total 1,539,353 2,565,032 2,535,801 3,246,945 2,583,749 2,138,189 3,176,435 2,016,798 1,611,105 1,560,910 1,203,680 980,516

Budget 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 25,000,000 In-Flight 1,539,353 4,104,385 6,640,186 9,887,131 12,470,880 14,609,069 17,685,559 19,210,808 20,260,270 21,244,052 21,860,329 22,410,901

Not Started - - - - - - 99,944 591,493 1,153,136 1,730,264 2,317,667 2,747,612

Cumulative Total

1,539,353 4,104,385 6,640,186 9,887,131 12,470,880 14,609,069 17,785,504 19,802,301 21,413,406 22,974,316 24,177,997 25,158,513

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14

Not Started In-F light Budget

5

Planning Next Set of Project Bundles

• CMM Start = July 2014– NPRR559 - Revisions to MCE Calculation

– SCR778 - Credit Exposure Calculations for NOIE Options Linked to RTM PTP Obligations

– NPRR597 - Utilize Initial Estimated Liability (IEL) Only During Initial Market Activity

– NPRR601 - Inclusion of Incremental Exposure in Mass Transitions to Counter-Parties that are Registered as QSEs and LSEs and Provide POLR Service

• CRR Start = July 2014– SCR777 - Bilateral CRR Interface Enhancement

• MMS / CDR / MIS Start = July 2014– NPRR500 - Posting of Generation that is Off but Avail.

– NPRR543 - Message for Confirmed E-Tags

– SCR775 - Posting Results of Real-Time Data in a Display Format

• EMS Start = August 2014

– NPRR524 - Resource Limits in Providing A/S

– NPRR573 - Alignment of PRC Calculation

– NPRR581 - Add FRRS as a Subset of Regulation Svc

Start = October 2014– NPRR272 - Definition and Participation of QSGRs

• MMS Start = August 2014

– ORDC Phase 2• Identified gray-boxes plus potential new NPRRs (NPRR626?)

– OBD for Shadow Price Caps• Revision to “Methodology for Setting the Constraint Shadow

Price Cap for a Constraint that is Irresolvable in SCED”

– NPRR556 - Resource Adequacy During Transmission Equipment Outage

– NPRR589 - A/S Offers in the SASM

• Registration Start = August 2014

– NPRR519 - Collateral Exemption for ERS-Only QSEs

– SCR771 - Independent Master QSE for Split Gen.

Market input on this plan is greatly appreciated!

6

2014 Release Targets – Board-Approved NPRRs / SCRs / xGRRs

ERCOT Public

NoneJanuary

Go-live dates can differ from Protocol effective dates – Please refer to market notices for more details

Release targets are subject to change

NPRR425(b) – GREDP, EIS portionsNPRR589(a) – MMS portionSCR756(b) – Remaining portions of SCR

(a), (b), etc. indicates multiple phases

Red Text: New additions and target release changes

Strike-Through Text: Previous target release changes

June 1st

None

Retail: 2/22-2/23

Retail: 8/17

7

2015 Release Targets – Board-Approved NPRRs / SCRs / xGRRs

ERCOT Public

Go-live dates can differ from Protocol effective dates – Please refer to market notices for more details

None

Release targets are subject to change

NPRR484(Ph1b) – Remaining Phase 1 itemsNPRR484(Ph2) – S&B portion of NPRRNPRR589(b) – S&B portion

None None

(a), (b), etc. indicates multiple phases

Red Text: New additions and target release changes

Strike-Through Text: Previous target release changes

None NoneNone

8

2014 Project Update

Questions?