1 Project Update and Summary of Project Priority List (PPL) Activity April 16, 2015.

1

Project Update and Summary of Project Priority List (PPL) Activity

April 16, 2015

2

2015 Project Update – Agenda

– Project Portfolio Update p. 3-5• Recent/Upcoming Project Highlights• Revision to 2015 Market System Enhancements Scope

– Potential Vote• 2015 Release Targets• 2015 Project Spending Update

– Appendix• Project Portfolio Gantt Chart

p. 7-14

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

3

Recent / Upcoming Project Highlights

• 2015 March Release Complete– SCR778 – Credit Exposure Calculations for NOIE Options Linked to RTM PTP

Obligations– MMS/OS Tech Refresh

• Impacts to MMS, CDR, CMM, CRR, CSI, MIS and S&B

• 2015 March Release Still In Flight– SCR779 – Increase to the CRR Auction Transaction Limit

• Deferred due to issues during testing• It is likely that the release will not be in production in time for the sequence 1 auction

at the end of April.  However, we are still hopeful to have it in place for the sequence 2 auction in mid-May.

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

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Scope Change to 2015 Market System Enhancements

2015 Market System Enhancements Timing

• Phase 1• NPRR626 – Reliability Deployment Price Adder• NPRR665 – As-Built Clarification of Reliability Deployment Price Adder• NPRR645 – Real-Time On-Line Capacity Revisions• NPRR598 – Clarify Inputs to PRC and ORDC• OBD – Methodology for Setting Max Shadow Prices

• Phase 2• NPRR595 – RRS Load Resource Treatment In ORDC• NPRR568 Phase 2 – Real-Time Reserve Price Adder Based on ORDC• NPRR644 – Operating Reserve Demand Curve Phase 2 Revisions

Ph1 – 6/27-6/28

Ph2 – 9/21-9/25

• On 4/6/2014, WMS voted to recommend the removal of NPRR568 Phase 2 and NPRR644 from the September delivery and placed in the “TBD” bucket until further notice

• WMS referred to the Demand Side Working Group (DSWG) for feedback

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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

Release targets are subject to change

NPRR589(b) – S&B portionSCR774(b) – Addition of Comments field

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

Red Text: New additions and target release changes

Strike-Through Text: Previous target release changes

February2/2 – 2/12

March3/23 – 3/27

June6/13 – 6/28

August8/10 – 8/14

September9/21 – 9/25

December12/7 – 12/11

NPRR500SCR772

SCR778SCR779

NPRR543NPRR559

NPRR589(b)NPRR597

NPRR598NPRR601NPRR626NPRR639NPRR645NPRR665SCR774(b)SCR775SCR779OBD

(Shadow Price Caps)

NPRR573NPRR595SCR771

NPRR568NPRR588NPRR615NPRR644

NPRR419NPRR495NPRR556RRGRR003

2 1 14 3 2 4

2015 TBD Items (and month they became “TBD”)

I

E

I

P

P

NS

NS

NS

NS

Project Status Codes: NS = Not Started, I = Initiation, P = Planning, E = Execution, H = On Hold

E

E

E

E

Aug 2014 Oct 2014 Dec 2014 Jan 2015 Feb 2015 Mar 2015 Apr 2015

NOGRR084 NPRR327 H NPRR272, SCR777 H NPRR210, NPRR664 NPRR493 NPRR256 NPRR568-ph2, NPRR644

E

E

E

E

E

E

E

E

E

E

6

2015 Project Spending Update

2015 project budget = $21.65M

Reason: Minor Capital, Program Control and Common Infrastructure projects were re-allocated to areas who use those funds

`

Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast ForecastJan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

In-Flight 430,694 366,879 639,477 1,253,473 569,208 796,660 474,097 346,984 338,456 323,932 244,426 385,855 Not Started - - - 27,387 92,204 117,188 142,115 183,742 272,090 278,937 318,814 289,816

Cumulative Total 430,694 797,573 1,437,051 2,717,912 3,379,324 4,293,171 4,909,383 5,440,109 6,050,654 6,653,523 7,216,763 7,892,435

In-Flight 1,035,559 1,088,811 1,040,603 1,323,847 6,403,549 1,062,089 1,075,644 508,363 605,211 646,650 597,322 560,364 Not Started - - - 42,333 60,760 63,210 105,830 153,728 153,728 119,686 170,749 82,681

Cumulative Total 1,035,559 2,124,370 3,164,973 4,531,154 10,995,463 12,120,763 13,302,237 13,964,328 14,723,267 15,489,603 16,257,673 16,900,719

Cumulative Total 1,466,253 2,921,943 4,602,024 7,249,065 14,374,787 16,413,934 18,211,620 19,404,437 20,773,921 22,143,126 23,474,436 24,793,153

Capi

tal

Enha

ncem

ents

Tech

nica

l Fo

unda

tion

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15

Cap Enh In-Flight Cap Enh Not Started Tech Found In-Flight Tech Found Not Started Total Budget

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Business Integration Update – Appendix

– Appendix

• 3/31/2015 Project Gantt– In-flight items sorted by Project End Date– “On Hold” projects listed separately– “Not Started” items sorted by Project Start Date

8ERCOT Public

Project Portfolio Status – as of 3/31/2015

9ERCOT Public

Project Portfolio Status – as of 3/31/2015

10ERCOT Public

Project Portfolio Status – as of 3/31/2015

11ERCOT Public

Project Portfolio Status – as of 3/31/2015

12ERCOT Public

Project Portfolio Status – as of 3/31/2015

13ERCOT Public

Project Portfolio Status – as of 3/31/2015

14ERCOT Public

Project Portfolio Status – as of 3/31/2015

15ERCOT Public

Project Portfolio Status – as of 3/31/2015