1August 2008

TX SET Timeline

Project Conceptualization

11 weeks

Market Requirements

6 weeks

ERCOT Requirements

8 weeks

Conceptual Design

4 weeks

Detail Design

10 weeks

Build & Unit Test

12 weeks

Market Flight Test

7 weeks

ERCOT UAT

16 weeks

Go Live

TX SET Release Timeline spans 65 weeks (15 months) on average

Project Planning

28 weeks Project Execution

28 weeks

2August 2008

TX SET Project Delivery

• Project Conceptualization (11 weeks)– ERCOT Governance Process - Develop PRR and NPRR and

route through the appropriate approvals (requires Market Participation and agreement)

– Project Charter – Details the business objectives and high-level in-scope and out-of-scope items (requires Market Participation)

– Time Cost Estimation – High-level estimates of ERCOT costs– Cost Benefit Analysis – High-level estimates combined with

ERCOT and Market benefits (requires Market Participation) – Project Plan – Resource commitments from ERCOT, scope

definition

3August 2008

TX SET Project Delivery

• Project Planning

– Market Requirements (6 weeks) – require multiple brainstorming sessions followed by time for review and sessions for refinement by all Market Participants (requires Market Participation)

– ERCOT Requirements (8 weeks) - ERCOT business analyst meets with multiple business teams to capture requirements, review and refine

– Conceptual Design (4 weeks) - Development team produces high-level design documents serving to validate and clarify any ambiguity in requirements. Multiple business teams review, refine and confirm.

4August 2008

TX SET Project Delivery

• Project Planning cont…– Detail Design (10 weeks) - Documents the specific details of

system changes required to support the requirements defined by the Market and ERCOT as well as interdependencies of ERCOT systems and the necessary deployment architecture

• Technical Architecture – Documents the architecture additions and/or changes required to support the detailed system design and project requirements – requires review and approval from ERCOT Enterprise Architecture

• System Security Requirements and Risk Assessment – Documents the applicable security controls and any associated system security risks resulting from approved system design and architecture

• Schedule Development for Execution Phase and Resource Planning - collects resource estimates, drafts and reviews schedule and commits resources for execution phase

5August 2008

TX SET Project Delivery

• Project Execution

– Build & Unit Test (12 weeks) - Development efforts and testing of individual components in independent environments for ERCOT and Market Participants

– Test Scripts – Requires multiple review sessions with Market and ERCOT staff to ensure adequate test scenarios are defined (requires Market Participation)

– Integration Testing – ERCOT and Market Participants functional testing of components integrated in the same environment

– UAT (16 weeks) –Testing of the solution by both ERCOT and the Market

• Regression Testing – ERCOT and Market Participants testing to ensure no impacts to previously existing functionality

– Market Flight Test (7 weeks) – Market testing of the solution involves both ERCOT and Market Participants

6

TX SET Project Delivery

• Go Live

– Go Live - ERCOT and Market Participants release of project into production environment

• Requires ERCOT and Market coordination to create production implementation schedule

• Requires ERCOT and Market coordination for production conversion