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MRTU Technical Rollout MRTU Overview Schedule, Status and Risks Bimal Mukherjee July 21, 2005 MRTU/Bimal Mukherjee 07/21/2005 Executive Summary Major Milestones  Completed Market Clearing Factory Acceptance Testing (FAT) on May 13  Two major systems (Integrated Forward Market/Real Time Market and Settlements Stage 1) entered FAT phase in June Shifts in Focus  From design and coding to testing and integration  Growing focus on the Roll Out process MRTU/Bimal Mukherjee 07/21/2005 2 Integrated Forward Market/Real Time Market    Completed Pre-Factory Acceptance Testing (Pre-FAT) on May 15 System Infrastructure FAT started in June. Applications FAT started July 18 Scheduled completion of FAT is Sept 15  This will be difficult to meet  ISO has created a complete hardware environment in Folsom to analyze FAT results MRTU/Bimal Mukherjee 07/21/2005 3 Settlements Stage 1 Major milestones achieved in May/June  Group 1 charge types required for start of FAT, were completed on May 6  Integration testing completed successfully by May 20  Stage 1 FAT started on June 27  Scheduled to be completed by end of August MRTU/Bimal Mukherjee 07/21/2005 4 Settlements Stage 2     Design documents have been completed, currently under review and final approval process Vendor has put together a second team for Stage 2 Detailed plan for charge type configuration for Stage 2 has been established Separate teams for Stage 2 configuration and testing have been formed (on the CAISO side) MRTU/Bimal Mukherjee 07/21/2005 5 Scheduling Infrastructure Business Rules Excellent progress in rules implementation    Cycle 1 and Cycle 2 rules implemented. Rules implementation faster than originally expected   Pre-FAT for Cycles 1 and 2 started in June Cycle 3 rules implementation going well  Pre-FAT scheduled to start in August MRTU/Bimal Mukherjee 07/21/2005 6 Congestion Revenue Rights     Design phase completed on April 25 Implementation proceeding on schedule Identified gap between IFM/RTM and CRR for transfer of network model Team working with both vendors to reconcile gap MRTU/Bimal Mukherjee 07/21/2005 7 Integration  Integration infrastructure   Design has been completed Implementation nearing completion   Integration with two legacy applications has begun as a preparation for Stage 1 integration First phase of final MRTU integration has started:   Detailed analysis of data interfaces between systems Identification and resolution of gaps MRTU/Bimal Mukherjee 07/21/2005 8 Other In-house Projects  Legacy  Basic design activities were completed July 1 Base implementation completed Two major updates are planned and in progress Design in most areas has been completed Implementation started in some areas  Master File    Post Transaction Repository (PTR)   MRTU/Bimal Mukherjee 07/21/2005 9 Major Projects Integrated Forward Markets/Real-time Market/Full Network Model - IFM G 12/31/03 9/15/04 3/1/05 5/30/05 9/15/05 12/15/05 CONTRACT DESIGN DEVELOPMENT PRE FAT FAT SAT Scheduling Infrastructure Business Rules – SIBR 8/15/04 3/1/05 8/1/05 G 10/1/05 12/1/05 1/1/06 CONTRACT DESIGN DEVELOPMENT PRE FAT FAT SAT Congestion Revenue Rights - CRR 11/15/04 6/1/05 G 9/15/05 10/15/05 12/1/05 1/1/06 CONTRACT DESIGN DEVELOPMENT PRE FAT FAT SAT Testing LEGEND Pre- Factory Acceptance Testing (Pre-FAT): Vendor test of system functionality and performance with ISO review Factory Acceptance Testing (FAT): Formal test at vendor facility to confirm system functionality and performance with ISO Site Acceptance Testing (SAT): Formal test at ISO to confirm system functionality and performance MRTU/Bimal Mukherjee 07/21/2005 10 Major Projects SETTLEMENTS, STAGE 1 - SaMC 06/29/04 1/15/05 3/1/05 5/1/05 R 7/1/05 9/1/05 CONTRACT DESIGN DEVELOPMENT PRE FAT FAT SAT SETTLEMENTS, STAGE 2 - SaMC Y 06/29/04 7/1/05 9/1/05 10/1/05 12/1/05 1/1/06 CONTRACT DESIGN DEVELOPMENT PRE FAT FAT SAT MARKET CLEARING - SaMC 7/19/04 12/15/04 3/15/05 5/15/05 G 8/1/05 CONTRACT DESIGN DEVELOPMENT FAT SAT MRTU/Bimal Mukherjee 07/21/2005 11 Internally-Developed Projects LEGACY SYSTEMS 9/30/04 G 7/1/05 10/1/05 11/1/05 1/06 IMPLEMENTATION PLAN DESIGN DEVELOPMENT FUNCTIONAL TESTING SYSTEM TESTING MASTER FILE REDESIGN 11/30/04 4/1/05 G 8/1/05 10/1/05 12/1/05 IMPLEMENTATION PLAN DESIGN DEVELOPMENT FUNCTIONAL TESTING SYSTEM TESTING POST TRANSACTION REPOSITORY - PTR G 11/30/04 8/1/05 11/1/05 12/1/05 1/1/06 IMPLEMENTATION PLAN DESIGN DEVELOPMENT FUNCTIONAL TESTING SYSTEM TESTING MRTU/Bimal Mukherjee 07/21/2005 12 General System Risks     IFM/RTM/FNM Project Settlements Project Legacy Systems Project Overall System Integration MRTU/Bimal Mukherjee 07/21/2005 13 Current Specific Implementation Risks  State Estimator availability for MRTU   Project team has been established within MRTU Implementation plan in progress  Completion of Settlements Stage 2 development by end of 2005   Established separate teams for both vendor and ISO Lessons learned from Stage 1 applied to configuration effort MRTU/Bimal Mukherjee 07/21/2005 14 Risks (Continued)  Inter SC Trades – Physical Validation    Software requirements delivered to vendor Evaluating response, analysis completed Working with vendor to minimize schedule risk MRTU/Bimal Mukherjee 07/21/2005 15 Risks (Continued)  Added functionalities for Legacy systems    Identifying gaps between Legacy and IFM/RTM systems through analysis of data interfaces Some gaps will require functional changes in Legacy systems Completing thorough analysis (via change management process) to ensure changes are absolutely essential for Release 1 MRTU/Bimal Mukherjee 07/21/2005 16

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