CEO Report by nix10042

VIEWS: 71 PAGES: 14

									   CEO Report
Thomas F. Schrader

   ERCOT Board of Directors
       June 21, 2005
               CEO Report

• Legislation
• Comptroller’s Review
• QSE/REP Close Call
• Wholesale Market Workshops
• Management Dashboard
• Planning

                               2
                                                                                   ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                                           Summary of Corporate Goals
                                                                                                                                    For YTD May 31, 2005


                                            Goal Descriptions                                                                                                    Executive Summary
                                                                                                          ● Goal 1- Two measurements decreased from Stretch to Target. See specific goal comments for explanation.
                             Goal 1 : Reliability and Congestion Management
                                                                                                          ● Goal 2 - YELLOW rating - 814 Transactions - Enrollment and Meter Reading Scheduling reporting at 93.8% which is between
                             Goal 2 : Retail Transaction Processing                                       Minimum and Target levels.

                             Goal 3 : Wholesale Access, Settlement & Billing                              ● Goal 3 - YELLOW rating - % of completed dispute filings in accordance to protocol at 94% which is between Minimum and
                                                                                                          Target levels.
                             Goal 4 : Management Systems and Business Practices
                                                                                                          ● Goal 5 - YELLOW rating - PMO reporting 78% of capital projects are within expected timeframe which is between Minimum
                             Goal 5 : Financial Management and Cost Effectiveness                         and Target levels.

                             Goal 6 : External and Stakeholder Affairs                                    ● Goal 6 - YELLOW ratings - Approval Ratings from Market Participant Survey results are actuals from prior year (2004) which
                                                                                                          are at the minimum measurement levels. Current year's actual results will be reported when available.
                             Goal 7 : Organizational Readiness

                                                                                                           Performance Level % by Goal
                                                   Goal % Rating Summary                                                                                   Corporate Performance Summary by Goal
          100%
              90%
                                                                                                                                                                                                               Actual Goal        Weighted
              80%                                                                                                                                   Goal Area                                   Weighting            Score           Score
              70%
                                                                                                                                    Reliability and Congestion Management                            20.0%              2.4             0.5
              60%                                                                                                                   Retail Transaction Processing                                    17.5%              2.0             0.4
  % of goal




              50%                                                                                                                   Wholesale Access, Settlement & Billing                           17.5%              2.3             0.4
              40%
                                                                                                                                    Management Systems and Business Practices                        15.0%              2.3             0.3
                                                                                                                                    Financial Management and Cost Effectiveness                      10.0%              2.3             0.2
              30%                                                                                                                   External and Stakeholder Affairs                                 10.0%              1.5             0.2
              20%                                                                                                                   Organizational Readiness                                         10.0%              2.2             0.2
              10%                                                                                                                       Average Score                                             100.0%                                2.2
              0%
                        Goal 1         Goal 2         Goal 3         Goal 4          Goal 5         Goal 6         Goal 7

                                  Meets Stretch       Meets Target        Meets Minimum         Below Minimum



                                                                                     Goal Performance Level Descriptions and Dashboard Ratings
Score                                                                                                                          Score      YELLOW - Performance Meets Minimum. One or more critical path milestones in a goal element are
                    BLUE - Performance Meets Stretch. The critical path milestones for a goal element exceeds expectations
  3                                                                                                                             1         behind schedule and may have a negative impact. Risks and problems have been identified, but not yet
                    and are on track to meet or exceed the stretch goal.
                    3                                                                                                                     mitigated.

                    GREEN - Performance Meets Target. All critical path milestones for a goal element are on track, on                                                                                                                     3
                                                                                                                                          RED - Performance is Unsatisfactory. The Goal element is delayed and at risk of not meeting schedule
  2                 schedule, or within budget. Any Risks or problems have been mitigated or are in the process of being        0         or budget. A goal element does not get out of RED status until all problems and risks are resolved by the
                    mitigated.                                                                                                            manager to restore the element to a satisfactory status.
                     Planning

•   Mission/Vision
•   Electric Industry Environment/Issues
•   Initiatives
•   2006 Plan and Budget




                                           4
                                                                                     ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                        Reliability and Congestion Management Goal (1)
                                                                                                                                     For YTD May 31, 2005
                                               Corporate Goal Information                                                                                             Goal Performance Analysis

                                                                                                                                                  Summary % of Performance Achievement Levels
 Goal Description:          Reliability and Congestion Management

 Goal Definition:           Evaluation of how well ERCOT manages the performance of the electric                                                                                                     56%
                            grid in terms of loss of service, complying with Standards, Protocols,
                            and other key objectives.
                                                                                                                                                                                                                               Meets Stretch
 Measurements:              # Exceptions, % of reports completed, Lost intervals and minutes, and                                                                                                                              Meets Target
                            recommendations not completed                                                                                                                                                                      Meets Minimum
                                                                                                                                                                                                                               Below Minimum
 Accountability:            Jones

 Performance Indicator Levels:                   Performance Exceeds Target
                                                 Performance Meets Target
                                                 Performance Meets Minimum Level                                                                                        44%                            0%
                                                 Performance Unsatisfactory                                                                                                                            0%




                                                                                          Compliance Objectives and Performance Levels

                                                                                                      Measurement Levels
                                                                                                                                       Actual /   Fav/(Unfav)    Dashboard    Goal      Trend
                                                                                             Minimum          Target       Stretch    Estimate      to Target     Indicator   Score   Indicator                       Comments
Objective Description - # Exceptions:
 Compliance with NERC Reliability Stds & ERCOT Protocols -Annual basis                                  3        1-2            0            0               1                    3
 Compliance with ERCOT protocols for Congestion Management -Annual Basis                                3        1-2            0            0               1                    3
 No interruption of electric svc to customers due to operator error - Annual Basis                      1          0            0            0           -                        3

Compliance Monitoring:
 % of Reports provided on time                                                                       90%        95%         100%          95%             0%                      2               Temporarily re-allocating staff time on budgets

 # Completed Audits - Market Participant (QSE & TO)                                                    12         14           16           14           -                        2
 Delivery Date for Draft Report on ERCOT Operations Compliance Review                               9/9/05    9/1/05       8/26/05      9/1/05       On Time                      2
 Lost RTB Intervals for EMMS Performance Levels - YTD Basis                                           18         15             7           11               4                    2                5 RTB Intervals Lost in May. Still on Target

 Lost Minutes of FC for EMMS Performance Levels - YTD Basis                                           93         75            37           33            42                      3
 Completed Recommendations on economic projects to alleviate local and                                  3          1            0            1           -                        2
       regional transmission congestion in each regional planning area

 Goal Score (average)                                                                                                                                                           2.4



                                                                  Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)                                                                                 5
All Goal Measurement levels for this group meet or exceed Target Measurement Levels
                                                                                  ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                             Retail Transaction Processing Success (2)
                                                                                                                                  For YTD May 31, 2005

                                        Corporate Goal Information                                                                                     Goal Performance Analysis

                                                                                                                                       Summary % of Performance Achievement Levels
 Goal Description:         Retail Transaction Processing

 Goal Definition:          Evaluation of the Retail Systems Performance levels, ERCOT initiated
                           Switch Transactions, and ERCOT initiated MIMO Transactions
                                                                                                                                                                                       20%
                                                                                                                                                                                                              Meets Stretch
 Measurements:             Weighted Average % within Protocol and                                                                                                                                             Meets Target
                           % of available Market Processing Services                                                                                                                                          Meets Minimum
                                                                                                                                                 60%                                       0%
                                                                                                                                                                                                              Below Minimum
 Accountability:           Giuliani

 Performance Indicator Levels:                 Performance Exceeds Target
                                               Performance Meets Target                                                                                                                20%
                                               Performance Meets Minimum Level
                                               Performance Unsatisfactory



                                                                                         Compliance Objectives and Performance Levels
                                                                                       Measurement Levels
                                                                                                                       Actual /   Fav/(Unfav)   Dashboard                 Trend
ERCOT Initiated Switch Transactions                                              Minimum          Target    Stretch   Estimate      to Target    Indicator   Goal Score Indicator                     Comments
 814 Transactions - Enrollment and Meter Reading Scheduling                          95.0%        98.0%      99.5%      98.8%           0.8%                        2               1st Q 2005 data
 867 Transactions - Historical and Initial Meter Read Deliveries                     90.0%        95.0%     100.0%      97.3%           2.3%                        2               1st Q 2005 data


ERCOT Initiated MIMO Transactions
 814 Transactions - Enrollment and Meter Reading Scheduling                          90.0%        95.0%      98.5%      93.8%          -1.2%                        1               1st Q 2005 data - See Note 1 below
 867 Transactions - Historical and Initial Meter Read Deliveries                     90.0%        95.0%     100.0%      97.0%           2.0%                        2               1st Q 2005 data


Retail Systems Performance
 % of time available for Market Processing Services - Retail *                       96.0%        97.0%      98.0%     99.72%           2.7%                        3
             (excluding schedules outages)

 Goal Score (average)                                                                                                                                             2.0


                                                                   Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)
● NOTE 1 - These are automated transactions that are heavily dependent on computer system availability. During the 1st quarter measurement period, outage events drove this measurement down slightly below
the Target measurement level. IT staff is diligently working to prevent these outages from occurring again. The second quarter measurement is anticipated to be above Target due to the successful efforts of IT.

* See attached chart on page 5 for component of Retail Market Processing Service Transaction percentages.                                                                                                            6
                                                                          ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                      Wholesale Access, Settlement & Billing (3)
                                                                                                                            For YTD May 31, 2005

                                           Corporate Goal Information                                                                                           Goal Performance Analysis

                                                                                                                                          Summary % of Performance Achievement Levels
 Goal Description:          Wholesale Access, Settlement & Billing

 Goal Definition:           Evaluation of the Wholesale transactions processed in accordance to Protocols
                                                                                                                                                                                              33%



 Measurements:              Weighted Average % within Protocol, % of available market processing services,                                                                                                        Meets Stretch
                            and SAS 70 Audit Results                                                                                                                                                              Meets Target
                                                                                                                                                                                                                  Meets Minimum
                                                                                                                                                          50%                                                     Below Minimum
 Accountability:            Giuliani

 Performance Indicator Levels:                 Performance Exceeds Target
                                               Performance Meets Target
                                                                                                                                                                                            17%
                                               Performance Meets Minimum Level
                                               Performance Unsatisfactory                                                                                                         0%



                                                                                          Compliance Objectives and Performance Levels
                                                                                           Measurement Levels
                                                                                                                                Actual / Fav/(Unfav) to     Dashboard     Goal           Trend
                                                                                   Minimum            Target      Stretch      Estimate         Target       Indicator    Score        Indicator                Comments
 % of Transactions processed within the Settlement Calendar                            95.0%           98.0%       99.5%         98.8%            0.8%                        2
         which followed the calendar

 % of Transactions processed in accordance with Protocols                              95.0%           98.0%      100.0%        100.0%            2.0%                        3

 % IDR data captured by true-up as requested from MRE                                  90.0%           95.0%       99.5%         99.6%            4.6%                        3

 % of completed dispute filings in accordance to protocol - Annual                     90.0%           95.0%       99.0%         94.0%           -1.0%                        1                    See Note 1 below for this goal

Wholesale Systems Performance
 % of time available for Market Processing Services - Wholesale *                      96.0%           97.0%       98.0%       100.00%            3.0%                        3
         (excluding schedules outages)
                                                                               Unqualified -                 Unqualified-
                                                                               Over budget      Unqualified- Under budget Unqualified-
 SAS 70 Audit Report type with schedule and budget considerations                                                                           On Target                         2
                                                                                OR Behind      On budget and OR Ahead of On budget and
                                                                                 Schedule       On Schedule   Schedule    On Schedule

 Goal Score (average)                                                                                                                                                        2.3


                                                                                                                                                                                                                            7
                                                                Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)
● NOTE 1 - Alerts have been implemented for account managers to track disputes by due dates and to help them prioritize to improve goal status to Achieve Target Measurement Levels.

* See attached chart on page 5 for component of Wholesale Market Processing Service Transaction percentages.
                                     ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                        GOALS 2 & 3 SUPPLEMENT
                                                                                For YTD May 31, 2005

Percentage of Net Service Availability for Retail and Wholesale Market Processing Services


                                               Net Service Availability
                                                     May 2005
                   99.72%         99.75%         99.70%          100.00%         100.00%         100.00%         100.00%
     100.00%

      99.00%

      98.00%

      97.00%

      96.00%

      95.00%

      94.00%

      93.00%
                                 Transaction
                 Retail Total                  Web Services   Report Postings Wholesale Total   Settlements      Invoices
                                 Processing
   % Available    99.72%          99.75%         99.70%          100.00%         100.00%         100.00%         100.00%




                                RETAIL                                                               Wholesale


                                                                                                                            8
         Goal 2 Measurement                                                   Goal 3 Measurement
                                                                         ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                Management Systems and Business Practices (4)
                                                                                                                           For YTD May 31, 2005

                                        Corporate Goal Information                                                                                     Goal Performance Analysis

                                                                                                                                       Summary % of Performance Achievement Levels
 Goal Description:          Management Systems and Business Practices

 Goal Definition:           Develop and Implement: Security Plan, Risk Mitication Plan, Audit Response
                            Plan, and Business Process development, communication enforcement and
                            Action plan for viloations.
                                                                                                                                                                                                 Meets Stretch
 Measurements:              % of completion and issues addressed by year end                                                                     75%                                             Meets Target
                                                                                                                                                                                                 Meets Minimum
                                                                                                                                                                                                 Below Minimum
 Accountability:            Jones / Giuliani / Bowman / Schrader                                                                                                                     25%

 Performance Indicator Levels:                   Performance Exceeds Target
                                                 Performance Meets Target
                                                 Performance Meets Minimum Level
                                                 Performance Unsatisfactory



                                                                                        Compliance Objectives and Performance Levels
                                                                                        Measurement Levels
                                                                                                                        Actual /   Fav/(Unfav)   Dashboard                 Trend
                                                                                   Minimum       Target      Stretch   Estimate      to Target    Indicator   Goal Score Indicator         Comments
 % of completed Security Plan anticipated by year end                                90.0%        95.0%      100.0%      95.0%           0.0%                         2

 % of Risk Mitigation Plans anticipated by year end                                  90.0%        95.0%      100.0%      95.0%           0.0%                         2

 % of Audit Plan issued, addressed by year end                                       90.0%        95.0%       98.0%      95.0%           0.0%                         2

 % of completed plans for Business Practice violations anticipated                   90.0%        95.0%      100.0%     100.0%           5.0%                         3
        to be complete by year end

 Goal Score (average)                                                                                                                                               2.3




                                                                Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)


All Goal Measurement levels for this group meet or exceed Target Measurement Levels                                                                                                                   9
                                                                             ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                    Financial Management and Cost Effectiveness (5) *
                                                                                                                                       For YTD May 31, 2005
                                         Corporate Goal Information                                                                                                    Goal Performance Analysis

                                                                                                                                                   Summary % of Performance Achievement Levels
 Goal Description:          Financial Management and Cost Effectiveness

 Goal Definition:           Identify permanent cost savings, develop time tracking system, implement                                                                    43%
                            Portfolio Management tracking system

                                                                                                                                                                                                                14%                   Meets Stretch
 Measurements:              Identify actual savings, implementation dates, and % of projects                                                                                                                                          Meets Target
                            completed within budget and on time                                                                                                                                                                       Meets Minimum
                                                                                                                                                                                                                   0%                 Below Minimum
 Accountability:            Bowman

 Performance Indicator Levels:                   Performance Exceeds Target
                                                 Performance Meets Target
                                                 Performance Meets Minimum Level
                                                 Performance Unsatisfactory
                                                                                                                                                                                                43%

                                                                                               Compliance Objectives and Performance Levels
                                                                                          Measurement Levels
                                                                                                                                Actual /          Fav/(Unfav)       Dashboard    Goal          Trend
                                                                                 Minimum              Target         Stretch    Estimate             toTarget        Indicator   Score       Indicator                       Comments
Operational Cost Savings compared to 2005 Budget
 Permanent Cost Savings - Annual Estimate                                       $ 500,000      $   1,000,000   $   2,000,000   $ 1,500,000    $      500,000                         2                   $1,169K savings already identified

Tracking System
 Fully developed and implemented time tracking system                               4/30/05          3/30/05         2/15/05        2/15/05               43 Days                    3
 Bi-weekly time card reporting delivered on time                                     83.0%            92.0%          100.0%          94.0%              2.0%                         2                   Reporting period - Full month April 2005
 Executive Dashboard anticipated delivery date                                      5/30/05          4/30/05         3/31/05        3/31/05               30 Days                    3

Portfolio Management
 Fully developed and implemented Portfolio Management Reporting                     4/30/05          3/30/05         2/15/05        1/31/05               58 Days                    3

Project Management
 % of projects within budgeted amount                                                75.0%            80.0%           90.0%          88.9%              8.9%                             2               16 out of 18 projects
 % of projects within timeframe                                                      75.0%            80.0%           90.0%          77.8%             -2.2%                             1               14 out of 18 projects - See Note 1 below

 Goal Score (average)                                                                                                                                                              2.3


                                                                 Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)
● NOTE 1: Project mangers are working closely with delivery managers to improve work package estimates for improvement of the measurement level for this goal.

*   Please see page 8 for Financial Metrics related to Goal 5.
                                                                                                                                                                                                                                           10
                                                                   ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                 Financial Metrics (5)
                                                                                                                           For YTD May 31, 2005
                                                                                                                               ($ in Millions)

                                   Year-to-Date Operating Expenses                                                                                                                    Human Resources
Expense category                         Budget            Actual             Var - #             Var - %                   ERCOT Employee Count                              Budget          Actual           Var - #              Var - %
  Labor and benefits                         20.91                   19.91               1.00       5%                        Market Operations                                  132           126                  6                 5%
  Contractors                                   4.07                   2.37              1.70       42%                       System Operations                                  154           147                  7                 5%
  Hardware and software support                 2.71                   2.94              -0.23      -8%                       IT Operations                                      170           156                  14                8%
  Other expenses                             27.91                   25.55               2.36       8%                        Corporate Operations                               98            76                   22               22%
  Total                                      55.59                   50.77               4.82       9%                        Total                                              554           505                  49                9%
                                                                                                                            Total Actual Resource                            Employee       Contractor             Total
Expense category                         Budget            Actual             Var - #             Var - %                     Market Operations                                  126            1                  127
  Market Operations                             8.79                   8.09              0.70       8%                        System Operations                                  147            1                  148
  System Operations                          15.32                   15.16               0.17       1%                        IT Operations                                      156           14                  170
  Corporate Operations                       31.48                   27.52               3.96       13%                       Corporate Operations                               76            12                   88
  Total                                      55.59                   50.77               4.82       9%                        Total                                              505           28                  533


                                                                                                                                              Bowman          Giuliani        Jones          Walker            McIntire             Hinsley        Schrader
                                   Year-to-Date Capital Expenditures                                                         Contractors          9              1                1             1                   1                 14              1
Project Expenditures                     Budget            Actual             Var - $             Var - %                                             Time Tracking - Hours Allocated to Seven Corporate Goals
  Market Operations                             1.72                   0.95              0.77             45%                   Goal       Goal Description                                                     Hours               Percent
  System Operations                             3.72                   1.74              1.98             53%                     1           Reliability and congestion management                                  114,155                39%
  Retail Operations                             2.09                   0.76              1.33             64%                     2           Retail transaction processing success                                      36,732             13%
  IT Operations                                 0.87                   0.78              0.09             11%                     3           Wholesale access, settlement and billing                                   56,021             19%
  Corporate Operations                          1.32                   0.65              0.67             51%                     4           Management systems and business practices                                  22,173               8%
  Total                                         9.72                   4.89              4.84             50%                     5           Financial management and cost effectiveness                                30,177             11%
                                          Total           Initiation          Planning           In-progress    Complete          6           External and stakeholder affairs                                           18,829               6%
YTD Number of projects by status           70                  6                21                   25           18              7           Organizational readiness                                                   11,897               4%

                                                                                                                              Time Tracking through May 15, 2005. ERCOT employees track and record time expended on approximately 175
                             Year-to-Date Revenue & Billing Determinants                                                      operational activities. The activities were mapped to seven corporate goals established by the ERCOT management
                                            Budget                   Actual       Var -$/ #          Var - %                  team.
System Administration Fee                    46.42                   44.80               -1.63      -4%
Other Revenue                                   0.86                   0.92              0.07       8%                                                                      Market Settlement and Credit
Total                                        47.28                   45.72               -1.56      -3%                                                                                       Current Mo.            Prior Mo.      % Change
MWH volume (millions)                       110.53                 106.65                -3.88      -4%                     QSE and TCR security deposits                                              27.53               24.34     13%
                                                                                                                            QSE advance receipts and due to generators                                 30.59               23.30     31%
                                                       Debt                                                                 TCR auction receipts                                                       15.99               17.35     -8%
                                                Current Month                      Prior Month                                  Total market settlement liability                                      74.11               64.98     14%
Debt Type                                Balance              Rate            Balance               Rate                    Settlement short pmts balance (after uplifts)                               3.12                5.92     -47%
Senior Notes                                122.73         6.17%                     136.36        6.17%
Term Notes                                   50.00         3.41%                        50.00      3.41%                                                                 Year-to-Date Cash Flow Summary
Revolver - Borrowed                             0.00       0.00%                         0.00      0.00%                                                                                                                 Amount

                                                                                                                                                                                                                                              11
Total / Average                             172.73         5.37%                     186.36        5.43%                    Beginning Cash (January 1, 2005)                                                   $           33.49
TCR Borrowing                                   8.00                                     0.00                                   Cash Provided / (Used) by Operations                                                       17.00
Term Notes - Unused Capacity                    0.00                                     0.00                                   Cash Used in Investing Activities (Projects)                                               (6.14)
Revolver - Unused Capacity                   50.00                                      50.00                                   Cash Provided / (Used) by Financing Activities                                             (5.64)
                                                                                                                            Ending Cash (May 31, 2005)                                                         $           38.71
                                                                                              ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                                              External and Stakeholder Affairs (6)
                                                                                                                                                For YTD May 31, 2005
                                             Corporate Goal Information                                                                                                    Goal Performance Analysis

                                                                                                                                                        Summary % of Performance Achievement Levels
 Goal Description:           External and Stakeholder Affairs

 Goal Definition:            Identify accurate approval ratings from Press, Legislators, Staff, PUC, Executive
                             Director, Senior Staff, and Market Participants                                                                                                                               50%


                                                                                                                                                                                                                                Meets Stretch
 Measurements:               Approval ratings on a 10 point scale and overall % ratings                                                                                                                                         Meets Target
                                                                                                                                                                                                                                Meets Minimum
                                                                                                                                                                                                                                Below Minimum
 Accountability:             Walker / Giulani / Jones

 Performance Indicator Levels:                   Performance Exceeds Target
                                                 Performance Meets Target                                                                                                 50%
                                                                                                                                                                                                          0%
                                                 Performance Meets Minimum Level
                                                                                                                                                                                                          0%
                                                 Performance Unsatisfactory



                                                                                                      Compliance Objectives and Performance Levels

                                                                                                    Measurement Levels
                                                                                                                                     Actual /   Fav/(Unfav)   Dashboard                 Trend
                                                                                             Minimum             Target   Stretch   Estimate      to Target    Indicator Goal Score   Indicator                      Comments
Approval Ratings from Governing & Reporting entities *
 Anticipated Survey of Press Contacts Approval Rating                                               70%            85%      95%         85%             0%                       2                See Note 1 Below
 Anticipated Survey of relevant Legislators and Staff Approval Rating                               70%            85%      95%         85%             0%                       2                See Note 1 Below
 Anticipated Survey of PUC commissioners, Executive Director, and Senior                            70%            85%      95%         85%             0%                       2                See Note 1 Below
         Staff Approval Ratings


Approval Ratings from Market Participant Surveys *
      (Overall score on a 10 point scale)
 Nondiscriminatory access to transmission/distribution score                                        8.0            8.4       8.8         8.0          (0.4)                       1               See Note 2 Below
 Ensure reliability/adequacy of grid score                                                          7.9            8.3       8.7         7.9          (0.4)                       1               See Note 2 Below
 Accurate accounting of electric production & delivery score                                        6.9            7.4       7.9         6.9          (0.5)                       1               See Note 2 Below
 Timely information about customer's choice of REP score                                            6.8            7.3       7.8         6.8          (0.5)                       1               See Note 2 Below


 2005 ERCOT Operations Training Seminar Approval Rating                                             85%            90%      95%         90%             0%                        2

 Goal Score (average)                                                                                                                                                           1.5


                                                                           Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)

● NOTE 1: Approval Ratings from Governing & Reporting entities are estimated to be on Target. Current year's actual results will be reported when available (anticipated to be 3rd quarter).

● NOTE 2: Approval Ratings from Market Participant Survey results are actuals from prior year (2004) which are at the miminum level. Current year's actual results will be reported when available in 2005.
                                                                                                                                                                                                                                    12
                                                                               ERCOT - MONTHLY EXECUTIVE DASHBOARD REPORT
                                                                                                                             Organizational Readiness (7)
                                                                                                                                       For YTD May 31, 2005


                                                  Corporate Goal Information                                                                                                        Goal Performance Analysis

                                                                                                                                                             Summary % of Performance Achievement Levels
 Goal Description:          Organizational Readiness

 Goal Definition:           Key employee retention, management training, succession planning, performance based
                            compensation plan tied to goals
                                                                                                                                                                              83%

                                                                                                                                                                                                                                Meets Stretch
 Measurements:              Evaluation of employee attrition, % completing training programs, completion of                                                                                                                     Meets Target
                            process improvements, succession and performance planning goals                                                                                                                             0%      Meets Minimum
                                                                                                                                                                                                                        0%      Below Minimum
 Accountability:            McIntire
                                                                                                                                                                                                                  17%
 Performance Indicator Levels:                 Performance Exceeds Target
                                               Performance Meets Target
                                               Performance Meets Minimum Level
                                               Performance Unsatisfactory


                                                                                            Compliance Objectives and Performance Levels
                                                                                                           Measurement Levels
                                                                                                                                                 Actual /     Fav/(Unfav) to    Dashboard     Goal      Trend
                                                                                                Minimum              Target          Stretch    Estimate             Target      Indicator    Score   Indicator              Comments
Readiness Objective Descriptions
 % retention of key employees - Annual Estimate                                                       85%               90%             95%          90%                0%                        2

 % of managers completing training - Annual Estimate                                                  75%               90%            100%          90%                0%                        2

 % of completion for business process review and improvement                                          70%               85%            100%        100%                15%                        3
         anticipated by year end
                                                                                                                                Officers/
 Succession Planning by Level of organization anticipated completed by year end                                 Officers /      Directors/      Officers /        On Target                       2
                                                                                              Officers          Directors       Managers        Directors

                                                                                                               Officers /                       Officers /
 Revised Performance Planning Process by level of organization tied to goals                  Officers /       Directors /                     Directors /        On Target                       2
                                                                                              Directors        Managers       All Employees    Managers


 Development of Performance Based Compensation Plan for Board Approval                       Not Board          Board         Approved and        Board           On Target                       2
                                                                                             Approved          Approved       Implemented      Approved
 Goal Score (average)                                                                                                                                                                           2.2

                                                                                                                                                                                                                                  13
                                                                 Executive Summary - Highlights (Blue ratings) and Next Steps (Red and Yellow ratings)
All Goal Measurement levels for this group meet or exceed Target Measurement Levels
                           REP Default
• ERCOT and Market Participant working to
   Transition customers to the new REP or POLR
   Minimize the impact to the market
• Identifying issues
     Timeline for QSE notice of termination of LSE
     Clarity of responsibility of transition tasks
     Clarity of timeline, including the trigger point
     Need cooperation of losing REP for customer name
      and billing address
                                                   14

								
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