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Protocol Revision Subcommittee

Protocol Revision Subcommittee. Presentation to the ERCOT Technical Advisory Committee July 7, 2005. PRS Summary. 2006 System Prioritization List 6 PRRs for Approval. Annual Project Prioritization Process. PRS reviews language, approves, rejects or remands and provides priority and ranking.

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Protocol Revision Subcommittee

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  1. Protocol Revision Subcommittee Presentation to the ERCOT Technical Advisory Committee July 7, 2005

  2. PRS Summary • 2006 System Prioritization List • 6 PRRs for Approval

  3. Annual Project Prioritization Process PRS reviews language, approves, rejects or remands and provides priority and ranking PRS TAC Board of Directors PRR Board of Directors approves, rejects or remands to TAC TAC approves, rejects or remands to a subcommittee PRS provides priority and ranking Subcommittee( COPS, RMS, ROS, WMS ), ERCOT, PUCT SCR SCRs are initiated from sub-committees, PUCT or ERCOT ERCOT will identify if this request requires a protocol change. If it does not, then it is processed as an SCR. Any system change that does not require a change to the protocols will be submitted via SCR

  4. 2006 PRS Prioritization • Prioritization includes all projects competing for capital dollars, not just computer system changes • Project summaries included cost/benefit analysis for priority 1 and 2 projects • Projects reviewed included 15 projects currently in progress (IP) which would consume 2006 capital dollars (~$6.5 MM) • Other TAC subcommittees (RMS, COPS, & WMS) recommended priorities and cost/benefit information

  5. 2006 PRS Prioritization • PRS reviewed combined PUC, Market and ERCOT project lists • PUC projects update market monitoring systems • Market projects primarily reflect PRRs or SCRs • ERCOT projects include computer system and “bricks and mortar” projects • PRS specifically discussed included replacement of “middleware”, automation of DC-tie scheduling, status of security-related projects and data center improvements

  6. Priority Assignments High (1.X) 1.1 High 1.2 Medium 1.3 Low Forced Rank Medium (2.X) 2.1 High 2.2 Medium 2.3 Low Forced Rank Low (3.X) 3.1 High 3.2 Medium 3.3 Low Forced Rank

  7. 2006 System Project Recommendation High (1.1-1.3) PUC (4 – 2 IP) Market (14 – 4 IP) ERCOT (112 – 15 IP) Forced Rank Medium (2.X) PUC (0) Market (7) ERCOT (26) Forced Rank Low (3.X) PUC (0) Market (19) ERCOT (12) Forced Rank

  8. 2006 System Project Recommendation High (1.1) PUC (4) -- $1 MM Market (8) -- $6 MM ERCOT (67) -- $33 MM (27 below the cut line) Forced Rank Possible Cut Line ~ $27 MM High (1.2-1.3) PUC (0) Market (6) ERCOT (45) Forced Rank Medium (2.X) PUC (0) Market (7) ERCOT (26) Forced Rank Low (3.X) PUC (0) Market (19) ERCOT (12) Forced Rank

  9. 2006 System Project Recommendation • What does it all mean? • Highest ranking in each priority grouping went to projects with greatest net benefit to the market • Some projects referenced in the Protocols will not be done • Projects recognized as necessary (1 Priority) will not be done or will bump projects above the cut line • Mass Customer Transition • New projects to correct operations or settlement problems

  10. 2006 System Project Recommendation • PRS recommends approval of the 2006 Project Priorities & Ranking • Prioritization process is dynamic and PRS will continue to monitor and adjust the 2005 and 2006 lists

  11. PRR Recommendations

  12. PRR 588 – Testing of Quick Start Units in the BES Market • PRR submitted by Austin Energy (Muni) • PRR memorializes April 14, 2005 market notice on quick start unit testing requirement • PRR limits UBES bid quantities to the tested quantity available through ERCOT’s test procedure • Test procedure is in an OGRR • Benefit: ERCOT concerned that quick start units may negatively impact reliability • Amended by ERCOT

  13. PRR 588 – Testing of Quick Start Units in the BES Market • PRS recommended approval unanimously • All market segments were present • Effective September 1, 2005 • Reliant Energy submitted comments to TAC

  14. PRR 588 – Testing of Quick Start Units in the BES Market Impact Analysis No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/Liability

  15. PRR 590 – Update Unit Telemetry Requirement • PRR submitted by ERCOT • PRR responds to Patton #14 • Adds requirement for QSEs to provide RT AGC status and ramp rate for online units • Benefit: Improves ERCOT’s ability to determine if QSE can meet RRS obligation • Amended by ERCOT, FPLE, Exelon & PRS • PRS recommended approval unanimously • All market segments were present • Effective upon system implementation • Recommended 2006 Priority 1.2

  16. PRR 590 – Update Unit Telemetry Requirement Impact Analysis No Impact Impact Description Item Reviewed Budget Less than $100K ST- testing; LT - minor impact Staffing Computer Systems SCADA, ICCP & RTU Business Functions Add process for new data Grid Operations Credit Monitoring/Liability

  17. PRR 593 – Behind the Fence Reporting of Load • PRR submitted Centerpoint Energy on behalf of GATF • PRR intended to gather information on load not currently reported to ERCOT • Benefit: Improves ERCOT load projections for reserve calculation purposes • PRS recommended approval with 1 nay vote and 1 abstention • All market segments were present • Effective September 1, 2005

  18. PRR 593 – Behind the Fence Reporting of Load Impact Analysis No Impact Impact Description Item Reviewed Budget Staffing Add process for new data Computer Systems Business Functions Add process for new data Grid Operations Credit Monitoring/Liability

  19. PRR 595 – Protocol Section 10 • PRR submitted by TXU ED on behalf of Meter Working Group • Conforms Section 10 to current market and ERCOT processes • Benefit: Improves clarity and accuracy of the Protocols • PRS recommended approval unanimously • All market segments were present • Effective September 1, 2005

  20. PRR 595 – Protocol Section 10 Impact Analysis No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/Liability

  21. PRR 597 – Texas Test Plan Team • PRR submitted by AEP on behalf of TTPT • Updates Protocols for current ERCOT processes • Benefit: Improves accuracy of Protocols • Amended by ERCOT • PRS recommended approval unanimously • All market segments were present • Effective September 1, 2005

  22. PRR 597 – Texas Test Plan Team Impact Analysis No Impact Impact Description Item Reviewed Budget Staffing Computer Systems Business Functions Grid Operations Credit Monitoring/Liability

  23. PRR 568 – Change Initial Settlement from 17 to 10 Days • PRR submitted by TXU Energy • Changes the day the Initial Settlement statement is issued from 17 days to 10 days following the Operating Day • A transition plan is needed to provide market participants with information on PRR impact • Benefit: Reduces overall credit exposure and collateral requirements due to the quicker issuance of the Initial Settlement • Amended by ERCOT & COPS • PRS recommended approval unanimously • All market segments were present • Effective upon TAC approval of a transition plan developed by COPS – PRR & COPS Plan now moving in tandem through governance process

  24. PRR 568 – Change Initial Settlement from 17 to 10 Days Impact Analysis No Impact Impact Description Item Reviewed Budget Change to occur through O&M $ Staffing No FTE – Impact for analysis Computer Systems Minor changes to systems Business Functions Change in process timing Grid Operations Credit Monitoring/Liability Supports

  25. Recommended TAC Actions • Approval • PRR 588 – Testing of Quick Start Units • PRR 590 – Update Unit Telemetry Requirement • PRR 593 – Behind the Fence Reporting of Load • PRR 595 – ERCOT Protocol Section 10 • PRR 597 – Texas Test Plan Team • PRR 568 – Change Initial Settlement from 17 to 10 Days

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