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Nodal’s Impact on ERCOT IT CIM User Group Meeting

Nodal’s Impact on ERCOT IT CIM User Group Meeting. Ron Hinsley ERCOT Chief Information Officer. Overview: ERCOT Primer. The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to approximately 20 million Texas customers

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Nodal’s Impact on ERCOT IT CIM User Group Meeting

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  1. Nodal’s Impact on ERCOT ITCIM User Group Meeting Ron Hinsley ERCOT Chief Information Officer Information Technology

  2. Overview: ERCOT Primer • The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to approximately 20 million Texas customers • Represents 85 percent of the state’s electric load and 75 percent of the Texas land area  • As the independent system operator for the region, ERCOT schedules power on an electric grid that connects 38,000 miles of transmission lines and more than 500 generation units • ERCOT also manages financial settlement for the competitive wholesale bulk-power market and administers customer switching for 6 million Texans in competitive choice areas Enterprise Architecture

  3. Overview: Nodal Primer • In today’s zonal market, the grid is divided into Congestion Management Zones, which are separated by the Commercially Significant Constraints • Several limitations have been identified with the current zonal model: • Resources grouped by portfolio • Assignment of local congestion costs • Insufficient price transparency • Moving to a nodal design will satisfy the PUCT order to directly assign local congestion • In the nodal market, the grid will consist of more than 4,000 nodes, replacing today’s 4 Zones (5th NE zone consolidated to N effective 1/1/07 per PRR699) • The Texas Nodal design is expected to deliver the following benefits: • Improved price signals • Improved dispatch efficiencies • Direct assignment of local congestion Enterprise Architecture

  4. Overview: Nodal Primer Enterprise Architecture

  5. Overview: Nodal Primer The problem is very complex: • The system being controlled is complex and dynamic • Market rules are detailed, interdependent and difficult to understand • Detailed functionality and interactions of how systems support the process were not well understood. System boundaries were blurred. • Moving from a 4 zone network to a nodal network with 1000s nodes • Extending siloed technical and business processes to an integrated solution • Increasing from a small number of “super” systems to best of breed applications that control the network and operate the market • Product marketplace is dominated by a few companies • Changing from screen scraped interfaces to web services • Changing many point to point integrations to an Enterprise Service Bus • Publishing market interfaces 18 months ahead of go-live to ensure market participation • Integration of 14 COTS apps from 6 vendors The stakes are high: • $263M over three years and $10M for every month late • There is global interest in our success Enterprise Architecture

  6. Overview: Nodal Primer Building a complex system in a dynamic environment • Without a guiding architecture and vision of the solution, prepare for the worst!! • Previous attempts to describe the architecture had “failed” • Many stakeholders with different needs • Views of business process, data, information flow, systems, infrastructure, security, and organization were all incomplete • We needed to know what had to be done • We needed processes, standards, and architectural tools to be successful • We needed to know ERCOT was ready Enterprise Architecture

  7. Initial impact to ERCOT involved setting key strategies Key Nodal strategies: • ERCOT-led project – by comparison to the first market opening • Best-of-breed - products and vendors with proven delivery track records • Avoid “1.0” • Players in Nodal markets • ERCOT as integrator – supported by key consultants and contractors • Enterprise Architecture standards – • Rational Unified Processing (RUP) • System of Systems Architecture (SoSA) • Traceability • Industrial strength infrastructure, related disciplines – to handle multiple environments and hundreds of releases We looked back a while ago and wouldn’t change a thing in retrospect

  8. Bringing the IT Strategy to Life The IT Strategy Enterprise Architecture Approach Business Within a Business Align IT infrastructure, data, applications and processes (people) to ERCOT's business strategy. Change the focus of IT professionals to the level of external providers and to consider all they deal with as customers. The business fully understands what it receives for it’s IT dollars. Operational Excellence Raise the level of IT system delivery to meet or exceed customer expectations. Provide a level of service that makes everyone feel as if they are the most important customer of IT.

  9. Bringing Strategy to Life

  10. What the RUP?!? The Rational Unified Process is a development framework created by Rational Software Corporation, now part of IBM RUP is an adaptable framework with several key principles: • Adapt the process to the task at hand • Balance stakeholder priorities, focusing on risk and high value first • Demonstrate value early and often through iterations • Elevate abstraction through modeling • Focus continually on Quality Enterprise Architecture

  11. Better Living with Standards QSE QSE • With Nodal we’ve standardized on UML 2.0 as the modeling language for ERCOT • UML is ideal for modeling application structure, data structure, business process, behavior, and architecture … Ensure 60 Hz Sequence Diagram Use Case Use Case Specification Main Success Scenario QSE and Frequency Monitor send Nodal frequency data to Nodal. At 4 second intervals Time requests Nodal execute Load Frequency Control … Deployment Diagram Operation Specification Nodal Update Frequency Adjust Generation Enterprise Architecture

  12. Better Living with Standards EA Building Blocks • Common Services • Transaction Monitor Mail • Interactive Prg. Env. Collaboration • Interactive Prg/Txt Ed Telephony • Event Services Dig Lib/Cont Mgt • Publish and Subscr. Enterprise Service Bus • Components EDI/EIE • Intelligent Agent Mgt. Web Content Mgmt • Internationalization Web Application Server • Virtual Machine Web Facilities • Workflow Web Services • BP Choreography Svcs • Applications • Business Admin for ERCOT • Product Mgmt • Cust Portfolio Mgmt • Cust Svc & Sales for issuers • Product Mgmt & Ops • Cust Accounting for MPs • Financial Mgmt for ERCOT • AD Tools • 3GL Tool Suites • 4GL Tool Suites • OO Tool Suites • Cross-Suite Tools • Tagging & Scripting • Productivity Tools • Personal Productivity Tools • User Access and • Presentation • Services • User Access Services • Adaptation • Interaction Enabling • Services • Connectivity • User Presentation Services • Human Computer • Interaction • Print • View • Multimedia • Web Browser • Data and Data • Access Services • Data • Data Area 1 • Data Area 2 • Data Area 3 • Data Area 4 • Data Area 5 • Data Area 6 • Data Area 7 • Relational Database • Hierarchical Database • Object-Oriented Database • Multidimensional Database • Persistence Services • File • Storage Management • Systems Management and Autonomics Services • Change - Configuration -Software Distribution - Workload Services • -Problem - Performance -Backup/Recovery - Svc Level Automation/Orchestration • -Asset - Operations -Contact Management • Communication Services • Conversational • Remote Procedure Call • Messaging and Queuing • HTTP • Utility Business Services • Metering • Rating • Billing • Peering and Settlement • Object Management Services • Object Request Broker • Life Cycle • Externalization • Collections • Distributed Services • Directory • Security • Transaction Manager • Time Distributed Systems Services Common Transport Semantics • Transport Services • iSCSI • Wireless • TCP/IP • Subnetworking: • LAN • WAN Dynamic MM Comm. Control Network Services • NetBIOS • ICCP • ASC • Other Physical Equipment Resource Virtualization Services Physical Network Equipment Physical Computing Equipment Local Operating Systems Services Local Operating Systems

  13. Majority of ERCOT wholesale market systems are being replaced/upgraded for Nodal Business and Engineering Model Mid Term Day Ahead Real Time Settlement CM&M Market Operations MP Registration NMMS OS CRR DAM RUC SCED LF RPPF Commercial Applications Integration (information bus) MIS EMS EDW • B&S Billing & Settlements • CRR Congestion Revenue Rights • CM&M Credit Monitoring & Management • DAM Day-Ahead Market • EDW Enterprise Data Warehouse • FT Financial Transfer • IMM Independent Market Monitor • LF Load Forecast • MIS Market Information System • MP Reg Market Participant Registration • NMMS Network Model Management System • OS Outage Scheduler • RUC Reliability Unit Commitment • SCED Security Constrained Economic Dispatch QSE Systems IMM User Interface Power Operations Our vendor landscape is much more complex

  14. Tracing the Requirements Use Cases Requirements Binding Documents Change & Configuration Management SW Components Design Deployed Infrastructure

  15. Measuring Success Yesterday Today Tomorrow No SLAs Limited Definitions of Services Best Effort Capabilities Limited Visibility Performance Based SLAs for Nodal and Retail Elaborate Service Catalog Better Instrumentation Granular Business Process Enterprise SLAs Service Catalog Mapped to SoSA Full Visibility with Thorough Instrumentation and Event Correlation Enterprise Architecture

  16. Heaviest business impact is on core operations and IT • Congestion & Revenue Rights • Regulatory Support & Reporting • Planning Admin • Planning Services • Regional Planning • System Assessment • Sys Ops Admin • Sys Ops DPO • Mkt Ops Suport • Operating Stds • Ops Support • Outage Coord • Network Modlng • Ops Planning • Adv NW Apps • Ops Engrg • Sys Ops Training • SO-Control Cente • Cust & IT Services • Sys Engrg • Storage Rescs • Network • EMMS Dev • Ent Int, IS & Arch • Comml Svcs • Corp & Cnsl Apps • DB Admin • Release Mgmt • IT Coml Ops • EMMS Prod Spt • IT DPO • Information Systems Security • Physical Security • Treasury & Credit Admin • Contract Admin & Procurement • ICMP • Accounting & Budget • Corp DPO • PMO Planning, QA, Reporting • Program Admin • PMO

  17. Better Living with Standards Some Current Technology Standards • Operating Systems: • Windows Server 2003 • RedHat Linux 3 • IBM AIX 5.3L • Server Platforms: • IBM pSeries (Power) • IBM xSeries (Intel) • VMWare ESX (Intel) • Relational Databases: • Oracle 10g • Microsoft SQL 2000/2005 • Web Servers: • Apache 2.0.46 • Microsoft IIS 6.0 • Application Servers: • JBoss 4.0.5 • Tomcat 5.5.20 • Message Bus: • TIBCO BusinessWorks • Web Portal: • TIBCO PortalBuilder • Web Search: • Google Appliance • Languages: • Ruby (on Rails) • TIBCO • Java • Build Tools: • Apache Ant • HP PPM

  18. Questions and Answers • Handy Links: • http://nodal.ercot.com All about Nodal • http://uml.org OMG’s Official UML Site Enterprise Architecture

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