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Texas Nodal EDS 4 Early Delivery System Plan TPTF May 22 nd , 2007

This plan outlines the objectives, activities, and timelines for the early delivery and testing of EDS 4 in the Texas Nodal program. It also highlights the market participant readiness and staffing requirements. The plan aims to encourage early involvement and improve system availability and data quality over time.

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Texas Nodal EDS 4 Early Delivery System Plan TPTF May 22 nd , 2007

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  1. Texas NodalEDS 4Early Delivery System PlanTPTFMay 22nd, 2007 http://nodal.ercot.com 1

  2. Agenda Nodal Timelines • Nodal summary release schedule • EDS Release Philosophy EDS 4 Plan • Objectives and Transition Plan requirements • Activities • Release and testing timelines • Market Participant Readiness • Staffing How can the TPTF continue to help in the effort? http://nodal.ercot.com 2

  3. Texas Nodal Program Summary Release Schedule High Level Version 2.0 http://nodal.ercot.com 3

  4. Release Overview • EDS 1 Release 1 – Alarm Processing • EDS 1 Release 2 – Point-to-Point Checkout • EDS 2 Release 3 – State Estimator & Network Security Analysis • EDS 2 Release 4 – Network Model Validation • EDS 3 Release 5 – SCED execution and Reasonable LMPs • EDS 3 Release 6 – Load Frequency Control • EDS 3 Release 7 – Settlement Statements,CRR Allocation & Auction • EDS 4 Release 8 – RT Settlements • EDS 4 Release 9 – DAM, RUC, SASM, Full Settlements, EDW Extracts http://nodal.ercot.com 4

  5. We are working to “start early” EDS to encourage earlier MP involvement – quality and support expectations must be managed appropriately • Software versions used for “early” EDS testing will not have completed our full quality cycle • EDS Software versions will have known defects that will be corrected under rigorous release management schedules • Emergency issues (e.g. servers down) will also have reduced service level agreements during “early” EDS timeframe • MPs that are “early adopters” will be encouraged to review the current ERCOT defect list to reduce submission duplication • This applies particularly to EDS 4 and especially software deliveries in MMS (DAM, RUC, SASM), Settlements, Outages, and integration • System availability, quality of LMPs and other data, and support responses will improve over time http://nodal.ercot.com 5

  6. EDS 4 Objectives (Check coverage!!) Execution of DAM, RUC, SASM 5.4.6(1) Verify convergence of QSE provided bids and offers and expand testing to allow Market Participants to submit energy-only offers and bids for any settlement point on the ERCOT Transmission Grid 5.4.6(2) Verify that DAM can co-optimize energy and ancillary service procurement 5.4.6(3) Execution of the DAM shall continue for 7 consecutive days 5.4.7(1) Verify proper RUC commitment of available off-line resources 5.4.14 Conduct SASM coordinated testing Settlements and Data Extracts 5.4.6(4) Verify RT Operations, DAM, and SASM settlement statements 5.4.7(4) Verify RUC settlement statements Outage Scheduler 5.4.1(2h) Verify for proper operation the functions of the Outage Scheduler 5.4.1(2i) Verify that ERCOT operators are able to determine if the Outage of a Transmission Facility had been scheduled in the Outage Scheduler or is a Forced Outage Emergency Electric Curtailment Plan 5.4.16 Conduct tests for the proper operation of the system under EECP conditions Performance and Compliance Measurement 5.4.12 Provide sample performance and compliance reports to the Market Participants for review and comment 168 Hr Test 5.4.9 ERCOT shall develop real time dispatch market readiness criteria that will include a systems stability test. The systems stability test generally will require the real time systems performing SCADA, Network Security Analysis, Transmission Constraint Management, SCED, RUC and LFC to operate without significant error for at least 168 continuous hours Daylight Savings Time 5.4.15 ERCOT shall develop procedures and conduct the tests for the proper transition of systems to and from daylight savings time Data Center - Site fail over and system fault tolerance Test http://nodal.ercot.com 6

  7. EDS 4 – DAM, RUC, SASM, Settlements Testing Approach http://nodal.ercot.com 7

  8. What should QSE’s have in place? Release 8 – Energy-Only Offers and Outage Scheduler • Personnel have attended recommended Nodal Training Courses and reviewed associated reading materials • Provided new and updated Registration data to ERCOT • QSE ability to create energy-only offers and bids for any settlement point on the ERCOT grid Release 9 – DAM, RUC, SASM, Settlements • QSE ability to create and submit bid curves, offer curves and trades to ERCOT • Designate resources providing ancillary services • Attest for ancillary services qualification of resources • Complete registration and qualification process • Market Participant operators available 24 x 7 http://nodal.ercot.com 8

  9. EDS 4 – Early Delivery System –Testing Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2008 Build and Maintain RT Settlements Statements Test Settlements Upload bids offers, and energy-only offers DAM, RUC, SASM 24 x 7 Operations / Full Nodal Functionality 168 Hr. Testing Outages • QSEs • Post • Stand-Alone MMS System • Testing with selected QSEs • Test for validity of offers and other input data from QSEs • ERCOT enters test offers as needed Dependencies • MMS FAT Complete 6/15 • UI Integrated w/ MIS 7/15 • EWS available (MP APIs) 7/1 • Security Testing Complete 7/15 • All QSEs ready XXX YY ZZZZ • QSEs • Valuate • Declare “Reasonable LMPs” http://nodal.ercot.com 9

  10. EDS 4 – Early Delivery System –Testing Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec 2007 2008 Build and Maintain Settlements Statements EDS 4 Release 8Test Settlements Upload bids offers, and energy-only offers Outages DAM, RUC, SASM Full Nodal Functionality 168 Hr. Test • QSEs • Post • Stand-Alone MMS System • Testing with selected QSEs • Test for validity of offers and other input data from QSEs • ERCOT enters test offers as needed Dependencies • MMS FAT Complete 6/15 • UI Integrated w/ MIS 7/15 • EWS available (MP APIs) 7/1 • Security Testing Complete 7/15 • All QSEs ready XXX YY ZZZZ • QSEs • Valuate • Declare “Reasonable LMPs” http://nodal.ercot.com 10

  11. Questions Questions? http://nodal.ercot.com 11

  12. EDS 4 – Release 8 System Configuration - Settlements Objectives • Verify RT Operations, DAM, and SASM settlement statements • Verify RUC settlement statements TPTF Activities Mapping TP 5.4.6(4) ERCOT shall provide QSEs with test DAM settlement statements for the seven consecutive Operating Days. The test DAM settlement statements will use calculated LMPs and MCPCs from the DAM and to the extent possible, show the effect of real time operations simulation from TXMACS. QSEs shall review the test settlement statements for errors and provide feedback to ERCOT for resolution. TP 5.4.7(3) ERCOT shall provide QSEs with test settlement statements for the Operating Day. The test settlement statements will include commitments of Resources from RUC, including to the extent possible, statements showing the effect of real time operations from TXMACS. QSEs shall review the test settlement statements for errors and provide feedback to ERCOT for resolution. http://nodal.ercot.com 12

  13. EDS 4 – Release 9 System Configuration – DAM, RUC, SASM, OS Objectives • Verify convergence of QSE provided bids and offers • Verify that DAM can co-optimize energy and ancillary service procurement • Execution of the DAM shall continue for 7 consecutive days • Verify proper RUC commitment of • available off-line resources • Conduct SASM coordinated testing TPTF Activities Mapping TP 5.4.6(1) ERCOT shall provide DAM MPs with a test plan that will require MPs to create offers for physical Resources and bids for Load. After convergence of DAM using physical bids and offers, ERCOT shall expand testing to allow MPs to submit energy-only offers and bids TP 5.4.6(2) ERCOT shall test the operation of DAM to procure AS according to the protocols using test offers from MPs TP 5.4.6(3) DAM trial operation testing shall continue for seven consecutive Operating Days TP 5.4.7(1) ERCOT shall begin market trials for RUC in parallel with the DAM testing TP 5.4.14ERCOT shall develop procedures and conduct the tests of the SASM systems TP 5.4.1(2h &i) Verify for proper operation the functions of the Outage Scheduler http://nodal.ercot.com 13

  14. DAM, RUC, SASM, OS, Settlement Release Timeline Jan Feb Mar Apr May Jun Jul Aug Sep • Objectives • Enable MPs to enter DAM bids and Offers • Test MP ability to submit DAM inputs through API’s • Enable MPs to enter Energy Only Bids into the DAM • Enable MP to enter Trades • Objectives (Incremental) • Enable MPs to enter outages • Test MP ability to submit outages through API’s • Begin RT Settlement Statements and Extracts (Mar) • Objectives(Incremental) • Execute DAM, RUC, SASM processes • All MPs to participate together • Publish all DAM, RT reports • Integrate DAM, RUC, SASM, SCED processes • Test Settlements • Objectives(Incremental) • Execute full nodal functionality • Begin 24 x 7 operations • Full Settlement Statements and Extracts (DAM, RUC, RT) • Objectives(Incremental) • Begin 168 hour testing runs System Needs MMS 2 • DAM, RUC, SASM • MMS UI (updated) • DAM LMP Output (CSV?) EIP • Energy Bid, Energy Only, Energy Trade, Self Sched, CRR • AS Offer, AS Trade, Self Arranged AS, • Capacity Trade, DC Tie Sched, PTP Obligation Data / Stubs • EMS Testing Tools • Defect tracking & communication process / tool Infrastructure • Production Class Hardware System Needs Outage Scheduler • Outage Scheduler UI S&B • RT Settlement Statements EDW • Settlement Extracts EIP • Outage Creation • Outage Cancellation • Outage Query • MMS-to-Settlements • MMS-to-EDW Data / Stubs • Settlement Stub Data • TBD Testing Tools • TBD Infrastructure • EDS 4 Production Class HW System Needs ITEST • Completed ERCOT QC Testing EIP Data / Stubs • Minimal Testing Tools • None Infrastructure • EDS 4 Production Class HW System Needs MMS • Bug fix only MIS • Bug fix only EMS • Bug fix only EIP • Bug fix only NMMS • Bug fix only MIS • Bug fix only EDW • Bug fix only Data / Stubs • No Change Testing Tools • No Change Infrastructure • No Change System Needs MMS2 • No change EMS 4 NMMS • Production Network Model EDW • MMS Report Extracts MIS • MMS Reporting complete EIP • EMS-to-MMS • MMS-to-EMS • MMS-to-EDW / MIS • DAM, RUC Output API’s Data / Stubs • No Change Testing Tools • No Change Infrastructure • EDS 4 Production Class HW SME Support levels: Estimated at 3 man day per week per development project SME Support levels: Estimated at 3 man day per week per development project SME Support levels: Estimated at 3 man day per week per project SME Support levels: Estimated at 5 man day per week per project SME Support levels: 8*5 support for SCED 24 * 7 support for Infrastructure http://nodal.ercot.com 14

  15. Web Service Implementation Timeline Jan Feb Mar Apr May Nov Dec • Objectives • The following Web Services should be available by June 30th, 2007 • Objectives • The following Web Services should be available by July 30th, 2007 • Objectives • The following Web Services should be available by August 30th, 2007 • Objectives • The following Web Services should be available by September 30th, 2007 • Objectives • The following Web Services should be available by October 30th, 2007 • Objectives • The following Web Services should be available by November 30th, 2007 Web Services – EIP • Three Part Offer • Incremental/Decremental Offers • Congestion Revenue Rights • Current Operating Plan • Energy-Only Offer • Output Schedule • Bid Set Acceptance • Bid Set Errors • Get mRID • System Status Web Services – EIP • Dynamic Ratings • Competitive Constraints • Aggregated Ancillary Service Offer Curves • Ancillary Service System Plan • Pending Trade • Energy Offer Awards • Energy Only Offer Awards • Energy Bid Awards • Ancillary Service Awards • Outage Creation Web Services – EIP • Forecasted Load • Market Totals • Market LMPs and SPPs • Binding Constraints • Active Contingencies in SCED • Voltage Profiles • Shift Factors • Proxy Curves • Mitigated Curves Web Services – EIP • Energy Bid • PTP Obligation • Self Schedule • Real-Time System Load • Total Regulation • Load Ratio Share • Load Distribution Factors • Unit Availability • Startup and Shutdown Instructions • CRR Awards Web Services – EIP • Total Ancillary Service Offers • Total DAM Energy • Derated CRRs • Notices and Alerts • Outage Notifications • Alert Acknowledgement • Outage Query • Outage Cancellation Web Services – EIP • Self Arranged Ancillary Services • Ancillary Service Offers • Ancillary Service Trades • Capacity Trade • DC Tie Schedule • Energy Trade • Get Award Set • Market MCPCs • Ancillary Service Schedule Obligations • Customer Load Profile • PTP Obligation Awards http://nodal.ercot.com 15

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