Nodal Go-Live Update Metrics Transition for Go-Live

1. Nodal Go-Live UpdateMetrics Transition for Go-Live Brandon McElfresh Market Trials

2. Readiness Criteria – Metrics by Area (Planned, Active, or Complete) • 75 metrics are considered to be Readiness Criteria for TAC, BOD Go-Live votes • All of these metrics are considered as “Readiness Criteria” that will be included in TAC/BOD Go-Live votes. • Once a Readiness Area is approved for Go-Live, metrics falling within that Readiness Area will be considered complete • * 26 Complete include the 19 newly completed metrics on Slide 3 Nodal Advisory Task Force

3. Readiness Criteria – Completed Metrics • ERCOT has 19 newly completed nodal metrics • 7 Metrics related to TAC/Board have signed off (NMMS, OS, and CRR). • 5 EMS metrics • 7 Metrics for general readiness Nodal Advisory Task Force

4. Readiness Criteria – From now to Go-Live 24 Metrics not yet active, but still planned to be measured before Go-Live. Nodal Advisory Task Force

5. Readiness Criteria – From now to Go-Live (continued) Metrics will be closed as TAC/BOD signoff is garnered for various systems and readiness areas Nodal Advisory Task Force

6. Nodal Go-Live UpdateReview of Readiness Criteria Kenneth Ragsdale Market Trials

7. Upcoming Dates for Go-Live Sign Off • The table below outlines key approval dates for TAC and Board Signoff Nodal Advisory Task Force

8. NMMS Overview Recommendation of Certification • Status / Other Issues: • Stability issue resolved as of July 1 (ERCOT continues to monitor production) • Navigation performance issues improved Aug 1st (43% reduction in response time measured) • Validation performance improvement patch was added on Friday, August 27th (expected a 20-40% reduction in validation time). Improvement on validation times were tested as follows: • Average: 45.18% • Median: 66.41% • Max: 97.46% Open Defects: Deferred Defects: 0 Sev 1 ! 11 Deferred ! 0 Sev 2 ! 0 Sev 3-5 Nodal Advisory Task Force

9. OS Overview Recommendation of Certification • Status / Other Issues: • No defects reported in the Outage Scheduler • Outage Scheduler transition tasks were completed on 8/13 and the system was ready for dual entry and validation on 8/16 • Market Notice for dual entry and validation was sent on August 16th • All Outage scheduler issues within the TSP Issues list have either been addressed or are resolved Open Defects: Deferred Defects: 0 Sev 1 ! 119 Deferred ! 0 Sev 2 0 ! Sev 3-5 Nodal Advisory Task Force

10. CRR Overview Recommendation of Certification • Status / Other Issues: • Working with Siemens on automated processor fix. Expectation is to receive fix before Go-Live • Incorrect Loadzone Designation from Topology Processor Output file • Resource Nodes missing from Settlement Point output file produced by Topology Processor • Topology Processor cannot consume outages information for CRR modeling Open Defects: Deferred Defects: 0 Sev 1 ! 4 Deferred ! 0 Sev 2 ! 3 Sev 3-5 Nodal Advisory Task Force

11. Nodal Program Communications Nodal Advisory Task Force

12. Nodal Cutover Communications – Zonal Protocol 21.12.3 21.12.3 Notice to Market Participants of Effective Date for Nodal Protocol Provisions and Retirement of Zonal Protocol Provision No part of the nodal market design may start operation until all the Market Readiness Criteria for that part of the nodal market design have been met. Certification that all Market Readiness Criteria have been met must be made at least by each of the following: the Technical Advisory Committee (TAC), ERCOT and the ERCOT Board. Upon such certification, ERCOT shall issue two Notices alerting Market Participants to the effective date of Nodal Protocol sections and the retirement of Zonal Protocol sections, as applicable. ERCOT shall issue the first Notice no less than thirty (30) days prior to the effective date or retirement date, as applicable, and the second Notice no less than ten (10) days prior to the effective date or retirement date, as applicable. The Notice shall include: (1) The Nodal Protocol Sections to become effective; and (2) The Zonal Protocol Sections to be retired, if any Nodal Advisory Task Force

13. Readiness Methodology ERCOT will measure readiness by the following categories: • System Readiness – an evaluation of a particular system needed to support identified market activities • Process Readiness – an evaluation of the Processes and Procedures necessary to support identified market activities • People Readiness – an evaluation of ERCOT and Market Participant capabilities to support identified market activities ERCOT plans to review the Market Readiness Criteria at NATF and subsequently request a vote from TAC per Section 21.12.3, Notice to Market Participants of Effective Date for Nodal Protocol Provisions and Retirement of Zonal Protocol Provision Nodal Advisory Task Force

14. Readiness Methodology System Readiness – evaluation of the Nodal system to support the market design • Core system functionality delivered • Protocol required system functionality available for market testing • System Integration delivered • System to system integration delivered to support Market Timeline and Business Processes • Known defects resolution plan • All ‘Must fix prior to go-live’ defects have a resolution plan in place • Active Readiness Metrics • Current status of Readiness Metrics Nodal Advisory Task Force

15. Readiness Methodology Process Readiness – evaluation of the Processes and Procedures necessary to support the market design • Procedures complete • ERT project procedures to support business processes complete • System cutover transition plan established • ERCOT and Market Participant business activities required for transitioning into Go-Live have been established and communicated. • Market rules transition communicated • Nodal and Zonal Protocol effective / retirement dates identified and communicated for Market Participant review Nodal Advisory Task Force

16. Readiness Methodology People Readiness – evaluation of ERCOT employee readiness and Market Participant knowledge to support the market design • ERCOT staff supporting Market Trials • ERCOT Business teams supporting system execution, problem resolution, and market questions • ERCOT staff trained on System and Processes • ERCOT Business teams training status based on identified ERT training metrics • Market Participant Training delivered • ERT external training classes and web based training provided by the Nodal training project Nodal Advisory Task Force

17. MMS – Day Ahead, Adjustment Period, RT Market Overview Recommendation of Certification • Status / Other Issues: • MMS currently has 58 Open defects in Test targeted to be fixed by September 3. • 21 DAM • 2 AS Mgr • 1 CIM, 1 SASM, 1 CCT, 1 Validation Rules • 9 Background Processing • 3 SCED • 6 RUC • 13 Market Infrastructure including 6 GUI • MMS currently has 24 Open defects in development targeted to be fixed by October 1. • 6 DAM, 4 RUC, 4 SCED, 3 MI, 7 GUI • MMS remaining 13 (7 performance, 3 MOI, 3 MI) defects are being reviewed by business for final disposition Open Defects: Deferred Defects: 0 Sev 1 ! 44 Deferred ! 43 Sev 2 ! 52 Sev 3-5 Nodal Advisory Task Force

18. MMS – Day Ahead, Adj. Period, RT Market – Readiness Update Nodal Advisory Task Force

19. EMS – Real-Time Operations Recommendation of Certification • Status / Other Issues: • EMS currently has 20 Open defects in development targeted to be fixed by October 1. • 1 EMS Interface, 1 CIM Importer, 1 PSSE export • 6 STNET/SMTNET/OE • 1 VSAT • 3 RLC • 1 SE • 2 TCM • 3 LFC/Generation Open Defects: Deferred Defects: 0 Sev 1 ! 321 Deferred ! 12 Sev 2 ! 8 Sev 3-5 Nodal Advisory Task Force

20. EMS – Real-Time Operations Readiness Update Nodal Advisory Task Force

21. COMS – Settlement & Billing, Metering, and Data Aggregation - Overview Recommendation of Certification • Status / Other Issues: • All Open defects are related to the Commercial System Integration (CSI) transfer of data and are targeted for resolution by 08/30/2010. There are no open defects with the core systems at this time. • Incorrectly sums up ALL purchases & sales for a QSE, instead of just summing up Purchases • Incorrect interval value • Not correctly populating DAEPVOLQDTOT data to CMM_DAM_EST_INT table • Incorrectly populating Start & Stop times for Resources with multiple active periods. Open Defects: Deferred Defects: 0 Sev 1 ! 2 Deferred ! 3 Sev 2 ! 1 Sev 3-5 Nodal Advisory Task Force

22. S&B – Settlements and Billing, Metering, and Data Aggregation Readiness Update Nodal Advisory Task Force

23. CMM – Credit Overview Recommendation of Certification • Status / Other Issues: • Open issues related to an intermittent performance issue and reporting and notifications. All items are internal ERCOT fixes targeting a 09/03/2010 resolution date. • NPRR 241 - CMM:FCE Detail reports runs long • Exposure calculation engine processes hanging (intermittent) • EAL Detail Report - In the OIA Section the corresponding Invoice data display • Efactors- Email notification about e-factors values to the counter-parties is not working correctly • Entity Name field is missing from the Enter CP Estimates screen • AIL Report- if the RTM Estimated data is missing for an Operating Date the report is not displaying data correctly Open Defects: Deferred Defects: 0 Sev 1 ! 45 Deferred ! 5 Sev 2 ! 1 Sev 3-5 Nodal Advisory Task Force

24. CMM – Credit Management and Monitoring – Go Live Nodal Advisory Task Force

25. MIS – Market Information System Overview Recommendation of Certification • Status / Other Issues: • MIS defects of highest priority are around Extract Subscriber and LMP Contour Map and are targeting a resolution date by 10/11/2010. Fixes for most of these are already developed and will be tested during the MIS reconfiguration downtime. Examples are: • Extract Subscriber – No choice to select the extract format • Extract Subscriber – Unable to unsubscribe the subscribed extract. • Extract Subscriber – ‘Help’ icon is not being displayed in Extract Subscriber application • LMP Contour Map Dashboard does not allow for alternate dates Open Defects: Deferred Defects: 0 Sev 1 ! 7 Deferred ! 9 Sev 2 ! 3 Sev 3-5 Nodal Advisory Task Force

26. MIS – Market Information System – Go Live Nodal Advisory Task Force

27. Nodal – Overall Readiness – Go Live Nodal Advisory Task Force

28. Nodal – Overall Readiness – Go Live Nodal Advisory Task Force

29. Nodal – Overall Readiness – Go Live Nodal Advisory Task Force

30. Questions ? Nodal Advisory Task Force

31. Appendix Nodal Advisory Task Force

32. Next 60-days of Nodal Classes/Workshops - continued Enrollment at: http://nodal.ercot.com/training/courses/index.html Nodal Advisory Task Force

33. RED/AMBER Metrics Summary – Market Participant Metrics Market Participant Metrics • MP15(B) • 10 CRRAHs working towards qualification * • Minimal risk to running the December 2010 Auction • MP16 • QSEs w/o Resources DAM participation between 65%-80% since measurement started in April. • These QSEs represent 1% of Load. • Minimal risk to Go-Live • MP21 • 67 WGRs – 55 passed reasonability test, 9 working with ERCOT to resolve, 3 with no response • 55 up from 42 from the previous two-week measurement * 5 new CRRAHs added prior to 8/13 deadline. Not included in MP15B because they have a 30 day window before ERCOT publishes their CRRAH qualified status. Nodal Advisory Task Force

34. CRR Metrics Nodal Advisory Task Force

35. Real-Time Metrics Nodal Advisory Task Force

36. Day-Ahead Market Metrics • MP16 – Metric is based on a 2 week rolling average (8/9 – 8/20 12 runs). • MP16 – 96% Load participating. Nodal Advisory Task Force

37. Network Modeling Metrics • MP6 does not include 405 QSE CB and DSC points from TSP outreach. ERCOT is determining whether these rollback into the QSER MP6 measurement. Nodal Advisory Task Force

38. Network Model Metrics Network Modeling Metrics Nodal Advisory Task Force

39. Other Readiness Metrics Nodal Advisory Task Force