Weekly Market System Update Meeting - January 8, 2014

1. Parallel Ops / Go-Live Checkpoint Weekly Update – Wednesday Meeting January 8, 2014

2. Agenda • Markets System Updates 10:00 – 10:10A • 1.9 Installation Update, 10:00 – 10:10A • IDT Debrief 10:10 – 10:35A • Updated IDT Schedule and Conditions, 10:10 – 10:15A • IDT Report Review: IDT 12/17 and IDT 12/19, 10:15 – 10:30A • IDT 1/07 Preliminary Debrief, 10:30 – 10:35A • Analysis and Announcements Updates 10:30 – 11:10A • No EIS Suspension, 10:35 – 10:45A • Ramped Setpoints, 10:45 – 11:05A • Decommission of Daily Commitment Report, 11:05 – 11:10A • Look-Ahead 11:10 – 11:40A • Upcoming IDTs and Scenarios, 11:10 – 11:30A • Weekly Updates: Release Scorecard, Migration Report, Known Issues Log, 11:30 – 11:45A • Settlements Update 11:45 – 12:00P • Readiness Update 12:00 – 12:30P

3. Markets Data Issues – 12/31/2013 • Situation • Markets System includes database package used to generate test data in lower environments; package was mistakenly enabled during release 1.9 installation • Package execution (early morning 12/31) caused overwrite of MP data with test data • MP Impact • Data resubmission required • All Demand Bids for 1/1/2014 forward • All Resource Day-Ahead, RTBM, and Mitigation Offers • All Virtual Offers and Bids  Annette Holbert

4. Markets Data Issues – 12/31/2013 (cont.) • Other Impacts • SPP restored 12/30 MP data to allow resubmission (afternoon 12/31) • Readiness Metrics for 12/31/2013, 1/1 and 1/2/2014 to be assessed and possibly removed for overall reporting consideration  • Day-Ahead solution for 1/1 and 1/2/2014 not valid • Root Cause: Human Error • Lessons Learned • Additional installation validations put in place for future installs • Working with vendor to ensure release notes call out significant changes such as the package change that ultimately led to the issue Annette Holbert

5. IDT Schedule and Conditions Ginny Watson

6. IDT 12/17 Report IDT reports posted to spp.org here7 calendar days after each IDT spp.org > Integrated Marketplace > Market Trials > Integrated Deployment Test IDT 12/19 Report IDT reports posted to spp.org here7 calendar days after each IDT spp.org > Integrated Marketplace > Market Trials > Integrated Deployment Test Brian Strickland

7. 01-07-13 Deployment Test Debrief • Overall the Tenth Deployment test was a success • All BAs and all but 1 MP were on the call 60 min before IDT. Thank you! • Ramp Sharing on 50% for the Jan 7 IDT • Another smooth transition into test • 3 CPS2 Violations • Load Change • Control Mode • New Pseudo Tie • IDT Condition: Regulation Pre-selection and Co-optimize Regulation Brian Strickland

8. EIS to remain Enabled during IDTs During one of the IDT wrap up calls the idea to disable EIS market was shared with the participants. • The thought was if the price of EIS was not visible then units would only follow IM • Also investigate possibility to use proxy pricing instead of EIS As investigation into this as a option furthered unintended consequences were discovered so we will - Continue as originally defined and leave EIS data feeds enabled. See pages 51-60for additional detail. Casey Cathey

9. Units not following during IDTs During the first Integrated Deployment Tests SPP staff noticed a number of abnormalities with units following issued Setpoints • Units not appearing to switch to IM control and follow EIS targets through test • Units that followed IM Setpoints except when prices diverged at which point they followed EIS • Units that follow in a delayed mode Casey Cathey

10. Complicated Issue SPP researched internally and reached out to participants in an effort to more fully understand the underlying issues. SPP found that the reasons for not following were more complicated than we had initially assumed • Price divergence was magnified by RTBM solutions that struggled to constrain binding flowgates. • Ancillary Services were not matched between EIS and IM causing units to have large movements in the beginning of tests and across hours. • Ramped Setpoint calculation. Casey Cathey

11. Issue with calculation of Ramped Setpoint Due to a number of factors, the Ramped Setpoint that SPP sends the each resource is causing it to be difficult to maintain ACE. Currently SPP is trying to do two things with one ICCP Point • Provide a value that represents the cycle by cycle rate limiting of the Setpoint instruction. This value was originally provided for use in compliance monitoring and NOT expected to be used for resource deployments. • Provide a value that can be used to smoothly deploy units between desired output levels. Casey Cathey

12. What is the Ramped Setpoint doing today The Ramped Setpoint is equal to the stepped Setpoint when a resource that is under control mode 1 or 2 is following exactly. However when a unit follows slower than their dispatched ramp rate or they move in the opposite direction the Ramped Setpoint can be quite different. Ramped Setpoint = Dispatch (5 min stepped) +/- OR deployment limited at unit ramp rate Casey Cathey

13. Dead Band and Control Error Calculation Participant resource operators want to reduce wear and tear on units and follow in the most efficient way possible. Typically there are dead bands in which a unit will not be moved until exceeded. Assume Unit: • Can ramp 1 MW/min • Controls have a 2MW dead band in which they will not start pulsing the unit • Is dispatched up for two periods at full ramp amount 50->55->60MW Casey Cathey

14. Lost market capacity with Ramped Setpoint Over the 15 minute period if the unit is sending just Ramped Setpoint to the resource controls (ignore stepped and dispatch) then capacity is lost In this case you see the delay in starting to follow the Ramped Setpoint due to the 2 MW dead band causes them to not start moving the unit until minute 3 Casey Cathey

15. The Numbers Casey Cathey

16. What does it look like Ramped Set point resets with RTBM case to unit Output Stepped Set point RTBM Dispatch Ramped Set point Unit Output Period up to 90 seconds after RTBM ramped set point reset where unit does not move Every 5 mins the unit briefly changes direction as it appears to have overshot Casey Cathey

17. Goals in modifying Ramped Setpoint • Reduce wear and tear on units following • Stop the point from resetting itself into the unit dead band on 5 minute boundaries • Limit movement to ramp-able amount • Keep Ramp Setpoint and Stepped Setpoint moving in the same direction • Keep it simple to avoid unintended consequences • Ensure regulation is realized as quickly as possible Casey Cathey

18. Investigated a Number of Possible Solutions • Leave Ramp Setpoint as is and through education and reach out work with participants to get individual workable solutions. • Change Ramp Setpoint to not reset • Ramp between previous and (next dispatch + OR) • Current output toward stepped Setpoint limited by ramp rate • Current output toward stepped Setpointlimited by ramp rate + limit movement to be in same direction as stepped Setpoint from current output Casey Cathey

19. Recommendation • Each of the solutions help with some of the goal, but none of the solutions solve all the goals. • Time is of the essence if we want to change the approach for go live and reserve time to test. Casey Cathey

20. Announcements BSS Submittal Window: SPP plans on implementing an increase in the amount of time prior to an OD to 90 days • System is expected to be up for live production submittal starting Feb 22 • Any submittal before Feb 22 is for testing; will be wiped out before go live Ginny Watson

21. Announcements Decommission of COP True Up Report: • Originally created due to Gap between Process and SPP Markets UI/Markets API • Gap was filled with the 1.8 Markets Release • SPP will decommission this report as of January 13th, 2014. • All information provided by the report is now available via the Markets UI • Path is: • Resource Offers>>DAY>>Resources>>Resource>>Commitment History • Resource Offers>>DAY>>Market Results>>Commitment History Gary Cate

22. Scenario Tracker as of Jan 8 • Summary – Scenarios in Parallel Ops: • 4 Scenarios, 2 Partial Scenarios, Dispatch Simulator Test successful: • Scenario 7 Must Offer • Scenario 28a • Scenario 15 Commitment Mismatch Part 2 • Scenario 24 • Scenario 13 DDR w/ Settlements • Scenario 29 RSG • Dispatch Simulator Test • Note: Dispatch Simulator Test will occur again from Jan 15-17 • Summary – Retests Pending: • 3 entire Scenario retests pending • Scenario 11 scheduled for Jan 21 • Scenario 31 BDR w/ Settlements to be retested Jan 14 • Non-Functional Testing Scenario to be retested Jan 14 • 9 individual retest requests pending Ginny Watson

23. Look-Ahead: Jan 9 – Jan 19 Parallel Ops Calendar on spp.org spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents • Settlements details on the Settlements Calendar marketplace.spp.org > Public > Settlements > Calendars Jan 8 – Jan 11 Schedule: Ramp Sharing Off Thurs Jan 9: IDT Prep Call Fri Jan 10: IDT Call 6:30A – 4:30P No Regular Parallel Ops Friday Meeting Jan 12 – Jan 18 Schedule: Ramp Sharing On Mon Jan 13: IDT Debrief Tues Jan 14: Scenario 31 BDR w/ Settlements Non-functional Test Scenario 10:00PM – 12:00AM Wed Jan 15: GFA Carve Out Scenario Jan 15 – 17: Dispatch Simulator Fri Jan 17: Regular Parallel Ops Friday Meeting Ginny Watson

24. Fri 1/10 IDT Reminders • 1/10 IDT Call starts at 6:30 AM, 8 hour IDT begins at 7:30 AM • ICCP Failover • SPP has requested that an MP perform an ICCP failover in the middle of the January 10th IDT. • TARRF • Simple Failover • Failover will be a standard model upload failover and primary systems will not be down for but a few minutes. The secondary system will be up and providing setpoints along with the XML signals. Brian Strickland

25. Scenario 31 BDR w/ Settlements • *Scenario document on spp.org here • spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents > Scenarios in Parallel Ops • Scenario Description • Verify functionality specific to BDRs • MP Activities • *Applicable to MPs with BDRs only • Verify that BDRs have valid offer data for all products • Ensure all required real-time measurements are defined and being submitted to SPP via ICCP • Submit hourly DRL forecasts when required for BDR resources • Verify that Dispatch Instructions are received via XML the same as other Resources • Submit meter data for time that BDR is dispatched Jarrett Friddle

26. Non-Functional Testing • *Scenario document on spp.org here • spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents > Scenarios in Parallel Ops • Scenario Description • SPP will simulate an outage at the Chenal facility for Reliability and Markets redundancy • Non-Functional Test includes critical Tier 0 and Tier 1 components to demonstrate that those systems can be entirely supported and function independently in the back-up Operations Data Center in Maumelle • MP Activities • MPs should continue normal operations with no expected downtime. • If any unexpected results occur, please submit a detailed RMS Ticket here • Verify the following during Non-Funct Testing Jan 14 at 10P – 12A CPT • ICCP setpoint instructions are received • XML notifications are received • Marketplace Portal User Interfaces and API’s are available for data entry and retrieval Casey Cathey

27. 36.0 – GFA Carve Out Schedules Expected Result • MP should be able to verify their GFA Carve Out Schedules were successfully submitted and approved • MPs settlement statement will have appropriate charge/credit • MPs related to the GFA Carve Out will receive charges/credits to offset the DAMKT energy charges/credits • MPs NOT related to the GFA Carve Out will receive uplift charges on a load-ratio share to cover the funds used to credit the GFA Carve Out • MP settlement statements won’t be available until OD+7 (or as scheduled on the calendar posted in the Marketplace Portal) MP Activities *Applicable to only GFA Carve Out Entities MPs (NPPD, LES, BEPC) • MP to submit DA Offer corresponding to the GFA Carve Out Resources • MP to submit GFA Carve Out Schedules related to their relevant GFA Nick Parker

28. Dispatch Simulator • During Structured Market Trials SPP has utilized a COP True-up process to match commitments in EIS with IM in order to appropriately dispatch resources based on real time commitments. – Can cause confusion since there is no tie between DA Market/RUC and RTBM – MPs receive multiple commitment notifications between the DA Market, RUC and COP True-up • SPP’s vendor created a Dispatch Simulator to mimic the response of Resources to SPPs commitment and dispatch –Primarily used for testing purposes before EMS was integrated with RTBM • The Simulator provides a perfect response of Resources to the SPP XML energy deployment instructions • The Simulator was run previously from December 5 thru December 8, 2013. • The Simulator will be turned on from January 15 thru January 17, 2014. Ronnie Johnson

29. Dispatch Simulator 0:01 01/15 to 23:59 01/17 • MPs should offer their Resources as they expect to do in Production • SPP will not be running any COP True-ups during this time. • Commitments will only come from DBDA, DA Market, DARUC, IDRUC, and MP Self Commitments • MPs should be looking at commitment notifications and understand that this is how SPP expects to run at Go Live • MPs should ignore the ICCP dispatch setpoints during the scheduled days that the simulator will be used. The dispatch deployment for energy coming from XML should be used for reviewing dispatch instructions. • SPP will overwrite meter settlement data for the three Operating days Jan 15, 16, and 17 with RTBM setpoint instructions Ronnie Johnson

30. Migration and Maintenance Report Migration and Maintenance Report posted to spp.org spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents Wendy Reynolds

31. Release Scorecard Release Scorecard posted to spp.org: spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents Ginny Watson

32. Known Issues Log • Please review the Market Trials Known Issues Log on spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Carrie Simpson

33. Market Trials Useful Resources Integrated Marketplace Parallel Operations Project Documents spp.org > Integrated Marketplace > Market Trials > Parallel Operations Test> Integrated Marketplace Parallel Operations Project Documents • Parallel Ops Presentations, Statistics, MP Meetings Folder • Parallel Ops Reference Documents Folder • Scenarios in Parallel Ops Folder > Scenarios Schedule • Parallel Ops Communication Plan • Parallel Ops MP Guide • Parallel Ops Calendar • Known Issues Log • Release Scorecard • Migration Report Integrated Deployment Test (as part of Parallel Ops) spp.org > Integrated Marketplace > Market Trials > Integrated Deployment Test • IDT MP Guide • Parallel Ops Calendar Additional documents: • Settlements Calendarmarketplace.spp.org > Public > Settlements > Calendars • Change Trackerspp.org > Integrated Marketplace > Marketplace Documents • Integrated Marketplace Structured/Unstructured Test Project Documents spp.org > Integrated Marketplace > Market Trials > Structured / Unstructured Test> Integrated Marketplace Structured / Unstructured Test Project Documents

34. Settlements • Update from Philip Bruich Philip Bruich

35. Markets System Update • MOS 1.9.3 Delivery on Jan 17th, PROD promotion Feb 3rd • Accelerated testing schedule will allow for functional regression, integration, performance and non functional testing against 1.9.3 • Included in 1.9.3: • Market Control and MDB performance improvements • Mitigation and MCE Updates • FCA and EDR logic • MUI defects addressing MP requests • API not allowing Bids and Offers to span multiple ODs • CR deployment notification start time correction Erin Jester

36. Markets System Freeze Sam Ellis

37. Erin Jester Readiness Metrics Update

38. Market Participant Readiness • This information and more details on overall program Readiness are available on the External Scorecard. • The December External Scorecard is posted on iDashboard. Select the “External Scorecard” dropdown, then “External Scorecard :: Period Ending 12/15/13”. *Metrics data is as of 12/28/2013 Erin Jester

39. Market Participant Readiness • At risk – ‘yellow’ status due to: • MP systems build • Concerns due to the compression of program timeline and vendor readiness, particularly in regards to Shadow Settlements • Readiness Metrics status • MP Readiness status is primarily measured by the established Readiness Metrics at this stage in the program  Erin Jester

40. Readiness Metrics Overview • Total Number of Readiness Metrics: 50 • Number Complete (Blue): 35 • Number on Track (Green): 7 • Number at Risk (Yellow/Red): 7 • Number Not Started (Gray): 1 Erin Jester

41. At Risk (Yellow) Readiness Metrics Erin Jester

42. At Risk (Red) Readiness Metrics Erin Jester

43. Not Started Metrics • The following metric has not started tracking Erin Jester

44. Erin Jester Parallel Ops Exit Criteria

45. Parallel Ops Exit Criteria • 28 Parallel Operations Exit Criteria Total • 23 complete • 1 tracking on time • 4 at risk (see next slide) • Posted on Readiness Center in the Go/No-Go Criteria Documents folder Erin Jester

46. ‘At Risk’ Parallel Ops Exit Criteria • The 4 ‘at risk’ P Ops Exit Criteria are 3 of the yellow/red Readiness Metrics

47. Erin Jester Go-Live Criteria & Go/No-go process

48. Go-Live Criteria • 21 Go-Live Criteria Total • 2 complete • 13 tracking on time • 1 at risk (see next slide) • 5 not started tracking • Includes activities that will be complete closer to go-live (e.g. publishing issues/risks, workarounds for high defects, etc.) • Latest status of criteria posted in the Go/No-Go Folder on SPP.org Erin Jester

49. ‘At Risk’ Go Live Criteria Erin Jester

50. Market Go-Live Decision Timeline • Go-Live Team checkpoint held on December 23 • Upcoming Go/No-Go milestones: Erin Jester