OASIS Phase II Approaching the Problem

1. OASIS Phase IIApproaching the Problem General Discussion on Strategy and Philosophy Andy Rodriquez - PJM Presented to the NAESB ESS and ITS February 16, 2004 1

2. How did we get here? • OASIS 1A • Fax Tagging • E-Mail Tagging • Electronic Tagging • XML Electronic Tagging • OASIS Phase II/Electronic Scheduling ANOPR 2

3. Core Objectives • Customer-driven Development • Incremental Value • Cost Effective • Market Design Neutral • Encourage “seamless” boundaries whenever possible • Leverage Existing Tools… without being bound by those tools 3

4. How do we start? • Begin with the ESC Use Cases • Evaluate and Define OASIS functionality • Identify Modular Components • Determine Architecture • Develop Approach 4

5. Architecture • This should NOT necessarily be a discussion on technical issues • Focus should be on deployment strategy that meets core objectives • Identify modular groups where appropriate 5

6. Approach • Should focus on incremental deliverables to provide ongoing value • Staged approached to functionality will allow amortized cost burden to companies • Can also be utilized to address regional diversity • If upgrades can be done on an incremental basis, we can work to ensure backward compatibility where possible 6

7. Ongoing Efforts • IDC – Next Generation • No dependence on tags • CIM Market Extensions • Coordination between RTOs • PJM/MISO Congestion Management • Quantifying internal dispatch • Information Technology Council • Facilitated Checkouts, Other Initiatives 7

8. Collaboration • Should encourage participation to meet openness goals and ensure coordinated attack – minimal duplication of effort • NAESB Groups • Seams Collaborative • Information Technology Subcommittee • NERC Community • Interchange Subcommittee • Transaction Information Systems Working Group • Operations Reliability Subcommittee • Interchange Distribution Calculator Working Group • ISO/RTO Council • Information Technology Committee 8

9. What is OASIS (my thoughts)? • A market-oriented solution that optimizes the market interchange scheduling function • This would be developed by NAESB • A reliability-oriented solution that meets the needs of the functional model with regard to operational interchange scheduling • This would be developed by NERC • A set of interfaces to allow for market activity within a ISO/RTO/TP • This would be developed by the ISO/RTO/TP, but would align with the NAESB functions • A “market/reliability interface” between the two, called the Interchange Authority, that would tie markets and reliability together • This would jointly be developed by NERC, NAESB, and the IRC 9

10. Proposed Vision

11. Suggested Timeline • Spring/Summer 2004 – Develop Functional Design Documents • Detailed Scope • ESC Use Cases • Summer/Fall 2004 – Develop Strategic Architecture Plan • Modules • Compatibility plans and requirements • Winter 2004 – Identify Implementation Plan • 2005 – Design Stage I Components • 2006 – Implement Stage I Components, Design Stage II Components • 2007 – Implement Stage II Components, Design Stage III Components • 2008 – Implement Stage III Components 11

12. Initial Phases • Stage I • OASIS Phase I Legacy Bridge • E-Tag Legacy Bridge (replace Authority with limited IA functionality) • IDC Architectural Split (Impact Calculator vs. TLR Process) • Stage II • OASIS Phase II Functions • Legacy Bridge Upgrades • Operations Scheduling Tools (Functional Model) • Enhanced IA to Reliability Interface • IDC Next Generation • Stage III • Electronic Scheduling • Market to IA Interface 12

13. Question • Do we agree upon the core principles? • Customer-driven Development • Incremental Value • Cost Effective • Market Design Neutral • Encourage “seamless” boundaries whenever possible • Leverage Existing Tools without being bound by those tools 13

14. Question • Does everyone agree with these next steps? • Functional Design Work • Begin with the ESC Use Cases • Evaluate and Define OASIS functionality • Identify Modular Components • Identify key components • Determine Architecture • Group components logically based on dependencies • Develop Approach • Build implementation plan for staged approach 14

15. Key Components • Develop appropriate representation across the industry • Establish “governance” issues • Identify leadership • Determine other key liaisons and roles • Set up meeting schedules • Agree to vision and scope • Establish milestones and deliverables 15

16. NAESB OASIS II Development Overview S&CP Documents Information Technology Subcommittee Structure Design Document Implementation Plan OASIS II Structural Design Task Force Joint OASIS Phase II Implementation Task Force Functional Requirements Use Case Document ESC Use Cases OASIS II Implementation Task Force Vision and Scope Electronic Scheduling Subcommittee Business Practices FERC Filed Documents

17. Vision and Scope NERC IS NAESB ESS STF Functional Model Vision – “Downstream of the IA” Customer-driven focus – “Upstream of the IA” Vision and Scope IRC, Customers, Others NERC ORS Next Generation IDC Vision Overall long-term vision – where do we want to be? RTO Internal Systems (Current and Future), General Guidance 17

18. Use Case Document NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF NERC TISWG Functional Model Component – “Operational Scheduling” Use Case Document Business Analysis, Facilitation, Customer Focus NERC IDCWG IRC, Customers, Others Next Generation IDC Functions Detailed walkthrough of functionality, business logic RTO Internal Systems (Current and Future), General Guidance 18

19. Functional Requirements NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF Functional Requirements IRC, Others RTO internal Systems (Current and Future) Documentation and Technical Guidance Beyond Use Cases – “blueprints” for S&CP Includes System Requirements 19

20. Structure Design Document NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF Structure Design IRC, Customers, Others Logical Guidance, Priorities Business Analysis, Facilitation, Customer Focus How do we want to organize the functional pieces? 20

21. Implementation Plan NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF Facilitation and Technical Guidance NERC IS How do we coordinate with the Functional Model Implementation? Implementation Plan NERC ORS IRC, Customers, Others How do we coordinate with the Next Generation IDC? How do we roll everything out? How can we bring in new and existing systems? 21

22. S&CP NERC TISWG NAESB ITC How do we coordinate with the Functional Model Implementation? S&CP Facilitation and Technical Guidance Vendors EPRI CME What technologies can we leverage? What parts of the CIM can we leverage? NERC IDCWG IRC ITC How do we coordinate with the Next Generation IDC? How do you build it? How can we integrate new and existing systems? 22

23. Business Practices NAESB ESS Facilitation and Technical Guidance Implementation Plan NERC IS What criteria does NERC have we need to coordinate with? IRC Seams, NAESB Seams Can BP Standards fix some seams? NERC ORS IRC, Customers, Others How do you operate it? What BP Standards can we agree to? 23

24. Questions? 24