ERCOT EDS4 Release 8 - Billing and Disputes

1. Texas NodalEDS4 - Approach11/28/2007 http://nodal.ercot.com 1

2. Agenda • Introduction • Sequence of EDS4 • Summary of EDS4 Releases/Exit Criteria • EDS4 Handbooks and Workshops • Market Review and Approval Consideration http://nodal.ercot.com 2

3. Introduction • EDS4 is composed of two releases • Release 8 - Credit Monitoring, Settlements & Billing and Disputes • Release 9 - DAM/RUC/SASM • Although EDS4 is framed around MMS and Settlement testing, it will include delivery of incremental functionality of other systems (MIS, EDW/Extracts, Compliance tools, etc.) • EDS4 leadership is Daryl Cote, Kenneth Ragsdale (Rel.8), Matt Mereness (Rel.9) • EDS4 Approach document has been released with the objectives to provide: • Mapping to Nodal Transition Plan • High-level sequence/bundling of releases • Communicate next steps for handbooks and market communications • Target Testing Dates are NOT included-- to be maintained centrally by Delivery Assurance http://nodal.ercot.com 3

4. EDS 4 Sequence http://nodal.ercot.com 4

5. EDS4 Release EDS4 is composed of two release cycles (8 & 9) • Release 8 – Credit Monitoring, Settlements & Billing and Disputes • R8.1: Credit Monitoring and CRR Auction Invoice • R8.2: DAM Settlement Statements and DAM Invoices and other Invoices • R8.3: RTM Settlement Statements and RTM Invoices • R8.4: Verifiable Costs • R8.5: Disputes • Release 9 – DAM/RUC/SASM • R9.1: DAM/RUC Submission Testing • R9.2: Outage Scheduler Data Submission and NMMS Network Model Upload • R9.3: Initial DAM/RUC Execution • R9.4: Execute Day-Ahead, Adjustment Period, and Real-Time Operations • R9.5: Execute Full Nodal Integrated Systems (TXMACS 0.9) http://nodal.ercot.com 5

6. EDS4 Releases EDS4- Release 8.1 Credit Monitoring and CRR Auction Invoices ERCOT Exit Criteria: • ERCOT should be able to accurately calculate ACL, post ACL’s, approve CRR Bilateral Trades and forward Residual Credit Limits to MMS. • ERCOT should be able to generate and post CRR Auction Invoices. MP Exit Criteria: • MPs should be able to retrieve ERCOT ACL postings. • MPs should be able to submit Counterparty CRR Auction ACL amounts. • MPs should be able to retrieve CRR Auction Invoices. • MPs should be able to submit CRR Bilateral Trades and receive confirmation of the trades. http://nodal.ercot.com 6

7. EDS4 Releases EDS4- Release 8.2 DAM Settlement Statements and DAM Invoices and other Invoices ERCOT Exit Criteria: • MIS should be able to post Statements and Invoices. • Lodestar should be able to generate Statements and Invoices. • Lodestar should be able to execute the Settlement Calculations accurately and timely. • Lodestar should be able to execute late fee calculations and short pay calculations. • MMS should be able to execute the DAM accurately and timely. • CSI should be able to execute accurately and timely data exchange between MMS and Lodestar/Settlements. • EDW and the extract process should be able to function accurately and timely. MP Exit Criteria: • MPs can connect to ERCOT systems (API and /or MIS) and view Statements and Invoices • MPs are satisfied with the underlying data that is made available to them to verify the settlement calculations. • MPs can connect and retrieve appropriate extracts from EDW. http://nodal.ercot.com 7

8. EDS4 Releases EDS4- Release 8.3 RTM Settlement Statements and RTM Invoices ERCOT Exit Criteria: • MIS should be able to post Statements and Invoices. • Lodestar should be able to generate RTM (Initial, Final, True-Up and Resettlement) Statements and RTM Invoices. • Lodestar should be able to execute the RTM (Initial, final, true-up and resettlement) settlement calculations accurately and timely. • MMS should be able to execute the RTM accurately and timely. • CSI should be able to execute accurately and timely. • EDW and the extract process should be able to function accurately and timely. MP Exit Criteria: • MPs can connect to ERCOT systems (API and/or MIS) and view Statements and Invoices. • MPs are satisfied with the underlying data that is made available to them to shadow the settlement calculations. • MP can connect and retrieve extracts from EDW. http://nodal.ercot.com 8

9. EDS4 Releases • EDS4- Release 8.4 Verifiable Costs Exit Criteria: • ERCOT is able to receive and process the submittals and enter them into Lodestar and verify that MMS receives updated information. • MPs are able to submit Verifiable Costs and track approval process. http://nodal.ercot.com 9

10. EDS4 Releases • EDS4- Release 8.5 Disputes Exit Criteria: • ERCOT is able to post DAM and RTM Settlement Statements and MPs are able to submit disputes on Settlement Statements and Invoices. • ERCOT is able to provide acknowledgements to Market participants through Siebel . • ERCOT is able to post daily status of disputes to MPs via MIS. • ERCOT is able to post Settlement and Billing dispute resolution report each month via MIS. • MPs are able to successfully submit and track Disputes. http://nodal.ercot.com 10

11. EDS4 Releases EDS4- Release 9.1 DAM/RUC submission testing ERCOT Exit Criteria: • ERCOT deploys API and UI/MIS interface. • ERCOT updates RARF data in systems. • ERCOT updates system with proper QSEs, Resources, Resource Nodes, Hubs, Load Zones. MP Exit Criteria: • Participation from all QSEs (with and without Resources) • QSEs successfully demonstrate submissions as outlined in Protocols section 4.3 QSE Activities and responsibilities in the Day-Ahead, as applicable to their registration with ERCOT. Note- QSEs with Resources continue EDS3/SCED submission http://nodal.ercot.com 11

12. EDS4 Releases EDS4- Release 9.2 Outage Scheduler Data Submission and NMMS Network Model Upload ERCOT Exit Criteria: • ERCOT deploys API and UI/MIS interface for Outage Scheduler. • ERCOT populates Outage Scheduler with Resource and Equipment. • ERCOT distributes procedures for submitting outages. • ERCOT accepts, approves, rejects, and withdraws outages. • ERCOT publishes Transmission Outage report. • NMMS model is successfully loaded into MMS, EMS, Outage Scheduler systems. MP Exit Criteria: • TSPs and QSEs successfully interface and can submit, modify, and cancel outages within the Outage Scheduler application. http://nodal.ercot.com 12

13. EDS4 Releases EDS4- Release 9.3 Initial DAM/RUC Execution ERCOT Exit Criteria: • ERCOT posts pre-DAM data (A/S Obligations, Load Forecast, Credit Limits, etc) • ERCOT runs DAM, RUC, and HRUC • ERCOT posts DAM/RUC results to MIS MP Exit Criteria: • QSEs demonstrate their ability to receive and download notifications, prices, and awards that are posted by ERCOT as described in the ERCOT exit criteria MMS will not include Baseline 1&2 functionality (running on MMS2). Approach document to be updated http://nodal.ercot.com 13

14. EDS4 Releases EDS4- Release 9.4 Execute Day-Ahead, Adjustment Period, and Real-Time Operations ERCOT Exit Criteria: • ERCOT able to support the operational market cycle of running the nodal market with integrated systems. • ERCOT address gaps in integration with stubbed-in data to maintain testing. • Testing of relevant portions of MIS/EDW/Extracts • Execute full operational market timeline for 7 consecutive days MP Exit Criteria: • MPs ability to maintain processes and staffing to support full cycle of maintaining Day-Ahead, Adjustment Period, and Real-Time activities http://nodal.ercot.com 14

15. EDS4 Releases EDS4- Release 9.5 Execute Full Nodal Integrated Systems (TXMACS 0.9) ERCOT Exit Criteria: • ERCOT NMMS integration to ERCOT systems (EMS, MMS, CRR) • Execute nodal timeline in parallel to zonal market • Execute DAM for seven consecutive days and provide settlement statements • Execute two Operating Days without interruption along the full market timeline with no critical failures, to prepare for 168-hour test • Successfully perform critical testing such as EECP • Successfully integrate remaining systems MP Exit Criteria: • QSEs execute nodal timeline in parallel to zonal market http://nodal.ercot.com 15

16. EDS4 Handbooks • Next Steps- EDS4 Handbooks and Meetings • Details for each Phase of EDS 4 testing will be documented in Market Participant testing handbooks. The EDS team plans to generate handbooks for: • Credit Monitoring, Settlements & Billing and Disputes • DAM, RUC, and SASM • Outage Scheduler • The EDS team, as deemed required, will schedule planning workshops to complete the details required for EDS execution. • The workshops will focus on: • EDS 4 test preparations; • questions and answers; • the use cases which will be tested; • the detailed test procedures and schedule of the test sequences; • test sequence planning at the QSE and Resource level; • a substantive list of specific exit criteria for each of the EDS 4 test sequences; • and the final exit criteria that signifies the completion of all EDS 4 activities that support a declaration of readiness. http://nodal.ercot.com 16

17. Market Review and Approval Consideration • EDS4 Approach document has been released • Distributed for TPTF review 11/16/07 • Formal comment period closed 11/26/07 • Formal comments from Tenaska (EDS4-Rel8) • Two emails of informal comments • No significant issues with content, but concern absence of schedules/dates • Plan to update and release with comments included by Friday 11/30 • TPTF vote consideration 12/4 • Targeting release of DAM/RUC/SASM Handbook Friday, 11/30 • Focus on Release 9.1, DAM/RUC Submission Testing http://nodal.ercot.com 17