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TPTF Update for TAC - October 5, 2007

This update provides a summary of the TPTF meetings held on September 10-11 and September 24-26. Topics discussed include Nodal Program Updates, Congestion Revenue Rights (CRR) Project, EMS Conceptual System Design, Draft NPRRs, and more.

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TPTF Update for TAC - October 5, 2007

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  1. TPTF Updatefor TAC October 5, 2007Trip Doggett http://nodal.ercot.com 1

  2. Agenda http://nodal.ercot.com 2

  3. Meeting Summary • Meetings September 10-11 and September 24-26 • On September 10, TPTF discussed the following: • Nodal Program Update • NPRR081, Automatic Voltage Regulator (AVR) Status • On September 10, TPTF approved submitting the two comments for NPRR081 as discussed by TPTF on September 10, 2007 to Market Rules for forwarding to PRS. The motion carried by roll-call vote, with 100% in favor and four abstentions (LCRA, Austin Energy, First Choice Power, and AEP). All Market Segments were represented for the vote. • Congestion Revenue Rights (CRR) Project • Restructured CRR Requirements • On September 10, TPTF approved the restructured CRR Requirements Specification v2.5 as submitted to TPTF. The motion carried by roll-call vote, with 100% in favor and five abstentions (AEP, Calpine, City of Allen, City of Eastland, and Reliant). All Market Segments were represented for the vote. http://nodal.ercot.com 3

  4. Meeting Summary – September 10 (continued) • On September 10, TPTF discussed the following: • Congestion Revenue Rights (CRR) Project • Discussion of CRR Clarifications • Clarification that McCamey Flowgate Rights (MCFRIs) will be allocated to Wind Generation Resources (WGRs) • Clarification of when Settlement Points associated with new Resources become effective • Nodal Timeline Update • Nodal Project Document Naming Convention • EMS Updates to Reflect ERCOT Naming Convention • On September 10, TPTF approved the name changes as amended by TPTF and documented in the EMS presentation. The motion carried by voice vote with no objections and no abstentions. All Market Segments were represented for the vote. • EMS Conceptual System Design (CSD) • On September 10, TPTF approved the EMS CSD v0.13. The motion carried by unanimous roll-call vote, with two abstentions (City of Allen and City of Eastland). All Market Segments were represented for the vote. http://nodal.ercot.com 4

  5. Meeting Summary – September 10 (continued) • On September 10, TPTF discussed the following: • Draft NPRR to Replace NPRR074, Revisions to Monitoring and Qualification Tests in Section 8, Performance Monitoring and Compliance • On September 10, TPTF approved the draft NPRR to replace NPRR074, including ERCOT staff comments. The motion carried by roll-call vote, with 100% in favor and two abstentions (First Choice Power and AEP). All Market Segments, except the Municipal and Consumer Market Segments, were represented for the vote. • Zonal-to-Nodal Subgroup Update • On September 10, TPTF moved to endorse PRR727 as modified by TPTF on September 10, 2007. The motion carried by roll-call vote, with 100% in favor and seven abstentions (Calpine, StarTex Power, Strategic Energy, Accent Energy, Cirro Group, Green Mountain Energy, and Integrys). All Market Segments, except the Municipal and Consumer Market Segments, were represented for the vote. http://nodal.ercot.com 5

  6. Meeting Summary – September 11 • On September 11, TPTF discussed the following: • Discussion of New Broad-Form Non-Disclosure Agreement (NDA) • MIS Update • Discussion of NPRR078, Simplifying the Dispute Process • On September 11, TPTF endorsed the COPS-approved comments from September 10, 2007 for NPRR078, Simplifying the Dispute Process, and to endorse that the functionality is needed for go-live. The motion carried by roll-call vote, with 100% in favor and three abstentions (CenterPoint, TNMP, and Calpine). All Market Segments, except the Consumer Market Segment, were represented for the vote. • Readiness Metrics Update • On September 11, TPTF endorse ERCOT moving forward with the metrics MP12 and E3 as modified by TPTF on September 11, 2007 in the Active Metric Inventory v1.2. The motion carried by roll-call vote, with 100% in favor and two abstentions (First Choice Power and AEP). All Market Segments, except the Consumer Market Segment, were represented for the vote. http://nodal.ercot.com 6

  7. Meeting Summary – September 11 (continued) • On September 11, TPTF discussed the following: • Commercial Systems Integration (CSI) Update • Discussion of Draft NPRRs for Settlements • Draft NPRR for Settlement Clarifications to Reliability Unit Commitment (RUC) Capacity Shortfall Ratio Share Formula • Draft NPRR for Simplifying OBLRACT and OPTRACT • Update on MMS documentation and schedule http://nodal.ercot.com 7

  8. Meeting Summary – September 24 • On September 24, TPTF discussed the following: • Quality Center Update • EDW Update • Update on Subgroup Activities for Section 8 Monitoring Programs – Further discussion scheduled for September 26 • Initial Review of LFC Handbook • Review disposition of comments for the Nodal Startup Transition Rules • On September 24, TPTF moved to endorse the Nodal Startup Transition Rules as proposed to TPTF with the exception that the duration period be extended from 45 days to 60 days. The motion failed by roll-call vote, with 60% in favor and seven abstentions (Brazos, LCRA, Austin Energy, CenterPoint, TNMP, AEP, and NRG). All Market Segments were represented for the vote. • On September 24, TPTF moved to endorse the Nodal Startup Transition Rules as proposed to TPTF. The motion carried by roll-call vote, with 100% in favor and nine abstentions (Brazos, CenterPoint, TNMP, AEP, NRG, Calpine, Coral, Exelon, and J. Aron). All Market Segments were represented for the vote. http://nodal.ercot.com 8

  9. Meeting Summary – September 24 (continued) • On September 24, TPTF discussed the following: • Discussion of comments for NPRR082, Section 8, Performance Monitoring and Compliance, Revisions to Monitoring and Qualification Tests – Further discussion scheduled for September 26 • Metrics Update • Review Iteration 3 metrics: • MP6, Qualified Scheduling Entity (QSE) and Transmission Service Provider (TSP) Telemetry/Inter-Control Center Protocol (ICCP) System Availability • EMO9, Validate Zonal and Nodal Common Constraints • N2, ERCOT Telemetry/ ICCP System Failover • N3, Validate SE Performance and Accuracy • On September 24, TPTF endorsed ERCOT moving forward with metrics MP6, EMO9, N2, and N3 as modified by TPTF on September 24, 2007 in the Active Readiness Metric Inventory v1.3. The motion carried by roll-call vote, with 100% in favor and two abstentions (TXU and Exelon). All Market Segments, except the Consumer and Cooperative Market Segments, were represented for the vote. http://nodal.ercot.com 9

  10. Meeting Summary – September 25 • On September 25, TPTF discussed the following: • Nodal Program Update • EDS Updates • EDS 1 Update • EDS 2 Update • EDS 3 Update • Nodal Timeline Update • EDS 3 SCED MP Handbook • On September 25, TPTF approved the EDS 3 SCED MP Handbook v1.04 with updates as submitted by the EDS Project. The motion carried by roll-call vote, with 100% in favor and one abstention (CenterPoint). All Market Segments, except the Independent Retail Electric Provider (IREP) and Consumer Market Segments, were represented for the vote. • RARF Update • Schedule for registering Load Resources http://nodal.ercot.com 10

  11. Meeting Summary – September 25 (continued) • On September 25, TPTF discussed the following: • Necessity for LMP Contour Map • On September 25, TPTF endorsed the GIS display of relevant market data as critical for market transparency and for usability to market participants and ERCOT. It is the opinion of TPTF that the graphic displays represent functionality that is already contained in the Nodal Protocols, and they do not represent an addition to program scope. The motion carried by unanimous roll-call vote, with no abstentions. All Market Segments, except Consumers, were represented. • NMMS Update • Draft of Electrical Bus and Settlement Price Point mapping • COMS Update • Paper Prototypes for Settlement Statements • Updated COMS Requirements for review • CMM Detailed Design documentation for review • S&B Detailed Design documentation for review • Draft NPRR- Settlement Clarifications to RUC Capacity Shortfall Ratio Share Formula (review disposition of comments) http://nodal.ercot.com 11

  12. Meeting Summary – September 25 (continued) • On September 25, TPTF discussed the following: • Discussion of comments for NPRR082, Section 8, Performance Monitoring and Compliance, Revisions to Monitoring and Qualification Tests • On September 25, TPTF approved submitting comments to PRS for NPRR082, Section 8, Performance Monitoring and Compliance, Revisions to Monitoring and Qualification Tests, as agreed upon by TPTF and Occidental. The motion carried by roll-call vote, with 100% in favor and seven abstentions (CenterPoint, First Choice, TNMP, City of Allen, City of Eastland, Coral Power, and Exelon). All Market Segments were represented for the vote. • EIP Update • New External Web Services for TPTF review • CRR Update • Review disposition of comments for the EDS CRR Testing Market Participant Handbook • On September 25,2007, TPTF approved the EDS CRR MP Testing Handbook v0.04 with the modifications made by TPTF. The vote carried by roll-call vote, with 100% in favor and two abstentions (CenterPoint and Reliant). The Consumer Market Segment was not represented for the vote. • Initial Review of TCR to CRR Transition Plan http://nodal.ercot.com 12

  13. Meeting Summary – September 26 • On September 26, TPTF discussed the following: • Metrics Update • MO5, Generate Locational Marginal Prices (LMPs) for 6 months • E0, ERCOT Engagement • On September 26, TPTF endorsed ERCOT moving forward with metrics MO5 and E0 as modified by TPTF on September 26, 2007 in the Active Readiness Metric Inventory v1.3. The motion carried by roll-call vote, with 100% in favor and three abstentions (CPS San Antonio, City of Allen, and City of Eastland). All Market Segments were represented for the vote. • Review of document prepared by Subgroup on Section 8 Monitoring Programs– discussion continued from September 24. • Review of distribution process for the new broad-form Non-Disclosure Agreement (NDA) • MIS Update http://nodal.ercot.com 13

  14. Meeting Summary – September 26 (continued) • On September 26, TPTF discussed the following: • MMS Update • Review disposition of comments for updated MMS Requirements for Overall MMS and Other Processes • On September 26, TPTF moved to approve the MMS Overall MMS System and Other Processes Requirements (B2) v1.02 following changes discussed by TPTF on September 26, 2007. The motion carried by roll-call vote, with 100% in favor and one abstention (TNMP). All Market Segments, except the Consumer Market Segment, were represented for the vote. • Review disposition of comments for updated MMS Requirements for SCED and Real-Time Processes • On September 26, TPTF moved to approve the MMS SCED and Real-Time MMS Processes Requirements (B2) v1.02 following changes discussed by TPTF on September 26,2007. The motion carried by roll-call vote, with 100% in favor and three abstentions (CenterPoint, TNMP, and Exelon). All Market Segments, except the Consumer Market Segment, were represented for the vote. • Update on MMS documentation and schedule http://nodal.ercot.com 14

  15. Next Meetings • Next meetings • Monday October 8 and Tuesday October 9 • Monday October 22 and Tuesday October 23 • Monday November 5 and Tuesday November 6 • Monday November 26 through Wednesday November 28 http://nodal.ercot.com 15

  16. Next Meetings (continued) • On October 8 and 9, likely topics include: • Nodal Program Update • Nodal Timeline Update • Discussion of the internal ERCOT readiness survey • Metrics Update • CRR Project • CRR Business Process Clarification NPRR • TCR to CRR Transition Plan • EMS Update • MMS Project: • Review disposition of comments for: • MMS Requirements for DAM/SASM • MMS Requirements for CCT • MMS Requirements for RUC Requirements • EDS Project • Review disposition of comments for LFC Handbook • Discuss concept of reasonableness for LMPs http://nodal.ercot.com 16

  17. Next Meetings (continued) • On October 8 and 9, likely topics include: • COMS Update • Review COPS comments for Draft NPRR for Failure to Update Verifiable Cost Data Results in Use of Resource Category Generic Costs • Review COMS Requirements updated through Baseline 2 • EIP Update • Review disposition of comments for new External Web Services http://nodal.ercot.com 17

  18. Approval of Readiness Metrics • On September 11, TPTF endorsed ERCOT moving forward with the metrics MP12 and E3 as modified by TPTF on September 11, 2007 in the Active Metric Inventory v1.2. The motion carried by roll-call vote, with 100% in favor and two abstentions (First Choice Power and AEP). All Market Segments, except the Consumer Market Segment, were represented for the vote. • On September 24, TPTF endorsed ERCOT moving forward with the metrics MP6, EMO9, N2, and N3 as modified by TPTF on September 24, 2007 in the Active Readiness Metric Inventory v1.3. The motion carried by roll-call vote, with 100% in favor and two abstentions (TXU and Exelon). All Market Segments, except the Consumer and Cooperative Market Segments, were represented for the vote. • On September 26, TPTF endorsed ERCOT moving forward with metrics MO5 and E0 as modified by TPTF on September 26, 2007 in the Active Readiness Metric Inventory v1.3. The motion carried by roll-call vote, with 100% in favor and three abstentions (CPS San Antonio, City of Allen, and City of Eastland). All Market Segments were represented for the vote. http://nodal.ercot.com 18

  19. Approval of Readiness Metrics (continued) • Request TAC approval for ERCOT to move forward with the metrics: • E3, Validate Telemetry/SE Enterprise Data Warehouse (EDW)/ Data Accuracy • MP12, Market Participant (MP) Completes Early Delivery System (EDS) 3 Related Training • EMO9, Validate Zonal and Nodal Common Constraints • MO5, Generate LMPs for 6 Months • MP6, QSE and TSP Telemetry/ICCP System Availability • N2, ERCOT Telemetry/ICCP System Failover • N3, Validate SE Performance and Accuracy • E0, ERCOT Engagement http://nodal.ercot.com 19

  20. TAC Approval of Milestones • On September 10, TPTF approved the restructured CRR Requirements Specification v2.5 as submitted to TPTF. The motion carried by roll-call vote, with 100% in favor and five abstentions (AEP, Calpine, City of Allen, City of Eastland, and Reliant). All Market Segments were represented for the vote. • On September 10, TPTF approved the name changes as amended by TPTF and documented in the EMS presentation. The motion carried by voice vote with no objections and no abstentions. All Market Segments were represented for the vote. • On September 10, TPTF approved the EMS CSD v0.13. The motion carried by unanimous roll-call vote, with two abstentions (City of Allen and City of Eastland). All Market Segments were represented for the vote. • On September 26, TPTF moved to approve the MMS Overall MMS System and Other Processes Requirements (B2) v1.02 following changes discussed by TPTF on September 26, 2007. The motion carried by roll-call vote, with 100% in favor and one abstention (TNMP). All Market Segments, except the Consumer Market Segment, were represented for the vote. • On September 26, TPTF moved to approve the MMS SCED and Real-Time MMS Processes Requirements (B2) v1.02 following changes discussed by TPTF on September 26,2007. The motion carried by roll-call vote, with 100% in favor and three abstentions (CenterPoint, TNMP, and Exelon). All Market Segments, except the Consumer Market Segment, were represented for the vote. http://nodal.ercot.com 20

  21. TAC Approval of Milestones (continued) • The Transition Plan says: “Any declaration of the accomplishment of a major milestone (business requirements, conceptual design, and successful completion of Market Participant testing) or a decision to proceed is contingent on the approval of both ERCOT and TAC.” • Request TAC approval of the following Milestones – • Energy Management System (EMS)Business Requirements complete for: • Data Models Requirements (B2) v2.0; • Dynamic Ratings Requirements (B2) v2.0; • Requirements (B2) v3.0; • Forced Outage Detection Requirements (B2) v2.0; • Generation Subsystem Requirements (B2) v3.0; • Load Forecasting Requirements (B2) v3.0; • Network Security and Stability Analysis Requirements (B2) v3.0; • Outage Evaluation Requirements (B2) v2.0; • Supervisory Control and Data Acquisition (SCADA) Requirements (B2) v2.0; • State Estimator (SE) Requirements (B2) v3.0; • Voltage Support Services Requirements (B2) v2.0; • Wind Power Forecasting Requirements (B2) v3.0. • EMS Conceptual System Design v1.0 • Restructured Congestion Revenue Right (CRR) Requirements Specification v3.0 • Market Management System (MMS)Business Requirements complete for: • MMS Overall MMS System and Other Processes Requirements (B2) v1.02 • MMS SCED and Real-Time MMS Processes Requirements (B2) v1.02 http://nodal.ercot.com 21

  22. Questions ? http://nodal.ercot.com 22

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