Market Trials Real-Time Market / LFC

1. Market TrialsReal-Time Market / LFC Weekly Update July 23, 2010 http://nodal.ercot.com 1

2. Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure. http://nodal.ercot.com 2

3. Agenda • Antitrust Admonition • Environment Report • Planned / unplanned outages • Known Issues • Standing Reports and Updates • General reminders / updates • Real Time Market / LFC Update • State Estimator Convergence Statistics • 5 Hour Full System Market and Reliability Test Update • 24 Hour Full System Market and Reliability Test Update • 24 Hour Full System Market and Reliability Test Reminders • Follow-up from 7/16 Real Time Market Call • Question and Answers / General Discussion ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline http://nodal.ercot.com 3

4. Environment Report: Planned / Unplanned Nodal Outages Planned Outages • 07/22/2010 8:00 A.M. – 07/26/2010 8:00 A.M. • Migration activities are currently underway in the Nodal production environment and will intermittently affect availability of the following application services : • Market Manager UI • OS UI • EWS ( Web Services) • MIS • CDR Reports • Note: External interface specification 1.19N will take into effect upon completion of these planned activities • 07/29/2010 10:00 A.M. – 07/29/2010 10:30 A.M. • Site failover activities are being planned for Nodal Market and EMS applications. The outage duration is expected to last no more than 30 minutes from the start of the test. Unplanned Outages • N/A http://nodal.ercot.com 4

5. Known Issues Recently Opened Issues • Retrieving pre-EWS 1.19N Real-time LMP reports via EWS • 1.19N separates “LMPs by Electrical Bus” and “LMPs by Resource Nodes, Load Zones, and Trading Hubs” reports • Attempt to retrieve pre-1.19N release reports (7/22) via EWS causes exceptions due to a CDR XSD schema change that makes the reports incompatible. • “Get LMPs” service in NPROD disabled until all “old” reports are flushed out (7/27). • Affects EWS • RT SPP data for last interval not posted • SPP at Resource Nodes, Hubs, and Load Zones report does not post for the last interval of the day. Data is not posted to the MIS or retrievable via EWS. • Affects MIS and EWS http://nodal.ercot.com 5

6. Known Issues Recently Closed Issues • Queries on MMS MM for updated Resource parameters were returning rounded values • After updating Resource Parameters with new values that included a decimal place, users were seeing rounded values returned when they queried for the updated parameters via either Web Services or Market Manager UI • The values were being captured correctly in the MMS database but were being returned incorrectly due to a rounding issue in EIP • Issue was seen for Normal/Emergency Ramp Up/Down Rates and Break Points • Issue Affected EIP http://nodal.ercot.com 6

7. Standing Reports and Updates: General Reminders / Updates Reminders/Updates • Updates to Tracking Artifacts • The Known Issues tracking sheet will refresh overnight to the Readiness center at http://nodal.ercot.com/readiness/markettrials/rtm/index.html • Network Model Update • The network model will be updated today 7/23/2010 (rescheduled from 7/14 because of 5 hour LFC test) • The next database network model load will occur Monday 8/2/2010 • ERCOT has posted the Redacted Network Model on the MIS -> Grid -> Long-Term Planning page • Questions or Issues encountered during Full System tests • Please use the markettrials@ercot.com address before, during, or after any test for problems or clarifications http://nodal.ercot.com 7

8. Standing Reports and Updates: General Reminders / Updates Reminders/Updates • Market Readiness Seminar #5 (see July 19th Market Notice) • Seminar is scheduled for Wednesday, July 28th from 9AM-3PM CST • Focus on remaining Market Trials activities, Nodal cutover, and market transition • Seminar will be held at the Austin MetCenter. Logistics are provided in the Market Notice • Nodal Ancillary Services Workshop Q&A posted (see July 20th Market Notice) • 19 questions from MPs answered from the June 30th workshop. • Q&A posted at http://www.ercot.com/calendar/2010/06/20100630-MT http://nodal.ercot.com 8

9. Real Time Market / LFC Update 1/6/2020 http://nodal.ercot.com 9

10. Real Time Market / LFC Update • SCED Week 25 • SL at $2250 offer cap for 93 intervals (compared to 98 last week) • SL $2251 to $2410 for 27 intervals on 7/19 during constraint transfer testing • Disregard data for this day • -$4500 at one RN on 7/15 • Shift factor of “1” passed for 10 electrical busses (one RN), no other SF sent for constraint • Due to line outage causing one resource to have direct flow to constraint element post-contingency http://nodal.ercot.com 10

11. State Estimator Convergence http://nodal.ercot.com 11

12. State Estimator Convergence Update http://nodal.ercot.com 12

13. State Estimator Convergence Update http://nodal.ercot.com 13

14. 5-Hour Full-System Market and Reliability Test Update Scott Middleton 1/6/2020 http://nodal.ercot.com 14

15. 5-Hour LFC Test Update 5-Hour LFC Test Update http://nodal.ercot.com 15

16. 5-Hour LFC Test Update Constraints Encountered During the Test http://nodal.ercot.com 16

17. 5-Hour LFC Test Update • Completion Criteria: • The rolling CPS1 one minute average score must equal or exceed 100% during the test period. • Note that CPS1 metric will not apply to periods during testing wherein system tuning is being performed by either ERCOT or Market Participants • HE12-73, HE13-112, HE14-103, HE15-120, HE16-103 • Zonal Commercially Significant Constraints (CSCs) and Closely Related Elements (CREs) managed below thermal limits. The Zonal CSCs were not activated during the test • Local Congestion managed below thermal limits. Two local constraints binding during the test • Stability limits managed below transfer limits No stability limits were activated during the test • No NERC Disturbance Control Standard (DCS) failure if applicable Not applicable during the test • No LFC-SCED system issues that result in termination of the test. No • Procedural and software fixes have been verified to address lessons learned from previous rounds of testing Migrated patches into NPROD and verified prior to the test. There were no shift factors transfer failures during the test. Note: The individual QSE GREDP analyses from the 5-Hour test will be distributed the week of July 26th http://nodal.ercot.com 17

18. GREDP Performance Summary • For this analysis; X=5%, Y=5, MW, and Z=10% • Performance does not appear to have varied drastically from the 8-hour test http://nodal.ercot.com 18

19. GREDP Performance vs. Frequency Control Summary http://nodal.ercot.com 19

20. 5-Hour Full-System Market and Reliability Test UpdateJeff Gilbertson http://nodal.ercot.com 20

21. 5-hour Test • 13:15 – HDL, cap_below_swcap, and Tele MW all very close; loss of unit caused $2250 system lambda http://nodal.ercot.com 21

22. 5-hour Test • All Nodal LZ and HB prices tracked closely • Zonal prices tracked until 13:45, and then were much higher than Nodal; under investigation http://nodal.ercot.com 22

23. 5-hour Test • LZ_WEST and HB_WEST lower than other LZ and HB prices • Loss of Jack County - Reno 138KV overloads Wise County - Bridgeport TU 138KV http://nodal.ercot.com 23

24. 5-hour Test • Two RN near constraint had negative prices http://nodal.ercot.com 24

25. 24-Hour Full-System Market and Reliability Test UpdateStacy Bridges http://nodal.ercot.com 25

26. 24-Hour LFC Update 24- Hour Full-System Market and Reliability Test • Timeline • The 24-Hour Test will be conducted Aug 3 – 5 (proposing a start time of 12pm on the day of the test) • Market Notices • A Market Notice will be sent July 26 to confirm the upcoming 24-Hour test scheduled for August 3 – 5 • A follow-up Market Notice will be sent two days prior to the actual test to confirm the specific date • A final Market Notice will be sent on the day of the test to confirm that the test will be conducted that day • On the day of the test, a hotline call will be made to communicate the start time of the test (approximately 2-3 hours prior to start) • A WebEx conference will be provided to allow Market Participants to monitor the Test—an email with WebEx details will be sent to Nodal Transition Project Managers the week of the test • ERCOT and Market Participant staff should be available and ready to field troubleshooting calls at 8am on the first day of the test • A System Wide VDI will be issued immediately prior to the start of the test http://nodal.ercot.com 26

27. 24-Hour LFC Update 24- Hour Full-System Market and Reliability Test (continued) • Proposed Tuning Windows • ERCOT system-tuning windows: • Window One: 4 – 6 PM (on the starting day of the test) • Window Two: 6 – 8 AM (on the ending day of the test) • Note: Any adjustments to the timing of these tuning windows will be communicated as the windows draw near • Market Participant system-tuning windows: • Proposing that MPs who wish to perform system tuning do so during times that do not overlap with the following test activities: • ZonalNodal /Nodal Zonal switchover activities • Operational scenarios • ERCOT system tuning windows http://nodal.ercot.com 27

28. 24-Hour LFC Update 24- Hour Full-System Market and Reliability Test (continued) • Operational Scenarios • Issue Non-Spin Deployments • ERCOT plans to issue Non-Spin Deployments to Generation Resources during the 24-Hour LFC Test • ERCOT will deploy a small MW quantity of Non-Spin to offline Generation Resources that have a zonal Non-Spin obligation during the test period • The Non-Spin will be deployed first in zonal and then will be deployed to the same QSEs/Resources in nodal • The scenario is expected to last approximately one hour • Hotline calls will be used to announce the start and end of this scenario • Simulate SCED Failure • ERCOT is proposing to remove this scenario from the list of Market Trials scenarios • ERCOT believes this scenario was sufficiently covered by the EMBP scenario conducted during previous LFC testing http://nodal.ercot.com 28

29. 24-Hour LFC Update Support from the Market Participants • Each Market Participant will need to have their experts on hand during normal business hours (8:00 am – 5:00 pm) each business day during the week of the test until the completion of the test • During the day of the test, the hours of support will need to be extended from 8:00 am on the test starting day until 12pm on the test completion day Day One of Test Day Two of Test http://nodal.ercot.com 29

30. 24-Hour LFC Update Support from the Market Participants (continued) • Support staffing for this testing should be reflective of the level of staffing that is planned for nodal post-go-live • Market Participants should staff as appropriate to manage Real-Time Nodal submittals and to address issues for the duration of the test • ERCOT staff will be contacting MPs during these hours as necessary to support ICCP, Market Submittals, LFC Day One of Test Day Two of Test http://nodal.ercot.com 30

31. 24-Hour LFC Update Requesting Updates to Nodal Contacts for 24-Hour LFC Test • QSEs with Resources are requested to review their Nodal Contact information as previously submitted per the Contact Declaration Form and make any necessary changes for contacts who will be supporting ICCP, LFC, Market Data Submittals • The current Nodal Contact Declaration Form v1.1 is available at http://nodal.ercot.com/readiness/rq/documents/index.html • Submit any updates or questions to nodalmarkettransition@ercot.com by 12:00pm on August 2, 2010 • In addition, please ensure that the contact information for your Real-Time desk is accurate so that the ERCOT Control Room can contact you as needed during the 24-Hour LFC Test http://nodal.ercot.com 31

32. 24-Hour Full System Market and Reliability Test RemindersDave Maggio http://nodal.ercot.com 32

33. 24-Hour LFC Update - REMINDERS Manual dispatch instructions during the LFC test • Beginning two hours prior to the LFC test, ERCOT will stop using OC1s and OOMEs and plans to use OC3s to manage congestion • The one exception to this is that ERCOT will use OC1s for the W-N and the N-H stability limit (non-thermal IROL for NERC) during transition periods to and from Nodal control • ERCOT has created and tested constraints for these limits in the Nodal system which can be activated for SCED as needed and should provide similar dispatch to the OC1s • ERCOT may be required to use Zonal manual dispatch instructions to solve congestion • ERCOT will set the Nodal Base-Point to match the Zonal manual dispatch instruction • The QSE will continue to follow the Nodal Base Point if they are still under Nodal control http://nodal.ercot.com 33

34. 24-Hour LFC Update - REMINDERS RSTs to be used during Ramp-Up / Ramp-Down • RST during Ramp-Up: • Between 0 MW and LSL, the telemetered RST should indicate online status • SCED will dispatch the Resource to its current output • Between LSL and HSL, the telemetered RST should reflect unit activity per the Resource Status Codes provided in the Nodal Protocols • RST during Ramp-Down (to OFF): • Use RST of “OFF” to take unit out of pool of Resources available for economic dispatch by SCED • This method is being suggested for purposes of LFC Testing and may not be the method used for nodal market go-live • RLC will set HDL/LDL that it passes to SCED such that the Resource will be ramped offline http://nodal.ercot.com 34

35. 24-Hour LFC Update - REMINDERS Non-Spin Deployment (Nodal and Zonal system) • If required, Non-Spin will be deployed from the Nodal system during the 5-Hour LFC Test (this is not a formal operational scenario for this test) • Zonal will also continue to deploy Non-Spin • When Non-Spin is deployed in one system, ERCOT will select the same QSE/Resources for deployment in the other system • QSEs are requested to keep their telemetered Resource Status Codes, Non-Spin Responsibilities, and Non-Spin Schedules in Nodal reflective of their Zonal Non-Spin obligation • After a Non-Spin deployment, QSEs must also update their Nodal EOCs, Output Schedules, Telemetered Resource Status Codes, and Resource Limits in preparation for Resources coming online so that SCED can dispatch Resources appropriately once they become available • The QSE should also adjust the telemetered NSRS Schedule in the Nodal system to reflect the Nodal deployment http://nodal.ercot.com 35

36. 24-Hour LFC Update - REMINDERS • Deployment of Balancing Energy Service (BES) Capable NSRS for Quick Start resources during the LFC test • Prior to the resource being asked to come online in Zonal, the QSE should: • telemeter a Non-Spin Schedule and Responsibility (NSSC and NSRS) of 0 • telemeter a resource status showing the resource as offline; and • telemeter an LSL of 0 • If the QSE receives an energy deployment in Zonal, the QSE should start that resource and telemeter a resource status of online (ON) as soon as they are capable • Once the resource is “ON” with net MW > 0, the resource will be available for SCED dispatch and the resource will be dispatched based on the energy offer curve • After the resource reaches it’s physical LSL, the QSE should reflect that value through the telemetered LSL and should leave it at that value • Once Zonal indicates that the resource should go offline, the resource should begin ramping down • When the resource goes offline, the QSE should update the telemetered resource status to offline and then change the telemetered LSL to 0 • The QSE also has the option to not provide BES-Capable NSRS during the hours of the test http://nodal.ercot.com 36

37. 24-Hour LFC Update • Market Participant EMS Wind Unit Data Note • Set Real-Time telemetered HSL value to current MW output per (NP 6.5.5.2(3)) • Additional detail was added to this protocol reference as part of NPRR 214 • If the Wind-Powered Generation Resource (WGR) is not being curtailed, the HSL should be set at the actual net output of the WGR • In event of curtailment (i.e., a SCED instruction at least two MW lower than the unit’s current MW output), the HSL should be set at the capability that the facility would have if it were not being curtailed • This estimate should be based on wind speed, power curves, and turbine availability • The QSE shall set the HSL within one SCADA cycle after receiving a SCED Base Point Dispatch Instruction from ERCOT • This will allow the QSE to more easily detect if the WGR must respond to a curtailment instruction http://nodal.ercot.com 37

38. 24-Hour LFC Update - REMINDERS • Deployment of Balancing Energy Service (BES) Capable NSRS for Quick Start resources during the LFC test • Prior to the resource being asked to come online in Zonal, the QSE should: • telemeter a Non-Spin Schedule and Responsibility (NSSC and NSRS) of 0 • telemeter a resource status showing the resource as offline; and • telemeter an LSL of 0 • If the QSE receives an energy deployment in Zonal, the QSE should start that resource and telemeter a resource status of online (ON) as soon as they are capable • Once the resource is “ON” with net MW > 0, the resource will be available for SCED dispatch and the resource will be dispatched based on the energy offer curve • After the resource reaches it’s physical LSL, the QSE should reflect that value through the telemetered LSL and should leave it at that value • Once Zonal indicates that the resource should go offline, the resource should begin ramping down • When the resource goes offline, the QSE should update the telemetered resource status to offline and then change the telemetered LSL to 0 • The QSE also has the option to not provide BES-Capable NSRS during the hours of the test http://nodal.ercot.com 38

39. Follow-up from 7/16 Real Time Market CallJeff Gilbertson http://nodal.ercot.com 39

40. SCED Step One, Step Two, and Mitigation Review • SCED Step One uses submitted Energy Offer Curve extended to LSL and HSL by proxy values • Example below shows extension assuming output range is 0MW to 100MW • Section 6.5.7.3 • Output of Step One is “Reference LMP” • Currently no transmission constraints (competitive constraints) in step one so all location LMPs are the same; could be anywhere based on what offer prices were submitted (-$250 to $2250) http://nodal.ercot.com 40

41. SCED Step One, Step Two, and Mitigation Review • Generic mitigated offer cap based on 10.5 or 14.5 times FIP or FOP; here shown as $42 http://nodal.ercot.com 41

42. SCED Step One, Step Two, and Mitigation Review • Generic mitigated offer cap based on 10.5 or 14.5 times FIP or FOP; here shown as $42 http://nodal.ercot.com 42

43. SCED Step One, Step Two, and Mitigation Review • Generic mitigated offer cap based on 10.5 or 14.5 times FIP or FOP; here shown as $42 http://nodal.ercot.com 43

44. Questions Q&A http://nodal.ercot.com 44