Texas Nodal Program: Market Readiness Metrics Update

1. Texas Nodal Program:Market Readiness Metrics Update Mike Beck TPTF

2. Agenda • Status Update • ERCOT Staff Readiness • Market Participants • EDS • Cycle 4 Survey Update • Action Items from May 22nd TPTF Meeting • Metric Revisions/Interpretations • Appendix (see separate file) Texas Nodal Program Update

3. Status Update There have been positive and negative changes since the last meeting: ERCOT Staff Readiness: greenamber (–) Market Participant Readiness: red amber (+) UPDATE CLOSER TO THE DATE Texas Nodal Program Update

4. Status Update: ERCOT Staff Readiness ERCOT Staff readiness status is AMBER • Engagement (green) • New survey results came out at the end of May - ERCOT remains fully engaged • Training (amber) • completion target is August 31, 2008 • 3 departments in the IT division are behind scheduled training levels • Process (green) • updated weekly • completion target is August 31, 2008 • Staffing (amber) • RAG rule based on June 1st date (requires >95% staffing for green status – ERCOT is currently ~92% staffed) • recruitment is ongoing • Testing (green) • no recent developments Texas Nodal Program Update

5. Status Update: Market Participants Market Participant readiness status is AMBER,driven by MP10 and MP11 • Engagement (>95% green) • will be updated June 12th when Cycle 4 Survey is scored • Connectivity (>95% green) • no change • Registration and Qualification (amber) • MP10 (Resource Mapping) • ~12 resource entities still need to submit initial data (as of 5pm 6/3/08) • MP11 (RARF Submissions) • ~99.5% of MWs have been reported (as of 5pm 6/3/08) • Both MP10 and MP11 are amber based on new interpretations of the metrics (see next slides) • Telemetry (green) • no change • Training (>95% green) • will be updated June 12th when Cycle 4 Survey is scored • Trials Participation (>95% green) • no change Texas Nodal Program Update

6. Market Participants: MP10 Metric Interpretation MP10 (Mapping of Resources to Resource Nodes and Resources to EPS Meters) has been interpreted as Amber based on a review of completion dates and the RAG rules for Target 1 Texas Nodal Program Update

7. Market Participants: MP11 Metric Interpretation MP11 (Registration Activities) has been interpreted as Amber based on a new interpretation of the RAG rules and the fact that submitted RARFs represent close to 100% of MWs in the market Texas Nodal Program Update

8. Status Update: Wall of Shame The following Resource Entities are RED for MP11 (Registration Activities), meaning they have not submitted a completed RARF at this time • Texas Big Spring (Gen.) • Post Wind Farm (Gen.) • Capricorn Ridge Wind (Gen.) • Capricorn Ridge Wind II (Gen.) • Eagle Energy Partners (Load) • Bass Enterprises Production (Load) Texas Nodal Program Update

9. Status Update: EDS EDS status remains unchanged since the last meeting • EDS 1 (green) • no changes • EDS 2 (red) • monitoring telemetry data from MPs to ensure data is of the quality needed for the state estimator to converge within the TAC approved tolerances • progress made with EMO12 (Network Operations Model and SE Performance)Initially there were 338 unobservable buses - now there are only 80continuing to work with TSPs to fix remaining issues • EDS 3 (amber) • successfully completed EMO6 (QSE Response to Dispatch) • EDS 4(red) • waiting on EMS 5 delivery to proceed with EMO3 (Verify Outage Evaluation System Functionality) • working with MPs to connect to new hardware to satisfy N2.2 (ERCOT Telemetry/ICCP System Failover) Texas Nodal Program Update

10. Cycle 4 Survey Update Survey Monkey has closed for the Cycle 4 Self-Reported Survey • Updates to the Cycle 4 Survey can be submitted using the excel form found on the metrics website (same process as previous surveys) • ERCOT Account Managers will continue their outreach efforts to MPs who were non-responsive to the Cycle 4 Survey or who reported negative answers • Cycle 4 Survey Data will be reported on the scorecards on June 12th • Metrics MP1 (engagement), MP12 (EDS 3 related training), MP13 (EDS 4 related training), and MP19 (LSE engagement) will be impacted by this survey • Limited response so far; may impact overall MP status at next TPTF meeting Texas Nodal Program Update

11. Action Items At the last TPTF meeting there were several items we committed to research and to report on, including: • Communication with QSEs • Red Status: updates done on a consistent schedule, email for Wall of Shame only • Wall of Shame: email prior to publication, chance to remedy/contact us (complete) • Resource Entities • Wall of Shame: as shown for MP11; not linked to QSEs • Access to RE data/forms: ERCOT cannot intervene, but MPs can solicit • MP11 • Scoring (Market Segment) Interpretation: previously described • QSE Exclusion from EDS Testing (i.e., LFC): only the non-responsive REs will be excluded • RARF Data Review Plan: Dana to discuss later today • MP10 • Reporting: Dana to discuss later today • EDW • Extracts Delay: Delay is 5 weeks due to limited testing space Texas Nodal Program Update

12. Metric Revisions and Interpretations Anticipated nodal program schedule modifications provide the opportunity to review all metrics to ensure a consistent application of status criteria Reasons for revisions include the following: • Inaccurate Target Completion Dates • E7, E10, E11… • Metric Categorization • CRR2, CRR4… • RAG Rules • MP14, MP15, MP16… • Phase 2, Further Testing • MP10, MP11… Texas Nodal Program Update

13. Questions ? Texas Nodal Program Update