Texas Nodal Program

1. Texas Nodal Program Raj Chudgar CIM UG Meeting

2. Agenda

3. About ERCOT • Grid covers 75% of Texas’ land and serves 85% of Texas’ load • 38,000 miles of +60kV transmission lines • 750 miles of 345kV lines added since 1999 • ~4000 miles of transmission lines over the next 5 years • 70,000 MW of total resources • 26,000MW of generation added since 1998 • ~4000 MW/yr of new generation over the next 5 years • 63,056 MW peak load (8/17/2006) • 5400 Bus Model • ERCOT is a single control area with no seams issues • ERCOT has 3 pairs of DC ties • ERCOT has roughly 2000 model changes per year • Roughly 70% are rating changes • Remaining 30% are topological changes ERCOT

4. Texas Nodal CIM UG Meeting

5. The ERCOT Nodal program is driven by PUCT Order and requirements developed with Market Participants • The principal binding document (the ERCOT Nodal Protocols signed into Order, Docket #31540) established the requirements for the Nodal Program: • The scope of ERCOT Nodal • The implementation date by (1/1/09) • ERCOT Nodal Protocols comprised of 1588 unique protocol sections and ~650 pages of text • Market Participants established the ERCOT Nodal Transition Plan, which sets requirements for approach and implementation: • Requiring Market Participants review of all business requirements and design documents provides transparency in development • Creating the market trials sequence and requirements for Early Delivery Systems (EDS) to enable Market Participants to test and gain confidence in the new systems and processes • Establishing comprehensive training curriculum enables Market Participant and ERCOT staff readiness

6. Market Redesign – Going Nodal in a nutshell Zonal Market • Insufficient price transparency • Resources grouped by portfolio • Indirect assignment of local congestion • 5 CMZ Zones Nodal Market • Improved price signals • Improved dispatch efficiencies • Direct assignment of local congestion • 4000 Nodes

7. ERCOT Challenge is unique in North American Interconnected Grids Texas consumers and market participants expect benefits similar to that of other ISOs in the Nodal market, but ERCOT differs significantly in technical protocols, governance, organizational structure and economic landscape.

8. In addition, ERCOT is moving from a relatively simple vendor and application model under Zonal… Current Application Vendors Business and Engineering Model Mid Term Day Ahead Real Time Settlement CM&M Market Operations MP Registration Genesys OS Load F MOS S&B Integration TML EMS EDW • B&S Billing & Settlements • CRR Congestion Revenue Rights • CM&M Credit Monitoring & Management • DAM Day-Ahead Market • EDW Enterprise Data Warehouse • FT Financial Transfer • IMM Independent Market Monitor • LF Load Forecast • MIS Market Information System • MP Reg Market Participant Registration • NMMS Network Model Management System • OS Outage Scheduler • RUC Reliability Unit Commitment • SCED Security Constrained Economic Dispatch QSE Systems IMM User Interface Power Operations

9. …to a more complex model under Nodal… Nodal Application Vendors Business and Engineering Model Mid Term Day Ahead Real Time Settlement CM&M Market Operations MP Registration NMMS OS CRR Load F RPPF DAM RUC SCED S&B Integration Architecture and Design by UISol/ TBD for build vendor MIS EMS EDW • B&S Billing & Settlements • CRR Congestion Revenue Rights • CM&M Credit Monitoring & Management • DAM Day-Ahead Market • EDW Enterprise Data Warehouse • FT Financial Transfer • IMM Independent Market Monitor • LF Load Forecast • MIS Market Information System • MP Reg Market Participant Registration • NMMS Network Model Management System • OS Outage Scheduler • RUC Reliability Unit Commitment • SCED Security Constrained Economic Dispatch QSE Systems IMM User Interface Power Operations

10. … which requires the majority of ERCOT systems to be replaced or upgraded… Business and Engineering Model Mid Term Day Ahead Real Time Settlement CM&M Market Operations MP Registration NMMS OS CRR DAM RUC SCED LF RPPF Commercial Applications Integration (information bus) MIS EMS EDW • B&S Billing & Settlements • CRR Congestion Revenue Rights • CM&M Credit Monitoring & Management • DAM Day-Ahead Market • EDW Enterprise Data Warehouse • FT Financial Transfer • IMM Independent Market Monitor • LF Load Forecast • MIS Market Information System • MP Reg Market Participant Registration • NMMS Network Model Management System • OS Outage Scheduler • RUC Reliability Unit Commitment • SCED Security Constrained Economic Dispatch QSE Systems IMM User Interface Power Operations Integration Architecture is being upgraded to improve flexibility and maintainability

11. Network Model and Management System (NMMS) CIM UG Meeting

12. The Big Picture

13. ERCOT’s CIM Catalyst NMMS - Key Requirements • Time-based modeling • A change that will happen in 5 months can be modeled today. • A model that represents 5 months in the future can be created today. • Generate all models for all processes (and Vendors) • Repository for all model information • Both full and incremental CIM files • Accept incremental modeling updates. • Submitted by the Market Participants (TSP, QSE, LSE)

14. NMMS High Level Architecture Network Operation Model Planning Model • Network operation and Planning use a single platform with multiple applications and business processes to generate models • Single set of user interfaces for submitting changes for Market Participants • Single application architecture allows for “soft” coupling of application systems.

15. NMMS Scope and Value Proposition • NMMS High Level Scope Summary: • Consistency between Operations and Planning models • Streamlined method of entering modeling changes • Common Industry Standard Format for submitting and posting model data, to eliminate a significant amount of manual work • Faster, more efficient method of loading models and ability to provide multiple time-based models • Improved tracking of model changes • Value Proposition: • Nearly every ISO in the US is looking to update its network model solution to reduce cycle time and improve accuracy. • ERCOT’s solution is being viewed as the “next step” for the industry.

16. Consistent Network Model • Traditional network modeling practices are for planning and operations organizations to use separate topological representations • ERCOT Nodal Protocols states that Planning models must be consistent with Operations models. • ERCOT will convert Operations models to Planning models on a time basis, including approved future based changes • ERCOT Nodal Protocols cause major changes in network modeling culture, which will effect many current business practices

17. Common Data Entry • Most ISO/RTOs have manual processes to obtain changes to the network model • Causes lengthy cycle time for data validation • Causes infrequent modeling updates • Causes many modeling errors • ERCOT NMMS system will provide Transmission Service Providers and ERCOT staff with the capability to submit changes to the network model electronically • Additionally, NMMS will perform initial validation on connectivity, equipment uniqueness, and basic constraints to reduce errors

18. Automated Model Conversion • Requires ERCOT to transfer and convert Operations modeling (Breaker level) data to Planning (Bus-Branch level) data • Requires business process in adding new equipment into the network model and conversion of the new equipment to planning models • Requires fast performance • NMMS solved this by creating a back end API to convert Operations models to Planning models

19. Time Based Models • Capability to provide time based models on a consistent basis • Sending the same model to multiple destination applications for any future date • NMMS is a single model generating solution for all downstream applications at ERCOT. • NMMS can create both CIM/XML and PSSE file formats

20. ERCOT CIM – Namespaces and Profiles • Required non-CIM attributes must be added to a separate namespace • There are 3 namespaces that make ERCOT CIM • CIM • SPC – Siemens • ETX – ERCOT

21. ERCOT Common Information Model (CIM/XML) CIM UG Meeting

22. CIM Common Information Model (CIM) • CIM is… • An information model that describes real-world objects and their interrelations within the electric power industry • A format for exchanging information • Why is it important? • Provides a standard way of depicting data • Enables the integration of multiple applications and vendors • Facilitates bulk and incremental model exchange

23. ERCOT started with CIM 11 v00 as its baseline ERCOT also knew that there were MANY items there were not defined in CIM 11 ERCOT developed a process to close on all outstanding CIM extensions The process is ongoing and will continue until ERCOT Nodal market is implemented (end of 2008) CIM EXTENSION PROCESS Invited all ERCOT vendors to participant in discussions around extensions Vendors developed preferential solutions based on their application ERCOT facilitated disagreements Vendors with ERCOT created Rose diagram of the extension with associations ERCOT added the information to “ERCOT CIM” ERCOT published a new “ERCOT CIM” baseline once a month ERCOT CIM Definitions and Process

24. ERCOT CIM Data Dictionary • The result of developing “ERCOT CIM” with all ERCOT vendors was the ERCOT Data Dictionary • The ERCOT Data Dictionary is a worksheet containing the following sections: • Classes • Attributes • Associations • Data Types • Each section, has separate columns delimiting information required for that element. For example, the “Class” section has the following columns: • Package • Path • Inheritance Path • NameSpace • Documentation

25. ERCOT CIM Consumption • ERCOT CIM is classified for each of the following application areas: • Emergency Management System (EMS) • Outage Scheduling (OS) • Outage Evaluation (OE) • Operation Training Simulator (OTS) • Market Management System (MMS) • Planning • Congestion Revenue Rights (CRR) • Settlements and Billing (S&B)

26. Summary Statistics (to date) • ERCOT CIM is a consistent methodology to integrate the network model with downstream application systems. • However the integration can only be successful if all the extensions are well defined and tested • Numerous new packages defined: ETXContingency, ETX, ETXLoadModel, ETXMonitoring, ETXNetwork, ETXPlanning, ETXRating, ETXRegulation, ETXSCADA, etc • Roughly 300 new Classes • Roughly 1000 new Attributes • Roughly 300 Associations • Roughly 70 Data Types defined • Roughly 150 Data Type enumeration defined • ERCOT is continuing to work with all vendors to ensure that the extensions will work in downstream applications (e.g. EMS, MMS, etc)

27. Summary • Within Nodal, the “cornerstone” for the new market is the new Network Model and Management System (NMMS) • With the new NMMS system ERCOT has a number of technical and cultural challenges that it faces during implementation. • ERCOT has worked with all of its vendors (partners) to reduce the technical and implementation risks. ERCOT is excited that the future of NMMS will be what all ISOs will look to develop

28. Summary • ERCOT CIM extensions have been sent to the IEC for evaluation and incorporation into the CIM standards • ERCOT believes that many of the CIM extensions that are proposed can be adopted through all ISO/RTOs to create an “ISO Operational CIM” • ERCOT believes that by incorporating the ERCOT CIM standards ISO/RTO will have a platform to start developing vendor independence • IEC standardization will also significantly drop the maintenance cost for ISO Operational CIM BOTTOM LINE:ISO develop an Internationally accepted Operational CIM standard will create vendor independence for Network Modeling tools and downstream systems as well as significantly reduce maintenance costs and improve network modeling performance