SERC System Operators Conference Spring - 2000

1. Tagging – Origins and DirectionMonroe LandrumManager - Operating Systems (SOCO)Transaction Information System WG SERC System Operators Conference Spring - 2000

2. Why Do We Need to Tag? • To exchange transaction information between the marketing entities and the system operators and Security Coordinators – the original purpose of tagging!! • Facilitates check out of schedules between Control Areas – everyone operating off the same page • To understand what is flowing on the transmission system – security analysis • To have better information for calculating ATCs • To feed the IDC – in case TLRs are needed

3. A History Of Tagging • In the Beginning… • Systems operated autonomously • Interchange between adjacent control areas began with the first tie lines • As systems continued to interconnect, management of energy interchange became more complicated, including wheeling • The emergence of open access further complicated interchange management

4. Interchange - Plain and Simple A B

5. Interchange - With Wheeling A B Y X

6. Interchange - Open Access A B Y M1 X M2 M3 M4 M5

7. Interchange Tagging A B Y M1 X M2 M3 M4 M5

8. History of Tagging • 1996 – NERC Interconnected Operations Subcommittee (IOS) begins designing Tag format • January 1997 – Transmission Reservation and Scheduling Workshop – tagging form unveiled

9. WSCC – Dealing with Parallel Flows C E D A B Y X

10. History of Tagging • March 1997 – Security Coordinator Subcommittee (SCS) and Operating Committee (OC) initiate Transmission Loading Relief Procedure (TLR) • July 1997 – Spreadsheet tagging begins • Interim Interchange Distribution Calculator goes into service in EI • June 1998 – NERCTag e-mail tagging software becomes available

11. Who Gets the Tag • Sending and Receiving Control Areas • Transmission Providers

12. History of Electronic Tagging • Sept. 1998 – IOS & SCS sponsor Constrained Path Method of TLR resolution • Not enough tags getting into iIDC to administer – particularly next hour tags • No confidence in marketplace of tag disposition • More transactions – two sample CAs have 500% increase over last four years • Sept. 1998 – Transaction Information System Working Group (TISWG) formed to develop E­Tag for service by May 1999

13. History of Electronic Tagging • Dec. 1998 – E-Tag Functional Specification (V1.0) issued • February 1999 – E-Tag testing begins, Tagmart held in Dallas • March 1999 – OC charges TSC with go / no-go decision on E-Tag implementation

14. May 18 Initial Schedule June 17 Interoperability Problems July 24 Interoperability Problems August 7 System security during severe operating conditions of Summer September 22 Implementation History of Electronic Tagging • Multiple Postponements

15. Purchasing-Selling Entity Agent Service Tag Database IDC Notify Implemented Sink (Load) Control Area Authority Service Security Coordinator Notify Approve or Deny Tag submitted by Agent Service Transmission Providers and Control Areas on Scheduling Path Approval Service Transaction approved for implementation Flow of an E-Tag

16. Initial Tagging Statistics IMPLEMENT: 50,912 62% CONDITIONAL: 23,645 29% CANCELLED: 4,175 5% TERMINATED: 3,443 4% Total IDC Tags: 82,175 2 Vendor Sample 9/22/99 through 11/5/99

17. E-Tag Implementation Successes • As smooth or smoother than OASIS startup • Systems didn’t crash and burn • Expected some technical glitches – corrected on the fly by vendors • Number of tags in IDC increased – • 800-1,200 / hour before • 2,000 + / hour now • More hourly transaction tags

18. E-Tag Implementation Problems • Not everyone was ready or trained – despite numerous testing sessions • Many unfamiliar with Time Zone GUI • Level of integration to back-room systems varied • E-Tag more exacting than old system • Tags rejected for misspelling, punctuation, etc. • Spotlight on varying business practices of CAs and TPs

19. Policy and Business Practice Issues for E-Tag • Who has approval rights? • Active / Passive Approval by CAs / TPs • Default Denial • What is implication for failing to meet assessment / approval obligation? • Default Approval • Is the power flowing? • Should the tag be forwarded to IDC?

20. Policy and Business Practice Issues for E-Tag • Referred to Market Interface Committee • Meeting on November 17-18 • Recommendations to NERC Interconnected Operations Subcommittee (IOS) • Policy 3 – Interchange Implications • Security (Operations) Committee to address

21. Policy and Business Practice Issues for E-Tag • Should the distribution of the tags to PSEs in the chain be required or optional? • No-Tag, No-Deal – what constitutes a tag • Tag Approval timing issues • Can CAs and TPs require additional information on a tag above the requirements of Policy 3?

22. Version 1.X Features • Replacement Function • Correction Function (delayed denial) • Adjust Function • MRD Changes • Backup Systems • Tag Distribution • Pertinent Parties in Eastern Interconnection • ALL parties – for WSCC

23. What’s Next? • E-Tag Version 1.5 • TIS Cache • Market Redispatch (MRD) – Summer 2000 • Next Hour Market – Tie in with OASIS • WSCC Implementation

24. TIS Cache • Developing the functional specifications for TIS Cache over next few months – need WSCC input • Can be shared repository for East and West • Some features: • Download capability • Archive / audit capability • Query capability • Possible WSCC site

25. Version 1.X Features (cont.) • Use of CANCEL by TPs and CAs is proposed to be removed – use of ADJUST function • Passive Approval continued • Security improvements

26. Next Hour Market • Proposed by MIC Working Group • Filed with FERC • Simultaneous request for transmission and schedule • Tie to OASIS • Proposed for Summer 2000 • Voluntary Participation