July 7, 2008TPTF

Texas Nodal Market Implementation:- Market Readiness Metrics Update

Jerry Sullivan

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Agenda: Market Readiness Metrics Update

• Status Update– ERCOT Staff Readiness– Market Participants

• Cycle 4 Survey Update• Metric Update

– EDS

• Appendix (see separate file)

• Metrics Review (see separate file)

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Status Update

All status levels for overall readiness remain the same

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ERCOT Readiness

• Engagement (green)• new survey results came out at the end of

June - ERCOT remains fully engaged

• Training (amber)• training efforts are on-going

• Process (amber)• one department in System Operations is

behind performance levels

• Staffing (amber)• ERCOT is currently ~95% staffed

(98% required for green status)• recruitment is on-going

• Testing (green)• no recent developments

ERCOT Staff Readiness status is AMBER

15 July 2008 ERCOT Public

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Market Participant Readiness

Market Participant Readiness status is AMBER

• Engagement (amber)• limited survey response from QSEs and LSEs

drives amber status

• Connectivity (green)• several new entrants to the market have been

successfully tested

• Registration and Qualification (amber)• MP10 (resource mapping) has, again,

improved steadily since the last meeting• MP11 (RARF data) – only 5 RARFs have not

been received (RARFs representing more than 99.5% of MWs have been submitted)

• Telemetry (green)• no change

• Training (amber)• limited survey response from QSEs drives

amber status

• Trials Participation (green)• improvement in MP15 (EDS 3 trials

participation)

15 July 2008 ERCOT Public

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Cycle 4 Survey Update

• There were varying degrees of response to the Cycle 4 Survey

– QSEs with Resources and TDSPs had 100% response to the Cycle 4 Survey– 87% of QSEs have responded to the survey (up from 72%)

– 81% of LSEs have responded to the survey (up from 67%)

• This limited response is driving several metrics to red– QSEs without Resources are red for MP1, MP12, and MP13– LSEs are red for MP19

• ERCOT Account Managers will continue their outreach efforts to MPs who were non-responsive to the Cycle 4 Survey or who reported negative answers

• The survey will remain open through August 15th

• Updates to the Cycle 4 Survey can be submitted using the excel form found on the metrics website (same process as previous surveys)

Cycle 4 Survey Data was reported on the scorecards on June 12th

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Metric Updates

• Metrics will be updated on a weekly basis

• Changes will appear on the scorecard on Wednesday afternoon

• You will be notified Tuesday or Wednesday morning if you will be going red

• Contact us if you notice any inconsistencies

• Survey data will now be stockpiled and updated on a weekly basis

• There will not be a “Wall of Shame” in the Board presentation next week

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Status Update: EDS

• EDS 1 (green) no changes

• EDS 2 (red) state estimator convergence values were consistently higher last week EMO12 (Network Operations Model and SE Performance) is now amber

approximately 71 unobservable buses (less than 2%)

• EDS 3 (amber) Maintained amber status CRR5 (Trial Operation of Annual CRR Auction during Trials) expected to go amber 7/11

• EDS 4 (red) waiting on EMS 5 delivery to proceed with EMO3 (Verify Outage Evaluation System Functionality) site fail-over test scheduled for 7/8

EDS status remains unchanged since the last meeting

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Questions ?