october 23, 2007 tptf meeting texas nodal program update jerry sullivan program director, market...

October 23, 2007TPTF Meeting

Texas Nodal Program Update

Jerry SullivanProgram Director, Market Redesign

2Texas Nodal Program UpdateOctober 23, 2007 2

CostScheduleScope / Quality

Legend

Summary

Overall program status remains amber

Green

Effort being made to keep costs to $263 Million. Latest forecast as of Oct

5 is between $273 and $280 with continuing effort being made on

efficiencies and finding savings without jeopardizing quality issues.

Amber Amber

Currently fully aligned with

protocols

Red

Amber

Green Estimate at Complete = <$263m

Estimate at Complete = < $263m + 10%

Estimate at Complete = >$263m + 10%

Go-live = 12/1/08

Go-live = <30 days+

Go-live = >30 days+

Program is aligned with current protocols

Program is aligned to previous protocol version

Program is not aligned to protocols

Concerns over key upstream deliverable slippage.

Looking to optimize sequence of releases into Early Delivery Systems.

Scope/Quality

Nodal

Cost

ScheduleScope/Quality

Schedule

Cost

Nodal Delivery

Amber

Current product quality is not sufficient for Nodal launch

Most Nodal products currently achieve quality standards

All Nodal products currently achieve quality standards

Resolved IDA and Integration Test PM losses;

reduced leadership

concerns over future quality.


ERCOT Staffing including Nodal contractors, employees

0

100

200

300

400

500

600

700

800

900

ALL STAFF FTEs Nodal Charges Nodal > 60% Spec ial Case

Nodal Contractors on - site

Employees not on Nodal

Nodal Hours less than 60%

Numbers are approximate as of September 2007

Key Nodal Critical

100100

300

100- 200

250

25+


Classification of individual assessments

Classification Description of Typical Employee Situation in this Type

Type 1 Those that state that they are here for Nodal only, and are at risk for leaving

Type 2 On Nodal, but whose job was backfilled by an employee. At risk because job future is fairly uncertain

Type 3 On Nodal, but whose job now is clear, but reporting relationship, and new Nodal job clarity is needed.

Type 4 In support, admin, or staff, or, but whose future job maybe uncertain, but who is needed for go live.


Worksheet Used in ERCOT Executive Session

Type 1 Only wants to stay for Nodal, not beyond go live. At risk because they could go at any time.Type 2 On Nodal, but whose job was backfilled by an employee. At risk because job future is fairly uncertainType 3 On Nodal, but whose job now is clear, but reporting relationship, and new Nodal job clarity is needed.Type 4 In support, admin, or staff, or, but whose future job maybe uncertain, but who is needed for go live.

EmployeeCurrent Grade Current Title

Critical to Project

1=Highest, 5 Lowest

Nodal Program Director's

Assessment of Flight Risk % Nodal

Intervention Retention Category

Up Grade Level

Title Change/ Promoti

onSalary

IncreaseReporting

Relationship

New Nodal Job post - Go

Live

Vacation Carry-over

Hour Worked Straight

Time

Bonus, may need

to be universal

INDIVIDUAL / SPECIFIC OVERALL


Program

Director

EMS MMS NMMS MERMISCRRCOMS EIPINTINF EDS

IDA/

NSAPC

EDWReal

TimePortal Training TPTF

Network

Design Authority & Nodal System Architecture

Program Controls

Raj Chudgar, and a small team

ERT

$Energy Mgmt

System

Market Com-mercial

Enter prise Data Ware-

house

Early D

elivery

System

ER

CO

T Readiness

Contractor Employee

Nodal Program (New updates in Red)

Infrastructure

Enterprise Integration

1

2 3Judy Ply

(Contractor) Proposal being evaluated

Integrated TestMkt E

ngagement

Market P

articipant Training$

New changes/

updates$ = November request (board template)

Legend

TPTF Slide for October 23, 2007


Top Items discussed at Executive Forum

Resourcing•Quality of Life and Work environment issues

– identified top items to address for managing current attrition trends-priority planning session held between nodal and human resources executive team-Presenting options to Executive Committee on October 22, 2007

•Shorten length of On boarding process•Effective deployment and re-deployment strategies to meet nodal staffing demands•Procurement Review of rate card

•Timeline•‘Co-location’ possibilities for reducing communication issues and cycle times

-Improving working relationships-Co-authoring effective solutions

•Identified several opportunities to improve best practices for code delivery:-Separate new development from ‘bug’ fixes-Identify causes for large number of work-arounds and revise processes to solve-Optimize releases with workload

•Integration and Testing•Low level of interaction between vendors, MPs, and project staff does not foster sharing expertise and content knowledge

-Work with MPs as experts for testing and SoSA prioritization

TPTF Slide for October 23, 2007

Executive

Management

Emphasis

Conducting

a series of

Workshops

Revitalizing

Testing

Team


Results will be exposed via the Readiness Scorecard, transparent to all, this week

• First round of self reporting completed by ERCOT leadership

• Analogous to existing reporting by Market Participant “Accountable Executives”

• “Initiation” gaps relate to completion of business impact assessment

• All areas have committed to being ready for the trials using Early Delivery Systems

ERCOT Engagement Status


• Overall ERCOT Readiness on track

• Non-market-critical departments in CFO and Information Technology organizations have not yet completed training

• These departments’ training status is pulling ERCOT’s overall score yellow

• ERT team is working with the yellow departments to catch up on training

Drill-down to department-level metrics available on the Readiness Scorecard this week

ERCOT Readiness Update


Market Readiness Update – Scorecard

• http://Scorecard.ercot.com

• Accountable Executive login available from ERCOT Client Service

• We are measuring Market Participants across a wide range of metrics, spread over the appropriate timeframe on the Nodal Delivery Schedule.

• The tool allows drill-downs to visualize ` Market Participant-specific data

The second round of MP self reporting begins in late October


Market Participant & EDS Metric Highlights October 18, 2007

Market Participant Engagement = Amber based on July Survey results. New survey planned the end of this month

Metric measuring QSE with Resources connectivity to EDS environment 100 percent complete on time and on plan.

Metric measuring QSE with Resources submission of SCED to EDS environment 100 percent complete on time and on plan.

ICCP Point to Point Telemetry testing nearing completion slightly behind plan. Plans in place for all remaining MPs to complete testing:

Tenaska, Denton, and Xtend ready to test and waiting for ERCOT to be available to test this week

RCEC - Rayburn to test week after next Austin Energy using a temporary workaround until they get

systems in place. N1 EDS Readiness metric yellow until 95 percent point-to-point

completion metric met


EMS Delivery Recovery Update

• Improved Dates– EMS 3c (R 6.2) From March 1st to Feb. 15th

– EMS 4 From Feb. 22nd to Feb. 15th

• Added Staff– Added William Malcom (Partial Wei Liu Replacement )

– Added Jim Randolph, AREVA Support Person Dedicated To EDS• 2nd Position Under Evaluation To Be Filled.

• Current Improvement Actions In Process– Reviewing Advantages Of Consolidating Remaining Deliveries To

Single Program Delivery Per PMO • No Advantage At Project Level

– Moving Pre-FAT & FAT Activities To Multi-Shift Cycles

– Shift Hours To match Time Zones

– Exchange Staff To Improve Long Pole Activities

– Extending KEMA Staff Through June 2008

12Texas Nodal Program UpdateOctober 23, 2007


EDS Schedule Update

# Topic Solution/Action

1 EDS 1 Start: 6/4/07End: Revised to Oct 30th for 99% Revised to Nov 15 for 100%

• Confidence in achieving the milestone is High: 95% complete with P2P, with 4% error rate

2 EDS 2 State Estimator and TelemetryStart: 9/4End: 12/31/07

• EDS 2 R 3, SE tuning activities started on 9/7 as planned• TAP estimation to be reconfigured / software corrected by end of EDS 2 Release 3• ICCP clean up of 20-25% of Nodal generation is yet to occur

3 EDS 3 Nodal Registration Data UpdateStart: 10/15/07End: 10/31/08

• Started EDS 3 Release 5.2 as planned on 10/15• EDS environment (MMS and EIP) upgrades to production hardware• Updated Registration data in MMS based on RARF submissions

3 EDS 3 EMS interfacing with SCED Start: 8/24/07End: 7/15/08

• Confidence in achieving the milestone (11/1) is medium (EMS to MMS)• Preparing for testing the EMS – MMS interface for SCED. Working through data and environment issues currently• Delivery of SCED reports, confidence is medium – MIS team working with EMS, MMS and EIP to ensure delivery

of reports

4 EDS2 R4 NMMS NOMCRStart: 11/1/07End: 3/31/08

• Confidence in achieving the milestone is low, with known challenges (initial data load from AREVA, Hardware, Software variances)

• ERCOT Network Model yet to be loaded into NMMS without significant errors• Phase 1c delivery at end of Sept 2007 being pushed to late Oct; Defining testing approach to leverage system

functionality in the order it’s delivered • Lack of hardware to start EDS phase


Nodal Budget Update

Var. (o)/u Var. (o)/uCost Element Budget Actual Budget Budget Forecast Budget

Internal Resource Costs $ 17.7 $ 19.4 $ (1.7) $ 36.7 $ 42.2 $ (5.5)

External Resource Costs 43.9 42.0 1.9 71.5 86.3 (14.8)

Vendor 37.4 31.3 6.1 56.4 65.1 (8.7)

Hardware / Software 44.1 51.9 (7.8) 58.8 54.9 3.9

Taxes and Other 5.4 5.2 0.2 7.6 8.7 (1.1)

Subtotal $ 148.5 $ 149.8 $ (1.3) $ 231.0 $ 257.2 $ (26.2)

Facilities Allocation 3.2 2.0 1.2 6.4 4.1 2.3

Contingency - - - 15.0 - 15.0

Total Nodal Program $ 151.7 $ 151.8 $ (0.1) $ 252.4 $ 261.3 $ (8.9)

Finance Charge - 4.4 (4.4) 10.6 10.6 -

Total $ 151.7 $ 156.2 $ (4.5) $ 263.0 $ 271.9 $ (8.9)

ERCOT - Nodal ProgramCost Element Summary - September 2007

($ Millions)

Life to Date (LTD) Estimate at Complete (EAC)


Top Items identified at Executive Forum

Resourcing

•Quality of Life and Work environment issues -Identified top items to address for managing current attrition trends-Priority planning session held between nodal and human resources executive team-Presenting options to Executive Committee on October 22, 2007

•Shorten length of On boarding process•Effective deployment and re-deployment strategies to meet nodal staffing demands•Procurement review and revision of rate card

Timeline•‘Co-location’ possibilities for reducing communication issues and cycle times

-Improving working relationships-Co-authoring effective solutions-Best ways to implement

•Identified several opportunities to improve best practices for code delivery:-Separate new development from ‘bug’ fixes-Identify causes for large number of work-arounds and revise processes to solve-Optimize releases with workload

Integration and Testing•Low level of interaction between vendors, MPs, and project staff does not foster sharing expertise and content knowledge

-Work with MPs as experts for testing and SoSA prioritization

october 23, 2007 tptf meeting texas nodal program update jerry sullivan program director, market...

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