Texas Nodal Market Implementation

Metric Sub GroupReadiness Advisor

January 30, 2006

Metric Sub GroupReadiness Advisor Contacts

Readiness Advisor Team Contacts:

• Don McCormick– dmccormick@ercot.com– 360.608.1142

• Jesse Harmon– jharmon@ercot.com– 732.610.6404

Metric Sub Group AGENDA

• Introductions• Quick Overview of Readiness Advisor

Activities• Readiness Advisor Progress To Date• Metric Sub Group Activities & Proposed

Schedule• Detail Review of Nodal Metric Map• Review of Participant Comments

Metric Sub GroupReadiness Advisor Responsibilities

Responsibilities of the Readiness Advisor

• Metric Development Phase - Current:

– Facilitate the development of metrics with the Metric Sub Group and Business Managers (metric owners) as designated by the TPTF and ERCOT

• Metric Verification Phase - Future:

– On an ongoing basis and using the developed metrics as a baseline, examine the evidence submitted for each Metric and render the decision of when the Metric has been verified as met. Follow up with interviews, operational observations and systems operational observations where deemed necessary

– Follow up with ERCOT on any outstanding questions or issues that are preventing the completion of Metric verification

– Provide regular periodic (monthly) readiness assessments to the TPTF and ERCOT

– Produce regular interim reports that cover all milestones and metrics, providing information such as (and not limited to), any observed issues potentially impeding progress

– Produce an Executive Report prior to the start of major market milestones (i.e. EDS-1, EDS-3) and send the report to all stakeholders in advance of its final presentation

– Produce an Executive Report prior to the transition of the zonal market to the nodal market with a detailed statement of readiness and send the final report to all stakeholders in advance of its final presentation

– Provide presentations on readiness to the TAC, TPUC, TPTF and ERCOT as requested

Metric Sub Group Readiness Advisor Progress to Date

• Metric Development Phase

– Where we left off• The presentment of the Metric Framework was re-scheduled to this date from the first week in January

– Proceeded to meet with Metric assigned ERCOT Business Directors and Business Managers (Metric Owners):

• Conducted numerous (14+) Business Director / Manager (Owner) meetings presenting the proposed Metric Map and straw-man Metric Definition documents for discussion

• Most metrics have been assigned to Business Managers (owners)

– Metric Development Underway• High level approach to metric definition underway pending TPTF approval of the Metric Framework

– Metric Framework• Metric Map• Metric List

– Protocol Gap Analysis

Metric Sub Group Overview

The primary mission of the Metric Sub Group (MSG) is to provide oversight and direction for the Readiness Advisor Initiative

as it applies to the Texas Nodal Market Transition.

• The prime responsibility of the MSG is the ongoing oversight of the Metric Framework to include:– Vetting the concept of the metric for presentation to the TPTF. This will

ultimately result in a vetted metric map for presentation to the TPTF.– Vetting the Metric Definition Documents and any subsequent revisions for

presentation to the TPTF. A Metric Definition Document describes the intent of the metric, the timing and actions that must be completed and the identification of the sources of evidence to justify when the metric has met completion. It is assumed that new metrics will be submitted from time to time for the life of the Readiness Advisor Initiative

• The MSG should consist of market participants (ideally at least 2) from each of the market segments and an ERCOT representative

• The Readiness Advisor shall chair and provide administrative and

technical support to the MSG. The Readiness Advisor Team will not be a voting member of the MSG.

Metric Sub GroupOverview

• The MSG shall meet (optionally in-person and Webex) beginning Wednesday January 30, 2007 on a day designated by the MSG members (suggested bi-weekly).

• The MSG shall provide the TPTF with updates of its activities.

• Immediate items for the MSG to address:– Address the proposed metric categories/list for approval /

revision

7) Contngncy Plan for Backup Facility

6) Contngncy Plan for SE Failure

2) Contngncy Plan for HRUC/LMP Failure

5) Contngncy Plan for SettlementFailure

4) Contngncy Plan for SCED Failure

1) Contngncy Plan for W/D RUC/LMP Failure

3) Contngncy Plan for ICCP Data Failure

5) Verify Credit Calculations

1) Develop Stakeholder Basic Training

2) ERCOT Staff Completes Training

6) Price Protection Mechanism

2) Market Monitor Data Access

1) Market Monitor Systems Capability

1) Telemetry Point Validation

10) MP Completes Training

3) Telemetry Functionality

2) Telemetry Value Validation

19) Test Time Transitions

4) Verify ERCOT Performance Monitor Plan

3) Settle a RUC/SASM DAM Market

2) Resolve Disputes of the 168 Hour Test

4) Zonal/Nodal Coordinated Settlement

1) Settle Market for 7 Days

5) Verify RT Settlement Statements

3) Develop CRR Test Plan

4) Implement TCR to CRR Transition Plan

12) MP Validation of Nodal Data Extracts

2) Develop TCR to CRR Transition Plan

5) Verify Outage Scheduler Operation

3) Verify Voltage Support Functionality

5) QSE Submit DA Bids and Offers

9) QSE Frequency Run

6) Verify Outage Eval SystemFunctionality

11) Verify ACE Performance

7) Run 168 Hour Test

8) Regulation Communica-tion Test

14) Conduct EECP Tests

10) QSE Load/Freq/Reg test

15) Validate Security Analysis Sequence

2) Validate Net Security Analysis

1) Validate Trans Constraint Mgt Func

12) QSE Response to Dispatch

20) Post RT Information

4) Verify Ops of Dynamic Ratings Processor

14) Verify LMP Reasonable-ness

13) Verify Basepoint Generation

8) Operate DA Market for 7 Days

4) Verify DAM Test Plan

6) Verify DA Market Convergence

7) Verify DAM Ancillary Services

9) Operate Market with RUC

1) Develop W/D/H RUC Test Plan

15) MIS Compliance Test Plan

11) Verify MP Offer Inputs

10) Verify Supplementl Ancillary Services

6) Validate SE Accuracy

16) QSE Submit RT Offer Curves

5) Validate SE Performance Availability

12) Verify SCED Functions

2) Verify RUC Functionality

2) Telemetry Value Validation

1) Telemetry Point Validation

4) Verify Constraint Accuracy

10) ERCOT Training Development

3) Telemetry Functionality

8) MP Registration Activities

9) Market Trials MP Participation

6) MP DAM Transactions

5) MP AP & RTM Transactions 13) Verify

Load Forecast Accuracy

7) Nodal SAS 70 Preparednes

4) MP Use of MIS

1) Nodal Readiness Declaration

11) QSE / CRR Account Agreements Signed

3) Verify MIS Functionality

11) Develop Nodal Market Guides

8) Contngncy Plan for Portal/API Failure Plan

7) MDMA Process

13) Verify QSE Performance Monitoring Test Plan

14) Verify TSP Performance Monitoring Test Plan

15) MP Qualification Activities

3) Develop MP Training Plan

9) Validate EDW Access / Accuracy

3) Execute Monthly CRR Market During Trials

5) Execute Season / Anl CRR Market During Trials

8) Develop Nodal Operating Guides

12) Verify New Facilities Construction Complete

14) ERCOT Staffed for TN Operations

13) ID TN Critical Path

4) Market Monitor SAT

3) Market Monitor Receives Software

7) Generate Models and Update all DBs

CONTINGENCY (C)

ERCOT INTERNAL (D)

MARKET MONITOR (IMM)

MARKET PARTICIPANTS (MP)

COMMERCIAL (CO)

CONGESTION REVENUE RIGHTS (CRR)

MARKET MANAGEMENT (MMS)

ENERGY MANAGEMENT (EMS)

NETWORK MODEL MANAGEMENT (N)

Border Legend:

EDS 1 EDS2EDS 3 EDS 4

SYSTEMS

Texas Nodal Market Implementation

Readiness AdvisorMetric Map

Metric Development

January 25, 2007

DRAFT

Metric Received by RA

Metric LTA

Metric Approved

Metric Defined

Metric Verified

Metric Late

Metric in Definition

Metric Fill Legend:

(E)

Metric Sub GroupMetric List

Metric Sub GroupMetric Definition Document – Example -

Metric Sub GroupNext Steps

Immediate Next Steps:

• Vet current list of proposed metrics for presentation to TPTF. This will result in a MSG sponsored presentation of the Metric Framework (Map), to the TPTF