1 Update from ERCOT Retail Market Services to RMS November 13, 2003

1

Update from ERCOT Retail Market Services

to RMS

November 13, 2003

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Retail Market Update

Topics• Commercial Application Systems Review• Texas Market Link (PRP Phase 1) Update • Retail API Update• MIMO Stacking Solution V2.0 Update• Data Variance / SCR 727 Extract Update• FasTrak Day-to-Day Issues Progress Report• Pre-Texas SET 1.5 Data Clean-Up Progress Report• On-Going Data Clean-Up Update• ERCOT Proactive Clean-Up Measures (Vote)• Test Flight 1003 Update

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Commercial Application Systems Review PR-30082 Project Update

Project SponsorsJim Galvin

Kevin JudiceRichard Gruber

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Project History

• At the end of 2002 approval was received for 4 projects– PR-30058 Siebel 7.0 Upgrade/Replacement*– PR-30082 Commercial Application Systems Upgrade*

• Upgrades began on PaperFree and all SeeBeyond components as a result of their clear upgrade paths (PR-30082)

– PR-30083 LodeStar Upgrade/Replacement*• A functional review between LodeStar version 2.25 and 3.5

was conducted– PR-30110 Replace TCH*

• These same projects were approved for carry over to 2004

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Project Drivers

• Our recent history indicates our commercial systems:– Meet current business needs but not as efficiently as possible– Have been able to meet market design changes but are difficult to

implement– Require significant IT support to consistently meet market needs in the area

of processing times– Most upgrade options are ‘re-implementation’ with new versions and

upgrade path may not be straight forward– Significant data manipulation and calculation functionality written outside

of major systems• Without action, our outlook for our existing applications:

– May continue to incur a high total cost of ownership and risk of failure– Continued challenges to accommodate market driven changes

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ERCOT’s Architecture Review Approach

• The core systems that comprise and integrate commercial applications are all under evaluation

• ERCOT is developing a holistic set of functional and technical requirements– The requirements process includes representatives from both business and

IT to promote the discovery of similar cross functionalities and dependencies

• During this process ERCOT will be evaluating if there are existing applications that better meet ERCOT’s functional and cost of ownership requirements. The possible outcome might be:

• Modify existing• Replace• Upgrade• Build

Most likely a combination of these

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Project Timeline

• A vital element of this project is determining what other options are available and the cost of those options– Current focus is on requirements– By year end, ERCOT will send a Request for Information to

software vendors– Organize database of potential vendors and service providers– ERCOT expects to have a course of action defined early to mid

2004

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Summary of Project Vision

Remain obligated to support the ERCOT market with the right solution and best cost option to meet near-term needs and longer-term considerations

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Texas Market Link(PRP Phase 1)

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IT Update – Texas Market Link(Portal Replacement Project Phase 1)

• Initial Release : Weekend of October 4-5 • Backed-out : Monday, October 6• Next Planned Release: December 3

• Cause of Failure was a Technical Migration Issue:– Inconsistent Software Migration (installation issue) that surfaced

under loaded conditions Monday morning

• Implementation changes for next Launch– Different Migration procedures (hardware migration, not software)– Contingency/Back-out Communication Plan

• Providing Weekly Updates on Retail Conference Call

• Reminder that the website URL will change:– https://tml.ercot.com

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Retail API Update

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IT Update(API Issue and Redevelopment Efforts)

• API became corrupt/unrecoverable on October 3

• ERCOT Development team is developing new API program to replace old functionality

• Planned Release Steps:– Download of Report Functions- released November 11 (this week)

• Delivery was on schedule and currently has no reported issues.– Find ESI Id and Find Transactions- target first week of December– Find Market Participant Data- target second week of December

• Providing Weekly Updates on Retail Conference Call

• Reminder that the website URL for the API changed:– https://pi.ercot.com/servlet/piController – (old address was pi.ercot.com)

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Move-In/Move-Out Market Solution to Stacking (Texas Set V.2.0)

Presented by: Glen Wingerd

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• Testing Recommendations– Delivered 242 recommendations to TTPT for testing– Identified party/parties that need to test each

recommendation• ERCOT Only: 122• TDSP Only: 14• REP Only: 3• ERCOT and TDSP Only: 64• ERCOT and REP Only: 25• TDSP and REP Only: 0• ERCOT, TDSP, and REP: 14

– Ranked by Impact, Risk, and Volume– Developed a priority using a formula– Divided priority into 3 groups of High, Medium and Low

Market Coordination Team for the Solution to Stacking

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• Exception Processing– Conditions for exception processing

• 814_09 Rejects on Demand Cancels • 814_09s Not Matching Open Cancel• New ‘Cancelled with Exception’ Process• Non Response to New ‘Cancelled with Exception’ Process • Conflicting Response to New ‘Cancelled with Exception’

Process • Leapfrogging• TDSP Rejects for ‘008’ and ‘SBD’


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• Exception Processing– Overview

• Appropriate processing verified at ERCOT• FasTrak issue logged• Resolving party given specific number of days to resolve• Some Service orders are then cancelled• Escalation procedure used as appropriate• Metrics on exceptions and dispositions including MP names,

volumes, and time it took to resolve reported to RMS


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Project Overview

Summary of Changes:Manage customer expectations by accepting and processing all valid requests.

Impa

ct L

evel

Efficiency

Communication

Competition

Business Problem• Existing NFI logic forces an unreasonable amount

of dependency on labor intensive workarounds.• Execution of workarounds are causing

synchronization issues between market participants.

• Lack of synchronization leads to improper billing and mismanagement of customer expectations

Solution• All valid transactions will be accepted and

processed based on a set of market rules.• Drop notifications will be sent at a point in time

where the proper recipient can be positively identified.

• Rule based cancellations are sent on a pre-determined timeline with enough time for the recipient to react.

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Solution to Stacking

Production Implementation Timeline

1/12004

Oct. RMS

Production Implementation

Date:8/1/2004

7/72003

MIMO Task Force delivery of

PRR to PRS

7/312003

Texas SET Version 2.0

Final Baseline

10/12003

Market Coordination team

review of Production Processing Schedules

8/312003

TDSPs and ERCOT

Production Processing

Schedules due

11/142003

38 weeks

Details on ERCOT

exception processing

due

Draft Implementation

schedule and plan due

5/32004

7/232004

5/172004

10 weeks

Market Test

Testing checkpoints at

weeks 5 & 8

Final Implementation

schedule and plan due

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• Details on ERCOT Exception Processing Due 11/14/03 • Track Market Participant Progress• Develop Flight Test Plan

– Procedural Requirements – TTPT– Conceptual Requirements – Market Coordination Team *Done– Functional Requirements – TTPT Script Sub-Team– Monitoring Requirements – Stacking Testing Advisory Team

• Develop Production Implementation Plan• Develop Post-Implementation Success Criteria

Next Steps

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Thank-you

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Data Variance / SCR 727 Extract Update

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• ERCOT provided historical SCR 727 extract files (7/31/01 – 9/28/03) on October 6, 2003

• ERCOT refining the extract logic to ensure completeness of the data provided• Complete SCR 727 extract files to be provided by December 19, 2003• Several days needed for Market Participants to load complete data into their

systems• 120 Day countdown to the start of 2003 True-Up Settlements to begin on 1/1/04• 2003 True-Up Settlements to begin on April 30, 2004• Market Participants are already analyzing historical data provided to identify

variances• Market Participants have begun filing variances against the data received to date

SCR 727 Extract Status

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FasTrak Issue Status• Day-to-Day• Data Extract Variances (DEV)

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FasTrak 2003 “Day to Day”Issue Stats (as of 11-11-03)

• Of the 250 In Progress with ERCOT, 181 are resolved and awaiting other party resolution check off

• Total ESI IDs worked to date since January 1, 2003 = 256,048

STATUSIssueCount

Issues as a% of Total

New 39 0.32%In Progress (w/ERCOT) 250 2.05%In Progress (w/TDSP) 98 0.80%In Progress (w/CR) 73 0.60%Resolved 10,942 89.77%Rejected 787 6.46%

Total 12,189

IssueCount

Issues as a% of Total

New 1,706 34.89%In Progress 1,343 27.47%Resolved 1,754 35.88%Rejected 86 1.76%

Total 4,889

Non-ERCOT

ERCOT

• Of the 3,049 New and In Progress with Non- ERCOT, 13 are for the year 2002

• Number of ESI IDs not tracked

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FasTrak Data Extract VarianceIssue Stats (as of 11-11-03)

• Of the 45 In Progress, 29 are resolved and awaiting other party resolution check off

STATUSService History Usage

TotalIssues

Issues% of Total

New 0 0 0 0.00%In Progress (w/ERCOT) 45 0 45 2.63%In Progress (w/TDSP) 12 0 12 0.70%In Progress (w/CR) 34 0 34 1.98%Resolved 401 3 404 23.57%Rejected 1,187 32 1,219 71.12%

Total 1,679 35 1,714

Service History Usage

TotalIssues

Issues% of Total

New 3 4 7 0.28%In Progress 53 23 76 3.06%Resolved 385 597 982 39.58%Rejected 551 865 1,416 57.07%

Total 992 1,489 2,481

Non-ERCOT (CR to TDSP)

ERCOT

As a reminder:• On 10-11-03, 1,452 existing

ERCOT and Non-ERCOT issues for 2002 Trade Months were rejected with comment of “RMS directed close out of 2002 variances filed under the original extract process”

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Pre TX Set 1.5 Data Clean Up• Directive from RMS 07-17-03 Meeting• Pre TX SET 1.5 Status Report• Ongoing Transaction Clean-up Process

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Pre-TX Set 1.5 Data Cleanup

Background:ERCOT identified “In Review”, “Scheduled” and “Canceled with Exception with Meter Reads” that were not completed from early 2002 to April 11, 2003.

RMS Vote, July 17th, 2003:Recommend RMS direct ERCOT to completely clean-up by August 13th, 2003 the Pre-Tx Set 1.5 In Review, Scheduled and Cancel With Exception that have been identified and sent to the market participants which should include cancels with CR approvals. ERCOT will provide at August RMS full statistics involving market participants broken down per issue type. ERCOT is directed that if the TDSP provides file names, ERCOT will locate and re-process if it is a valid transaction. RMS directs the TDSPs and CRs to provide transactions or information necessary to achieve the completion of the data clean-up.

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Pre-TX Set 1.5 Data Cleanup

Mar-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03In Review AEP - - 0 0 0 0 0

CNP - - 0 0 0 0 0Oncor - - 6 0 0 0 0TNMP - - 6 0 0 0 0Total 16,188 207 12 0 0 0 0

Scheduled AEP - - 2,953 1,883 57 25 2

no completing CNP - - 1,215 530 93 10 0meter read Oncor - - 991 2,039 1,413 765 522

TNMP - - 994 2,186 418 127 95Shrylnd - - - 8 - 0 0Total 23,030 11,038 6,153 6,646 1,981 927 619

CWE AEP - - 31 31 0 0 0

w/ Meter Data CNP - - 694 697 620 251 0Identified as Oncor - - 624 624 4,365 72 72as "Need TNMP - - NR NR 260 2 2to Complete" Total Na 1,618 1,349 1,352 5,245 325 74

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Ongoing Transaction Data Clean Up• Clean-up Process Steps• Completed Items – Next Steps• Status Report

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Ongoing Transaction Data Clean-up

Clean-up Process Steps:1. ERCOT runs the query and defines the Action Items needed

a) In-Review with Meter Read: Notify TDSP and request 814_04/25 then transaction will complete. (Date Range equals or greater than 07/01/01.)

b) Scheduled No Meter Read: Notify TDSP and request 867 completing transaction. (Date Range equals or greater then 07/01/01.)

c) Cancel With Exception (CWE) with Meter Read: Notify CR and TDSP and find out if they thought the transaction had completed. If so – take corrective action. (Date Range is 04/12/03 to 08/31/03.)

d) Cancelled Permit Not Received with Meter Read: Notify CR and TDSP and find out if they thought the transaction had completed. If so – take corrective action. (Date Range is 04/12/03 to 08/31/03.)

2. ERCOT distributes the lists to MP who owe the follow-up action.3. MP Responds and ERCOT coordinates the clean-up activities.4. ERCOT to report Monthly to RMS.

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Ongoing Transaction Data Clean-up

Completed Items :• October 20, 2003: ERCOT sends out new lists to CRs and TDSPs• October 29, 2003: TDSPs send analysis to CR• November 4, 2003: CRs respond to TDSPs and coordinate final

response to ERCOT• ERCOT received responses from all TDSPs except Sharyland by

November 7th

Next Steps:• ERCOT to coordinate corrective actions to TDSP• ERCOT to Request RMS establish a completion deadline of 12-12-2003• ERCOT will continue to report progress at each RMS meting

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Ongoing Transaction Data Cleanup

Original Count 11/11/03

Original Count 11/11/03

In Review AEP 0 0 CWE AEP 3 2CNP 0 0 CNP 31 27

with Oncor 18 0 w/ Meter Data Oncor 37 37Meter Read Shrylnd 3 2 Identified as Shrylnd 8 NR

TNMP 5 0 as "Need TNMP 4 4Total 26 2 to Complete" Total 83 70

Scheduled AEP 2,432 277 CPNR AEP 149 46CNP 937 104 CNP 53 52

no completing Oncor 2,753 1,679 w/ Meter Data Oncor 46 46meter read TNMP 2 2 Identified as Shrylnd 0 0

Shrylnd 832 280 as "Need TNMP 0 0Total 6,956 2,342 to Complete" Total 248 144

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Customer Protection and 814_08 Issue• Background and Completed Items• Matrix and Progress Report• Other Status Items and Next Steps

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BackgroundERCOT has determined that there was an issue with the 814_08 manual-processing tool related to the cancel by customer objection process. While ERCOT systems were updated appropriately, 972 ESI IDs (spanning the August 2002 through July 2003 time frame) were identified where ERCOT has been unable to confirm that the TDSP was sent the 814_08 cancel.

Completed Items• All Scenario 1 instances that could be worked have been worked.

ERCOT has approximately 25 that need further clarification from TDSPs, and there are 45 new ones stemming from ACN response (ACN response was received 10/21)

• 41 FasTrak issues (including 7 new issues based on ACN’s response):─ 13 Resolved (spanning 16 switches)─ 20 In Progress (some dialog has occurred)─ 10 Not Started (no feedback) – 7 are “new” (ACN)

Customer Protection Period and 814.08

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TDSPLosing

CRGaining

CRTotal

Instances

CR Claiming

ESI ID Suggested Action CompletedIn

Progress

1 Completed Completed Completed 470 Gaining CRERCOT manually correct

rep of record history 400 70

2 Completed Canceled Completed 18 Both CRsERCOT create modified

inadvertent issue 3 15

3 Completed Completed Canceled 13 No CRERCOT create modified


4 Completed Canceled Canceled 8 Losing CRERCOT create modified


5 Canceled Completed Completed 8 Gaining CRERCOT create modified


6 Canceled Canceled Completed 38 Both CRsERCOT create modified


7 Canceled Completed Canceled 19 No CRERCOT create modified


8 Canceled Canceled Canceled 387 Losing CR No action necessary 387 NAUnable to categorize response 2 Totals 803 158Recent info - need to categorize 9Total Sent to Market 972

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Other Status Items• Matrix of FasTrak issues not yet resolved provided to RMS Chair/Vice

Chair on Nov 6th– included CR names• ERCOT has “processed” all email exchanges related to FT issues as of

11/10/03 • Concern that ERCOT is not being informed of “resolution” in some

cases.

Next Steps• 7 new ACN FasTrak issues – spanning 11 switches• ERCOT to continue to escalate missing responses• ERCOT to complete manual corrections by related to Scenario 1 (25

remaining instances + 45 new from ACN’s response) • CRs and TDSPs make decisions on outstanding FasTrak issues and

provide response to ERCOT


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Pro-Active Transaction Resolution Measures

867s Received on Canceled Service Orders

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SituationERCOT periodically receives 867_03 Finals and 867_04s for service orders that are Canceled in ERCOT systems. The Service Order Statuses that are considered Canceled are: Canceled (manually or concurrent processing), Canceled by Customer Request, Canceled by Customer Objection, Canceled Permit Not Received, Canceled with Exception, Unexecutable and Rejected by TDSP. This can indicate an out-of-sync condition between the TDSP and ERCOT.

Volume:For the month of October there were 439 meter reads received against canceled service orders. – Of those, 363 were for distinct global IDs. – 76 were duplicates – meaning ERCOT received both an 867_03F and 867_04 for

the same cancelled global. – In at least 1 case ERCOT received 3 867s for the same global ID.

Market Participants Affected:TDSPs, Competitive Retailers and ERCOT

867s received on Canceled Service Orders

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Timing and Implementation:• ERCOT initiated this process on November 7, 2003 and the first list

detailed to the TDSPs via FasTrak contained data for 867s received against Canceled Service Orders from November 1, 2003 through November 6, 2003.

• Each Friday thereafter, the list will contain items from the previous Friday forward.


Cancel ReasonMonth ofOctober

First Week November

867 Received Cancelled 240 13Against Customer Request 24 0Canceled Customer Objection 76 13Service Permit Not Received 41 6Order Cancelled w/ Exception 16 2

Unexecutable 24 1Rejected by TDSP 18 3Grand Total 439 38

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Proactive Measure:ERCOT will compile transaction data related to the situation described above and on a weekly basis submit an ERCOT initiated FasTrak issue with the TDSP identified as the Resolving Party.

The short description of the issue will read: 867s Received on Canceled Service Orders (867_RCSO). The long description of the issue will contain a request for the TDSP to review the Service Order and Transactions to determine if the service order was actually Canceled in the TDSP system.

The TDSP is to provide a response for each FasTrak line item within the issue spreadsheet:1. The service orders are Canceled in the TDSPs system - the TDSP should

update the FasTrak issue spreadsheet accordingly. No further action is necessary.

2. The service orders are Complete in the TDSPs system - identifying an out-of-sync condition with ERCOT. The TDSP would then initiate an effort to clear the out-of-sync condition. (see ERCOT proposal for resolving out-of-sync conditions)


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Considerations for clean-up of Out-of-Sync Situations :• CRs receive both completing and cancellation information on service

orders and should initiate an inquiry to the TDSP any time they see both on the same service order (they should not wait for this process)

• Additionally, CRs who submit an enrollment transaction receive a Service Order extract identifying the ERCOT Siebel status of the transaction

• Use of a “modified” Inadvertent issue process has not been a great success in the missing 08 clean-up effort

• Precise rules allow for definitive understanding of how each Market Player will respond but does not circumvent the ability for ad-hoc corrections


Cancel Reason Cancel ProcessCancelled CR requested with TDSP approval, Concurrent Processing, TDSP requestedCustomer Request CR submitted 814_08 to ERCOT and TDSP responded with 814_09 AcceptCustomer Objection Customer canceled switch via objection process, per ProtocolPermit Not Received Transaction timed out in ERCOT systems, per ProtocolCancelled w/ Exception Transaction timed out in ERCOT systems, per ProtocolUnexecutable TDSP responded with an 814_28 09, cancelled per ProtocolRejected by TDSP TDSP responded to 814_03/24 from ERCOT with 04/25 reject, cancel per Protocol

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ERCOT Proposal for Handling Out-of-Sync Conditions :

For: ▪ Canceled Canceled by Customer Request Canceled by Customer Objection Unexecutable Rejected by the TDSP

Process: The TDSP will cancel the service order in their system.

For: ▪ Canceled Permit Not Received Canceled with Exception

Process: When TDSP indicates service order should be completed, ERCOT will locate and reprocess transactions identified as sent by the TDSP to complete a service order. (May require TDSP to re-send transaction)

NOTE: FasTrak is the mechanism to handle exceptions to the above policy


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Pro-Active Transaction Resolution Measures

• Cancel with Exception (CWE) Report• Transaction Mapping Status Reject Report• Missing 867 Report

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Cancel With Exception (CWE) Report• If a TDSP does not send an 814_04/25/28 transaction within a timely

manner, the business process is Canceled automatically by ERCOT systems. The cancellations are known as Cancel With Exceptions.

• Report has been produced manually by ERCOT since February 10, 2003• Daily report provided to the TDSPs displaying those transactions that will

go CWE within the next 5 business days.• Report being automated for delivery to TDSPs via the ERCOT portal in

late December or early 2004 (Market Notice will precede roll-out)Volume:• For October ‘03, ERCOT notified TDSPs of 166 “Pending CWEs” Actionable Items:• TDSP to retrieve the report and provide missing response transaction

before CWE occurs• If TDSP identifies a discrepancy with the report, they should open a

FasTrak issue

Cancel with Exception (CWE) Report

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Transaction Mapping Status Reject Report• This report will provide a list to the TDSPs and CRs containing

information for inbound Transaction Mapping Status rejects (TX SET)• Report has been produced manually by ERCOT since mid 2002• Daily report provided to the TDSP or CR who submitted the transaction• Report being automated for delivery to MPs via the ERCOT portal in

late December or early 2004 (Market Notice will precede roll-out)Volume:• For October ‘03, ERCOT notified MPs of 3,682 Mapping Status RejectsActionable Items:• CRs and TDSPs to retrieve the report, correct their transaction and

resubmit• If MP identifies a discrepancy with the report, they should open a

FasTrak issue

Transaction Mapping Status Reject Report

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Missing 867 Report • The Missing 867 Report will provide TDSPs information about Service

Orders in a scheduled state for which ERCOT has not received an 867 completing transaction at least seven days after the scheduled meter read

• This item is a part of the Pre-TX Set 1.5 clean-up and the Ongoing Transaction Clean-up efforts

• Weekly report provided to the TDSP • Report being automated for delivery to TDSPs via the ERCOT portal in

late December or early 2004 (Market Notice will precede roll-out)Volume:• On 11/6/03, ERCOT identified 7,946 instances where the current date was

more than 7 days after the scheduled meter read date (Approx 60% are scheduled for September/October 2003)

Actionable Items:• TDSPs to retrieve the report and provide 867 completing transactions• If TDSP identifies a discrepancy with the report, they should open a

FasTrak issue

Missing 867 Report

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Flight Testing Status Report

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Flight 1003 Status Report

Progress:• Frame 1 – complete• Frame 2 – on schedule• A total of 3 frames for testing• Flight scheduled to conclude – 12/05/03

Issues that will be brought back to TTPT for next flight• CM101 script

– Expected results need to be refined– Some MP used different forms (TMA vs. TMI)– Two TDSP had some difficulties with the 814_20s.

• Scheduled meter read dates on a couple of scripts need to be pushed into the correct frame of testing.

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Flight 0104 Announcement

Flight 0104 will test for TX SET Version1.6

Testing is required for New Market Participants entering the Texas Retail Market.

Current Market Participants entering new service territories, testing additional business functionality, or adding another entity to their business umbrella will need to test in Flight 0104.

Market Participants participating in Flight 0104 will test with GISB EDM

v1.4, but will also be required to support NAESB EDM v1.6 in another environment for concurrent test processing. The NAESB EDM v1.6 transition is scheduled for implementation April 3, 2004. .

The deadline to register for participating in Flight 0104 Retail Market

Testing is December 10, 2003.

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Flight 0104 Announcement

ERCOT will host an orientation meeting in preparation for Flight 0104 TX SET Version 1.6 Retail Market Testing. This meeting will be held on Wednesday, December 3, 2003, from 10:00 AM – 3:00 PM CST at the Hilton Austin Airport.

The orientation meeting will include an overview of the market, as well as additional examples of test scripts, to better prepare New Market Participants for testing within a test flight.

The orientation meeting is mandatory for New Retail Market

Participants. New Market Participants include New Competitive Retailers (CRs) entering the Market, and/or New Municipal or Cooperative TDSPs opening their territory/entering the Market.

Current Market Participants entering new service territories, testing additional business functionality, or adding another entity to their business umbrella are welcome to attend the orientation meeting.

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Questions ?

Documents

1 Update from ERCOT Retail Market Services to RMS November 13, 2003