Market Trials General Reminders / Updates

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Market TrialsGeneral Reminders / Updates

Weekly Update

September 24, 2010


Antitrust Admonition

ANTITRUST ADMONITION

ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.

DISCLAIMER

All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.


Full Market Trials Agenda

• General Updates and Reminders

• Outage Scheduling

• Congestion Revenue Rights

• Credit / Settlements

• Day Ahead Market / Reliability Unit Commitment

• Real Time Market

• Nodal Cutover Update

• Question and Answers / General Discussion

ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call

offline

Market Trials 2010 Roadmap



Day-to-day operations summary: Planned / Unplanned Outages of Market Trials

• Planned Outages– 09/24/2010

• MMS application patch deployment are being planned during later half of the day. Users may experience intermittent timeout errors submitting market transactions via MM UI and EWS

• Unplanned Outages

– 09/17/2010 03:00 P.M. – 09/19/10 09:00 P.M.• MM UI was unavailable during this time period for an emergency security patch

deployment.– 09/22/2010 09:45 A.M. –10:15 A.M. & 02:00 P.M. – 02:30 P.M.

• Users may have experienced timeout issues in submitting market transaction via EWS and MM UI. Root cause of issue is currently being investigated.

• Network Model Load Date– 09/30/2010 – Will occur during the 36-Hour LFC test


General Update / Reminders

• GREDP Results for the 48-Hour Test• Results will complete distribution to QSEs today

• Reminder: ERCOT will be performing system maintenance on several systems from 10/1 – 10/11. – During this time, system availability will be contingent on the

maintenance being performed– ERCOT will communicate additional Market testing for mid / late

October in the coming weeks

• Reminder: Market Readiness Seminar #7– Will occur in place of next week’s Friday Market Call (10/1/2010)– WebEx and Dial-in is unchanged– Presentation materials will focus on the upcoming Cutover activities

• Reminder: QSEs to attest to having the proper resources and expertise to manage a Nodal system for 7 days during the 168-Hour test– Email this to [email protected] – Deadline for submitting is 9/30/2010


Market TrialsOutage Scheduling

No update for this week

September 24, 2010


Market TrialsCongestion Revenue Rights

Weekly Update

September 24, 2010

Known Issues

• Topology Processor (software that creates the PSS/E file from the Network data) does not export the outages to CRR’s PSS/E file – CRR team has a workaround by using the TCR PSS/E file with

outages and augmenting it for the CRR application– Update: Fixed. This was not only a code change, but a procedure

change as well. The outages file shows line outages – however, the Topology Processor wants the breakers and switches instead of the lines. We currently believe that we will be using the ‘normal’ model build procedure for the December model from the Topology Processor.

• Most recent build from vendor updated a parameter that caused the Counterparty credit limit editor page to be disabled. Vendor has fixed the issue, and the patch is scheduled for release in early October.


What is the CRR Schedule of Activities from now until Go-Live?

Day Date Activity Comments

Wednesday 9/1/2010 ERCOT posts CRR Activity Calendar to MIS

Wednesday 9/8/2010 NOIE’s must have proof of ownership in to ERCOT by 5:00pm CPT

Thursday 9/23/2010 ERCOT CRR Group begins validation of Generation Resource Capacity of approved ownership for Generation Resources or Long-Term Contractual Agreements

Monday 10/1/2010 ERCOT initializes and validates CRR Production Database static data, Market Participant data, Time of Use data, Calendar Period data, system parameters, etc.

Wednesday 10/13/2010 ERCOT CRR team prepares contracts and entitlements for 2010 December Allocation and loads into CRR system

Thursday 10/14/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2010 December Monthly CRR Auction 1

Tuesday 10/19/2010 PCRR Nomination for the 2010 December Monthly CRR Allocation must be received by ERCOT at 17:00:00 CPT 2

15 Business Days prior to the opening of the auction Section 7.4.2 (c)(i)

Tuesday 10/26/2010

ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly CRR Auction 310 Business Days prior to the opening of the auction Section 7.4.2 (c)(i)

ERCOT shall post CRR Network Model for the 2010 December Monthly CRR Auction 4Post no later than 10 Business days before the auction Section 7.5.3 (1)(i)(i)

Friday 10/29/2010 ERCOT shall post the 2010 December Monthly CRR Auction Notice 5Not less than 10 days before each monthly CRR auction Section 7.5.3.2 (1)

Friday 11/5/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 January Monthly CRR Auction 1 5 Days from acceptance date



Day Date Activity CommentsMonday 11/8/2010 CRR Auction Lock Date for 2010 December Monthly CRR Auction at 17:00:00 CPT 6

Lock Date Section 16.11.4.6.1 (1)

Tuesday 11/9/2010 CRR Auction Bid Window Opens at 00:00:01 CPT for the 2010 December Monthly CRR Auction 7

Thursday 11/11/2010 CRR Auction Bid Window Closes at 23:59:59 CPT for the 2010 December Monthly CRR Auction 8

Friday 11/12/2010

ERCOT starts the Execution of the Auction Engine for the 2010 December Monthly CRR Auction 9 Auction Engine Starts

PCRR Nomination for the 2011 January Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2


Monday 11/15/2010

ERCOT posts 2010 December Monthly CRR Auction results to Market at 01:00:00 CPTERCOT creates Common Download files for CRR Auction Results by 8:00am CPT 10

Post Auction Results Section 7.5.3.1 (1)

ERCOT sends auction results at 01:55:00 CPT to Settlements & Billing and Credit for 2010 December Monthly CRR Auction 11

Tuesday 11/16/2010

CRR releases the Locked Auction Funds for 2010 December Monthly CRR Auction at 17:15:00 CPT 12

ERCOT releases locked auction funded

Settlement & Billing creates a 2011 January CRR Auction Invoice and sends in out electronically prior to 23:59:59 CPT 13

S&B issues invoices Section 9.8(1)

Friday 11/19/2010

2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14Invoices due Section 9.9.1(1)

ERCOT shall allocate PCRRs to NOIEs for the 2011 January Monthly CRR Auction 3


ERCOT shall post CRR Network Model for the 2011 January Monthly CRR Auction 4

Post no later than 10 Business days before the auction Section 7.5.3 (1)(i)(i)

Monday 11/22/2010 ERCOT due to pay out to CRR Account Holders that are owed from 2010 December Monthly CRR Auction 15

Money owed to CRR AH paid Section 9.9.2(1)



Day Date Activity CommentsFriday 11/19/2010 2010 December Monthly CRR Auction Invoices are due to ERCOT by 17:00:00 CPT 14

Invoices due Section 9.9.1(1)

Wednesday 11/24/2010 ERCOT shall post the 2011 January Monthly CRR Auction Notice 5

Not less than 10 days before each monthly CRR auction Section 7.5.3.2 (1)

Tuesday 11/30/2010 CRR sends Daily Ownership Data to MMS at 1:55am for 12/1//2010 Day Ahead Market

Wednesday 12/1/2010 Go Live Date

Friday 12/3/2010 ERCOT will start accepting PCRR Nomination at 08:00:00 CPT for the 2011 February Monthly CRR Auction 1

Monday 12/6/2010 CRR Auction Lock Date for 2011 January Monthly Auction Closes at 17:00:00 CPT 6Lock Date Section 16.11.4.6.1 (1)

Tuesday 12/7/2010CRR Auction Bid Window Opens at 00:00:01CPT for the 2011 January Monthly Auction 7

ERCOT shall post CRR ownership as of 11/30/2010 Section 7.5.5.2

Thursday 12/9/2010 CRR Auction Bid Window Closes at 23:59:59 CPT for the 2011 January Monthly CRR Auction 8

Friday 12/10/2010

ERCOT starts the Execution of the Auction Engine for the 2011 January Monthly CRR Auction 9

PCRR Nomination for the 2011 February Monthly CRR Auction must be received by ERCOT at 17:00:00 CPT 2



Market TrialsSettlements

Weekly Update

September 24, 2010


DAM Settlement Overview for September 14 (168 hour Test Date)

Statement and Invoice Overview

• 155 Statements/Invoices posted to QSEs

• 64 Statements/Invoices posted to CRRAHs

• 0 QSEs received Statements/Invoices for $0

CRR Overview

• CRRs were derated

• Constraint – 6557__A• Contingency – Sdowdow8• Constraint – CKT_985_1• Contingency – DMCNMAG8

• There were no CRR Shortfall Charges

General Reminders/Updates

• Submit any questions/issues about statements, invoices, extracts or calculations to [email protected]

Day Ahead Energy Sales -$14,367,589.47Day Ahead Energy Purchases $14,882,408.29PTP Obligation Bought in the DAM $75,853.14Day Ahead Congestion Rent $590,671.96

Day Ahead Make Whole Payments -$2,170.37Day Ahead Make Whole Charge $2,170.32

Non-Spin Reserve Payment -$235,248.47Non-Spin Service Charge $235,248.28

Regulation Down Payment -$115,191.66Regulation Down Charge $115,191.86Responsive Reserve Payment -$745,913.79Responsive Reserve Charge $745,913.81Regulation Up Payment -$329,736.03Regulation Up Charge $329,736.06

Day Ahead Obligation $77,547.02Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$469,601.13Day Ahead Option with Refunds -$208.98Short Fall Charges to CRR Owners $0.00Balancing Account Credit $198,408.87

Day Ahead Ancillary Services

Day Ahead CRR

Operating Date 09/14/2010 DAM Settlement Totals

Day Ahead Energy

Day Ahead Make Whole


DAM Settlement Overview for September 15 (168 hour Test Date)





CRR Overview

• CRRs were derated

• Constraint – PEARSALL_69_4

• Contingency – Speasan8




Day Ahead Energy Sales -$15,622,722.11Day Ahead Energy Purchases $16,163,476.81PTP Obligation Bought in the DAM $39,701.52Day Ahead Congestion Rent $580,456.22

Day Ahead Make Whole Payments $0.00Day Ahead Make Whole Charge $0.00






Day Ahead CRR


Day Ahead Energy



DAM Settlement Overview for September 16





CRR Overview

• CRRs were not derated




Day Ahead Energy Sales -$15,103,809.16Day Ahead Energy Purchases $15,462,190.23PTP Obligation Bought in the DAM -$12,601.30Day Ahead Congestion Rent $319,830.52







Day Ahead CRR


Day Ahead Energy








CRR Overview





Day Ahead Energy Sales -$56,405,678.05Day Ahead Energy Purchases $84,905,063.05PTP Obligation Bought in the DAM $1,005,953.78Day Ahead Congestion Rent $28,270,510.04




Day Ahead Obligation -$6,161,883.14Day Ahead Obligation with Refunds $0.00

Day Ahead Option -$8,356,531.99Day Ahead Option with Refunds -$2,023.21Short Fall Charges to CRR Owners $0.00Balancing Account Credit $13,750,071.70


Day Ahead CRR


Day Ahead Energy








CRR Overview


• There were CRR Shortfall Charges



Day Ahead Energy Sales -$13,876,441.28Day Ahead Energy Purchases $14,281,915.70PTP Obligation Bought in the DAM -$28,558.62Day Ahead Congestion Rent $376,915.80







Day Ahead CRR


Day Ahead Energy



RTM Settlement Overview for Sept 8

Statement Overview

• 204 Statements posted to QSEs

• 4 Statements posted to CRRAHs

• 7 QSEs received Statements for $0

General Reminders


Real-Time Energy Imbalance -$35,705.97

Block Load Transfer Resource $0.00

Real-Time DCTIE import -$490,646.52

Real-Time DCTIE export $64,368.42

Real-Time Congestion Payment or Charge $112,843.21

RMR Day-Ahead energy Sale Real-Time Value Market Total $342,450.18

Real-Time PTP Obligation -$747,102.36

Real-Time Revenue Neutrality Allocation $1,086,774.67

Base Point Deviation Charge $900,450.52

Base-Point Deviation Payment -$900,450.73

Real-Time Option -$332,966.14

Real-Time Option w ith Refund -$15.22

Real-Time CRR Ow ners Shortfall Charges $0.00

Black Start Service Payment -$14,502.44

Black Start Service Charge $14,502.75

RMR Standby -$74,660.16

RMR Energy $0.00

RMR Adjustment Charge $0.00


Day-Ahead energy revenues total for RMR units -$406,147.57

RMR Unexcused Misconduct Charge $0.00

RMR Service Charge $10,962.72

RUC Claw back Charge $750.58

RUC Claw back Payment -$750.20

RUC Decommitment Payment $0.00

RUC Decommitment Charge $0.00

RUC Make-Whole Payment -$2,137.66

RUC Capacity-Short $2,135.34

RUC Make-Whole Uplift Charge $1.00

ERCOT System Administration Charge $407,972.86

QSE Nodal Surcharge Fee $367,000.83

RUC

Administrative Fees

Black Start

RMR

Real-Time CRR

Operating Date 09/08/2010 RTM Settlement Totals

Real Time Energy

Base Point Deviation


RTM Settlement Overview for Sept 9 (168 hour Test Date)

Statement Overview




General Reminders


Real-Time Energy Imbalance $6,898,412.92


Real-Time DCTIE import -$7,669,304.67



RMR Day-Ahead energy Sale Real-Time Value Market Total $0.00


Real-Time Revenue Neutrality Allocation $29,748.57

Base Point Deviation Charge $5,516,728.65

Base-Point Deviation Payment -$5,516,728.65







RMR Energy $0.00



Day-Ahead energy revenues total for RMR units $0.00



RUC Claw back Charge $16,084,699.48

RUC Claw back Payment -$16,084,698.94



RUC Make-Whole Payment -$82.51

RUC Capacity-Short $82.24




RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders









Real-Time Revenue Neutrality Allocation -$256,125.66









RMR Energy -$83,213.12

RMR Adjustment Charge $914,030.23














RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders






Real-Time Congestion Payment or Charge $149.17








Real-Time CRR Ow ners Shortfall Charges $1,903.31





RMR Adjustment Charge $1,648,705.35




RMR Service Charge -$1,489,940.49

RUC Claw back Charge $6,407.68

RUC Claw back Payment -$6,407.29








RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders























RMR Service Charge -$142,998.56

RUC Claw back Charge $311,131.80

RUC Claw back Payment -$311,131.74



RUC Make-Whole Payment $0.00





RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy




Statement Overview




General Reminders










Base Point Deviation Charge $377,608.22

Base-Point Deviation Payment -$377,607.51

Real-Time Option -$1,115,970.31

Real-Time Option w ith Refund -$3,807.81











SASM Responsive Reserve Payment -$147.50

Responsive Reserve Failure to Provide Charge $0.00

Real Time Responsive Reserve Adjustment Charge $147.54





RUC Make-Whole Payment $0.00


RUC Make-Whole Uplif t Charge $0.00



RUC

Administrative Fees

Black Start

RMR

Real-Time Ancillary Services

Real-Time CRR


Real Time Energy


Week in Review

• 168 Hour Operating Days (9-9 through 9-15)– All DAM Statements and Invoices have posted

– 9-14 RTM Initial Statements will post today, 9-15 will post on Monday, 9-27

• 9-17 was a No-DAM date. Testing DAM failure Operational Scenario

• 9-2 and 9-3 Operating Days were not supposed to be supported Operating Days, but RTM Initial Statements were posted. DAMs were run internally, so there is DAM Market Input Data (such as DAES, DAEP). QSEs will have issues shadowing Real Time Energy Imbalance for those dates since they don’t have the DAMCODE extracts that show the Day Ahead Records.

• Manual process for recovering missing TWTG was implemented on 9-15 for Interval Ending 96



Next Week’s Activities

Next week is the last week that Statements, Invoices and Extracts will be posted

Calendar Date 9/24/2010 9/25/2010 9/26/2010 9/27/2010 9/28/2010 9/29/2010 9/30/2010DAM Statements & Invoices(Operating Day) 9/22/2010 9/23/2010

9/24/20109/25/20109/26/2010 9/27/2010 9/28/2010

DAM Extracts(Operating Day) 9/21/2010 9/22/2010 9/23/2010

9/24/20109/25/20109/26/2010

RTM Initial Statement(Operating Day) 9/14/2010

9/15/20109/16/20109/17/2010 9/18/2010

RTM Initial Extract(Operating Day) 9/12/2010 9/13/2010 9/14/2010

9/15/20109/16/20109/17/2010 9/18/2010

InvoicesOctober CRR Auction Invoice RTM Invoices

RUC Short Fall Totals during 168 Hour Test


BILLDETERMINANTCODE RUCID TOTAL HE 21 HE 22RUCMWAMTRUCTOT 18 -20.38 -20.38RUCMWAMTRUCTOT 20 -62.13 -62.13RUCCSAMTTOT 82.24 62.13 20.11

RUCSFTOT 18 27,492.03RUCSFTOT 20 29,325.91# QSEs short 91 92

Min SF 0.85 0.20Max SF 9,286.02 8,742.85Average SF 322.26 298.83

9/9/2010BILLDETERMINANTCODE RUCID TOTAL HE 10 HE 16 HE 17RUCMWAMTRUCTOT 8 -1,688.04 -1,688.04RUCMWAMTRUCTOT 12 -500.00 -250.00 -250.00RUCCSAMTTOT 2,188.04 1,688.10 249.94 250.00

RUCSFTOT 8 17,663.97RUCSFTOT 12 22,884.51 23,120.44# QSEs short 83 101 103

Min SF 0.11 0.30 0.32Max SF 2,187.62 3,128.25 3,154.61Average SF 212.82 226.58 224.47

9/10/2010

BILLDETERMINANTCODE RUCID TOTAL HE 7 HE 8 HE 9RUCMWAMTRUCTOT 12 -42.39 -14.13 -14.13 -14.13RUCCSAMTTOT 42.33 14.06 14.16 14.11

RUCSFTOT 12 17,962.26 17,567.09 19,076.00# QSEs short 86 83 90

Min SF 0.02 0.03 0.03Max SF 4,787.87 4,780.87 5,151.39Average SF 208.86 211.65 211.96

9/11/2010BILLDETERMINANTCODE RUCID TOTAL HE 17RUCMWAMTRUCTOT 9 -620.97 -620.97RUCCSAMTTOT 620.92 620.92

RUCSFTOT 9 27,829.46# QSEs short 92

Min SF 0.33Max SF 9,752.84Average SF 302.49

9/14/2010

Environment Report-Known Issues

COMS New Known Issues• TWTG is not being time-weighted according to SCED interval duration, it is being calculated

as the simple average of generation over the settlement interval

COMS Closed Issues• AIEC EOCPRCAP is not calculated correctly when RTPERFIP is missing• Day Ahead Start Up Eligibility is not working correctly with a DAM commitment that does not

start in HE 1 is contiguous to a RUC Commitment that started in HE 1.• A DAM commit in an interval other than interval 1 for the current Operating Day should not

look at any other commit in the current Op Day, to determine a DAM Start• QCLAW - RUC and SELF - SELF commits generate a QCLAW when they should not when

self commits s are connected to each other• QCLAW - A SELF - RUC -DAM commit with the SELF being in later RUC process than the

RUC should yield the SELF commits as QCLAW intervals• If a resource comes online at exactly 1 minute before the end of an hour (XX:59:00) the flag

that determines Energy Eligibility in the DAM Make-Whole payment will not be generated correctly

Reminder: ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/coms/index.html


Environment Report-Known Issues

Settlements Remaining Defects:• The current implementation of TELHSLFLAG is not appropriately exempting resources from

Base Point Deviation during startup. The methodology proposed in NPRR 273 (exemption when the resource is in an ONTEST status) provides a feasible and efficient option for correcting this issue by go-live.

• TWTG is not being time-weighted according to SCED interval duration, it is being calculated as the simple average of generation over the 15-minute settlement interval. This issue will be addressed at QMWG (next week) along with other issues being incorporated into an NPRR for the Base Point Deviation charge.

• Effective with the 09/28/2010 posting of the Public Reference Data Extract (PRDE) the QUEUE_STATUS column will be removed from the following tables:

– RUCPROCESSHISTORY– CRRSETTLEPOINT

Reminder: ERCOT will post known issues every Friday to the readiness center at: http://nodal.ercot.com/readiness/markettrials/coms/index.html


Settlements - FAQs

Q: How do I calculate Real Time Ancillary Services Obligations (RUO, RRO, RDO, NSO)?

A: The protocols in section 6.7.3 don’t show the actual market wide total bill determinants that are used in the calculation. The correct bill determinants are shown in the Nodal Settlements Matrix. “TOT” records should replace the records show below in red. The formulas will be corrected in a Settlements “clean-up” NPRR.

Protocol Formula:

RUO q = (SARUQ q + (RTPCRU q, m) + PCRU q – RURP q – RUFQ q) * HLRS q + RURP q

Matrix Formula:

RUO q= (SARUQTOT + (RTPCRUTOT) + PCRUTOT– RURPTOT – RUFQTOT) * HLRS q + RURP q



RTM Settlement Overview for Aug 31

Statement Overview

• 197Statements posted to QSEs



General Reminders





Real-Time DCTIE export $3,160,362.41

Real-Time Congestion Payment or Charge -$14,390.48

RMR Day-Ahead energy Sale Real-Time Value Market Total $1,448,212.52








Voltage Support Service Var Payment -$39.92

Voltage Support Service Energy Payment $0.00

Real-Time Load Allocated Voltage Charge $39.92




RMR Energy $0.00





RMR Service Charge $1,422,481.70










Real-Time CRR

Voltage Support Services


Real Time Energy


RUC

Administrative Fees

Black Start

RMR


RTM Settlement Overview for Sept 1

Statement Overview




General Reminders





Real-Time DCTIE export $1,116,730.96







Real-Time Option w ith Refund -$5,079.71






RMR Energy -$151,615.74

RMR Adjustment Charge $2,254,697.32




RMR Service Charge $2,495,618.46










RUC

Administrative Fees

Black Start

RMR

Real-Time CRR


Real Time Energy


Market Trials - Friday call

Credit and Treasury

Weekly Update

September 24, 2010

Update – DAM Credit Constraint

DAM credit constraint – Non-Business day processing• ERCOT will update TPEs and ACLs each day (including non-

business days) for go-live and until an automated solution is implemented– Interim solution to allow market time to consider best long term

solution

• ERCOT will test this process this weekend - September 25-26th (see calendar on the next page)

– To ensure functionality works as anticipated

– Will post final Credit Reports daily and send ACLs• Note: ERCOT does not plan to post preliminary reports on non-business days as

cash cannot be sent

– Will send collateral calls as needed

– Will send 90% notices as needed

• An NPRR will be filed to update Nodal Protocols for this change


Next Week - Schedule of activity


Business day Activity to consider ACL deliveredDeadline for "e-collateral"

Saturday, September 25 DAM for OD 9/26 Friday evening Friday noon

Sunday, September 26 DAM for OD 9/27 Saturday evening Friday 5:00 pm

Monday, September 27 DAM for OD 9/28 Sunday evening Friday 5:00 pm

Tuesday, September 28 DAM for OD 9/29 Monday evening Monday noon

Wednesday, September 29 DAM for OD 9/30 Tuesday evening Tuesday noon

Thursday,September 30

Note 1: ACLs will be sent to the DAM each day this weekend.

Update - Cutover

• After the ACLs are sent on September 29th – ERCOT will begin CMM cutover activities

• This includes deleting all market trials data from the CMM system• ERCOT will not have access to this info for analysis after October 2nd

– MIS will be shut down beginning October 3• CPs will need to download and save all market trials data they wish to retain

(including any Credits Reports) by end of day October 2 (Sat) • MIS will come back up in production on October 12th

– However, no market trials data will be retained

– ACLs and Credit Reports will not be produced by CMM again until the go-live sequence begins

• October LFC test will use high level ACLs established in DAM • December 2010 CRR auction held in November

– Plan to handle similarly to the current Zonal TCR Auctions– Separate collateral posted– Available Credit Limits (ACL) viewable in CRR, not MIS


December 2010 CRR Auction held in November

Establish ACLs for December 2010 CRR Auction

• ERCOT Credit will verify creditworthiness of CRRAHs by October 1, 2010

• CRRAHs that meet Creditworthiness Standards and are assigned unsecured credit will notify Credit staff of how much unsecured credit (other than that used for QSE activity) to assign to the December 2010 CRR Auction (if any) between October 28 and November 8

– Send request to [email protected] • subject line Nodal Collateral

• CRRAHs that do not meet the Creditworthiness Standards but wish to participate in the December 2010 CRR Auction will:

– Send collateral specifically earmarked for the December 2010 CRR Auction to ERCOT via wire transfer between October 28 and November 8

– Send email notification to [email protected] • subject line Nodal Collateral

• The combination of posted collateral and unsecured credit allocated by the CRRAH will be the ACL provided for the CRR Auction


December 2010 CRR Auction held in November

View ACLs prior to December 2010 CRR Auction• ACLs will be viewable in the CRR Application beginning October 29, 2010

– ACLs will be viewable only by CRR Account Holders and Counter-Parties and only in the CRR Application leading up to the December CRR Auction (e.g. not on MIS).

• December 2010 CRR Auction bid submission window opens on November 9, closes on November 11, and the CRR Auction begins execution on November 12

After the CRR Auction has executed• Auction results posted in CRR Application and on MIS on November 15• PCRR and CRR Auction invoices are posted on MIS by November 16 (before midnight)• CRR Auction invoice payments are due by November 19 by 5:00 PM (CST)• ERCOT to pay CRR amounts on November 22


Update – “e” factors

– The notice for the last market trials e-factors update set was sent on September 15th • These factors will stay in place until go-live sequence begins

– Preparation for go live• ERCOT will begin taking requests for favorable treatment in October

• ERCOT will set “e” factors to initial settings of “1/0/1” in November

• Preliminary calendar for initial 60-days of the market has been established


Update - “e” factors

• Forms and ongoing information requirement should be sent via e-mail

– Subject line – Credit “e” factors – favorable treatment requested / details

• For go live and thereafter – send to [email protected]

• Forms

– Initial forms can be obtained on the ERCOT Website (link to be provided). Sample of forms on following slides. Forms will likely continue to evolve over time.

1. “e” Factor - Change in Treatment Form• Must be delivered to ERCOT at least 2 business days prior notification date

2. “e” Factor - Required Information Form• Must be delivered to ERCOT as soon as available but at least 2 business days

in advance of when such changes become effective


Update - “e” factors


Day Ahead Market (DAM) Collateral Parameters Process Request for Change in “e” Factor Treatment Form

(Favorable/General for ‘e1’ and ‘e2’ factors)

The Counter-Party (CP) listed below requests (check one)

______general / default “e factor” treatment ______favorable “e factor” treatment

from ERCOT pursuant to the Day Ahead Market (DAM) Collateral Parameters Process. If favorable treatment is requested, CP agrees to notify ERCOT of expected changes due to change in activity, and the likely duration of such changes, to the following values as soon as practicable after being estimated by the Counter-Party and at least 2 Business Days in advance of when such changes become effective:

– If Ratio1 is likely to be greater than the Counter-Party's currently assigned value of e1for particular day(s), then the estimated daily values of Ratio1 specifying the day(s) along with the daily DAM Energy Bid, EOO, and TPO quantity assumptions used to arrive at those values; and

– If Ratio2 is likely to be lower than the Counter-Party's currently assigned value of e2 for particular day(s), then the estimated daily values of Ratio2 specifying the day(s) along with the daily DAM Energy Bid, EOO, and TPO quantity assumption used to arrive at those values

Note 1: If a CP does not make a specific request, that CP will receive general or default treatment under the DAM Collateral Parameters Process. Note 2: ERCOT may rescind favorable treatment immediately, possibly with minimal notice, if ERCOT believes risk is not being adequately addressed or if a CP does not meet the disclosure requirements. Legal Name of Counter-Party Legal Address of the Counter-Party DUNS Number Name: An Authorized Representative or Credit Contact

Title: Telephone: Fax: Email Address: Signature: Send form to [email protected]

Update – “e” factors


Day Ahead Market (DAM) Collateral Parameters Process “e” Factors – Favorable Treatment

Required Information Form (for ‘e1’ and ‘e2’) The Counter-Party (CP) listed below receives favorable “e factor” treatment from ERCOT pursuant to the DAM Collateral Parameters Process and agreed to notify ERCOT of expected changes in DAM activity that impacts e-factors, the likely duration of such changes, as soon as practicable after being estimated by the CP and at least 2 Business Days in advance of when such changes become effective. Guidelines for providing information: 1) When Ratio1 is likely to be greater than the CP’s currently assigned value of “el” 2) When Ratio2 is likely to be lower than the CP’s currently assigned value of “e2” or 3) When the daily total for a CP of its DAM Energy Bid, EOO, or TPO volume

increase/decrease more than 20% from the prior day Legal Name of Counter-Party Legal Address of Counter-Party DUNS Number Operating day for which change will begin:__________________________________ Operating day for which change will end (if applicable):__________________________ Estimated daily value of Ratio 1:_____________________________________ Estimated daily value of Ratio 2:______________________________________ Underlying Assumptions Volume (daily MWHs) Price ($$s) Estimated DAM Energy Bid Estimated DAM Energy-Only-Offers Estimated Three-Part Supply Offer Explanation of anticipated change: ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Contact (for questions): Title: Telephone: Fax: Email Address: Send form to [email protected]

“e” Factors – Preliminary Calendar


DAM runs from (Scheduled reset date) DAM runs to Operating Day from Operating Day to Notice deadline by 9:00 am

Initial 14 days

Tuesday, November 30, 2010 Monday, December 13, 2010 Wednesday, December 1, 2010 Tuesday, December 14, 2010No notices sent since "e" factors are set at 1/0/1

Next 46 daysTuesday, December 14, 2010 Tuesday, December 21, 2010 Wednesday, December 15, 2010 Wednesday, December 22, 2010 Friday, December 10, 2010Wednesday, December 22, 2010 Tuesday, January 4, 2011 Thursday, December 23, 2010 Wednesday, January 5, 2011 Monday, December 20, 2010Wednesday, January 5, 2011 Tuesday, January, 18, 2011 Thursday, January 6, 2011 Wednesday, January 19, 2011 Monday, January 3, 2011Wednesday, January 19, 2011 Friday, January 28, 2011 Thursday, January 20, 2011 Saturday, January 29, 2011 Monday, January 17, 2011

OngoingSaturday, January 29, 2011 Thursday, February 10, 2011 Sunday, January 30, 2011 Friday, February 11, 2011 Thursday, January 27, 2011Friday, February 11, 2011 Thursday, February 24, 2011 Saturday, February 12, 2011 Friday, February 25, 2011 Wednesday, February 9, 2011Friday, February 25, 2011 Thursday, March 10, 2011 Saturday, February 26, 2011 Friday, March 11, 2011 Wednesday, February 23, 2011

Thereafter, biweekly reset will occur every other Friday, with notice on Wednesday morning. If Friday is a holiday, then biweekly reset will be on the preceding business day.

Update – First Priority Security Interest

• First Priority Security Interest document was approved by the BOD on September 21st

– Document can be obtained on the ERCOT Website (link to be provided)

– ERCOT will process these as quickly as possible whenever they are received; however, if a CP wants to ensure that this is effective by go-live, ERCOT needs the executed document in hand no later than November 1.

• Executed documents should be returned to [email protected]



Market TrialsDAM / RUC

September 24, 2010


Market Overview


Submission Overview for Friday September 17

DAM submission overview• 169 QSEs participated for Op Day 9/18• Energy Bids totaled 31,409 to 57,660 MW per hr• Cleared 26,939 to 40,546 MW energy bids per hr• Cleared 39,241 to 52,383 MW net energy

transactions per hr -112% to 137% of the forecasted load

• Cleared 12,524 to 15,638 PTP bids per hr• Four major Load Zone prices ranged from

$25.00 to $245.00


Submission Overview for Monday September 20


transactions per hr - 55% to 78% of the forecasted load


$15.16 to $39.86


Submission Overview for Tuesday September 21




$20.33 to $129.69


Submission Overview for Wednesday September 22




$10.00 to $150.00


Submission Overview for Thursday September 23




$36.33 to $250.00

RUC Update


DAM Failure Operational Scenario – 9/16

• Scenario where DAM fails, ERCOT must still procure the required Ancillary Services

– To procure AS without a DAM (in the adjustment period) is to leverage the SASM resubmission logic (which is being changed by NPRR255 – scenario was completed with current implementation)

– This was not successfully tested for 2 reasons

• The operator did not execute final price calculations properly (not an issue unless there are insufficient offers - new functionality was not documented in procedures, but now fixed)

• The market did not sufficiently offer in their full AS Offers (some QSEs expired their offers)

– Resulted in $2,000,000 prices being posted for some hours. High prices reflect the “Penalty Factor” used in the DAM for evaluating Ancillary Services. Penalty factors are very high value to ensure priority over energy in solution, but DO NOT set prices.

– Additional issue is that reporting expired the SASM reports off the MIS after 3 days, rather than 30 days

– Plan to re-test with alignment of NPRR255 (tabled at PRS to allow AS Offers to be re-submitted without caps)



Last week of Market Trials

DAM executing every day – last day is September 30

• COPs should reflect actual plans for the resource. Please make sure

they are up-to-date prior to the RUC.

• Operational Scenarios:

– NPRR091 - 9/27 (see next slide)

• Starting with today’s DAM, SLANLC8 has been added to the

disabled contingency list

– Lane City - South Lane City 138 contingency isn’t valid because

it’s a zero bus impedance station

Week 21

Note: Dates are DAM execution days 9/24 – 9/30

ObjectiveNetwork Constraints Included

DAM 7x week

COP UpdatesReflect actual

plan

DRUC W/ each DAMHRUC 24X7SASM As neededOp Scenarios NPRR091


September Scenarios

Operational Scenario – 9/27• Lower offer cap and all constraints are treated as non-competitive for the first

45 days of nodal go-live (NPRR091)– Midnight on Monday morning (9/27), we will change the offer cap to the higher of

$180 or 18xFIP (will likely be $180) and change the offer floor to -50.– SCED will immediately begin capping/flattening existing offer curves to the new

cap. Any new or updated offer will be validated against the new cap at that time.– For DAM, on Monday 7 am phase 2 validation, offers in the system with price

>$180 or <$-50 will be rejected/canceled

Known issues

• New– SASM Aggregated AS Offer Curve report – SASM ID is incorrect

• Opened and closed– E-factors not properly transferring for new QSEs

• Fixed in emergency patch on Thursday

– Some non-awarded CRR Offers were not properly passed to settlements from the market system on certain days.

• Fixed in emergency patch on Thursday



Market TrialsRTM Update

September 24, 2010

Standing Reports and Updates: General Reminders / Updates


Reminders/Updates• Updates to Tracking Artifacts

• The updated Known Issues tracking sheet will deploy overnight to the Readiness Center at http://nodal.ercot.com/readiness/markettrials/rtm/index.html

• GREDP Results for the 48-Hour Test• Results will be distributed to QSEs beginning Sep 24th



Reminders/Updates• Non-Spin Communication Test

• ERCOT conducted a Non-Spin Communication Test with QSEs on Sep 23rd

Approximate Timeline

Activity

1200 Deadline to update COPs For HE 1400, 1843.0 MW of Non-Spin in COPs from 39 Resources For HE 1500, 2263.4 MW of Non-Spin in COPs from 44 Resources

1200 – 1325 Pre-Test preparation activities1325 ERCOT placed hotline call to begin the test

Operators selected 1599 MW of Non-Spin to deploy across 33 Resources from 16 QSE/Sub-QSEs

1325 – 1345 QSEs updated telemetered Non-Spin schedules to reflect deployments1350 ERCOT Operators placed outreach calls to Resources that did not update Non-

Spin schedules1410 ERCOT selected 1233 MW of Non-Spin to deploy across 29 Resources from 15

QSEs/Sub-QSEs1410 – 1430 QSEs updated telemetered Non-Spin schedules to reflect deployments1445 – 1500 ERCOT placed Outreach calls to Resources that did not update Non-Spin

schedules1500 ERCOT placed hotline call to end the test



Reminders/Updates• Non-Spin Communication Test (continued)

• Of the 2832 MW selected for deployment, 165 MW were not reflected in the updated Non-Spin Schedules

• Additional Non-Spin communication tests are targeted for October 25th and 26th

QSE Issue # MW Undeployed

HE 1400 HE 1500

QSE 1 Possible ICCP mapping issue 10 30

QSE 2 System issue resolved by QSE 3 0

QSE 3 ERCOT to follow up with QSE 2 120

Load Resources Deployment Scenario


Test Results• Test #1 – 55 Load Resources with test deployments of 316 MW• Test #2 – 94 Load Resources with test deployments of 852 MW• Issue identified when Group 2 LRs are deployed. A recall message of 0 MWs is sent to Group 1

LRs. Until the issue is corrected, ERCOT will deploy Group 1 and Group 2 LRs together, so that no inadvertent 0 MW recall messages are sent to Market Participants.

Reminders/Updates• Next test – Monday 9/27 and Tuesday 9/28. This is an open-loop test. There will be no

shedding of actual Load.

Test Overview• Day 1 – Monday 9/27

• QSEs update their Load Resource COPs to reflect self arranged schedules and awards from DAM prior to DRUC (DRUC starts at 1430)

• After DRUC completes, ERCOT creates Group 1 & Group 2 deployment stacks and publishes the report to the MIS Secure Area

• Day 2 – Tuesday 9/28 • 0900 Test begins and ERCOT conducts a hotline call.• 0945-1000 Group 1 deployed with end time of 11:30• 1015-1030 Group 2 deployed with end time of 11:30• 0945-1100 QSEs adjust their telemetered RRS Schedules.• 1100-1115 ERCOT recalls the deployment• 1115-1200 ERCOT issues a VDI to confirm schedules have been adjusted to return to

service.

04/21/23


Real Time Market / LFC Update



SCED Week 34 (9/16 – 9/22)•System Lambda at $2250 offer cap or higher for 34 intervals9/16 17:25 - 19:15 ODNTH_FMR1 XHLT89 9/17 11:01 - 18:15 HEI_PHR_1 SFRWHEI89/17 23:45 - 23:55 W_TO_N BASE CASE9/18 00:01 - 00:05 W_TO_N BASE CASE9/20 13:15 - 18:10 BLESSI_LAN_CT1_1 SWRDYN8 (constraint violated - SP $3500 during very negative LMP intervals)9/21 15:45 - 22:35 GT_MID90_A DGBY_GS89/22 14:25 - 23:55 0165_1 DGRSPKR59/22 11:55 GT_MID90_A DGBY_GS89/22 09:30 - 11:45 RINCON_WHITE_2_1 DI_DWHI89/22 11:35 - 22:30 TSL_FTW_1 DRNKW_D5



Notes- ERCOT to contact MPs prior to 36 LFC test to correct telemetry- Text change to match logic (e.g. “TEL HSL <= 0”, “INVALID TEL UNIT HSL OR LSL”)


Notes- Alerts correspond when wind nears 0 MW- SPR created by ERCOT SMEs to prevent false alerts when MW output is zero, but not offline (e.g. “INCONSIST RST and MW” and “INVALID HSL <= 0”)



36-Hour Full-System Market and Reliability Test

(Sep 29 – 30) Reminders

Stacy Bridges


Reminders: 36-Hour Test

• 36-Hour Full-System Test

– ERCOT will conduct the 36-Hour Test beginning Sep 29th, 8 AM (CDT), through Sep 30th, 8 PM (CDT)

– Market Notice was sent Sep 22nd to confirm this test window

– Follow-up notices will be sent Sep 27th and Sep 29th to confirm the test

• Proposed Tuning Windows

– ERCOT system-tuning windows:

• ERCOT does not plan to do any system tuning during this test window

– Market Participant system-tuning windows:

• Notify ERCOT of proposed tuning window by sending an email to [email protected] by 12pm Tue., Sep 28, 2010

• ERCOT will confirm whether other QSEs are conducting tuning activities during the proposed time and will suggest a different time if needed

– Proposing that MPs who wish to perform system tuning do so during times that do not overlap with the following test activities:

• ZonalNodal /Nodal Zonal switchover activities

• Other QSE tuning windows



• Operational Scenarios

• At this time, ERCOT is not proposing any operational scenarios to be conducted during the Sep 29 – 30 test window

• If any scenarios are added to the test timeline, they will be communicated as soon as possible ahead of the Sep 29 – 30 test window

• Shutdown Activities

• RST during Shutdown:

• To shutdown during testing, change your RST to ONTEST

• The RLC will then set LDL=HDL=Net Real Power=Base Point, and the SCED Base Points will follow the output of the Resource down to the point that it is removed from the grid

• Full-System Testing Slide Deck

• The running workshop slide deck describing the details of full-system testing is available in Key Documents on the meeting detail at http://www.ercot.com/calendar/2010/09/20100903-MT



Requesting use of ONTEST RST for testing purposes during 36-Hour LFC Test

• QSEs with Resources that will be performing testing during the 36-Hour Test will need to plan to telemeter an RST of ONTEST

• Confirm this intention with ERCOT by 4:00 pm (CDT) on Tue., Sep 28, 2010 to identify the Resources as well as the approximate timeframes that will be ONTEST


Cutover Update

September 24, 2010

Market Readiness Seminar01 September 2010

Cutover Tasks Complete

(08/13) Registration Deadline for CRRAH to participate in December CRR Monthly Auction

(08/16) ERCOT releases Outage Scheduler to Market

TSPs/QSEs can enter outages in Outage Scheduler via Web Service or UI TSPs/QSEs are responsible for verifying outages imported to Nodal Systems and correcting any missed/incorrect outages by 09/17/2010

(09/01) Network Model Go-Live (Protocol 3.10 )

(09/02) Begin interim update process for Network Model ChangesFrom 09/02 forward until Go-Live any Model changes submitted to ERCOT prior to Go-Live will leverage the interim update process.

(09/01) CRR Activity Calendar to MIS MPs can retrieve the CRR Activity Calendar from MIS public with a valid Digital Certificate

(09/08) Deadline for PCRR NOIE Contract Eligibility

(09/17) Outages are synched between Zonal and NodalMPs maintain synch of outages between Zonal and Nodal systems thru 12/02 (dual entry)

Cutover Update


October Summary

(OUTAGES)•December Outages pulled for CRR Network Model (for PCRR Allocation)

(NETWORK MODEL)•Network Model built for CRR Allocation and Auction •Network Operations Model posted to TSP Citrix location and TSPs begin validation process

(CRR)•ERCOT begins accepting PCRR Nominations for December Monthly Auction •ERCOT shall allocate PCRRs to NOIEs for the 2010 December Monthly Auction and publish to MIS•ERCOT shall post CRR Network Model for the 2010 December Monthly Auction to MIS•ERCOT to post December 2010 Monthly Auction Notice to MIS

(CREDIT)•ERCOT assesses each CPs credit worthiness for the Dec CRR Auction•ERCOT posts ACLs daily for CRR December monthly auction to CRRCRRAH able to retrieve ACLs from CRR system each business day.

MPs can post additional collateral until 11/08/2010 for Dec 2010 CRR Auction

Cutover Update – Upcoming Activities


October Summary Cont’d

(ERCOT)• ERCOT begins test data clean up from Market Trials

CRR Test Data

• ERCOT performs MIS backend reconfigurations (10/03/2010 – 10/11/2010) Market Participants will not have access to the MIS UI and EWS Get Reports functionality. Market Participants will need to use the direct links (listed on next slide) or Citrix to access

system applications. All other EWS will be left on and from 10/1 up until the First Run Date as defined in EMIL of the

CDR report, the EWS will return ‘no reports found’ during that time.

• MIS UI and EWS Get Report Go-Live (10/12/2010) Postings will be made available based on the EMIL posting date going forward Postings live prior to 10/12/2010 will continue to be made available at this time. Market Participants will only have access to go-live posting data. Data from Market Trials

activities is no longer available for download.

Cutover Update – Upcoming Activities

URLs to be used during cutover activities in October:

– Network Model via Citrix:– https://gateway.ercot.com/vpn/index.html

– Market Manager User Interface:– https://mis.ercot.com/mmsui/mmsui/displayTradesLanding.action

– Outage Scheduler Application:– https://mis.ercot.com/osrui/osrui/Summary.action

– CRR Application (MUI):– https://mis.ercot.com/crr/mui/ListAllUserMessage.do - direct link for CRRAHs– https://mis.ercot.com/crr/mui/editSMPCreditLimit.do - direct link for CPs

– Web Services Endpoint URL:– https://misapi.ercot.com/2007-08/Nodal/eEDS/EWS

Cut-Over – MIS UI and EWS Get Report Reconfiguration Details

01 September 2010

Market Readiness Seminar