September 22, 2008TPTF

Readiness Update and Metrics Revisions

22

Agenda

• Status Update

– ERCOT Staff Readiness

– Market Participant Readiness

• Metrics Working Documents

– Revised Metric

– Completed Metrics

– Inactive Metric

– Proposed New Metric

33

ERCOT Readiness

• Engagement (green)• ERCOT remains fully engaged

• Training (amber)• Delays with system training

• Process (amber)• Procedure development is on-going• 443 procedures; 88% complete

• Staffing (amber)• ERCOT is currently 97% staffed

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

• Testing (green)• No recent developments

ERCOT Staff Readiness status is AMBER

44

ERCOT Staffing – Status

4

Staffing Remains Steady

Only 12 Nodal Positions Remain To Be Filled

Division 2008Authorized

2008Open

2008 %Filled

IT – Nodal DepartmentsIT – OtherTotal

156 72228

8 95%

Market Ops – Nodal DepartmentsMarket Ops – OtherTotal

91 71162

2 98%

System Ops – Nodal DepartmentsSystem Ops – OtherTotal

131 26157

2 98%

System Planning – Nodal DepartmentsSystem Planning – OtherTotal

132841

0 100%

Nodal Departments

Others (including Corporate)

TOTAL

391330721

12 97%

*As of September 12, 2008

55

Market Participant Readiness

Market Participant Readiness status is AMBER

• Engagement (green)• Market Participants are fully engaged

• Connectivity (green)• No change in status• MP20 (ability to submit outage) is

now a metric for TSPs as well

• Registration and Qualification (red)• For QSEs with Resources – limited

response from entities needing to modify RARFs is driving the red status (MP11)

• For QSEs without Resources – limited transaction submission testing is driving the amber status (MP22)

• Telemetry (green)• No change

• Training (green)• Market Participants are up-to-date on

their training plans

• Trials Participation (green)• No change

66

Metrics Working Documents

• Revised Metric– MP21

• Completed Metrics– CRR2– CRR3– CRR5– N1– N2 (N2.1, N2.1)– EMO5– EMO6– R2

• Inactive Metric– CO9

• Proposed New Metric– MP23

77

Revised Metric – MP21

• MP21 was rejected by TAC on September 4

• Objections to MP21 were focused on confusion between QSEs with Resources and respective Resource Entities

• New plan addresses those concerns– Collect data at a QSE or Resource Entity level– Publish data on a Resource Entity level– Do not link Resource Entities to QSEs– MP21 status will impact overall scorecard status– MP21 status for Resource Entities will not impact respective

QSEs with Resources on the scorecard

88

MP21 Scoring Plan

MP10 MP11 MP21Overall Status

Resource Entity MP10 MP11 MP21

Resource Entity A n/aResource Entity B n/aResource Entity C - WindResource Entity D n/aResource Entity XYZ - Wind

99

Completed Metric – CRR2

CRR2: Develop TCR to CRR Transition Plan• TCR to CRR Transition Plan has been created, updated, and approved by TAC

ERCOT CRR PM has validated: • TCR to CRR Transition Plan exists• TCR to CRR Transition Plan is updated• TCR to CRR Transition Plan has been approved by TAC

1010

Completed Metric – CRR3

CRR3: Operation of Monthly CRR Auction and Allocation• CRR monthly auction solves within acceptable timelines and monthly CRR results

are distributed to applicable account holders– Auction produces solution within timeline allocated by CRR requirements – Monthly trial results distributed to auction participants = 100%– Allocated Revenue Rights in statistical sample = 100% accurate

ERCOT CRR Database and EDS 3 PM have validated: • Monthly auction was held• Auction solved within acceptable timelines according to CRR Handbook• Trial results distributed to auction participants• Statistical sample of allocated revenue rights is accurate

1111

Completed Metric – CRR5

CRR5: Operation of Annual CRR Auction and Allocation• CRR annual auction solves within acceptable timelines and annual CRR results are

distributed to applicable account holders– Auction produces solution within timeline allocated by CRR requirements– Annual trial results distributed to auction participants = 100%– Auction results in statistical sample = 100% accurate

ERCOT CRR Database and EDS 3 PM have validated: • Annual auction was held• Auction solved within acceptable timelines according to CRR Handbook• Trial results distributed to auction participants• Statistical sample of auction results is accurate

1212

Completed Metric – N1

N1: ERCOT Telemetry Alarm Processing• Readiness will be achieved with alarms are generated from the limit, status, and

other EMS tests and the attributes of the alarms are correct– Load/Rating > Alarm set point– Change of Status initiates a Status Alarm

Alarm Log and EDS 1 PM have validated: • Alarms are generated from limit, status, and other EMO tests• Attributes of alarms are correct

1313

Completed Metric – N2

N2: ERCOT Telemetry/ICCP System Failover (N2.1 and N2.2)• ERCOT has passed a simulated failover test

– Phase 1 (N2.1, EDS1): local failover– Phase 2 (N2.2, EDS4): high availability test and site-to-site failover

EDS 1 and EDS 4 PMs have validated: • Server Failover <= 5 Minutes• Com Link Failover <= 30 Seconds

1414

Completed Metric – EMO5

EMO5: Verify ACE Performance• Comparison of the Nodal generated raw ACE and processed ACE tracks with the

existing (Zonal) ACE for seven consecutive days

EMS Extract of ACE and EDS 3 PM have validated: • Alignment of Nodal ACE and Zonal ACE• Expected response to frequency changes• Identify and address any low performance intervals• Presentation of ACE verification to TPTF for review and acceptance

1515

Completed Metric – EMO6

EMO6: QSE Response to Dispatch• Use LFC Testing to ensure response from Generation Resources to ERCOT control

signals to maintain grid reliability

LFC Test Results and the EDS 3 PM have validated: • Stable frequency by meeting NERC CPS1 and CPS2 requirements• ERCOT can calculate and send correct base point signals• QSE providing Regulation Service can run on constant frequency control• QSE Resources respond to Regulation Dispatch Instruction• QSE Resources respond to Updated Desired Based Point Dispatch Instructions• QSE ability to received Responsive Reserve Deployment Instructions • QSE ability to update Responsive Reserve Schedule

1616

Completed Metric – R2

R2: Develop Texas Nodal Market Launch Plan• Publication of a TAC approved Texas Nodal Market Launch Plan and

communication of that plan to Market Participants

ERCOT Readiness PM has validated: • Texas Nodal Market Launch Plan exists• Texas Nodal Market Launch Plan has been TAC approved• Plan has been verbally communicated to Market Participants

1717

Inactive Metric – CO9

CO9: Verify Financial Transfer and Processing• Verify financial transfer process is functional between ERCOT and Market

Participants via a “penny test”

Propose inactive status for the following reasons: • Financial transfers will not occur between ERCOT and Market Participants

– ERCOT will transfer funds directly to the bank, not to Market Participants• Money transfers will be handled in a manner similar to that of settlements and billing

– Handled by the finance group• The basic infrastructure for the transfer of funds already exists and is functional

1818

Proposed New Metric – MP23

• ERCOT proposes creation of new metric, MP23• MP23 – Outage Scheduler Trials Participation

– Continuation of MP20 (Outage Submission – Connectivity Test)– Metric for QSEs with Resources and TSPs– Measures involvement in trials participation surrounding Outage

Scheduler (EDS 4.9)

Draft of Metric Available in Working Metric Inventory