1

Update from ERCOT Retail

Market Services

to RMS

March 4, 2003

2

Retail Market Update

Topics– GISB 1.4 Update

– Texas Set Version 1.5

– Market Participant Testing Flight Test V1.5 Overview

– ERCOT Data Transparency

– Move-In/Move-Out Task Force

3

Data Transport in the Texas MarketGISB 1.4 Update

RMS Meeting 2/25/03

4

Review of Transport Options

• FTP - Currently primary option for all MPs to ERCOT– No guaranteed delivery, some security concerns

• HTTPS – ERCOT replacement for FTP– Guaranteed delivery, improved security

• GISB 1.4 – Primary option for MPs on point to point – Guaranteed delivery, same security issues as FTP

• GISB 1.6 – Primary transport for 2004 Texas market– Guaranteed delivery and improved security

5

ERCOT Testing/Migration Team

• ERCOT team working closely with MPs on connectivity and GISB 1.4 EDM testing

• Testing schedules and issues being addressed at Texas Data Transport Working Group based on market rules

• ERCOT Team includes:– Clay Katskee – Connectivity Test Coordinator - Primary

– Nagaraju (Naga) Valasagandla – Secondary

– Dave Farley – Project Manager (IT)

6

GISB EDM 1.4 Migration Status

• Testing with Market Participants In Progress– 7 MPs have completed testing with no issues– 30 MPs have completed testing with issues identified– 6 MPs are in process of testing with issues– 1 MP testing delayed due to architecture issue

• Issues Impacting MP Testing include:– Improper use of MP log on and password– File naming conventions not followed– Use of non unique file names

7

Next Steps

• Migration to production will be coordinated with individual MPs after successful completion of testing

• ERCOT is working with the MPs and TDTWG to identify and resolve issues

• ERCOT may not be able to resolve issues that are contrary to market rules or those that compromise system performance and proper market reporting

• MPs that cannot complete testing can stay with FTP until GISB 1.6 can be implemented or test the HTTPS solution for data transport

8

Texas Set V.1.5

Presented by: Dave Odle

Tuesday, February 25th, 2003

9

• V1.5 Coordination Team – Task Complete– V1.5 Team face to face meetings are completed.– Original TASKS conceived when team was created in May, 2001:

• Increase Communication in the market for V1.5 - Tremendous improvement and continuing• Establish Market Project Timeline and plan - Complete• Establish clear understanding of V1.5 requirements - Complete

– Numerous accomplishments• Created the V1.5 website for transparency and open communication.• Created the Version 1.5 mailbox for more discreet issue resolution.• Created some extremely helpful documentation for everyone's use (thanks to all who did this).• Worked through difficult and convoluted requirements and reached resolution on all of them.• Worked through all V1.5 requirements (change controls), one by one, for clear understanding and expectation.• Created the project timeline and critical milestone dates (flight testing, migration, etc.)• Created the production implementation plan down to the last conference call.• Pointed out the "what if's" and identified risk mitigation methods.

• Continuing efforts for Project Success – In Progress– Continue Efforts in open communication– Project Status and tracking– Production Migration coordination– Flight Test coordination with the TTPT and ERCOT

V1.5 Coordination Team Accomplishments/Goals

10

Project Status Summary

•Exolink provides EDI services for: Republic, Calpine, Entergy Retail, Entergy Disco, GEXA•Systrends provides EDI services for: Sheryland, Tenaska, Occidental, TCE•EC Power provides EDI services for: AEP A-REP, SmartEnergy, Just Energy•ESG provides EDI service provider for: ACN Energy, Cirro Group, Coral Energy Markets, Dynegy, Sempra Energy Solutions, Tractebel Energy Markets, UBS Warburg, Tara Energy

0102030405060708090

100Design

Build

Test

11

Project Status Summaryas of 2/20/03

DESIGN

BUILD

INTERNAL TEST

25% 50% 75%

25% 50% 75%

ERCOTReliant Energy

RetailTXU ES

LogicaSimplified

Nueces San Patricio

Green Mountain

ExolinkTNMP (TDSP)

Certain Power (POLR) First Choice Power

Republic XERS (Xcel Energy)

ESGAEP A-Rep

SharylandSystrends

TCETenaska/Occidental

ONCOR

EC Power

Entergy RetailAEP TDSP

Center Point Spark Energy LP

Utility Choice Electric

STEC Retail

Constellation

ASP ES

= Flight Test Frame 1

12

Implementation Plan

• Objectives– Ensure all parties know the status of the implementation

effort AT ALL TIMES!

– Minimize down time

– Work as a team

13

Initiating Transactions Shut-down Timeline

CR ERCOT TDSP ERCOT CR

1 am 7 am

6 hrs

7 am 9 pm

14 hrs

Thursday, April 10th

9 pm 3 am

6 hrs

Friday, April 11th

Noon

Step 1 Step 2b Step 3 Step 4

Step 2a Step 5

814_01 4/10/2003 1:00 814_02 4/10/2003 7:00 814_04 4/10/2003 21:00 814_05 4/11/2003 3:00 814_07 4/11/2003 Noon814_10 4/10/2003 1:00 814_11 4/10/2003 7:00 814_25 4/10/2003 21:00 814_06 4/11/2003 3:00 814_23 4/11/2003 Noon814_16 4/10/2003 1:00 814_17 4/10/2003 7:00 814_11 4/11/2003 3:00814_24 4/10/2003 1:00 814_25 4/10/2003 7:00 814_25 4/11/2003 3:00

or 814_22 4/11/2003 3:00

814_03 4/10/2003 7:00814_24 4/10/2003 7:00

ERCOT back to CRs (step 2a) CR to ERCOT (step 5)CRs to ERCOT (step 1) ERCOT to CR (Step 4)TDSP to ERCOT (step 3)

ERCOT to TDSP (step 2b)

14

Sub-Initiating Transactions Shut-down timeline

CR ERCOT TDSP ERCOT CR

9 pm 3 am

6 hrs

3 am 11 am

8 hrs

Thursday, April 10th

11 am 5 pm

6 hrs

Friday, April 11th

Step 1 Step 2b

Step 2a

Step 3 Step 4

814_08 4/10/2003 21:00 814_09 4/11/2003 3:00 814_09 4/11/2003 11:00 814_09 4/11/2003 17:00814_12 4/10/2003 21:00 814_13 4/11/2003 3:00 814_13 4/11/2003 11:00 814_13 4/11/2003 17:00814_18 4/10/2003 21:00 814_21 4/11/2003 3:00 814_21 4/11/2003 11:00 814_21 4/11/2003 17:00814_20 4/10/2003 21:00 814_27 4/11/2003 3:00 814_27 4/11/2003 11:00 814_27 4/11/2003 17:00814_26 4/10/2003 21:00 or

814_08 4/11/2003 3:00814_12 4/11/2003 3:00814_20 4/11/2003 3:00814_26 4/11/2003 3:00

ERCOT back to CRs (step 2a)

ERCOT to TDSP (step 2b)

TDSP to ERCOT (step 3) ERCOT to CR (Step 4)CRs to ERCOT (step 1)

15

Implementation Shutdown Overview

WednesdayMidnight

ThursdayNoon

ThursdayMidnight

FridayNoon

FridayMidnight

6 hrs 14 hrs 6 hrs 9 hrs1 am

9 pm 6 hrs 8 hrs 6 hrs6 hrs

814_01, 814_10, 814_16, 814_24

814_08, 814_12, 814_18, 814_20, 814_26

8 hrs2 pm867 7 hrs

5 pm810 1 hr

•650 Initiating will cease on Friday at 2 pm, 650 Responses will cease on Friday at 6 pm•814_PC will cease on Friday at 5 pm, 814_PD will cease Friday at 6 pm

Legend CRs ERCOT TDSPs = Conference Calls

16

Conference Call Schedule during Migration• Wednesday @ 5 PM

– Initiating Transaction status/ CR processing status

• Thursday @ 9 AM– Initiating transactions completed/ERCOT confirms 1 AM cut-off/TDSP & CR processing health

and status.

• Friday @ 9 AM– Sub-initiating transaction processing/ERCOT confirms Thursday 9 PM cut-off/TDSP & CR

processing health and status.

• Friday @ 5 PM– TDSP & CR to confirm 650, 810, & 814 PtP cut-offs and processing/ERCOT to provide 867

processing status

• Saturday @ 9 AM– ERCOT & TDSP to report status of Migration

• Saturday @ 7 PM– ERCOT declares (if possible) “go/no-go”/TDSP & CR to report status

• Sunday @ 9 AM– TDSP & CR provide status of migration/ERCOT fall back for declaration of “go/no go”

• Sunday @ 3 PM– ERCOT provides time it will begin accepting V1.5 transactions/TDSP & CR provide status-

decision of having another conference call.

17

Next Steps

• Meetings for this team have concluded. Our next conference call will be held on March 18th with the Flight Test Administrator and the TTPT to establish Flight Test status.

– March 18th (Tuesday) – Conference Call.

Follow up meeting will be scheduled post April 11th for a lessons learned analysis.

18

Market Participant Testing Flight Test V1.5 Overview

19

Flight V1.5 Overview

• Goal of testing: To ensure Market Processes are successfully tested according to testing criteria, procedures established by TTPT, ERCOT and market protocols

• After completion of flight test, TTPT will have ‘Lessons Learned’ session to address issues brought up during pre-flight and flight testing.

20

Activities and responsible Parties• Pre-Testing Activities and Parties responsible - ERCOT, PUCT, TTPT • Daily Flight Activities and Parties responsible - ERCOT, MPs, TTPT

Scheduled Activities and Test Schedule• Pre-Testing Activities – 10/25/02 – 2/24/03• Daily Flight Activities – 2/24/03 – 4/17/03 • Certification Activities - begin upon completion of the v1.5 Flight

Flight Test Responsibilities

21

• TTPT meeting held in Houston on 2/19, the team discussed the readiness for Frame 1 testing to begin Monday, February 24. Recommendations as follows:

• End to End Script Testing - TTPT and Flight Administrator

recommend that End to End Script Testing Frame 1 begin on schedule on Friday, February 24. 

• ETOD Script Testing - TTPT and Flight Administrator recommend

that ETOD Script Testing Frame 1 begin on March 3 (delay of 1 week).

Frame 1 Readiness – End to End & ETOD

22

TDSPs who use ETOD:

• TNMP - ok with recommendation

• Entergy - ok with recommendation

• Sharyland - ok with recommendation 

• It is expected that due to the nature of ETOD script testing, as a market, we can advance the frames for ETOD script testing faster in order to catch up with the frames for End to End script testing and not cause an overall delay for the flight test.

• Update 3/3: Starting ETOD scripts Tuesday, March 4

Frame 1 ETOD scripts

23

Frame 1 Status:• 30/43 CRs were complete with Frame 1 (sending/receiving) as of

Friday 2/28• 10 more CRs were complete with sending, were still confirming

receipt of inbound as of Friday 2/28• 3 CRs still had Frame 1 transactions to send as of Friday 2/28.• ERCOT rejected back transactions to some CRs and requested CRs to

resubmit corrected transactions (Sat/Sun/Mon)• ERCOT working with all TDSPs to identify outstanding transactions

expected to receive in Frame 1 and communicate back any resends required to the CRs

Frame 1 End to End Scripts - Progress

24

Frame 1 Status – continued

• Problem uncovered with how TDSPs and ERCOT executed 2 scripts (SC345, SC349). ERCOT and TDSPs working to get files to run.

• One TDSP has to receive all 814_03s before they can run an extra billing cycle in order for a future frame 6 transactions to process correctly. This process will take 3 days to execute.

• Market has not moved to Frame 2

Frame 1 End to End Scripts - Progress

25

Flight V1.5 – Test Timeline

• Existing Market Participants - 6 week process defined

• New Market Participants - 8 week process as defined

• Muni-Coop Participants – 8 week process as defined

• CRs testing in Additional TDSP territories – 8 week process as defined

• CRs testing in MCTDSP service territories – 8 week process as defined

26

Flight V1.5 - Notes

• Reminder – the market flight test progresses as fast as the slowest participant.

• Flight Administrator (Karen Bergman) will work closely with all market participants to assist and keep all market participants on the proposed schedule.

• Proposed schedule is one frame per week.• ERCOT testing team includes 11 people to assist in the day to day

management of testing. • Team assignments have been communicated to market participants

from the Flight Administrator.

27

Questions?

28

ERCOT Data Transparency(ETS)

29

ERCOT Data Transparency

• ETS / GISB (PR# 30136)(PR# 30136)

– All code changes have been made within ETS

– Files have been changed within GISB and FTP to account for ETS requirements, including additional timestamp information

– Unit Acceptance Testing completed February 21, 2003

– Scheduled implementation date February 26, 2003

• ETS / TX Set 1.5 (PR# 20060)(PR# 20060)

– Preliminary analysis of required changes completed on February 14, 2003

– Work is progressing on Design and Migration documentation

– Testing and implementation will coincide with TX Set 1.5 project

30

ERCOT Data Transparency

• Performance Measures (PUC# 20124)(PUC# 20124)

– Preliminary analysis completed on February 21, 2003

– Determination was made to use ETS as data source

– Project request is being written for approval

– Manual report generation to be done for Q1 PUC reports

– Automated reporting should be available for Q2 PUC reports

• ERCOT Data Transparency (PR# 30054)(PR# 30054)

– Further analysis required as a result of SCR727 implementation

31

RMS Update on Move-In / Move-Out Task Force

February 25, 2003

32

Solution to Stacking

Background on NFI rejects• Existing Market Design

o Current market design does not support multiple non-sequential transactions on an ESI ID.

• Volumes encounteredo February 1st through 20th – 3.2% (300 per day)

• Safety – Net Manual workaroundso Relieves the effects to the customer from NFI rejects.o Causes out-of-sync system conditions.o Causes higher costs and higher potential for mistakes.o Increases quantity of orphan accounts. (increase of UFE)o Requires backdated transactions, which causes additional NFIs, out-of-sync

conditions, and more manual workarounds for the TDSPs.• Same CR point-to-point initiatives

o Relieves the effects to the customer from NFI rejects for those transactions.o Requires that the TDSPs handle multiple non-sequential transactions.o Causes out-of-sync conditions if TDSP is not handling multiple non-sequential

transactions.

33

Solution to Stacking

Study Approach• Other market designs

o ERCOT ‘Mother ship’ concept

o JIT (Just in Time)

o Centralized scheduling with delayed notification to ERCOT

• Changes to existing designo Building the ability to handle multiple non-sequential transactions within the

current market structure.

• Cost and schedule restraints of all market participants

34

Solution to Stacking

Proposed Design • A method that allows CRs, ERCOT, and TDSPs to accept (and process)

multiple, non-sequential transactions concurrently on a single ESI ID.• Requires new business rules to sequence multiple transactions.• May require system changes for all market participants• Benefits expected

o Significant reduction in NFI rejects o Significant reduction in need for Safety Net Move-Ins o Better manages customer expectations (Dates, billing, etc.)o Fewer backdated clean up effortso Fewer Cancel/Re-billso Helps keep systems in synco Reduces UFEo Reduces transaction volumeo Expedites connecting and billing the customers by the correct CRo Improves transaction reliability

35

Solution to Stacking

Next Steps• Establish high-level design• Cost benefit analysis

36

Timelines for approved concepts• ERCOT Monitoring

– Cancelled with Exception• Implemented 1/9/2003

– Rejects• In Analysis

• Date Reasonableness– 12/19/2002 implemented

• Pending 814_06s– 2/9/2003 ERCOT implemented temporary fix– 3/1/2003 ERCOT system impact analysis due for permanent fix– Implementation projected for early June

• Retired ESI Ids– Version 1.6

• Invalid ESI ID retry– 3/1/2003 ERCOT system impact analysis due– Implementation projected for early June

• De-Energize flag (ignore CSA) on Move-Outs – 3/1/2003 ERCOT system impact analysis due– Implementation projected for early June

• ESI ID Start/Eligibility Date – 3/1/2003 ERCOT system impact analysis due– Implementation projected for early June

37

Invalid ESI ID Rejects

• Approved by RMS on October 16th

– Expediting ESI ID Creates - A report by TDSP by percent of Invalid ESI ID reject to total 814_16 transactions will be made available to RMS prior to each RMS meeting for an undetermined period of time. The report will encompass a two-week time frame as close as possible to the RMS meeting (not too far in the past). This report will be provided by ERCOT

– January 3rd through February 20th

Total 814_16s Percent Invalid ESI ID

– AEP 49803 3.73%– Centerpoint 92835 1.12%– Oncor 122241 5.24%– Sharyland 247 12.55%– TNMP 8573 1.18%

• 2 TDSPs showing improvement from last period

38

Thank-you