http://nodal.ercot.com 1

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Texas NodalEDS Market Trials ApproachWednesday,
November 29, 2006
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Agenda

• Market Trials Objectives
• High Level Schedule
• EDS Phases
• EDS Timeline / Detailed Drill Down
• EDS Detailed Planning
• Define Business Process to Requirements
  Traceability Matrix
• Detail Market Trial Phases and Test Areas
• Create Entrance / Exit Criteria Checklists
• Define Test Cycles, MP Segmentation, and Test
  Calendars
• Outline Market Trials reporting requirements
• Next Steps
• Detail out specific sections and review with TPTF
• 2 Drafts and Final
• Tentative Schedule

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Objective of market trials

• The objective of market trials is to confirm
  through a series of structure and unstructured
  tests that
• stable and accurate operations of the SCADA,
  Network Security Analysis, Transmission
  Constraint Management, SCED, LFC, DAM, RUC, and
  real time settlement system can be declared
• as outlined in the Nodal Transition Plan.

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Approach aligns with the Nodal Timeline
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Market Trials Phases

• EDS 1 Data and Telemetry
• EDS 2 State Estimator, Network Security
  Analysis
• EDS 3 Real Time Market Operations
• EDS 4 Day Ahead Market Operations

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Market trials timeline
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Market Trials Timeline and the detailed Market
Trials Plan
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EDS Detailed Planning Overview

• Define Business Process to Requirements
  Traceability Matrix
• Detail Market Trial Phases and Test Areas
• Create Entrance / Exit Criteria Checklists
• Define test cycles, MP segmentation, and test
  calendar
• Additional Areas

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EDS Detailed Planning
Define business process to requirements
traceability matrix
Example
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EDS Detailed Planning

• Detail Market Trial Phases and Test Areas
• Define the set of functionality for each EDS
  phase based on the detailed requirements
  documentation.
• Identify EDS phase for all functionality based on
  comprehensive release plan and project schedule.
• Tie overall business process area to
  functionality for EDS phase.
• Define testing scenarios and test plan outlines

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EDS Detailed Planning

• Create Entrance / Exit Criteria Checklists

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EDS Detailed Planning

• Define test cycles, MP segmentation, and test
  calendar
• Testing cycles will be used to optimize the
  trials schedule and reduce resource conflicts by
  focusing on specific market areas with a reduced
  number of participants.
• Participants will be logically segmented into
  appropriate cycles.
• A weekly test calendar will be used to focus
  weekly activities. Multiple cycles may be
  scheduled in a single week or over multiple
  weeks.

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EDS Detailed Planning

• Additional Areas
• Outline Market Trials reporting requirements
• Define Market Trials data requirements
• Finalize Market Trial Phase critical inputs
• Interface documentation
• Requirements signoff
• Design signoff
• Market Operations Sandbox timelines

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Next Steps

• Obtain approval for Market Trials Approach -
  today
• Begin EDS Detailed Planning providing
  opportunities for comments as follows
• EDS 1 to 4 Detailed Plan Drafts for comment TBD
• EDS 1 Detailed Plan Final Signoff TBD
• EDS 2 Detailed Plan Final Signoff TBD
• EDS 3 Detailed Plan Final Signoff 3/30/2007
• EDS 3 Market Trials Handbook Final
  Signoff 6/29/2007
• EDS 4 Detailed Plan Final Signoff 9/28/2007
• EDS 4 Market Trials Handbook Final
  Signoff 12/31/2007