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 Transition Plan 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
• Market Trials Approach comments and approval
• Detail out specific sections and review with TPTF
• Tentative Schedule

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Objective of market trials

• The objective of market trials is to confirm
  through a series of structured 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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EDS - Market Trials Timeline
Dec 08
Nov 07
Jul 07
Sep 07
Aug 07
May 07
Jun 07
Jul 08
Sep 08
Aug 08
Mar 08
Feb 08
Jan 08
May 08
Jun 08
Dec 07
Oct 08
Nov 08
Apr 08
Oct 07
Market Trials Start
ICCP / Telemetry Validation
EDS 1
SE Validation
EDS 2
Resource Registration
AS Qualification
Market Operations Functional Testing
LMP Market Readiness Criteria MET
3/31/08 Single Entry Model
GO LIVE
All QSEs Real Time Parallel Operations
EDS 3
Cycle 1 LMP w Controls
Market Operations Sandbox ERCOT UAT
SCED testing cycles, voluntary per QSE scripted
for 30 days Thereafter all QSEs participate in
real time parallel operations
Reasonable LMPs 24x7 support All available
MPs Reasonableness criteria met 6 months
Limited 24x7 support
Full 24x7 support
1 hr EECP
ACE
Compliance
Comment Period
ACE 2 weeks (5.4.8 (2) Compare existing with
new ACE results
DR Testing
Market Operations Sandbox ERCOT UAT
EDS 4 - Day Ahead Operations
EDS 4
168 hour test complete
12/01/08 Realtime Markets
GO LIVE
Feedback
168 hour trial
Go-Live Transition
168 Hour Test 4 weeks to complete 4 week
feedback-fix
12/08/08 Forward Markets
GO LIVE Zonal Markets Shutdown GO/NO GO

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

• Define Transition Plan 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 Transition Plan Traceability Matrix
Example
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Transition Plan Traceability Matrix Example

• Transition Plan Detail
• 5.4.1(2a) ERCOT shall develop procedures for
  setup and data implementation requirements
  applicable to TSPs and QSEs. ERCOT shall with
  the assistance of TSPs and QSEs Verify that all
  data and telemetry requirements specified in the
  nodal Protocols Section 3.10, Network Operations
  Modeling and Telemetry, have been met and that
  all data submittals are complete and represent an
  accurate model of the ERCOT System

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Transition Plan Traceability Matrix Example
(cont.)

• Requirement
• ERCOT shall verify that all data and telemetry
  requirements have been met and that all data
  submittals are complete and represent an accurate
  model of the ERCOT System
• ERCOT Tasks
• Define data and telemetry verification plan based
  on NP 3.10
• Verify that all submittals are complete and
  represent an accurate model of the ERCOT system
• MP Tasks
• Review data and telemetry verification section of
  Market Trials Handbook
• TSPs and QSEs assist ERCOT with data and
  telemetry verification
• Comments
• NP-Section 3.10, Network Operations Modeling and
  Telemetry
• Requires NMMS to complete ITEST and in
  pre-production
• Issue an EDS 1 RFP to verify that NMMS systems
  and processes meet section 3.10 of the ERCOT
  protocols

gt Each requirement will be further detailed in
the EDS Detailed Market Trials Test Plan
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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 transition plan, business
  requirements, SoSA documentation, etc.
• Identify EDS phase for all functionality based on
  comprehensive release plan and project schedule.
• 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

• Request comments on Market Trials Approach by
  12/6/06
• Return for approval in January
• Begin EDS detailed planning providing
  opportunities for comments as follows
• Review Transition Plan Traceability Matrix TBD
• 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

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• Questions?

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SCADA Telemetry Schematic
ERCOT Quality codes
Quality codes posted by TSP
ERCOT EDS scope
G
D
H
I
K
J
F
TSP QSE EMS SCADA
ERCOT SCADA
Equipment Statuses
Phone Lines
ICCP Link
A
CT
ICCP
Scaling
ICCP
Transducer (kWh)
L
E
C
PT
B
M
N
One-line Displays
Mapping to network model
QSE/TSP data accuracy assurance points by PE seal
ERCOT data accuracy assurance points by PE seal