June 9 th, 2008 TPTF Texas Nodal Program: Market Readiness Metrics Update Mike Beck

2 2 Texas Nodal Program UpdateJune 9 th, 2008 Agenda Status Update –ERCOT Staff Readiness –Market Participants –EDS Cycle 4 Survey Update Action Items from May 22 nd TPTF Meeting Metric Revisions/Interpretations Appendix (see separate file)

3 3 Texas Nodal Program UpdateJune 9 th, 2008 Status Update There have been positive and negative changes since the last meeting: ERCOT Staff Readiness:green  amber (–) Market Participant Readiness:red  amber (+) UPDATE CLOSER TO THE DATE

4 4 Texas Nodal Program UpdateJune 9 th, 2008 Status Update: ERCOT Staff Readiness Engagement (green) New survey results came out at the end of May - ERCOT remains fully engaged Training (amber) completion target is August 31, departments in the IT division are behind scheduled training levels Process (green) updated weekly completion target is August 31, 2008 Staffing (amber) RAG rule based on June 1 st date (requires >95% staffing for green status – ERCOT is currently ~92% staffed) recruitment is ongoing Testing (green) no recent developments ERCOT Staff readiness status is AMBER

5 5 Texas Nodal Program UpdateJune 9 th, 2008 Status Update: Market Participants Engagement (>95% green) will be updated June 12 th when Cycle 4 Survey is scored Connectivity (>95% green) no change Registration and Qualification (amber) MP10 (Resource Mapping) ~12 resource entities still need to submit initial data (as of 5pm 6/3/08) MP11 (RARF Submissions) ~99.5% of MWs have been reported (as of 5pm 6/3/08) Both MP10 and MP11 are amber based on new interpretations of the metrics (see next slides) Telemetry (green) no change Training (>95% green) will be updated June 12 th when Cycle 4 Survey is scored Trials Participation (>95% green) no change Market Participant readiness status is AMBER, driven by MP10 and MP11

6 6 Texas Nodal Program UpdateJune 9 th, 2008 Market Participants: MP10 Metric Interpretation MP10 (Mapping of Resources to Resource Nodes and Resources to EPS Meters) has been interpreted as Amber based on a review of completion dates and the RAG rules for Target 1 Target 1Target 2 CriteriaFeb. – March 2008 goal: 100% Resource to Node/EPS meter mapping; QSEs to ensure REs provide acceptance of mapping June – July 2008 Goal: 100% Resource to Node/EPS meter mapping; QSEs to ensure REs certify acceptance of mapping Completion DateEDS 2 Release 4 completion (Network Model Verification) 168 Hour-Test Start less 45 days (was July 15 – date will change) RAG RulesGreen: Complete Amber: Not complete, <1 mo. past target Red: Not complete, >1 mo. past target Green: Complete Amber: Not complete, <1 mo. past target Red: Not complete, >1 mo. past target StatusApprox. 12 REs have not submitted Approx. 21 REs need to modify data N/A (still on Target 1) InterpretationAmber EDS 2 Release 4 is not yet complete, therefore no one can be red N/A (still on Target 1)

7 7 Texas Nodal Program UpdateJune 9 th, 2008 Market Participants: MP11 Metric Interpretation MP11 (Registration Activities) has been interpreted as Amber based on a new interpretation of the RAG rules and the fact that submitted RARFs represent close to 100% of MWs in the market Sept 2007 and Nov 2007 Targets April 2008 Target CriteriaNo longer relevantIndividual REs will be measured on successful completion of RARFs Market will be measured by % received As of May 1 all incomplete forms will be considered red Completion DateNo longer relevantEDS Trial Participation Milestone plus 14 days RAG RulesNo longer relevantMPs Green: All forms received Amber: Incomplete form Red: Failure to submit documentation Market Segment Green: Meeting criteria Amber: Within 10% of criteria Red: Not meeting criteria StatusNo longer relevantRARFs received represent 99.5% of the modeled MWs Interpretation---Since essentially 100% of the MWs are represented in submitted RARFs status is reported as amber

8 8 Texas Nodal Program UpdateJune 9 th, 2008 Status Update: Wall of Shame The following Resource Entities are RED for MP11 (Registration Activities), meaning they have not submitted a completed RARF at this time Texas Big Spring (Gen.) Post Wind Farm (Gen.) Capricorn Ridge Wind (Gen.) Capricorn Ridge Wind II (Gen.) Eagle Energy Partners (Load) Bass Enterprises Production (Load)

9 9 Texas Nodal Program UpdateJune 9 th, 2008 Status Update: EDS EDS 1 (green) no changes EDS 2 (red) monitoring telemetry data from MPs to ensure data is of the quality needed for the state estimator to converge within the TAC approved tolerances progress made with EMO12 (Network Operations Model and SE Performance) Initially there were 338 unobservable buses - now there are only 80 continuing to work with TSPs to fix remaining issues EDS 3 (amber) successfully completed EMO6 (QSE Response to Dispatch) EDS 4 (red) waiting on EMS 5 delivery to proceed with EMO3 (Verify Outage Evaluation System Functionality) working with MPs to connect to new hardware to satisfy N2.2 (ERCOT Telemetry/ICCP System Failover) EDS status remains unchanged since the last meeting

10 Texas Nodal Program UpdateJune 9 th, 2008 Cycle 4 Survey Update Updates to the Cycle 4 Survey can be submitted using the excel form found on the metrics website (same process as previous surveys) ERCOT Account Managers will continue their outreach efforts to MPs who were non-responsive to the Cycle 4 Survey or who reported negative answers Cycle 4 Survey Data will be reported on the scorecards on June 12 th Metrics MP1 (engagement), MP12 (EDS 3 related training), MP13 (EDS 4 related training), and MP19 (LSE engagement) will be impacted by this survey – Limited response so far; may impact overall MP status at next TPTF meeting Survey Monkey has closed for the Cycle 4 Self-Reported Survey

11 Texas Nodal Program UpdateJune 9 th, 2008 Action Items Communication with QSEs –Red Status: updates done on a consistent schedule, for Wall of Shame only –Wall of Shame: prior to publication, chance to remedy/contact us (complete) Resource Entities –Wall of Shame: as shown for MP11; not linked to QSEs –Access to RE data/forms: ERCOT cannot intervene, but MPs can solicit MP11 –Scoring (Market Segment) Interpretation: previously described –QSE Exclusion from EDS Testing (i.e., LFC): only the non-responsive REs will be excluded –RARF Data Review Plan: Dana to discuss later today MP10 –Reporting: Dana to discuss later today EDW –Extracts Delay: Delay is 5 weeks due to limited testing space At the last TPTF meeting there were several items we committed to research and to report on, including:

12 Texas Nodal Program UpdateJune 9 th, 2008 Metric Revisions and Interpretations Reasons for revisions include the following: Inaccurate Target Completion Dates –E7, E10, E11… Metric Categorization –CRR2, CRR4… RAG Rules –MP14, MP15, MP16… Phase 2, Further Testing –MP10, MP11… Anticipated nodal program schedule modifications provide the opportunity to review all metrics to ensure a consistent application of status criteria

13 Texas Nodal Program UpdateJune 9 th, 2008 Questions ?