EDS 3 Release 5 SCED Testing Update - TPTF Daryl Cote August 28, 2007

Page 2 2 EDS 3 – Release 5 August 28, 2007 EDS 3 Release 5 SCED Input Data Submittal and Validation Testing SCED Activity timeline – follow up from Monday’s PMO discussion 8/24 to 10/4 Testing Objectives 8/24 to 10/4 Testing Status EDS 3 Testing Deliverables Ongoing Process Remaining Schedule Questions

Page 3 3 EDS 3 – Release 5 August 28, 2007 Detailed schedule for SCED testing  EMS integrated with SCED  Resource Limit Calculator (4 sec)  State Estimator Solution Data (5 min)  Transmission Constraint Mngr (5 min)  SCED reports SCED ValidationRT ICCP6 mths LMP posting  EMS – MMS Static Data Synchronization  EIP upgrade (bug fixes)  QSEs regression test against real data  QSEs submit pre-defined offer curves  Started 8/24 SepOctNovDecJan Feb  6 Months LMP posting Data Validation Oct 01, 07 Nov 01, 07 Jan 15, 08

Page 4 4 EDS 3 – Release 5 August 28, 2007 Data validation phase will occur during October – QSEs will test against better Registration and Network Model data The current SCED Input Data Validation phase will end by 10/04/2007 QSE Registration data will be uploaded into EMS and MMS, 2 nd week of October. Data includes –Data Submitted via RARF (Sept 4 deadline) –Electrical Bus to load zone map (initial EDS dataset) –Electrical Bus to Hub bus mapping etc. (initial EDS dataset) QSEs are required to regression test SCED against real data QSEs submit pre-defined offer curves to SCED

Page 5 5 EDS 3 – Release 5 August 28, 2007 SCED will be integrated with EMS by 11/01/2007 Bottom line: With this deployment to EDS we can start calculating LMPs using real-time system conditions EMS to MMS integration for SCED  SCADA Inputs  GTBD  Resource Limit Calculator  State Estimator Solution  Transmission Constraint Manager Currently planning to publish the following reports SCED Inputs  Status of breakers and switches  Transmission flows and voltages  Transformer flows, voltages and tap position  Voltage schedules  15 min average of Loads on Electrical Buses SCED Outputs  LMPs on each resource node  SPPs on hub and load zone  Shadow Prices  Binding transmission constraints

Page 6 6 EDS 3 – Release 5 August 28, 2007 Status of key activities to meet SCED objectives Activity StatusComment EMS – MMS static data synchronization (Electrical buses, QSE to resource mapping, Electrical bus to Hub mapping)  Confidence of delivery is High  Identified data elements to be kept in sync  Effort launched to validate data elements Build and test, EMS – MMS interface for SCED  Confidence of delivery is High  Detailed design published to TPTF 8/1  EMS being FAT tested – forecast completion 9/6  MMS code changes for completing interface – 9/6 Generate SCED reports (Inputs and Outputs) –Status of breakers and switches –Transmission flows and voltages –Transformer flows, voltages and tap position –Voltage schedule –15 min avg of Loads on Electrical Buses(5) –LMPs on Resource Nodes, Hubs, Load Zones (1) –SPPs on each hub and load zone(2) –Shadow Prices(4) –Binding transmission constraints (3)  Confidence of delivery is low  Cross-project effort launched, targeting 11/01/2007 for delivery of reports  Looking at various options to source LMP and related data

Page 7 7 EDS 3 – Release 5 August 28, 2007 EDS 3 – Release 5 Testing Objectives EDS 3 –Release 5 – Trial Operation of SCED, 6 month LMP posting (SCED MP Handbook) SCED 1 – Input Data Submittal and Validation (8/24 to 10/4) SCED 2 – SCED Execution (Controlled EMS Input) SCED 3 – Integrated SCED Execution (RT ICCP) (11/1) SCED 4 – Six Month LMP Posting (mid-January ‘08) –Release 6 – Trial Operation of LFC, ACE –Release 7 – Trial Operation of CRR, sample Settlement Statements Provide a SCED environment for Market Participant EDS Activities Both user Interface and machine-to-machine Verify QSEs ability to use Web Services to create, change, cancel, and query three part offers, COP, output schedules and inc/dec Verify QSEs understanding of SCED input validation rules

Page 8 8 EDS 3 – Release 5 August 28, 2007 EDS 3 SCED – Input Data Submittal and Validation Testing Status Tasks Status QSEs Testing Window Scheduled30 of % Complete MP-2: Connectivity to EDS Environment - QSEs Ping Tested 5 of 30~17 % Complete MP-3: QSEs with Resources Upload of SCED Offers 2 of 306% Complete Make Up Tests (MP-3)As needed Test Offer Curves Submitted (spreadsheet) 30* of 30 Registration for test windows is complete, connectivity tests and Web Service submissions are underway. Status is tracking to plan.

Page 9 9 EDS 3 – Release 5 August 28, 2007 Support Windows by Week We appreciate the QSEs that signed up for early test windows. Effort increases as we progress so we all need to work together to stay on track.

Page EDS 3 – Release 5 August 28, 2007 Lessons Learned Keep Sandbox current / ahead of EDS environment –We are working to remedy this Connectivity Test (Ping) –Work with your network group to enable in/out traffic on network prior to test –During test have network, system admin available –Requires system access during the test Support Window –Prior to test submit sample files to ERCOT for validation –Have scenarios ready so execution of scripted tests are more efficient Non-business hour support –Please prearrange so we can determine if it is

Page EDS 3 – Release 5 August 28, 2007 Testing Schedule (8/24 to 10/4) Mondays & Fridays are reserved for status calls. We had poor attendance on 8/27 (50%). To stay informed please have a representative attend.

Page EDS 3 – Release 5 August 28, 2007 EDS 3 – Known Issues Market Update Calls are being held Monday and Friday Summary of known issues: Notifications are not being sent Query Output Schedule not working If submitting an Output Schedule for a partial day MP is required to first submit a TPO for the other hours … Resources for defect information Sandbox Environment: Readiness Center \ sandbox \ documents \ Sandbox Web Services Defects EDS Environment: Readiness Center \ EDS 3 \ Documents \ Known Issues Majority of the functionality is available and we are working toward completing internal testing and releasing corrections

Page EDS 3 – Release 5 August 28, 2007 EDS 3 – Release 5 Testing Deliverables #ArtifactInitiatorDistribution 1EDS 3 MP SCED HandbookERCOTPublic 2Test resultsERCOTMP Specific 3Test TPO, OS, COP, INC/DEC OffersMPMP Specific 4EDS 3 – SCED Test Package (s)ERCOTPublic 5Completed Testing Checklists / Issue ListERCOTMP Specific 6EDS 3 Results Dashboard (posted weekly)ERCOTPublic 7ERCOT Defect listERCOT / MP Public 8LMP Reasonability VerificationERCOTInternal 9Reports / Extracts supporting Protocols: 6.3.1; 6.3.4; (3) (d); (3); (1); (4); (5) (c) ERCOTMIS Secure Area 10Base Points per Protocols ERCOTMP Specific These will be delivered through the course of EDS 3 Release 5 (8/24 to June 08)

Page EDS 3 – Release 5 August 28, 2007 EDS 3 – Ongoing Process What will happen next? 15 hour days Sleepless nights Happy MPs

Page EDS 3 – Release 5 August 28, 2007 Document Reviews - Plan CRR HandbookLFC HandbookSCED Handbook (Phase 2*/3/4) Initial Review (EDS workshop / WebEx / TPTF) 8/279/129/24 Post for TPTF8/279/289/24 TPTF Vote9/2410/8 SCED Phase 2 – moving away from scripted tests and use it for upgrades, data sync, test offer curve submissions

Page EDS 3 – Release 5 August 28, 2007 Questions? Testing Deliverables Metrics Schedule If you have feedback for the EDS team please contact me at