11/08/2005 Ken Donohoo How Does NMMS meet the Nodal Protocol Requirements John Adams 3/23/2006

11/08/2005 Ken Donohoo Agree on Meeting Objectives Reach consensus a modeling process with which ERCOT can meet the Nodal Protocol requirements –Pass audit which requires identical results for Operations and planning model intended to represent the same system state (Protocol 3.10 ppg 5) –Coordinate Operations Model with planning model (Protocol 3.10 ppg 9) –Release planning model in CIM format ( ppg 3) –Use dynamic ratings in Annual Planning Model, Network Operations Model and CRR Network model (3.10.8)

11/08/2005 Ken Donohoo Existing Process

11/08/2005 Ken Donohoo Proposed Process

11/08/2005 Ken Donohoo

How NMMS meets requirements 3.10Network Operations Modeling and Telemetry (5) ERCOT shall use consistent information in the various models used by ERCOT Operations, ERCOT Planning, and other workgroups in a manner that yields consistent results. For operational and planning models that are intended to represent the same system state the results should be identical and the naming should be consistent. An independent audit must be performed at least annually to confirm that consistent information is used in all ERCOT Operations models. By using the same source for the Annual Planning Model, for the Network Operations Model and CRR Network models, we guarantee model consistency

11/08/2005 Ken Donohoo How NMMS meets requirements 3.10Network Operations Modeling and Telemetry (9)ERCOT shall update the Network Operations Model under this Section and coordinate it with the Planning Models for consistency to the extent applicable. By using the same source for the Annual Planning Model, for the Network Operations Model and CRR Network model, we guarantee model consistency

11/08/2005 Ken Donohoo How NMMS meets requirements Annual Planning Model (1)ERCOT shall develop models for annual planning purposes (“Annual Planning Models”) that contain, as much as practicable, information consistent with the Network Operations Model. (2)ERCOT shall perform updates to the ERCOT Annual Planning Models for each of the next five years as follows: (a)Annual Planning Model updates are due September 1st; (b)Annual Planning Models are released October15th. (3)ERCOT shall release of Critical Energy Infrastructure Information (CEII), the transmission make available to TSPs and/or DSPs and all appropriate Market Participants, consistent with applicable policies regarding model used in transmission planning. ERCOT shall provide model information through the use of the Electric Power Research Institute (EPRI) and NERC sponsored “Common Information Model” and web-based XML communications. The NMMS and associated business process meets the requirement that ERCOT develop models for annual planning purposes consistent with the Network Operations Model. Then NMMS provides a mechanism to make the transmission model used in transmission planning available to market participants through the EPRI and NERC sponsored Common Information Model.

11/08/2005 Ken Donohoo How NMMS meets requirements Dynamic Ratings –ERCOT shall use Dynamic Ratings, where available, in the Network Operations Model, Annual Planning Models, and the CRR Network Models. The NMMS and associated business process provides a mechanism to use Dynamic Ratings in the Network Operations Model, Annual Planning Models, and the CRR Network Models.

11/08/2005 Ken Donohoo How NMMS meets requirements (2)ERCOT shall provide a system to implement Dynamic Ratings and obtaining monthly expected ambient air temperatures to be applied to rating tables for the Annual Planning Models and the CRR Network Models. Transmission Elements that have Dynamic Ratings implemented in the Network Operations Model must have Dynamic Ratings in the Annual Planning Models and CRR Network Models. The NMMS and associated business process provides a mechanism to apply rating tables for the Annual Planning Models.

11/08/2005 Ken Donohoo How NMMS meets requirements 8.3TSP Performance Monitoring and Compliance (1)ERCOT shall develop a TAC-approved TSP Monitoring Program to be included in the Operating Guides for TSPs. The metrics developed by ERCOT must include the following elements of transmission system planning, operations and maintenance: (a)Transmission Element rating calculations; (b)Real-Time data: (i)Meeting telemetry standards, including the installation of new measurement equipment and the accuracy of measurements; (ii)Communications system availability; and (c)Outage scheduling and coordination; TSP Outage planning and scheduling statistics must have less weight the further out these statistics are from the Planned Outage date; (d)Compliance with model update requirements, including provision of network data in CIM compatible format and consistency with the Transmission Element naming convention developed in accordance under Section 3, Management Activities for the ERCOT system The NMMS and associated business process provides a mechanism for accepting CIM compatible data, and enforcing compliance with the Transmission Element naming convention.

11/08/2005 Ken Donohoo