Future of OASIS II Conference Presented by Karl Tammar – NYISO For the ISO/RTO Council March 29, 2005 ISO/RTO Activities and Initiatives

OASIS II Issues and Goals: Many Transactions Crossing RTO Boundaries Numerous Customers doing business with multiple RTOs Remove barriers to the ability to trade Standardizing Electronic Communication in Electric Industry Develop effective processes and tools

Periodic Model Updates Load Forecasts Real-Time Values Constraints Approval Requests Operating Information Economic Unit Set Points NetIntertieSchedule Generation Supply Curves Request Approvals Operating information Market Information Settlement Reports Offers & Bids Bilateral TA Meter Data PlanningScheduling and Dispatch RegulationTransaction Management SettlementsMarket Monitoring Regional Market Participants Local Control Center Functions Periodic Model Updates Load Forecasts Real-Time Values Constraints Approval Requests Operating Information Economic Unit Set Points NetIntertieSchedule Generation Supply Curves Request Approvals Operating information Market Information Settlement Reports Offers & Bids Bilateral TA Meter Data PlanningScheduling and Dispatch RegulationTransaction Management Settlements and Billing Market Monitoring Regional Functions Market Participants ISO/RTO Basic Functions: Demand Response and Retail Access Local Security Automatic Generation Control Data Acquisition Dispatch Gateway Functions

Seams Issues barriers and inefficiencies equipment limitations differences in market rules and designs operating and scheduling protocols, other control area practices inhibit or preclude the ability to transact capacity and energy across control area boundaries.

Regional Seams Initiatives Related to Transaction Scheduling Northeast – IESO, ISO-NE, NYISO, & PJM Removal of Export Charges between control areas (Rate Pan-caking Elimination) E-Tagging Integration- automated response on incoming E-Tag requests and automated updates for bid /schedule changes to the E-tag system resulting from the hour-ahead evaluation. Facilitated Checkout Midwest – MISO & PJM Rate Pan-caking Elimination Congestion Management (improve real-time use of transmission interfaces – Regional Dispatch Coordination) West – SSG-WI: AESO, CAISO, RTO West participants & West Connect participants SSG-WI evaluating proposals and previously submitted white papers Single Market Interface (SMI) work is ongoing

Adopted and De Facto Standards ICCP – Real Time Reliability E-Tag – Blends Reliability & Business OASIS 1A – Physical Transmission Business CIM – Quasi Static Reliability CME – Market Extensions to CIM FCO – Application implementation RTO OASIS/MIS – Market Participant Interface

SCUCSCEDetc Markets Functions Components Data Architecture Market Rules & ISO Operating Procedures/Bus. Processes Day AheadReal Time... What Information is exchanged? System Architecture... Etc.... SMD and Regional Market Designs RegulationScheduling and Dispatch Transaction Management Market Monitoring Etc.... SECAetc EMS Application Integration Bus Other Components Other Data CIM Data Model Market Design/Policy ISO/RTO Systems Market Interfaces Transaction Scheduling InterfaceMarket Information and Reporting Bid/Offer Interface Etc....

ISO/RTO Activity: Facilitated Transaction Checkout Tool for data exchange to support real-time transaction checkout Each Area provides a service that enables neighboring CAs to view their current transaction stack Areas can integrate this data into existing displays to meet the unique needs of their own Operators Changes made on FTC screen seamlessly carry into current scheduling software Supplemental data (e.g. Ramp info) may be added for one Control Area and available for all without it being required for all. Application Implementation Open Architecture (free code sharing) No monthly fee or upgrade costs to third party Total Project cost is limited to internal development time and server costs (45 to 60K US dollars) Project Costs are quickly recovered with reductions in additional staff required for checkout

Goals of CIM for Market Extensions (CME) Project Extend the CIM architecture to support SMD and facilitate markets Focus on the Day-Ahead and Real-Time Market Processes to define extensions needed for the CIM data model to support these processes Standardize information format and application interfaces to make the North American wholesale electricity market run efficiently, reduce seams issues and save substantial costs in the development of applications for each RTO Will allow RTOs to buy best-of-breed applications and communicate with Transmission operating Organizations and/or other ISOs/RTOs in a standard information format Will allow marketers, Load Serving Entities (LSE), and Generator Serving Entities (GSE) to access information and bid in the RTOs preferred format

Scope of CME Project RTO A ISO DRTO C ISO B Generators Loads Marketers CIM extensions in scope for CME XML information exchange model and terms database – message standards to be developed as part of RTO/ISO Data Initiative Market, Load, Generation Participants CIM extension and information exchange model – Other Initiatives and/or Future Phase(s) Inter-ISO/RTO Messaging MIS SCUCSCED Settlement Intra-ISO/RTO Messaging RTO A

Reliability Standards Accountability/ Implementation Standards Working Groups/Task Forces National, State, or Provincial Authority (e.g. FERC) Market Design / Policy /SMD NERC Reliability ISO/RTO Market Design/Rules NAESB Participant Business Practices Regulatory/ Policy Wholesale Market Rules & Operating Procedures Software Architecture and Security Standards Market Interfaces ISO/RTO Related Data Interchange Bilateral Market Standards Market Participant Business Practices/Processes Industry Related Data Interchange NERC working groups/taskforces ISO/RTO Council – Delegation to working groups for specific tasks Direct Participation Working Groups as Required General Structure for Responsibilities Systems Implementation Responsibility Reliability EntitiesISOs/RTOs are Standards Users Standards Users

Challenges for OASIS II SMD Closure Rate Pancaking Data Confidentiality Protecting Existing Investments Determining Business Case

Questions