Facilitated Transaction Checkout Improving Operational Efficiency

2 Outline Why Facilitated Transaction Checkout (FTC)? What is Facilitated Transaction Checkout? Operational Benefits Displays Technology Considerations Implementation Status Questions

3 Why Facilitated Transaction Checkout ? The Northeast Market Operators are having increasing problems performing inter-control area checkout in real-time Each market is prone to having its own unique rules and timelines for clearing external transactions The volume and complexity of transactions significantly increased time required for manual checkout Marketers were learning how to arbitrage the markets

4 Why Facilitated Transaction Checkout ? These problems increase the likelihood of real-time discrepancies in inter- control area schedules affecting transaction data accuracy.

5 What is Facilitated Transaction Checkout ? A tool for data exchange to support real-time transaction checkout Each Control Area provides a “service” that enables neighboring CAs to view their current transaction stack prior to verbal checkout

6 What is Facilitated Transaction Checkout ? Individual Control Areas can integrate this data into their existing displays to meet the unique needs of their 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.

7 Current implementation allows Neighboring Control Area to compare, in real-time, transaction information for scheduling on common interfaces Tag ID MW value What is Facilitated Transaction Checkout?

8 Seamless integration for all markets that require the NERC E-tag as a common identifier Physical or Financial transmission Schedule or Tag based markets What is Facilitated Transaction Checkout?

9 System Operator Benefits Operators can improve overall efficiency in real- time Streamline communication between Operators thereby reducing overall checkout time Allow the Operator to focus on the discrepancies in transaction schedules between Control Areas Flexible enough to allow the Operator to access transaction schedules for future hours Results in fewer failed transactions Reduced administrative burden allows more time for System Operators to operate the system

10 Additional Benefits No requirement for changing Market Rules Business as usual up to the point of inter- control area checkout The ‘Markets’ continue to independently clear transactions for next hour Provides a solution for moving towards 15 minute transaction scheduling

11 Additional Benefits Financial Benefits  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

12 Time Savings Utilizing FTC Control AreaManual CheckoutFTC*Time Savings HQTE10 – 40 minutes5 – 20 minutesAs much as 20 minutes / hour with full implementation IMO40 minutes1 min. each with NYISO, HQ 20 minutes / hour each with NYISO, HQ ISO-NE10 – 20 minutes2 minutes minutes / hour with full implementation NB / NSUnder review NYISO15 – 25 minutes10 minutesAs much as 15 minutes / hour with full implementation MISOUnder review PJMUnder review *Based on production or test usage

13 Displays ISO New England view into New York Transactions

14 15:16:32 NY Checkout ready

15 15:17:09 Checkout Complete 35 seconds

16 NYISO CA View

17 IMO CA View

18 HQT CA View

19 Technology Requirements Must be standards based Technology independent Cost effective implementation Scalable for other collaboration efforts Secure information transfer Led to a “Service Oriented” approach

20 Service Oriented Architecture

21 Established a repeatable, collaborative process Model Driven Integration (MDI) Driven by the CIM and the NERC Functional Model Standards-based messages and predictable processes Efficiency gains will minimize cost and accelerate schedule going forward Implemented a scalable Web Services Architecture for Control Area data exchange Can be leveraged for future initiatives Will maximize return on investment Technology Benefits

22 Best Practice Technology Drafting the Service-Oriented Architecture Blueprint Gestalt - Energy Excerpts Volume 1 issue 3 “It is this need for better data flow between members of the utility grid that is driving the migration to an SOA [service-oriented architecture] and Web Services. If every power system operator, independent system operator and regional transmission organization implemented Web Services, the opportunity for efficient data sharing would be increased.” The entire article can be found at:

23 Implementation Status - NPCC HQTE Checkout Service and Control Room Integration: Testing with ISO-NE IMO Checkout Service and Control Room Integration: In service Utilizing NY checkout service in production. ISO-NE Checkout Service and Control Room Integration: In service Utilizing NY checkout service in production. Testing with HQTE NB / NS Checkout Service and Control Room Integration: Expected in-service in spring NYISO Checkout Service: In service Control Room Integration: Deployment scheduled for early 2005 to follow SMD2 implementation.

24 Implementation Status - Other MISO Checkout Service and Control Room Integration: Expected in-service in early PJM Under review.

25 Questions?

26 Contact Information General Questions Jim Hartwell Operational / Scheduling Questions Mike Zeoli Technical Questions Michael Martin