March 11, 2008 Texas Nodal Market Redesign Program Commercial Operations Subcommittee

2 2 Texas Nodal Program UpdateMarch 11, 2008 Agenda Texas Nodal Program Progress Commercial Systems Progress Early Delivery System (Commercial Systems) Update –WebEx Commercial System deliveries to EDS 168hr Test and Post 168hr test – Commercial Systems Impact –Tradeoff if items added Issues for COPs: –Impacts of late protocols & whitepapers –Nodalization of Section 11, Impacts to COPs –DAM Timeline payment process

3 3 Texas Nodal Program UpdateMarch 11, 2008 Texas Nodal Program Progress Texas Nodal Program is now in its 27th of 36 months… ~6 months to 168hr test Start date ~8 months to first monthly CRR auction (and associated invoicing) ~9 months to Go Live ARE YOU READY……

4 4 Texas Nodal Program UpdateMarch 11, 2008 Commercial Systems Project Update Commercial Systems comprises the following projects: Settlements and Billing (Lodestar) Data Aggregation and Metering (Lodestar) Financial Transfer (Lodestar + internal UI) Commercial Systems Integration – CSI (Oracle + TIBCO) MP Registration (Siebel) Disputes (Siebel) Credit Monitoring and Management (ROME) Overall I have been VERY proud of our ERCOT team thus far. They have met or exceeded nearly every deliverable or milestone to date

5 5 Texas Nodal Program UpdateMarch 11, 2008 Commercial Systems Project Update Lodestar Requirements and Designs have been approved by TPTF and TAC Most Test Cases and Test Scripts have been built for functionality testing and batch Over 75% of the code has been built and initially tested. Outstanding code currently in build progress Data Aggregation Rewrite behind settlements, but testing planning to start this week With the exception of “new” protocols and CCU all initial settlements code delivery planned to be in functional testing by April 2008 Financial Transfer testing is planned to start in March 2008 Moving to integration testing (iTEST) to start “hooking up” CSI with Lodestar by April 2008 Successfully run a DAM, RTM, and CRR Auction batch flow to Invoice with minimal defects

6 6 Texas Nodal Program UpdateMarch 11, 2008 Commercial Systems Project Update Commercial Systems Integration Completed build of TIBCO framework (data transportation layer) Completed 4 of 6 build iterations (on schedule) Coded ~50% of “bill determinants” Functionally tested ~15% of bill determinants Ramping up functional testing team Created “mini-market” for seeding and testing data Issues: Have not connected to any upstream system due to their delays Still have to update code for DST, etc (planned for next iteration) Successfully run stubbed integration data end to end

7 7 Texas Nodal Program UpdateMarch 11, 2008 Commercial Systems Project Update Siebel MP registration Requirements and Designs have been approved by TPTF and TAC Disputes Requirements have been approved and CSD approval is planned for Late March 2008 MP registration has released 2 of 4 builds Build 1 and 2 addressed base requirements (ex. CRR Account Holder) Build 3 (currently in iTEST), adds disputes, VC, and updates integration Build 4 (planned for Go Live cut-over), for emergency fixes only Disputes will start testing in EDS in June 2008 (minor changes from current process) MP registration has been Live in production since Build 1

8 8 Texas Nodal Program UpdateMarch 11, 2008 Commercial Systems Project Update ROME Requirements and Designs have been approved by TPTF and TAC Completed base application and “core calculation” builds Currently migrating application to iTEST to start integration testing Ready to start ACL (Available Credit Limit) testing with other systems Working on integration staging tables and Management screens and workflows

9 9 Texas Nodal Program UpdateMarch 11, 2008 Early Delivery System (Commercial Systems) update EDS Market trials for Commercial Systems is all listed in EDS 4 Release 8 Documentation and early deliverables will be provided to the Readiness Center website Designs for reports and extracts also provided as part of the Readiness Center website (reports) WebEx planned for March 12, 2008 as “kickoff” for EDS 4 Release 8 (please have your staff attend) MP specific items (mock statements, reports, extracts, etc) will be provided as part of MIS confidential to the individual MP (due to possible confidential information)

10 Texas Nodal Program UpdateMarch 11, 2008 Next Steps – what to expect in R8.1 (March 2008) Sample Statements and Invoices Sample Statements and Invoices (and supporting xml files) are being posted on the Readiness Website for MP review. All sample statements and extracts will be available for review prior to 3/31: Sample DDLs Draft DDLs are available on the Readiness Website. They are updated weekly (on Fridays). Sample Extract Layouts Specifications for each report and extract are available on the Readiness Website. They are updated weekly (on Fridays). The status of gathering business requirements for each report/extract is tracked as well, so MPs can gauge the completeness of the information presented. Sample Reports Sample reports are posted to the Readiness Website as they are available. any questions/issues to

11 Texas Nodal Program UpdateMarch 11, 2008 Issues: Nodal Program issues that COPs should know about: 1. Protocols or “white papers” that are just getting approved or are still in flight are risking making it before 168hr test or Go Live… what does this mean Combined Cycles Units Example White paper on settlements passed by TPTF in January 2008 Best case schedule for CCU settlements is ERCOT will not be ready until AT LEAST June 2008 Verifiable Cost Example Working group still meeting on items Low impact on Settlements since a manual process Possible impact to Market System and might not make it before Go Live

12 Texas Nodal Program UpdateMarch 11, 2008 Issues: 2. Section 11 Nodalization TPTF is planning to start Nodalizing all remaining section of the ERCOT protocols (section 11, 18, 19, 20, 21, 23, 24) It was assumed that remaining sections will NOT add/change existing Zonal requirements Issue: discussion has started about “48 hour rule” for market data. Recognize that ERCOT has assumed that section 11 stays the same. Changes could have adverse ramifications to delivery 3. DAM timeline payment process Multiple proposals have been made to COPs and TPTF about changing the DAM payment timeline. None have been adopted DAM payments have to occur, but MPs will have their extracts before payment is required (extracts around Day 4)