1 Single Entry Model (SEM) Weekly Market Call June 4, 2009 Matt Mereness

2 Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws. DISCLAIMER All presentations and materials submitted by Market Participants or any other Entity to ERCOT staff for this meeting are received and posted with the acknowledgement that the information will be considered public in accordance with the ERCOT Websites Content Management Operating Procedure.

3 SEM Weekly Market Call Agenda Antitrust Admonition SEM Go-Live Update Market Testing Update Training Update Roll-call Questions/Answers Appendix/Supporting Info –What is SEM? –Go-Live timeline and activities –Training overview and sign-up –Dates/ methods to test submissions of NOMCRs –Readiness metrics related to training and testing –Communication mailbox and SEM Market Call Schedule

4 SEM Go-Live Update Communication and Calendar –May 6 th ERCOT began TSP outreach through Wholesale Client Services TDSP/TO associations sent to 23 TOs Solicit training headcount from TOs (pre and post Go-Live) Good response from TOs –May 15- Market Notice sent for SEM Kick-off call to occur –May 28- SEM Kick-off WebEx 10:00-11:30am Go-Live timelines and activities for June - August 2009 Training overview and sign-up Dates and access methods to test submissions of NOMCRs Communications mailbox and SEM market call schedule –June 4- Start weekly Thursday SEM Calls at 2-3pm (through go-live/August) Company attendance is recorded ERCOT provide updates on testing and training Highlight issues or Frequently Asked Questions Open Question/Answer session for TSPs Meetings will be posted on new ERCOT calendar page at: –June 8- Testing environment available to TSPs (through Aug 10) –June 22- Weekly classroom training for 6-weeks (through July 30)

5 SEM Go-Live Update What is ERCOT doing this week? –June 1: ERCOT took final copy of zonal model seed on schedule Final copy of zonal model for conversion over the summer for SEM Go-Live –June 1-5: ERCOT has been performing dry-runs of training on NMMS test system 20 people sitting in the MP training chairs Dry run on training activities Ensuring any performance issues are identified –Reminder that TSP name changes requests should stop Receiving training request and system access requests –8 companies requesting through –28 requests for system access, June 8 –34 trainees requesting classroom training (96 capacity) Will look to considering 2/week classes if needed –4 requests for populated CIM XML file Oct 2008 test system in CIM v1.21 format

6 Go-Live Timeline and Activities SEM Go-Live 8/31/09

7 Market Testing & Training Update Communication of requests Training Requests –Use existing training tools for self-subscribe sign-up –ERCOT accommodating previous requests –Available Friday morning, June 5 Training page: Enrollment: Dates- June 23-25, June 30- July 2, July 7- 9, 14-16, 21-23, Test system access request – for system Populated CIM file request –Request file from –Pressing CDs and mailing to TSP upon request

8 Market Testing & Training Update (continued) Confirming requests received (not a metric- just confirmation) – discrepancies to

9 Roll-call and Q&A Roll-call Reminder(s): –Training Requests Use existing training tools for self-subscribe sign-up Available Friday morning, June 5 –Enrollment: –Test system access request for system Available June 8, will connectivity details –Populated CIM file request Pressing CDs and mailing to TSP upon request Friday and Monday Questions and Answers Next Weekly Market Call- June 11, 2009

10 Appendix/Supporting Info –What is SEM? –Go-Live timeline and activities –Training overview and sign-up –Dates/ methods to test submissions of NOMCRs –Readiness metrics related to training and testing

11 SEM Go-Live Overview Single Entry Model (SEM) Go-Live is the switchover on Aug 31, 2009 for TSP submissions of network operations model change requests –from “Service Request” submissions via TML –to “NOMCR” submissions via the NMMS System of record for model changes becomes NOMCRs on 8/31//09 System of record for Network operations Model for reliability and dispatch remains Zonal/Genesys system until Dec 2010 TSP Current Activity Submit Modeling Change via Service Request ERCOT Uploads Svc Request into Zonal Genesys Model ERCOT Copies/Converts Zonal Model “seed” Into Nodal NMMS Model TSP Aug 31, 2009 Submit Modeling Change via NOMCR/NMMS Tool (includes ICCP) ERCOT Incrementally Converts NOMCR Into Svc Req Uploads into Zonal Genesys Model ERCOT uploads NOMCR Into Nodal NMMS Model to support nodal testing Data Consistency Checks are run to ensure model synchronization/fidelity Periodic checks are run to ensure model synchronization/fidelity Full Copy Incr. NOMCR

12 Current Network Operations Model Maintenance for TSPs ERCOT Zonal EMMS Model (system of record through 12/1/2010) Submits Service Request to Change Model ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) Periodic full copy and conversion of model (zonal seed used for nodal systems) TSP

13 After 8/31/2009: SEM Go-Live Network Operations Model Maintenance for TSP ERCOT Zonal EMMS Model (system of record through 12/1/2010) ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) ERCOT enters NOMCRs into zonal model ERCOT runs consistency checks to ensure models are aligned and maintained Submits Model Change Request (NOMCR) TSP NMMS Model System of Record Nodal Go-Live 12/1/2010

14 Network Operations Model Maintenance for Resource & QSE (today and post 8/31/09) ERCOT Zonal EMMS Model (system of record through 12/1/2010) ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) ERCOT enters into zonal model NMMS Model System of Record Nodal Go-Live 12/1/2010 Submits RARF (Resource Asset Reg Form) via Service Request Submits ICCP Change via Service Request ERCOT process QSE RE

15 Go-Live timeline and activities (continued) Communication –May 6 th ERCOT began TSP outreach through Wholesale Client Services TDSP/TO associations sent to 23 TOs Solicit training headcount from TOs (pre and post Go-Live) Good response from TOs

16 Go-Live timeline and activities (continued) Communication and Calendar –May 15- Market Notice sent for SEM Kick-off call to occur –May 28- SEM Kick-off WebEx 10:00-11:30am Go-Live timelines and activities for June - August 2009 Training overview and sign-up Dates and access methods to test submissions of NOMCRs Readiness metrics related to training and testing Communications mailbox and SEM market call schedule –June 4- Start weekly Thursday SEM Calls at 2-3pm (through go-live/August) Company attendance is recorded ERCOT provide updates on testing and training Highlight issues or Frequently Asked Questions Open Question/Answer session for TSPs Meetings will be posted on ERCOT calendar at –June 8- Testing environment available to TSPs (through Aug 10) –June 22- Weekly classroom training for 6-weeks (through July 30)

17 Go-Live timeline and activities (continued)

18 Go-Live timeline and activities (continued) –Transition periods: June 1- Aug 30, 2009 (objective to minimize SvcReq during this period) –Submit changes as far in advance as possible –No equipment name changes (defer until after SEM Go-Live 8/31/09) Aug 15-30, 2009 –Two weeks no submissions, except for emergency changes Aug 31, Feb 2010 (NOMCRs for any/all network changes) –After 8/31/09 TSPs will work to validate the network model and align to their in-house systems –Initially the NOMCR timeline will align with zonal timeline »30-day lead-time, compliant with current zonal database schedulezonal database schedule »Status is tracked and communicated via system s –Any SRs that did not go into zonal production will be converted by ERCOT to NOMCRs for verification/submission by TSPs in Sept –In 2010 TSPs gradually transition to NodalProtocols(3.10) 90-day timeline submission requirements

19 Training Overview and Sign-Up TSP Submission Testing and Training will be the same system/database -Model to be used will be snapshot from October Training audience is the TSP network operations modelers/staff Submission Testing system access –Available June 8 – Aug 10 –NOMCR testing system will be on-line and available to all TSPs –ERCOT has established a dedicated and have staff available to support questions Training to be hosted in Taylor –Pre-SEM classes June 22 – Aug 3 Current plans for at least six 3-day sessions Planning for seats for each class Large dedicated training room –Post-SEM classes Sept 23- Oct 20 Fewer sessions and smaller classes (tbd) Make-up classes, not just-in-time training for all staff after go-live

20 Training Overview and Sign-Up (continued) Classroom schedule for the 3-day class One class per week for 6 weeks Start 1pm Tuesday / End noon Thursday Trainees can stay in Lab Thursday afternoon for Q&A If schedule fills up, ERCOT will shorten class to 2-days for the overbooked weeks June 23-25, June 30- July 2 July 7- 9, 14-16, 21-23, Next 4 slides show summary of training format and equipment Full training outline in Appendix (no change from last month) Note that testing/training will only include Level 1 Validation Level 1 – Automatic by the system upon submitting. Level 2 – Visual by the N/W Model Coordinator Level 3 – Power flow run on the one NOMCR. Level 4 – Power flow run on all NOMCRs for that day. Level 5 – Power flow run on the AREVA system.

Training (continued)

25 Training Overview and Sign-Up (continued) Sign-up for access to test environment starts today System access begins June 8 th request to Test environment requires a valid digital certificate (production or nodaltest) -Digital certificates are to be coordinate with your company’s USA -Include in Employee Name- TSP/Company Name- DUNS- address- Alternate/Centralized address for status change- Primary phone- Alternate phone- Sign-up for training will be discussed next week Weekly slots available for up to 18 participants Looking to leverage LMS/Training system to coordinate and track training Training classes occur each week from June 23 through July

26 SEM Go-Live Criteria SEM Go-Live Criteria defined in the SEM Go-Live Procedure Section 4- The following entry criteria shall be met for SEM Go-Live –TSPs & ERCOT complete EDS 2 Release 4 activities (next page) –Nodal network model validated and approved as baseline for SEM Go-Live by ERCOT System Ops and Market Ops Directors –ERCOT publishes CIM model to be used for SEM Go-Live –ERCOT sufficiently staffed for maintenance of nodal & zonal systems –Nodal EMS is capable of consuming NMMS CIM files through the EMS CIM importer for use in the Nodal EMS application suite –SEM Go-Live readiness approved by TPTF, TAC and ERCOT BOD presume ROS approval in place of TPTF –ERCOT publishes the following documents for TSPs NMMS Modeling Guidelines / Validation Rules document Latest CIM data dictionary and schema ERCOT Network Operations Model validation whitepaper ERCOT Network Operations Model validation results

27 SEM Go-Live Criteria (cont’d) –All TSPs complete EDS 2 Release 4 activities MPs have enrolled and can access the ERCOT MIS portal MPs have been trained on the NOMCR process TSPs can electronically submit data changes utilizing the NOMCR user interface and CIM compliant format for data exchange or via the manual MIS NOMCR process QSEs can submit data changes utilizing the registration submission and subsequent ERCOT NOMCR process MPs can receive NOMCR acknowledgement of submittals, verifications, and confirmation of data posting –ERCOT completes EDS 2 Release 4 activities ERCOT is ready to fully utilize the NOMCR process for all TSP/QSE data change requests TSP MPs can successfully submit data changes via the CIM compliant electronic NOMCR process. QSE can successfully submit data changes through registration submissions (and updated in the Network Operations Model via the NOMCR process) ERCOT has processes in place to use a “single entry point” to maintain both Nodal and Zonal network model databases when MPs submit changes via the NOMCR process NMMS is the database of record for the Network Operations Model including the ICCP modeling point database and operatorship / ownership information NMMS database is under full change control by ERCOT Network Model Group ERCOT discontinues the use of Service Requests for data changes and change control ERCOT begins the use of the NOMCR process for data changes and change control

28 Metric Discussion MP14 – B – MP EDS-2, Release 4 Trials Participation Reported By: TSP Target Completion: Single Entry Model Go-Live minus 30 Days Category: Trials Participation Metric Description: This metric evaluates the level of TSP market participant participation in the EDS 2, Release 4 Trials. Background: The intent of this metric is to ensure that Market Participants are actively participating in the NOMCR process. Criteria: The Readiness Team will review documentation that an adequate number of TSPs have submitted modifications through the NMMS tool following the NOMCR process. # of TSP MPs Participating in Trial participating in the NOMCR process >= 95% RAG Rules - MPs Red - Not participating in trials Amber – Not Applicable Green – Meeting criteria RAG Rules – Market Segment Red – Not meeting criteria Amber – within 10 percent of criteria Green – meeting criteria Reporting Data Sources: Self-Reported ReferencesTP: 5.4.1TNP: , , Metric inventory posted at: For MPs, two metrics will be assessed during SEM Go-Live:

29 Metric Discussion (continued) MP13 – MP Completes Nodal Operations Related Training Reported By: QSER, QSE, TSP Target Completion: Cyclical in preparation for the 168-Hour Test and Go-Live transition sequence Metric Description: Market Participants complete the applicable training modules associated with nodal operations related readiness Background: The intent of this metric is to ensure that Market Participants participating in Nodal have adequate knowledge of the Nodal Operations to participate Criteria: The Readiness Team will review self-reporting from each Market Participant indicating their level of training necessary to assure the Market Participant’s ability to successfully operate in the Nodal Market meets the scope of activities described in the ERCOT developed Training Materials included in the following courses.  Basic Training Program;  Non-Opt In Entity NOIE (QSE) Operations;  Generation 101;  Transmission 101;  Network Model Management;  ERCOT 101 for Wind Generation. For Market Participants Completed Survey with All Positive Responses = Green Completed Survey with One or More Negative Response = Amber Did Not Complete Survey = Red For Market Segment Over 95% of Market Share Responded Positively to the Survey = Green Over 5% of Market Share Did Not Respond to the Survey = Red Any Alternative Scenario = Amber Reporting Data Sources: Self-Reported Survey ReferencesTP:TNP: N/A