Lead from the front Texas Nodal 1 Market Trials Call Bi-Weekly Update October 02, 2009

Lead from the front Texas Nodal 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.

Lead from the front Texas Nodal 3 Agenda Anti-trust Admonition Readiness Outreach Update Day-to-day operations summary –Planned and Unplanned ERCOT outages of Sandbox Standing reports and updates –General Reminders / Updates –SEM go-live update –Focused Input Testing Question and Answers/General Discussion Deep Dive Topic (different topics each meeting as needed) - No Deep Dive this Week ERCOT asks that Market Participants log into the WebEx session using their company name and then their name. This will allow ERCOT to take roll-call offline

Lead from the front Texas Nodal 2 October 2009 Outreach Overview Pre-Site Visit Preparation (Current) Schedule Confirmation for Market Participant Site Visits Market Participant Selected Topics : Nodal Program Update (mandatory topic) Readiness Center and Scorecard Day-Ahead Market Implementation Congestion Revenue Rights (CRR) Auction Implementation Reliability Unit Commitment Implementation Telemetry & Load Frequency Control (LFC) Real Time Operations Processes & Systems Nodal Settlement and Billing Processes Reports and Data Extracts Presentation Development for Site Visits Readiness Center Web Site

Lead from the front Texas Nodal MP Site Visits (Tentative) EntityDate BP ENERGY COMPANY10-Dec DIRECT ENERGY LP5-Jan CPS ENERGY6-Jan BRAZOS ELECTRIC12-Jan BTU (Bryan Texas Utilities) SERVICES13-Jan GDF SUEZ ENERGY MARKETING19-Jan OCCIDENTAL20-Jan LUMINANT ENERGY26-Jan TENASKA POWER SERVICES27-Jan OPTIM ENERGY28-Jan APX3-Feb NEXTERA ENERGY11-Feb WIND PANEL (Houston)16-Feb RETAIL PANEL (Houston)17-Feb TRI-EAGLE ENERGY18-Feb XTEND ENERGY LP2-Mar EC AND R QSE9-Mar 1 October 2009 EntityDate LOWER COLORADO RIVER AUTHORITY9-Oct CALPINE CORP14-Oct SHELL ENERGY NORTH AMERICA15-Oct AUSTIN ENERGY20-Oct CITY OF GARLAND21-Oct TOPAZ POWER MANAGEMENT29-Oct ANP FUNDING3-Nov AMERICAN ELECTRIC POWER SERVICE11-Nov INVENERGY WIND DEVELOPMENT12-Nov CONSTELLATION ENERGY17-Nov EXELON18-Nov PSEG ENERGY RESOURCES19-Nov NRG TEXAS POWER1-Dec FULCRUM POWER2-Dec EAGLE ENERGY PARTNERS I LP (QSE, RE, SQ1)3-Dec STEC9-Dec BP ENERGY10-Dec

Lead from the front Texas Nodal Outreach Overview Site Visits (begins October 9 th ) Meet Market Participant Team Presentations based on selected topics Q & A Behind the Scene FAQ list created Post Site Visit Communication with Market Participants to resolve outstanding concerns Questions can be ed to

Lead from the front Texas Nodal 7 Day-to-day operations summary: Planned / Unplanned Outages of EDS Planned Outages –10/6/09 12:00pm – 2:00pm – Sandbox will be brought down to update the Entrust CA. Unplanned Outages –No unplanned outages to report

Lead from the front Texas Nodal General Reminders / Updates Reminder: Market Readiness Seminar / Market Trials Kick 10/8 –Draft Agenda: Section 1- Market Trials Topics: –Nodal Release 2.1 Kick-Off 1.Scope/Dates/Environment/Support 2.Nodal Release 2.1 Handbook 3.Market Manager User Guide Walk-through 4.EIS Specifications Walk-through –ERCOT Support, Issue Management, Communications Plan –Nodal Telemetry Update –2010 Market Trials Roadmap Section 2- Readiness Topics: –Intro to Readiness –Market Participant Training –Market Outreach Program –Market Readiness Activities –Market Readiness Center/Scorecard Reminder: Technical Communications Workshop 10/ –ERCOT is still accepting special topics up until 10/15 –Send all topic suggestions to 8

Lead from the front Texas Nodal General Reminders / Updates ERCOT Integration Testing has reached a point where continuous Generator SCADA data is increasingly important: –SCED has run continuously for more than 45 days –Real-time Operations are rehearsing operational scenarios to refine procedures –Market Participant bid/offer/COP data is being harvested from the Zonal Market to create parallel run environment –Price Validation Tool will be used in ad hoc mode in October with full integration scheduled for November 9

Lead from the front Texas Nodal 2/4/ This FIT Update includes the following discussion items:  Near-term FIT Windows  FIT III Week 16 Results  Convergence Trends  Nodal Telemetry Outreach Update Standing reports and updates: Focused Input Testing (FIT) Update

Lead from the front Texas Nodal 11 FIT Update: Near-term FIT Windows Next FIT testing will take place 10/6 – 10/8 (Market Notice to be sent on 10/2) Reminder: remaining 2009 FIT windows will only review telemetry and State Estimator convergence. SCED inputs will be removed from FIT until further notice. December dates have been added to the 2009 FIT Calendar (Dec 1-3, 15-17): 9_v3.ppt 9_v3.ppt FIT III Assessment reports are posted at: ALL TIMES ARE CENTRAL DurationStart date and timeEnd date and time 27 hrs (3x9)October 6 - 8:00 AMOctober 8 - 5:00 PM 27 hrs (3x9)October :00 AMOctober :00 PM 27 hrs (3x9)November 3 - 8:00 AMNovember 5 - 5:00 PM 27 hrs (3x9)November :00 AMNovember :00 PM

Lead from the front Texas Nodal 12 FIT Update: FIT III Week 16 Results *MM = Solution includes mismatches within 15 MW / 15 MVAR tolerance

Lead from the front Texas Nodal 13 FIT Update: FIT III Week 16 Results Key Numbers and Issues  Day One  Convergence dipped to 67% during Hour Ending (HE) 0900 due to mismatches, bad MVAR SCADA values, tap estimation issues.  Convergence dipped to 71% during HE1400 due to mismatches, bad breaker statuses.  Day Three  Convergence dipped to 67% during HE 1100 due to mismatches, bad breaker statuses.

Lead from the front Texas Nodal LFC2/4/2016 FIT Series WeekDateDay 1Day 2Day 3Convergence Avg % for all Test Hours 100% Convergence Achieved FIT IIIWeek 1Feb 24 – 26, of 27 hrs Week 2Mar 10 – 12, of 27 hrs Week 3Mar , of 27 hrs Week 4Apr , of 27 hrs Week 5Apr 21 – 23, of 27 hrs Week 6May 05 – 07, of 27 hrs Week 7May 19 – 21, of 26 hrs* Week 8Jun 02 – 04, of 27 hrs Week 9Jun 16 – 18, of 27 hrs Week 10Jun 30 – Jul 2, of 27 hrs Week 11Jul 14 – 16, of 27 hrs Week 12Jul 28 – 30, of 27 hrs Week 13Aug 11 – 13, of 27 hrs Week 14Aug 25 – 27, of 27 hrs Week 15Sep 08 – 10, of 27 hrs Week 16Sep 22 – 24, of 27 hrs FIT Update: FIT III Convergence Trends (valid solution sets only) 14 * One hour was removed from the Week 7 test results to accommodate a nodal database load.

Lead from the front Texas Nodal  ERCOT will begin sending formal outreach s to QSEs and TSPs during the week of October 5,  Telemetry Outreach s will be sent during each FIT window through After Jan 1, such s will continue to be sent as needed to help highlight telemetry issues that need attention prior to market trials.  What is included in a Nodal Telemetry Outreach ?  For each QSE:  A report of missing analog and status values  For each TSP:  A report of missing analog and status values  One lines as needed to communicate critical measurements required for observability 15 FIT Update: Nodal Telemetry Outreach Update ERCOT began a Nodal Telemetry Outreach on August 31, 2009 to help MPs to correct Nodal telemetry issues in time for market trials. Example reports are provided in the following slides.

Lead from the front Texas Nodal 2/4/2016 Outreach Reports for TSP/QSE – Missing Analog/Status Values 16 Example report for a TSP: Example report for a QSE:

Lead from the front Texas Nodal 2/4/2016 Outreach Reports for TSPs – Critical Observability Measurements 17 Example of TSP report to request measurements to restore observability: CCC Load 1 WWWDDD Load 2 CCD AAA Load 3 Obs. Unobs. Existing Line flow or load measurements Obs. Observable buses Unobservable buses Unobs. Requested measurements to improve unobservable buses With existing measurements, the buses at the station WWW and DDD are not observable, which means their voltage magnitude and angle cannot be estimated. However, if the TSP can provide the load telemetry (MW/MVAR) at either station CCC or station DDD, the unobservable buses will become observable.

Lead from the front Texas Nodal 18 FIT Update: Remaining FIT Windows in FIT III Calendar - Remaining Dates Name of FIT III TestTesting DatesPublishing Dates for FIT Report FIT III, Wk 17Oct 06 – 08Oct 20 FIT III, Wk 18Oct 20 – 22Nov 03 FIT III, Wk 19Nov 03 – 05Nov 17 FIT III, Wk 20Nov 17 – 19Dec 01 FIT III, Wk 21Dec 01 – 03Dec 15 FIT III, Wk 22Dec 15 – 17Jan 03  Details around the timelines and requirements associated with the telemetry outreach will be provided during the Market Trials Kick-Off on October 8  MPs may submit questions about the telemetry outreach to with “Nodal Telemetry Outreach” in the subject

Lead from the front Texas Nodal 19 Q&A Q&A / Open Forum

Lead from the front Texas Nodal 20 Appendix

Lead from the front Texas Nodal 21 Test Digital Certificate request (originally presented 9/18/09)

Lead from the front Texas Nodal General Reminders / Updates Reminder: ERCOT is requesting test digital certificates issued by voluntary MP’s: –See appendix for details Reminder: Sandbox EIS1.19 available for testing –See appendix for details Reminder: Market Trials / MRS –Date / Time: 10/8 9:00am – 1:00pm –Austin Met Center Rm #206 –Agenda and presentation to be posted 10/2 to the ERCOT calendar: Reminder: Request for Updates to QSE Nodal Contact Information –See appendix for details

Lead from the front Texas Nodal 23 Telemetry Issue Resolution and ICCP Change Process (originally presented 9/18/09)

Lead from the front Texas Nodal 24 FIT Update: Current Telemetry Issue Process  For telemetry issues during FIT, contact a Shift Engineer at  For telemetry issues outside of FIT, contact

Lead from the front Texas Nodal LFC2/4/2016 FIT Update: High-Level View of the ICCP Change Process 25 The TML process for QSE ICCP Service Requests and an example of the ICCP Change Request Form are posted at:

Lead from the front Texas Nodal 26 QSE Information Update Request (originally presented 9/04/09)

Lead from the front Texas Nodal QSE Information Update Request As we near Market Trials, ERCOT is asking that all QSE’s and TSP’s update needed information Each MP will receive an by the end of next week directing them to the attached spreadsheet The spreadsheet will have inputs for the following: –Primary / Back-up contact information for each of the functional areas (e.g. DAM, RTM, ICCP, Settlements, CRR….), Accountable Executive, Authorized Rep and Nodal Project Manager We ask that at least 1 back-up be provided for each area There is space to add up to 3 back-ups –Listener URL for notifications sent from ERCOT to MP’s (this is to confirm what we already have on file is correct) – address where notification failure alerts will be sent

Lead from the front Texas Nodal 28 ERCOT Certificate Request (originally presented 9/04/09)

Lead from the front Texas Nodal ERCOT Certificate Request ERCOT is requesting test digital certificates issued by voluntary MP’s: –Agenda and presentation to be posted 10/2 to the ERCOT calendar: –Aug 27, 2009 ERCOT released all nodal roles to the production MPIM (Market Participant Identity Management) –ERCOT is asking for volunteer MP’s to generate a certificate for their company containing only these Nodal roles for a user called NODALTEST1 Note that we have placed a 1 on the user to avoid conflicts with the previously used NODALTEST user. –NEW: This user should have the “web services” checkbox checked when creating the certificate –Once created, the NODALTEST1 certificate to Note that Scott Middleton will serve as the central point of control for these –Once we have completed the 168 hour test, MP USA’s may revoke this certificate (ERCOT will also destroy it) –ERCOT would like a core set of certificates in place by October 1, 2009

Lead from the front Texas Nodal 30 NODALTEST Certificates Expiration (originally presented 8/07/09)

Lead from the front Texas Nodal Standing reports and updates: Certificates (reminder) NODALTEST Certificate Expirations –All NODALTEST certificates will expire over the next several months –These certificates will not be renewed –In order to continue to test in the sandbox, MP’s may use any valid ERCOT certificate –When the Nodal Production environment is deployed in October, MP’s will use their current (zonal) certificate. –MP USA’s will need to add the appropriate Nodal roles depending on the testing that user will perform –Note: Nodal roles will not have an affect on zonal system usage

Lead from the front Texas Nodal 32 Creation of the Nodal Implementation Team (originally presented 6/12/09)

Lead from the front Texas Nodal Standing reports and updates Program Update – Creation of the Nodal Implementation Team (NIT) –At its June 4, 2009 meeting, TAC created the Nodal Implementation Team (NIT) which will be a vehicle for stakeholder engagement in the Nodal program. –In preparation for the NIT initial meeting, the TPTF distribution list has been discontinued and has been replaced by the NIT distribution list If you were previously subscribed to the TPTF distribution list, no action is needed as TPTF subscribers were automatically migrated to the NIT distribution list. If you were not previously subscribed to the TPTF distribution list and would like to subscribe to the NIT distribution list, please access the ERCOT distribution list management website at –Meeting materials, agenda, and WebEx information will be distributed as soon as they are available –First Meeting will take place on Monday, June 22, :30 am – 4:30 pm –The NIT Charter was distributed via to The charter is embedded below for your review:

Lead from the front Texas Nodal 34 Review of Overall Registration Data Project Schedule (originally presented 5/22/09)

Lead from the front Texas Nodal 35 Review of Overall Registration Data Project Schedule 35 Each window will be broken into 3 iterations with heightening levels of data quality goals All non-PUN RE’s will submit during 1 of 2 windows (except Wind) Each non-PUN RE will request one of the two windows between 5/22/09 and 6/5/09 via to Some RE’s may be moved to a different window based on volume Planning and Protection data will be rolled in for the remaining windows (see next slide) All Wind resources will submit during the second window 2009 MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Private Use Network Transmission Data Collection Window 1 - Non-Wind* RE’s Transmission / Planning / Protection Data Collection - Iteration 1 - Iteration 2 - Iteration 3 - Iteration 1 - Iteration 2 - Iteration 3 Private Use Network Planning and Protection Data Collection Window 2 - Wind RE’s Transmission and Planning / Protection Data Collection - Iteration 1 - Iteration 2 - Iteration 3 MP-10 Phase 2 Final Validation SEM GO-LIVE 8/31 EIS 1.19 to EDS 8/10 85% Prod Quality 95% Prod Quality 98% Prod Quality 85% Prod Quality 95% Prod Quality 98% Prod Quality 85% Prod Quality 95% Prod Quality 98% Prod Quality Kick Off Market Call

Lead from the front Texas Nodal Registration Data Collection Update Iteration 3 of the Private Use Network Transmission Data Collection closes on 5/19/09 Current Production Quality Metric is 96.5% (goal is 98% by 5/19) 5/22/09 9:30AM – 11:00AM ERCOT will host a kick off for the next leg of the Nodal Registration Data Collection project Changes to Load Resource Registration The kick off meeting will cover the following topics: –Transmission data collection (review for non-PUNs / non-Wind) –Planning and Protection data review (inclusive of Private Use Networks) –Review of registration activities for the remainder of 2009

Lead from the front Texas Nodal 37 Nodal API sub-group Report, by Transaction, Completion Confidence (originally presented on 2/6/09)

Lead from the front Texas Nodal 38 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09) TPTF Action – Report, by Transaction, Completion Confidence –Each Transaction will be classified into 3 confidence levels –RED – Confidence low – high risk of change in the 1.18 and/or 1.19 releases –YELLOW – Changes should be limited to non-structural changes (e.g. enumeration changes) –GREEN – Any Changes will be limited to defects. –Note that if there are no changes in 1.18 and significant change in 1.19, a transaction will be marked as RED for both. It will retain that color until all changes are complete.

Lead from the front Texas Nodal 39 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09)

Lead from the front Texas Nodal 40 Standing reports and updates: Nodal API sub-group (originally presented on 2/6/09)

Lead from the front Texas Nodal 41 Verifiable Cost Submission (originally presented on 4/17/09)

Lead from the front Texas Nodal 42 Verifiable Cost Submission (originally presented on 4/17) WMS Approved Verifiable Cost Submission Timelines: Simple Cycle Greater than 90MW June 30, 2009 Simple Cycle Less than or Equal to 90MW July 31, 2009 Gas Steam Non-Reheat Boiler Aug 31, 2009 Gas Steam Reheat BoilerSep 30, 2009 Gas Steam Super Critical BoilerOct 31, 2009 Combined Cycle Less than or Equal to 90MW Nov 30, 2009 Combined Cycle Greater than 90MW Dec 31, 2009 Coal, Lignite Jan 31, 2010 Nuclear, Hydro and Renewable Feb 28, 2010 Reciprocating Engines Feb 28, 2010

Lead from the front Texas Nodal 43 Verifiable Cost Submission ERCOT plans to roll out verifiable cost training: Verifiable Cost Training will cover: –What are Verifiable Costs –What data need to be submitted –Who is required to submit the data forms and supporting information –Where, when and how are Verifiable Costs used Current Plans: –Instructor Led Training during May/June –One session each in Austin, Houston and Dallas Please send any comment to