1 Market Trials Real-Time Market / LFC Weekly Update June 11, 2010

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 Agenda Antitrust Admonition Environment Report –Planned / unplanned outages –Known Issues Standing Reports and Updates –General reminders / updates –RTM / LFC Update –LFC Calendar Update –State Estimator Convergence Statistics Question and Answers / General Discussion 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

Market Trials 2010 Roadmap 4

5 Environment Report: Planned / Unplanned Nodal Outages Planned Outages 06/11/2010 8:30 A.M – 01:00 P.M. –Application patches are being deployed for EWS and OS systems and as a result will affect availability of following services: EWS ( Web Services) OS UI MM UI 06/12/2010 9:00 A.M – 12:30 P.M. –MM UI and CRR systems will be unavailable during this window in order to support application patch installations..The API service will be continue to be available during this timeframe. Unplanned Outages 06/10/ :55 A.M – 09:00 A.M. –Market system submissions were impacted as result of an application server performance degradation. Users may have encountered timeout errors during this submission window. 06/08/ :00 P.M. –Users were unable to fully view SASM Obligation via the Market Manager system. A defect has been identified and being addressed in upcoming UI release on 06/12/10. 06/08/ :30 P.M. –Users encountered errors when trying to retrieve SASM Awards via EWS and MM UI.

6 Known Issues New Open Issues NP4-159-Load Forecast Distribution Factors (MIS Secure Report) –This report provides hourly data for the next seven days—the hourly data is being duplicated for each hour of the seventh day. –Affects CDR NP6-905-Settlement Point Prices at Resource Nodes and Hubs and Load Zones (MIS Public Report) –In some reports, the same data is being reported for different intervals –Whenever data is unavailable for the current interval, the CDR query picks up the most recent data to populate the report –the enhancement will provide for a verification of the current interval against the available data and will generate an alert –Affects CDR

7 Known Issues New Open Issues (continued) NP8-501-Monthly Resource Energy Deployment Performance Report (MIS Certified Report) –External reports are not creating –Affects CDR Dated EMS Alerts –Some MPs have been receiving dated EMS alerts –These alerts may be ignored –ERCOT investigating root cause and fix

8 Known Issues Recently Closed Issues NP8-143 QSE Ancillary Service Capacity Monitor –EMS issue was opened to add new Columns to NP8-143 because the Report was only displaying the Undeployed Regulation and was not capturing Total Regulation Up/Down Responsibility for the QSEs –Affected CDR & EMS

9 Standing Reports and Updates: General Reminders / Updates Reminders/Updates Real-Time Known Issues List –The Updated Real-Time Known Issues List (as of 6/10) will deploy overnight to the Readiness Center ( Network Model Update –The current system loaded from the model 06/10/10 –Next scheduled load is 06/15/10 SPP and RTRMPR Calculations –The updated tracking document (as of 6/10) for SPP and RTRMPR Issues is available on the Readiness Center at

10 Standing Reports and Updates: General Reminders / Updates Reminders/Updates (continued) GREDP Results from the 2-Hour LFC Test –ERCOT began distributing individual GREDP results to QSEs on 6/10 –Plan to have all results distributed by COB 6/11 8-Hour LFC Workshop Update –The Workshop presentation has been updated on the June 8 meeting detail ( –Purpose of the update was to correct/clarify the slide describing NA statuses in nodal Resource Limit Calculator (RLC) (see updates on next slide)

11 Standing Reports and Updates: General Reminders / Updates Resource Status (RST) set to NA The MMS-generated COP Consistency Check will generate an alert whenever the Resource Status (RST) in the COP is inconsistent with the RST telemetered in Real-Time Because MMS receives the Real-Time RST from the Resource Limit Calculator rather than from SCADA, the RST identified in the alert is sometimes “NA” RLC will automatically change the telemetered RST to NA when: The telemetered RST is 0 (RST=0 appears in EMS as “NA” but is not directly changed to NA by RLC) The telemetered RST indicates offline (OUT, OFFNS, OFF, and EMR) but MW> 0 a certain threshold If unit is generating but RST is OFF, SCED cannot see the unit When RLC changes such an RST to NA, SCED can see the unit and can dispatch it as an online Resource HDL and LDL are set to current output – SDRAMP*5. SCED sets the base point equal to these revised HDL/LDL The telemetered RST quality is stale/suspect The telemetered RST quality is good and is not in the range of valid RST codes per Nodal Protocols 6.4.5, Resource Status, or it is 0 When RST is NA, the HDL/LDL are set to MW output – SDRAMP*5, and the Base Point is set to HDL/LDL

3/2/ Real Time Market / LFC Update

13 SCED Week 19 At $2250 price cap for 29 intervals 9 on Monday 20 on Wednesday PI Outage Fri – Mon (no data shown below)

Real Time Market / LFC Update 14 SCED Week 19 Thursday 4:35 am - 6:55 am 1800 Leon Switch - Flat Creek 138KV 12:05 pm - 10:00 pm Duncanville South - Cedar Hill 138KV 11:15 pm - 11:30 pm West Denton - Jim Cristal 138KV Friday 12:00 am - 1:15 am West Denton - Jim Cristal 138KV 11:00 am - 10:00 pm Duncanville South - Cedar Hill 138KV 11:20 am - 3:35 pm Odessa North 138/69KV autotransformer 1:40 pm - 2:15 pm Ingleside Cogen Switch - Dupont PP1 Ingleside 138KV 10:30 pm - 11:00 pm Leon Switch - Flat Creek 138KV Saturday 11:10 am - 1:20 pm Wolf Hollow - Rocky Creek 345KV 12:50 am - 4:30 pm Leon Switch - Flat Creek 138KV Sunday 1:10 pm - 10:05 pm Wolf Hollow - Rocky Creek 345KV 1:20 pm - 10:05 pm Duncanville South - Cedar Hill 138KV Monday 11:55 am - 2:55 pm Wolf Hollow - Rocky Creek 345KV 12:25 pm - 7:55 pm 931_Duncanville South - Cedar Hill 138KV 2:00 pm - 5:50 pm Hearn 138/69KV autotransformer 2:20 pm - 4:15 pm Cagnon 345/138KV autotransformer Tuesday 12:55 pm - 6:20 pm Duncanville South - Cedar Hill 138KV 2:00 pm - 5:05 pm Hearn 138kV/69kV autotransformer Wednesday 7:10 pm - 7:15 pm Odessa North - Odessa Basin Switch 69KV

Missed MIS LMP Reports 15 Release due to Production system 6/25 Blocks of time bolded below 6/5 Event manager configuration 6/7 Lost connection 6/8 MMS server out of memory

Hub vs Zone Settlement Point Prices 16 Intervals in last week for which Hub and Zone prices differed by > $10

Hub vs Zone Settlement Point Prices 17

Wednesday 6/9 Nodal Submission Evaluation 18 SCED dispatch vs. Actual Output 18 of 79 QSEs producing average of at least 10% above Energy Offer Curve MW (2700 MW) 19 of 75 QSEs producing average of at least 10% above Energy Offer Curve MW (4100 MW) during $2250 intervals Zonal Energy Schedule/BES Bids vs Nodal EOC (Hour 9 results) 33 of 75 QSEs Zonal Energy Schedule not within EOC Range (3500 MW) 37 of 75 QSEs BES MW not within EOC Range (5000 MW) 37 of 75 QSEs BES Prices and EOC Prices do not intersect Zonal Prices vs Nodal Prices When EOC in Nodal not exhausted, prices generally $5 to $15 higher first half of day; $10 lower to $10 higher second half of day

19 LFC Calendar Update

20 LFC Calendar Update LFC Calendar (MT5) – Upcoming Key Dates Week of June 7 –Distribute individual QSE performance results from the 2-Hour LFC Test (June 10-11) –Distribute Market Notice announcing the upcoming 8-Hour LFC Test (June 16-18) Week of June 14 –MPs submit EOCs reflective of Zonal June Curve Creator tool is posted on Readiness at –Conduct the 8-Hour LFC Test (June 16 – 18 timeframe) –Publish the 48-Hour LFC operational test scenarios to the Readiness Center Week of June 21 –Publish formal 2-Hour Test Report to the Readiness Center

LFC – Reminders Test Time & Date – The 8-Hour LFC Test will be conducted on June 16 th, 17 th or 18 th The actual test will start no earlier then 10:00 AM Market Notices & Hotline Call: –A Market Notice will be sent Friday, June 11 to announce upcoming test –A follow-up Market Notice will be sent two days prior to the actual test –A final Market Notice will be sent on the day of the test –A hotline call will be made on the day of the test to communicate the start time of the test (approximately 3 hours prior to start) –A WebEx conference to allow Market Participants to monitor the 8-Hour LFC Test will be provided—a Market Notice with WebEx details will be sent to Nodal Transition Project Managers the week of the test

LFC – Reminders Participation– All Generation Resources are required to participate in the test –Exceptions due to modeling issues Market Participants will need to ensure that all EOCs are submitted for the week of the test (week of June 14) –ERCOT will reach out to MPs that do not have their EOCs submitted by the beginning of the test week MP Support – Each MP needs to have their experts on hand during normal business hours (8:00 am – 5:00 pm) each business day during the week of the test During the day of the test, the hours of support will be extended to 7:00 am – 6:00 pm These experts must be able to support: –ICCP –EOCs, Inc/Dec Offers, and Output Schedules –LFC

23 LFC – Reminders Artifacts for the 8-Hour LFC Test The 8-Hour LFC Test Approach document and related artifacts are posted on the Readiness Center at ettrials/rtm/index.html ettrials/rtm/index.html Artifacts include: –8-Hour LFC Test Approach –Control Room Procedure for the Full System LFC Test –White Paper - Settlement of Phase 3 LFC Testing

24 State Estimator Convergence

25 State Estimator Convergence Update State Estimator Daily Convergence Statistics (these percentages are graphed in the next slide) MonthDay% Convergence (Including Solved w/ Mismatch) MAY JUN JUN JUN3100 JUN JUN JUN JUN JUN JUN999.65

26 State Estimator Convergence Update

27 Q&A Q&A / Open Forum

28 Appendix

29 URLS and ADDRESS FOR SUPPORT URLs for accessing the Nodal Production systems –MIS: –Market Manager: Click the ‘Applications’ tab in the upper menu. Link is in the ERCOT Applications portlethttps://mis.ercot.com/pps/tibco/mis/ –CRR: Click the ‘Markets’ Link in the upper menu. Click CRR in the Market sub menuhttps://mis.ercot.com/pps/tibco/mis/ –EWS:

30 Market Trials Handbooks –Available on the Readiness Center at the following links Real Time Market / LFC covering Phase Outage Scheduler covering Phase CRR covering release Phase Settlements / COMs covering Phase Day Ahead Market

LFC – Test Overview & Setup: Quick Start Resources Deployment of Balancing Energy Service (BES) Capable NSRS for Quick Start resources during the LFC test –Prior to the resource being asked to come online in Zonal, the QSE should: telemeter a Non-Spin Schedule and Responsibility (NSSC and NSRS) of 0 telemeter a resource status showing the resource as offline; and telemeter an LSL of 0 –If the QSE receives an energy deployment in Zonal, the QSE should start that resource and telemeter a resource status of online (ON) as soon as they are capable –Once the resource is “ON” with net MW > 0, the resource will be available for SCED dispatch and the resource will be dispatched based on the energy offer curve –After the resource reaches it’s physical LSL, the QSE should reflect that value through the telemetered LSL and should leave it at that value –Once Zonal indicates that the resource should go offline, the resource should begin ramping down –When the resource goes offline, the QSE should update the telemetered resource status to offline and then change the telemetered LSL to 0 The QSE also has the option to not provide BES-Capable NSRS during the hours of the test

LFC – Test Overview & Setup: Congestion Management Manual dispatch instructions during the LFC test –Beginning two hours prior to the LFC test, ERCOT will stop using OC1s and OOMEs and plans to use OC3s to manage congestion The one exception to this is that ERCOT will continue to use OC1s for the W-N stability limit (non-thermal IROL for NERC) ERCOT has created and tested a constraint for this limit in the Nodal system which can be activated for SCED as needed and should provide similar dispatch to the OC1s –ERCOT may be required to use Zonal manual dispatch instructions to solve congestion –ERCOT will set the Nodal Base-Point to match the Zonal manual dispatch instruction –The QSE will continue to follow the Nodal Base Point if they are still under Nodal control