1. August 11, 2008 TPTF Texas Nodal Market Implementation: Project Updates Nodal PMs

2. 2 2 Texas Nodal Program UpdateAugust 11, 2008 Agenda Project Status Updates (Nodal PMs) –NMMS –EMS –MMS –CRR –COMS –EIP –INT

3. 3 3 Texas Nodal Program UpdateAugust 11, 2008 NMMS Project Update

4. 4 4 Texas Nodal Program UpdateAugust 11, 2008August 11, 2007 Project Update – NMMS Software Releases Continue testing NMMS 4 –Outage selection for CRR and Planning Models –PTC enhancements to support PTI topology –PTI Release 2 (distribution system reduction, temperature rating sets, contingency data exports) NMMS 4A – August 25 –PTI Release 3 (connectivity node-to-bus processing, 3-winding transformers, contingency data export, reporting capabilities) NMMS 5 – October 1 –Production Model business process and workflow (needed for SEM) –Auto Model Build Scheduler – enhancement (needed for SEM) –MIS Posting Folder Structure (needed for SEM) –Historical Models and historical NOMCR tracking (needed for SEM) –PTC screens to support PMCR linkage association (needed for SEM) –Reports (needed for SEM) NMMS 6 – December 19 –PTC functionality and screens for Model Coordinator (needed for SEM) –Outage Clarifications (not needed for SEM) –Name Service (needed for SEM) –As Built Report (needed for SEM)

5. 5 5 Texas Nodal Program UpdateAugust 11, 2008 Project Update – NMMS (cont.) Data and Schema Activities Identifying CIM Schema Release v1.20 change requests Supporting schema data population for EMS & MMS Started validation rule generation for IMM Preparing for AREVA onsite testing August 11, 2008

6. 6 6 Texas Nodal Program UpdateAugust 11, 2008 EMS Project Update

7. 7 7 Texas Nodal Program UpdateAugust 11, 2008 Project Update – EMS EMS has completed all EMS functionality testing and released the functionality to I-Test/EDS except: –EMS CIM Importer – still testing at AREVA Iterating with NMMS to get fidelity in the data model to complete validation and run the EMS applications ERCOT SMEs are testing with AREVA to identify and resolve issues; ERCOT staff has been on-site; AREVA to test at ERCOT starting Aug. 18 CIM XML has been consumed and all seven Habitat databases have been produced. Validation success is improving as the fidelity of the data improves Currently working on data quality, validation and application testing Continuing the next level of testing while working off the SPRs

8. 8 8 Texas Nodal Program UpdateAugust 11, 2008 Project Update – EMS (cont.) EMS has completed all OS functionality testing and released the functionality to I-Test/EDS except: –Outage Evaluation (OE) – Testing at ERCOT (Post-FAT bug fix phase) Plan (DRAP), VSS, and the management of multiple models (multiple time period within each model) New, complex tool, multiple hours analysis involving security analysis and security optimization; delays associated with tuning the network model, verifying the software, and tuning the software Embodies Contingency Analysis, Dynamic Remedial Action Plan (DRAP), VSS, and the management of multiple models (multiple time period within each model) Three high SPRs that go to the core of the application –Two SPRs are mutually related pertaining to an irregularity of cost sensitivity computations to outage requests; this SPR is close to completion. –The third SPR pertains to a deficiency in voltage security enforcement. A resolution of this issue is directly linked to the VSS functionality (i.e., a resolution here will help VSS, and vice versa) –ERCOT team working with AREVA team to resolve

9. 9 9 Texas Nodal Program UpdateAugust 11, 2008 Project Update – EMS (cont.) Voltage Support (VSS) – Testing at ERCOT (Post FAT bug fix phase) –New, equivalent to SCED in the reactive domain but more complex due to the non-linearities –7 critical or high SPRs closed, 5 critical SPR fixes under testing –1 high SPR is being fixed and once tested, then exit FAT Transient Stability/Voltage Stability Analysis Tools (TSAT/VSAT) –TSAT Study mode has completed FAT testing with no critical or high SPRs –TSAT Real time mode has a blocking SPR that needs to be resolved before FAT testing can finish –VSAT FAT expected to complete by Aug. 8 barring no critical or high SPRs arising Alerts and Notification along with the MMS-EMS Interface – Expected being moved into FAT by Aug. 8 Changes related to SIG papers – in analysis, Private Use Network paper reviewed by TPTF subgroup last week Remaining interfaces (e.g., reports, replication) in progress

10. 10 Texas Nodal Program UpdateAugust 11, 2008 MMS Project Update

11. 11 Texas Nodal Program UpdateAugust 11, 2008 Project Update – MMS MMS (ABB) Software Releases –MMS4 includes baseline 0, 1 & 2 software (e.g., DAM, RUC, SASM, CCT, SCED) Patch 2 entered FAT last week; currently scheduled to exit FAT in mid-August –First FAT to use a CIM XML test data set; data for all MMS-required extensions is not included in this CIM XML test data set –As reported at the May 23 TPTF meeting, two previously deferred items that the TPTF requested be delivered to ERCOT by ABB prior to go-live were added back to the MMS schedule and planned for delivery to ERCOT by ABB on June 30. Both items were delivered on time and are currently being tested in MMS4 patch 2 FAT »Item #1: Dynamically scheduled resource incremental and decremental energy offer curves updates »Item #2: Co-optimizing energy and AS for self-committed resources in DAM NOTE: there was a TPTF subgroup that defined the new requirements; the TPTF approved 2 of the 3 proposed requirements for delivery –targeted for availability to I-Test in mid-August Patch 3 scheduled for delivery into MMS DEV in late July –will use same CIM XML test data set as patch 2 Patch 4 scheduled for delivery into MMS DEV in late August –final patch scheduled for MMS4; focused mainly on outstanding defects prior to start of MMS5

12. 12 Texas Nodal Program UpdateAugust 11, 2008 Project Update – MMS (cont.) MMS (ABB) Software Releases –MMS5 is the last scheduled MMS software release This release will be comprised of the following: –CIM XML import processing and testing end-to-end (defined in last bullet in this section) –Bug fixes identified to ABB during testing –Remaining work on NPRRs (e.g., NPRR113, NPRR131) –Remaining SIG paper work (e.g., rounding, combined cycle – primary/alternate handling) –Remaining software implementation changes based on testing (e.g., performance improvements, startup cost eligibility, SASM constraint modeling) Trigger start for MMS5 is a CIM schema and CIM XML data file synchronized for consumption by EMS and MMS Once the trigger is available, the following tasks will take place: –ABB final review and refactoring of all workflows using the complete CIM schema & CIM XML file –ABB completion of software updates for SIG papers, post baseline 2 NPRRs, performance and production readiness tasks, and outstanding defects –Pre-FAT in Santa Clara –Release preparation & delivery to ERCOT –Loading and smoke testing in MMS DEV & MMS FAT –Final regression testing of MMS system in FAT MMS Processes & Procedures (DAM, RUC, Adjustment Period and Real-time) –MMS & MOS team members are leading the development of these documents –Reviews with the TPTF are scheduled for August, September and October meetings

13. 13 Texas Nodal Program UpdateAugust 11, 2008 CRR Project Update

14. 14 Texas Nodal Program UpdateAugust 11, 2008 Project Update – CRR Completed FAT Stage 3 testing – submitted request to nodal program for formal exit Partnered with EMS Development and Production Support to regression test during FAT Stage 3, providing hands on training with the CRR System Successful completion of large scale annual auctions enabling CRR Home Team to develop business process to implement bid limits Incorporated comments received on CRR Network Model One Line Diagram Working with the NMMS project team to modify Settlement Point mapping file and to address concerns with Topology Processing execution time

15. 15 Texas Nodal Program UpdateAugust 11, 2008 COMS Project Update

16. 16 Texas Nodal Program UpdateAugust 11, 2008 Project Update – COMS Settlements/Data Agg/CSI – Product Testing at ERCOT –Development S&B/Data Agg: Completed over 97% of nodal coding and functionally verified –Outstanding code (to date): Data Agg: core rewrite complete, finalizing internal reports; can not start Data Aggregation verification (major product issue listed below) CSI: Completed over 60% of Lodestar Bill Determinants and Tested –Outstanding code (to date): RUC and complex bill determinants –Testing Continue to test core system with changes Continue to develop and test batch cycle for DAM and RTM Continue to test Shadow Settlement Extracts –Major issues Product Memory mgmt issue is holding up final verification on Data Aggregation and might cause some rework in other area (fix from Oracle TBD) Need market systems (NMMS/EMS/MMS/CRR) running in an integrated environment creating a synchronous dataset before market level validation can begin (required for post Shadow Settlement Extracts)

17. 17 Texas Nodal Program UpdateAugust 11, 2008 Registration and Disputes –Development of Registration 4 build underway, scheduled for I-Test by late August –Registration 4 Release includes: Siebel changes for nodal (defect fixes) Siebel to Lodestar interface (upgrade/change from zonal) Lodestar to Siebel settlements calendar Disputes API –Major Issue Plan to start discussions with COPS at next meeting on “qualification” of MPs to use Disputes API Credit Monitoring and Management –Rome has been acquired by TriplePoint –Development of build 3.1 in FAT –Multiple additional releases scheduled for at least another six months Scope changes due to NPRRs or change requests Enhancements to workflows and screens for nodal operations Integration changes due to upstream system changes –Major Issues Finalization of detailed analysis and design due to change in vendor Market understanding of credit implications Lack of market data for testing (NMMS/EMS/MMS/CRR) Project Update - COMS (cont.)

18. 18 Texas Nodal Program UpdateAugust 11, 2008 Integration (EIP) Project Update

19. 19 Texas Nodal Program UpdateAugust 11, 2008 Integration highlights Replanning & Rework –Resynchronizing rework and final designs to accommodate new delivery dates from end-point systems –CDR services, Alerts & Notices added to scope External interfaces –External Interface Specification v1.16 is in review with new services for settlement disputes, resource parameters and additional award attributes –Web Service Usage shows reduced traffic and new MPs and consistent successful submission rates –Refresher Developer Workshop for September 3 Interfaces Status Diagrams –Green/solid means that design, code or deployment is in maintenance and subject to rework –Red/dashed means design, code or deployment is incomplete Interface Rework –Green/solid means no expected rework because the final system or final system component has been integrated –Red/dashed means expect rework because final system is not available and interfaces may change

20. 20 Texas Nodal Program UpdateAugust 11, 2008 Design metric – 95% Nodal has 10 major end-point systems, 36 Interfaces, 57 major integration components and around 400 Information Flows

21. 21 Texas Nodal Program UpdateAugust 11, 2008TPTF Construction metric – 85%

22. 22 Texas Nodal Program UpdateAugust 11, 2008TPTF Deployed to Testing metric – 45%

23. 23 Texas Nodal Program UpdateAugust 11, 2008 Rework – 5% 1 component is final

24. 24 Texas Nodal Program UpdateAugust 11, 2008 Web Service Usage Update to July 25, 2008

25. 25 Texas Nodal Program UpdateAugust 11, 2008 Additional detail on web service usage During the health check in May, the statement was made that the strategy is working externally. More information was requested to illustrate whether the market was exercising all of the services and therefore business processes –The detail verifies the statements made at the time that most transactions were COP and TPO The following results provide counts of success and failure for all transactions –First chart indicates volume of successfully & unsuccessfully invoked services –2 nd & 3 rd charts show the most frequent successful and unsuccessful processes. –Y scale is logarithmic, X scale shows all transaction types for two graphs

26. 26 Texas Nodal Program UpdateAugust 11, 2008 Transactions volumes – 207k hits by 312 entities at 91% success rate T – successful invoked transactions F – unsuccessfully invoked transactions There were 605 hits on July 4th Success rate is unchanged from previous periods. Several new entities in the last month Volumes have decreased over the last few weeks compared to when the EDS tests were running

27. 27 Texas Nodal Program UpdateAugust 11, 2008 30 most frequent correctly invoked processes

28. 28 Texas Nodal Program UpdateAugust 11, 2008 30 most frequent incorrectly invoked processes

29. 29 Texas Nodal Program UpdateAugust 11, 2008 Integration Testing (INT) Project Update

30. 30 Texas Nodal Program UpdateAugust 11, 2008 Integration Strategy prior to full CIM implementation Leverage a known dataset used for testing the MMS system during FAT (based on an initial CIM file) that runs the critical workflows. Manually synchronize the required reference data (resources, parameters, ownership) for other systems under test to align with MMS Create / modify upstream system output data that is aligned with the MMS systems (EWS, CRR, Registration, Outages) Perform Integration Testing on a subset of Nodal system focused on technical and functional integration, reporting, and Market Participant outputs

31. 31 Texas Nodal Program UpdateAugust 11, 2008 Integration Strategy after full CIM implementation Leverage the NMMS CIM data and aligned Registration data as the source for test data. Simulate key Market Participant inputs into the Nodal systems based on defined testing scenarios. Perform Integration Testing of all the Nodal systems shifting focus to full Nodal functionality and business process testing

32. 32 Texas Nodal Program UpdateAugust 11, 2008 Nodal Integration Testing Environment Strategy EDS MP Readiness EDS iTesting EDS MP Readiness Passive Active Release Installation Cutover Readiness Preparation Release Installation Readiness Preparation Goals of the strategy are to: 1.Ensure the consistency and stability of market readiness environment 2.Minimize the rework for project and production resources 3.Verify the production sites in preparation for Nodal go live 4.Allow vendors to complete as scheduled with FAT deliveries

33. 33 Texas Nodal Program UpdateAugust 11, 2008 Integration Testing Releases Controlled releases to the iTest environment will installed Tuesdays and Thursdays throughout the testing cycles. Based on the Integrated Schedule a number of Integration Release Windows have been established defining a defined set of project drops for Integration Testing Each Integration Release builds upon the previous one toward Full Nodal Functionality Specific EDS system functionality objectives will be defined for each Release Window

34. 34 Texas Nodal Program UpdateAugust 11, 2008 Questions?