1. Baseline 1 Update
Jeyant Tamby
PRS/TPTF Joint Meeting
June 12th, 2007

2. The Nodal Protocols continue to evolve since the TNT process to establish them…
Initial Nodal Protocols
PUCT approved Nodal Protocols Baseline May 2006
Source # Value Engineering
ERCOT / TPTF / Vendor
Zonal Protocols
April 2004
2 Items
Source #1 Synchronization (by ERCOT & TPTF)
Zonal PRRs
April 2005
Nodal Protocols Baseline 1
March 2007
Source #5 Consistency, Integration & Design Authority (IDA) White Papers
7 Items
Source #2 Clarifications by ERCOT / TPTF
Sept
7 Items
Source # Market Participant Requirements
Source #3 Requirements Development Q
6 Items
4 Items
Progression of Nodal Protocols
Sources of change (includes 6 change items combining sources 1 & 2)
28 Items
June
Texas Nodal Program Update

3. Based on the data, these 6 sources in Baseline 1 have unique qualitative attributes and are being analyzed for cost and schedule impacts
Change types and estimated number in each type
Clarifications, synchronizations & revisions to the existing Protocols
Consistency & efficient operational changes #1 #4
Synchronization
“Value Engineering”
Source 6
4 items
Source 1
7 items
Source 5
7 items
NPRRs due to “synchronization of Zonal Protocols to Nodal Protocols.
ERCOT or MP NPRRs or Change Requests due to “value engineering” #6 #1
Source 1/2
6 items
Source 4
2 items #5 #2 #5
#1/2
ERCOT/MP
Staff Clarifications
IDA White Papers #4 #2
Source 2
6 items
NPRRs created due to “ERCOT Staff Clarifications” (before vendor involvement)
ERCOT provided IDA whitepapers to ensure consistency of functionality across systems #3 #3 #6
Source 3
28 items
ERCOT/MP/Vendor
Requirements Development
Market
Participant
Requirements
ERCOT or MP NPRRs with terminology “cleanup, correct, clarify, describes, rewording, or requires” (with vendor involvement)
NPRRs requested by MPs
Very few change items have resulted due to “New Functionality”
June
Texas Nodal Program Update

4. For Scope Change Control, it is imperative to synchronize projects to a common baseline and maintain synchronization…
Current Baseline Scope
Pending Baseline
Baseline 2 TBD
Go-Live Baseline (TBD)
Baseline 0, May, 2006 Protocols
Baseline 1, NPRRs approved by 3/31/07
Project 1
Project 2
Change items
already
incorporated in
Project
requirements to
satisfy TPTF
approval
Project 3
Project 4
Project 5
Project 6
Project 7
Project 8
Project 9
Project 10
Project 11
Project 12
NPRR “Backlog”
To maintain overall system integrity – for Nodal to work as a whole – each project has to be synchronized on an explicit, current, common baseline
Nodal Budget $263m
Synchronization Deficit
June
Texas Nodal Program Update

5. Pro-actively dealing with threats
The costs of making changes will increase exponentially as we move forward beyond Baseline 1
Pro-actively dealing with threats
Effort
Undiscovered re-work
The first 20% of a project freezes over 80% of the costs and risks
Early resolution of problems costs orders of magnitudes less than the rework associated with fixing them when in build or test
More effective effort up-front saves expensive iteration later on
Coasting Home
Cost of Rectification
System
definition
Design
Deliver
Accept
June
Texas Nodal Program Update

6. Change control objectives: future NPRRs as well as the backlog
To maintain overall system integrity by ensuring each project is focused on an explicit, current, common baseline
To formally authorize additional scope into the program, and its budget and schedule implications
To verify that a request is approved by the appropriate authority
To ensure implementation of each accepted change
To support the maintenance of traceability across the system (from protocols to test cases) by synchronizing all projects to one version of the protocols
Current emphasis is the backlog and advancing the current baseline - but process must handle additional NPRRs and subsequent baseline advances
June
Texas Nodal Program Update

7. Baseline 1 will follow the following process for recommendation and approval…60
Items to be approved
Baseline 1 43 3 14
NPRRs*
Change Item*
White Papers* 32 11 1
Approved by BoD
Language approved by PRS
Language not approved by PRS
PRS
June 12
PRS to endorse NPRRs and CIs, recommend white paper IA’s for approval.
Jerry Sullivan to direct projects to begin baseline 1 implementation subject to BoD approval.
Recommend impact analysis (IA) for approval
Recommend language & IA for approval
Endorse impact analysis
Endorse impact analysis
TAC
June 28
TAC to recommend language and impact analysis for approval.
Jerry Sullivan to update directive if any revisions or rejections occur.
Recommend impact analysis (IA) for approval
Recommend language & IA for approval
Endorse impact analysis
Endorse impact analysis
BoD
July 17
BoD to approve protocol language and scope, timeline and cost impacts.
Jerry Sullivan update directive if any revisions or rejections occur.
Approve protocol language and scope, timeline and cost impacts 60
No. of items
June
Texas Nodal Program Update

8. The proposed process is designed to handle NPRRs and Nodal change requests in tandem
The process is modified slightly to accommodate the change control objectives…
NPRR Approval
CR Approval 1
ERCOT to provide an
initial impact categorization
and a Program position for Go-Live
Draft
NPRR
IC (1-4) 2
PRS to do an initial
review and provide a
recommendation of
approval
TPTF
Y/N for
Go-Live 3
Technical Change Control
Board to work with projects
to develop and submit
change requests to the CCB
PRS 1
IA (group
changes) 4
PRS to approve
time and dollars
CCB 5
PRS 2
CR*
Approval depends on
budget thresholds and
funding sources
CR* - A Change Request is the Nodal
program’s mechanism for incorporating
changes to scope, timescales, cost. A change
request normally incorporates multiple items
including NPRRs, white papers, etc.
TAC
CR* Approval
Process
Projects
BOD
Approves
Periodic updates will be provided to TPTF, PRS, TAC & BOD on the status of NPRRs
June
Texas Nodal Program Update

9. The 60 change items have been grouped for impact assessment purposes…
Impact assessment groupings determined by functional consistencies and implementation synergies
Change types and estimated number in each type
Number of items in each Group
Source 6
4 items
Source 1
7 items
Source 5
7 items #6 #1
Source 1/2
6 items
Source 4
2 items #5 #4
#1/2 #2
Source 2
6 items #3
Source 3
28 items
Average spend sizes
1-10 = 6.6%
11-15 = 2%
15-30 = 1%
= 0%
Total estimated cost of implementing Baseline 1 changes is $6M-$7M
June
Texas Nodal Program Update

10. Impact Summary – Cost Information
Category
Cost ($’ 000s)
Source 1
$250K-$500K
Source 2
$50K-$100K
Source 1&2
$500K- $1M
Source 3
$2M-$3M
Source 4
Source 5
$1M - $2M
Source 6
Cost Impact Level
Number of Items
<$0 39
$50K-$100K 7
$100K-$250K
$250K-$500K 3
$500K - $1M
$1M - $2M 1
Total Est. Cost = $5M-$6M
June
Texas Nodal Program Update

11. Requested action items for today…
Baseline1
Confirm agreement on whether Essential for Go-Live
PRS to approve language for TAC consideration on NPRR 50
PRS & TPTF to vote on “Impact Assessment” of all NPRRs
PRS to forward to TAC the following NPRRs – NPRR 035, NPRR039, NPRR 041, NPRR 042, NPRR 043, NPRR 044, NPRR 047, NPRR 048, NPRR 049, NPRR 050, NPRR 051 & NPRR 052
TPTF to vote on “Impact Assessment” of all change items and White Papers
Go-Live Baseline
Decide position on Go-Live Baseline (E/D/N)
Add any potential items required for Go-Live Baseline
June
Texas Nodal Program Update

12. Appendix Slides
PRS/TPTF Joint Meeting
June 12th, 2007

13. Group 1 – Items with minimal or no impact
Group No. 1
Characteristics
No. of items
NPRR 18
Total $ impact range $0
Change Item
Schedule Impact (weeks)
None
White Paper 4
EDS (1/2/3/4)
Total items 23
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR 001
NPRR 003
NPRR 007
NPRR 010
NPRR 011
NPRR 013
NPRR 015
NPRR 017
NPRR 019
NPRR 023
NPRR 025
NPRR 027
NPRR 028
NPRR 030
NPRR 038
NPRR 043
NPRR 046
NPRR 048
NPRR 050
WP EMS 003
WP EMS 004
WP EMS 006
WP IDA 039
Cost Drivers: None
Risks: None
June
Texas Nodal Program Update

14. Group 2 – Multiple Projects with impact category of 1
Group No. 2
Characteristics
No. of items
NPRR 3
Total $ impact range
$2M - $3M
Change Item
Schedule Impact (weeks)
None*
White Paper 6
EDS (1/2/3/4) 4
Total items 11
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR035 - Nodal Protocol Clarifications Required For Net
Metering Provisions
NPRR041 - Corrections to Section 4, Day – Ahead
Operations
NPRR047 - Credit Monitoring – ERCOT Staff Clarifications
CI10 - Business Process for SPS/RAP in Nodal
CI57 - Move Resource Parameters from Registration to MMS
WPIDA002 - Time Standards and DST
WPIDA004 - Power Flow Consistency Requirements
WPIDA007 - Load Rollover
WPIDA008 - State Estimator Maintenance
WPIDA009 - SPS and RAP Modeling
WPIDA013 - Seasonal/Temperature/Hydrogen Pressure
based Reactive Capacity Curves and MW Capability Curve
Cost Drivers: see next slide
Risks
Coordination between projects needed for majority of
items in this group.
Time standards and DST (WPIDA002) has program
wide implications.
Business processes related to CI0057 have not yet
been fully defined.
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

15. Group 2 – Multiple Projects with impact category of 1
Group No. 2
Detail
Cost Drivers:
MMS –
Handling of new object in CIM model for
net metering (NPRR035);
Handle credit processing in DAM (NPRR047);
SPS/RAP (WPIDA009 and CI0010) and load rollover
(WPIDA007) processing in DAM and RUC;
Accepting resource parameters directly from Market
Participants into MMS with reasonable validation
(CI0057);
Implement distributed load reference for shift factors
in DAM (WPIDA004);
Change displays and queries to reflect IDA proposed
time display format – assumes no GMT (WPIDA002);
Vendor standard product does not support generator
MVar capability curve (WPIDA013).
EMS
A new requirement for power flow (WPIDA004)
NMMS – Net metering scheme (NPRR035); load rollover
scheme (WPIDA007); and RAP/SPS (WPIDA009 and CI0010)
to be added to CIM model. Power flow consistency
(WPIDA004) requires additional validation.
CRR – Coordination with CMM to handle credit processing
in CRR auction (NPRR047).
EIP – Additional net meter (NPRR035); available, allocated
and remaining credit limit information flows (NPRR047); and
resource parameter source system information flow (CI0057
and Group 10 NPRR008).
INT – Additional testing.
June
Texas Nodal Program Update

16. Group 3 – Generation Subsystem Changes
Group No. 3
Characteristics
No. of items
NPRR 1
Total $ impact range
$500K - $1M
Change Item
Schedule Impact (weeks)
None*
White Paper 4
EDS (1/2/3/4)
Total items 6
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR049 – Generation subsystem Changes to
Incorporate approved Whitepapers
CI 67 – Non-spin Deployment (resulting from TAC
approved process)
WPEMS1 – Ancillary Service Schedules and
Deployment Telemetry
WPEMS2 – Base Point above HASO Flags
WPEMS7 – Non-Spin Deployment Notification and
Availability
WPEMS8 – SCED Base point Dispatch
NPRR049 incorporated CR0067, WPEMS1, WPEMS2,
WPEMS7, and WPEMS8.
Cost Drivers:
Revisions to MMS to accommodate Non-spin
deployment, load resource RRS deployment,
COP format change.
Revisions to EIP to pass ancillary service
resource responsibility data from EMS to MIS
dashboard.
Risks
EIP - No timescale impact if funding available to
increase staff to support EDS timeline;
otherwise, current end date to be extended 4 to
5 weeks.
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

17. Group 4 - Congestion Revenue Rights Changes
Group No. 4
Characteristics
No. of items
NPRR 1
Total $ impact range
$100K-$250K
Change Item
Schedule Impact (weeks)
None*
White Paper
EDS (1/2/3/4)
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR005 – CRR – PCRR Allocation Terms and
Conditions
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
Cost Drivers: Revisions to MMS to accommodate DAM
SFT related processes and functions for reallocation of
MCFRI. This is an additional process for MMS
Risks
CRR – Major impact if this NPRR is NOT
implemented. CRR modifications can be
implemented independently of the MMS
modifications.
Dependency
MMS – Assumption is made that the proposed
NPRR to change the MCFRI reallocation timeline
from “by 0600 prior to DAM” to “prior to the
execution of DAM clearing” will be approved.
MCFRI reallocation will be performed as part of
the SFT post-processing functions (no
optimization).
June
Texas Nodal Program Update

18. Group 5 - Impact category of 1 or 2 to MMS and EMS
Group No. 5
Characteristics
No. of items
NPRR 3
Total $ impact range
$100K-$250K
Change Item
Schedule Impact (weeks)
None*
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR004 – Section 8, Zonal PRR Synchronization and
ERCOT Staff Clarifications
NPRR009 Section 6, PRR Synchronization and ERCOT
Staff Clarifications
NPRR016 TPTF Cleanup items for Sections 2, 3, and 16
Cost Drivers: Revisions to MMS to accommodate
changes to SCED, Registration System, and COP
validation.
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

19. Group 6 – Impacts to individual systems - MMS
Group No. 6
Characteristics
No. of items
NPRR 8
Total $ impact range
$250K-$500K
Change Item
Schedule Impact (weeks)
None*
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR002 – Section 3, Zonal PRR Synchronization and
ERCOT staff clarifications
NPRR006 – Section 4 ERCOT Staff Clarifications
NPRR012 – CRR Granularity in CRR Auction
NPRR014 – Zonal PRR Synchronization for Section 16
NPRR022 – MIS Posting for Area Trades
NPRR039 – Ancillary Service Offers for the
Supplementary Ancillary Service Market
NPRR051 – Removal of the Pseudo Resource
Requirement in the Real Time SCED Process
NPRR052 – Settlement for Non-Modeled Generators
Cost Drivers: revisions to MMS to accommodate
changes to Day Ahead Operations, QSE Registration
and Qualification, derated CRR settlement quantity
using the DAM SPP, AS offers for the AS Market,
removal of pseudo resources.
Risks
MMS – There is greater risk in not implementing
this change.
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

20. Group 7 - Impacts to individual systems - EIP
Group No. 7
Characteristics
No. of items
NPRR 3
Total $ impact range $0
Change Item
Schedule Impact (weeks)
None
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR031 – Correction of Voltage Support Bill
Determinants
NPRR032 – Correction of Black Start Bill Determinants
NPRR044 – Corrections to Section 6, Adjustment
Period and Real-Time Operations
Cost Drivers: These two information flows were not
included in original costs estimates. However, costs
will be absorbed by EIP current scope. This includes
revisions to EIP and MMS to correct adjustment period
and real-time operations, and bill determinants.
Dependencies – EIP is dependent on source system to
provide data for voltage support and black start
attributes (*presently assumes MMS is the source
system).
June
Texas Nodal Program Update

21. Group 8 - Settlement of CRRs When DAM Does Not Execute
Group No. 8
Characteristics
No. of items
NPRR 2
Total $ impact range
$50K-$100K
Change Item
Schedule Impact (weeks)
None*
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR033 – Settlement of CRRs When DAM Does Not
Execute
NPRR034 – Conforming Section 10 to Nodal Format
Cost Drivers: Revisions to COMS and MMS to
accommodate changes to S&B and CMM.
Dependency – None
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

22. Group 9 - Transmission Security Analysis and RUC
Group No. 9
Characteristics
No. of items
NPRR 1
Total $ impact range $0
Change Item
Schedule Impact (weeks)
None
White Paper
EDS (1/2/3/4) 3
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR042 – Corrections to Section 5, Transmission
Security Analysis and RUC
Cost Drivers: revisions to protocols to detail business
process on verifiable start up cost; no software
change.
June
Texas Nodal Program Update

23. Group 10 – Controllable Load Resources
Group No. 10
Characteristics
No. of items
NPRR 1
Total $ impact range
$1M-$2M
Change Item
Schedule Impact (weeks)
None*
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N)
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR008 – Inclusion of PRR307 in Nodal
Cost Drivers:
Revisions to NMMS, EMS, EIP and MMS to
include provision of controllable load resources
to provide regulation services.
EMS and EIP are impacted in the ancillary
service monitoring function.
MMS major changes in market infrastructure and
market applications to support this new type of
load resources in DAM, SASM, and DEF
(Deliverability Evaluation Function). Controllable
load resources is not in the MMS vendor’s
standard product.
Dependencies: EIP dependency on GROUP 2: CI0057.
*ERCOT and vendor are aggressively working to minimize any
impact to schedule
June
Texas Nodal Program Update

24. Group 11 - Network Model Testing
Group No. 11
Characteristics
No. of items
NPRR 1
Total $ impact range
$250K-$500K
Change Item
Schedule Impact (weeks)
None
White Paper
EDS (1/2/3/4) 4
Total items
Essential for Go-Live (E/D/N) E
Detail
Item description:
Cost Drivers / Risks / Dependencies:
NPRR 029 – Network Model Testing Clarification
Cost Drivers:
Stand-alone, dedicated system to test the new
network model in EMS and MMS.
Cost is comprised of software and hardware.
The licensing cost is associated with the third party
software licensing
June
Texas Nodal Program Update

25. Go-Live Baseline June 4 2007 Texas Nodal Program Update NPRR # Title
ERCOT essential for Go-Live Position (E/D/N)
PRS/TPTF essential for Go-Live Position (E/D/N)
Sponsor
Owner 24
Synchronization of PRRs 627 and 640 E
TPTF
Trip Doggett 36
Market Operations Test Environment in Nodal
NDSWG ROS
David Grubbs 37
Conforming Section 13 to Nodal Format and Changing Frequency of Transmission Loss Base Case Calculations.
UFETF
Chuck Moore 40
Emergency Electric Curtailment Plan (EECP) Event Realignment (PRR682)
OGRTF
Stephen C. Knapp 45
Wind Power Forecasting
The Wind Coalition
Walter J. Reid 53
Creation of a New Trading Hub at Venus Switching Station
Constellation Commodities Group
Clayton Greer 54
Update of Nodal Protocols to Comply with NERC Name Change – Companion to PRR711
ERCOT
Ann S. Boren 55
Correction of Voltage Support QSE Total Bill Determinants 57
Posting Requirements Pursuant PUC Subst. R
June
Texas Nodal Program Update

26. Go-Live Baseline June 4 2007 Texas Nodal Program Update NPRR # Title
ERCOT essential for Go-Live Position (E/D/N)
PRS/TPTF essential for Go-Live Position (E/D/N)
Sponsor
Owner 58
Clarification of Standard Form Market Participant Agreement E
TPTF
Trip Doggett 59
Reconfiguring the Annual CRR Auction 60
Draft Hub Clarification 61
Scarcity Pricing Mechanism (Companion to PRR709) 62
Constraint Competitiveness Test
Trip Doggett Xingwang Ma 63
Electrical Bus Clarification
Curtis Crews 64
Modeling of Generic Transmission Constraints 65
Companion to PRR647, Gross and Net MW/Mvar Data Reporting. 
John Dumas
June
Texas Nodal Program Update

27. Go-Live Baseline June 4 2007 Texas Nodal Program Update NPRR # Title
ERCOT essential for Go-Live Position (E/D/N)
PRS/TPTF essential for Go-Live Position (E/D/N)
Sponsor
Owner
TBD
Corrections to Section 9 – Settlements Clean-up NPRR E
TPTF
Raj Chudgar
Calculation of RRS Deployment by SCED (resulting from TPTF Approved White Paper 5)
John Adams
Section 5: Settlements Clean-up NPRR (Decommitment)
Telemetered Resource Status
External Transmission Networks
Trip Doggett
Trade validation by matching identical Trade Submissions
Synchronization of PRR 698, Remove Default QSE Provisions
Cheryl Yager
CI - TBD
Registration scope from NMMS to MMS
Market Participant Identity Management
WPIDA 3
Combined Cycle modeling
IDA
June
Texas Nodal Program Update

28. Go-Live Baseline June 4 2007 Texas Nodal Program Update NPRR # Title
ERCOT essential for Go-Live Position (E/D/N)
PRS/TPTF essential for Go-Live Position (E/D/N)
Sponsor
Owner
WPIDA 21
Load Models E
IDA
WPIDA 31
Behind the Meter Facilities and Non-Utility Transmission Equipments
WPIDA 38
Bids and Offers at load zones and Trading Hubs
WPIDA 41
Joint-Owned Unit Modeling (a.k.a. Split Generation Resources - doc IDA041 White Paper for JOINT OWNED UNIT MODELING
WPIDA TBD
Outage equipment list coordination between NMMS and outage scheduler
June
Texas Nodal Program Update