1. Market Trials DAM/RUC/SASM
Weekly Update
July 23, 2010 1

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. 2

3. Agenda DAM/ RUC/SASM summary QSE Activities for Next Week
General Reminders/Updates
Environment Report
Outages
Known Issues
Special Topic
Question and Answers / General Discussion
Appendix
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. 3

4. Market Trials 2010 Roadmap 4

5. Submission Overview for Friday July 16
DAM submission overview
208 QSEs participated for Op Day 7/17
Energy Bids in the range of 39,024 to 69,660 MW per hour
Cleared 29,423 to 43,791 MW energy per hr
Cleared 10,893 to 14,516 PTP bids per hr
Four major Load Zone prices ranged from $33.28 to $250.00 5

6. Submission Overview for Tuesday July 20
218 QSEs participated for Op Day 7/21
Energy Bids in the range of 28,680 to 46,548 MW per hour
Cleared 21,199 to 30,377 MW energy per hr
Cleared 14,147 to 16,510 PTP bids per hr
Four major Load Zone prices ranged from $27.24 to $56.88. 6

7. RUC Execution Overview for this week
RUC overview for the week: 7

8. Next Week’s Activities
Next week – Op Days are 7/27 - 7/31
DAM executing on 7/26 - 7/30
No guardrails - Bids/offers should be reasonable
COPs should reflect post go-live submissions throughout the week. Market participants are free to updates COPs as a result of nodal market processes the entire week.
Operational Scenarios:
No operational Scenarios scheduled
Focused input day for OD 7/28
Request as much participation as possible from participants
Operate as close as possible to post go-live
Offers
Bids
PTP Bids
Trades
Etc.
Week 11
Note: Dates are DAM execution days
7/26/2010 to 7/30/2010
Objective
Network Constraints
Included
DAM
5x week
DAM submissions
No guardrails
COP Updates
Reflect nodal
DRUC
W/ each DAM
HRUC
Limited
WRUC
2 x week
SASM
As needed
Op Scenarios
No Scenarios 8

9. COP Changes for DAM/RUC
COPs process for next week as a result of a request from participants
Should reflect post go-live submissions throughout the week.
Market participants are free to updates COPs as a result of nodal market processes the entire week. 9

10. Next Week’s Activities
DRUC executing on 7/26 - 7/30 after DAM
WRUC, HRUC and SASM executing on 7/26-7/30
HRUC and SASM
WRUC executing on Monday and Wednesday
HRUC will be executed at 1 pm (target Operating Hours will be the balance of the Op Day)
May be run for additional, non-supported hours
SASM will be opened if needed based on system conditions
Next week
Again, next week ERCOT may do workarounds outside the normal business process to sidestep any issues that arise. Furthermore, we may approve the results of the RUC software even if the result is operationally unreasonable. The purpose of this is to exercise settlement and billing determinants related to RUC.
Week 11
Note: Dates are DAM execution days
7/26/2010 to 7/30/2010
Objective
Network Constraints
Included
DAM
5x week
DAM submissions
No guardrails
COP Updates
Reflect nodal
DRUC
W/ each DAM
HRUC
Limited
WRUC
2 x week
SASM
As needed
Op Scenarios
No Scenarios

11. Next Month’s Activities
RUC Simulation Scenario
ERCOT understands the need for QSEs to simulate following a RUC deployment for Operational and Settlement purposes
ERCOT proposes the following scenario in August to test processes for when a Resource receives a RUC instruction and turns on as instructed the following day.
For the scenario day, QSEs will have the opportunity to send ERCOT information for up to 3 resources that they want ERCOT to commit in the RUC
In this manner the QSE can plan to turn on in zonal, and receive the Nodal RUC instruction to do so
ERCOT will then use DRUC or HRUC to commit the resource in nodal systems
The QSE can then:
Decide to follow or not follow the RUC instruction from ERCOT nodal system
Receive the Start-Up instruction and test their start-up procedures to comply with RUC instruction
Determine the settlement impacts of following or not following the instruction
Additional Scenarios to run in August
VDI Commitments
VDI RUC cancel
AS insufficiency
De-commitments

12. General Reminders/Updates
Network Model Update
An updated settlement points and MP short name list was posted for the 7/1 load at
Next scheduled load will be installed 7/23.
Reminder regarding External Interfaces Specification v1.19N
Posted at
Delivered 7/22
The next planned release for the MMS release has been moved until 8/6/10
ERCOT will be continuing to run WRUC
Please be aware that WRUC requires valid COP data seven days out in order to have a good solution during the study period
ERCOT will continue to announce on the Market Call the operating days for the next week
Less operating days during LFC test weeks
August is open to run operating days as necessary to complete verifications
A schedule of scenarios for August will be coming in a future market call
ERCOT posted the redacted model.

13. General Reminders/Updates
Market Readiness Seminar #5
Focus will be on the remaining activities of Market Trials in August and September
Although changes to the 168-Hour test have been discussed at NATF and the Board recently, ERCOT will be detailing August as well as discussing September’s activities to be discussed in upcoming Market forums
Additionally, this seminar will also cover detailed information about Nodal Cutover
Details about MRS #5 and how to attend are located at:

14. Market Participant Inbound Questions
Support Metrics
Market Participant Inbound Questions
Last Week
This Week
* This week, 12 out of 155 questions were responded to outside of the 24 hour time frame.

15. Day-to-day operations summary: Planned / Unplanned Outages
07/22/ :00 A.M. – 07/26/ :00 A.M.
Migration activities are currently underway in the Nodal production environment and will intermittently affect availability of the following application services :
Market Manager UI
OS UI
EWS ( Web Services)
MIS
CDR Reports
Note: External interface specification 1.19N will take into effect upon completion of these planned activities
07/29/ :00 A.M. – 07/29/ :30 A.M.
Site failover activities are being planned for Nodal Market and EMS applications. The outage duration is expected to last no more than 30 minutes from the start of the test.
Unplanned Outages
N/A

16. Environment Report-Known Issues
Full DAM/RUC/SASM known issues list will post every Friday night at
New DAM/RUC/SASM known issues
When pressing 'query for existing submission' on the Create Energy Trade page, the system responded that an existing submission was found; however, there is no data in the Existing Transaction portion of the screen.

17. Overall System Offers/Bids & Clearance
Special Topics
Overall System Offers/Bids & Clearance

18. Special Topics

19. Q&A
Q&A / Open Forum

20. Pre- and post-DAM reports Special Topics
Appendix
Appendix
AS Info for the week
Pre- and post-DAM reports
Special Topics

21. Submission Overview for July 17

22. Submission Overview for July 21

23. Note: Other All transactions will be supported.
Trade submission and confirmation (Energy, Capacity and AS Trades) may be exercised at this time.
DAM notifications will be active.
Phase 2 Validation process will be active and supported.
QSE transactions that do not follow the guidelines are subject to cancellation at ERCOT’s discretion.
ERCOT may run DAM on non-supported days. No QSE participation is requested, and ERCOT staff will not be available to answer questions regarding the outputs of these non-supported processes.
CRR information from the market trials auction will be integrated into the market system. CRR Offers (by NOIEs) must contain CRR IDs from this auction in order to be valid.

24. Ancillary Services (AS) Plan
Report Postings
Posted by 6 am:
Ancillary Services (AS) Plan
Load Ratio Shares (these will be static based on Zonal production data as of October 16, 2009) *
AS Obligations *
Wind Generation Resource Power Potential (WGRPP) forecast * and Aggregated WGRPP forecast
List of all Settlement Points and the mapping to Electrical Buses
Load forecasts for ERCOT system, Weather Zones and Load Zones
Load forecast distribution factors
Distribution Loss Factors and forecasted Transmission Loss Factors
Weather assumptions
* Denotes MIS Certified reports

25. DAM Clearing Price for Ancillary Services (MCPC)
Report Postings
Posted after each DAM:
Awards (AS Offers, Energy Offers, DAM Energy-Only Offers, DAM Energy Bids, CRR Offers, and PTP Obligation Bids) *
DAM Clearing Price for Ancillary Services (MCPC)
Day-Ahead hourly Settlement Point Prices (SPPs)
Day-Ahead hourly Locational Marginal Prices (LMPs)
Shadow Prices
Quantity of AS Offers
Aggregated AS Offer Curve
Total quantity of energy (in MWh) bought and sold in DAM
See DAM Handbook for a list of all DAM/RUC/SASM reports available starting in Phase See MIS Handbook for a comprehensive list of reports available -
* Denotes MIS Certified reports

26. Phase 2 Validation reports and process
Special Topics
Phase 2 Validation reports and process
Phase 2 validation re-evaluates all submitted transactions at 7 am in the day-ahead with updated information, such as AS Obligation, CRR ownership, credit limits, etc.
If there is a validation error, ERCOT will cancel the transaction
We send a notification that a Phase 2 report is available for a particular transactions type, and notification containing the cancellation for the transaction.
You can query for the Phase 2 report via web service or on the Reports page of the Market Manager in order to view the reason for the cancellation.
Correct and resubmit prior to 10 am.
Note that submissions are locked out during the Phase 2 process, which is currently taking about 10 minutes to complete.

27. Day-Ahead Self Commitment
Special Topics
Day-Ahead Self Commitment
DAM clearing engine treats your TPO differently if you submit Startup and Minimum Energy (SU/ME) costs as $0 vs. NULL
If you submit with SU/ME as $0, DAM engine treats this as a normal offer where the QSE is not requesting SU/ME to be covered. HSL/LSL constraints will be respected. Also, if you are selected for an online Ancillary Service, you will also be awarded at least LSL on your offer curve.
If you submit with SU/ME as NULL, DAM engine is signaled to ignore the HSL/LSL constraints for the resource. In this scenario, the offer curve submitted will start at 0 MW and go to the max MW quantity desired – again, DAM will ignore LSL/HSL constraints. If the offer curve submitted doesn’t start at 0 MW, it will be extended to 0 MW by DAM. If the resource is selected for Ancillary Services, no requirement to also award TPO at LSL (since no LSL constraint honored in this case).

28. Special Topics
Day-Ahead Self Commitment The purpose of the NULL: It allows a QSE to use part of a Resource to serve its own load, and then offer in the rest to the DAM and enable the offer to be co-optimized with its AS Offer. Example: A Resource has 100 MW LSL and 400 MW HSL, and the QSE has already committed 300 MW of the Resource through some other mechanism. The QSE wishes to offer the remaining 100 MW, which would otherwise be ignored due to the 100 MW LSL. Then going into real-time, so QSEs will need to update their TPO to cover the full capacity of the resource, from LSL to HSL, rather than from 0 MW. TPOs for real-time should always cover the entire capacity of the resource to avoid the proxy curve creation. To do the TPO update if the resource is awarded in the DAM, the QSE must provide a reason code, which is DSCM. This functionality came about due to TPTF subgroup on the issue. It has not yet been added to the protocols but will during our protocol traceability/cleanup effort.

29. Bid/Offer efficiencies
Special Topics
Bid/Offer efficiencies
ERCOT has identified efficiencies in Bid/Offers submission with regard to the format of submission
This applies to all transaction that use a Bid ID or an Offer ID (Energy Only Offers, Energy Only Bids, PTP Obligation Bids, and CRR Offers)
Preference is for QSEs to submit the same Bid/Offer ID for each hour in the submission, versus submitting a different Bid/Offer ID for every hour. The market system treats the submission the exact same way, regardless of which format is used
Using the preferred format will optimize DAM system performance
For xml examples detailing this issue, please view a document that will be posted along with this presentation on the calendar page at
This was discussed at NATF 4/6, we send an to the nodal technical contacts that we have on file for all QSEs, and we will add it to the External Interfaces Specification

30. JOUs and COP consistencies
Special Topics
JOUs and COP consistencies
In DAM, if the different owners of the jointly-owned unit have submitted conflicting COP statuses for the current day, online statuses will overwrite offline statuses when DAM is determining the initial condition of the unit (i.e., is the unit online or offline at the start of the next operating day).
In RUC, if the different owners have conflicting COP statuses for the next operating day:
If any owner has OUT status for any hour then the unit is considered OUT.
If all owners have submitted a COP, and at least one of them has an online status in a particular hour then the resource status for the unit is online (unless any owner has OUT)

31. FAQ http://nodal.ercot.com 31
EWS Notification Delivery & Network Firewall Configuration
EWS Notification deliveries are currently originating from the following ERCOT servers listed below. To meet system demand and scalability requirements, we will be adding additional servers to this mix. To prevent any service disruptions, as a result of addition of new servers, we recommend your network firewall rules be configured to allow traffic based on address range as opposed limiting them to specific IPs.
Current IPs in Play:
Data Center Location
Internet IP
WAN IP
Taylor
Austin
Recommended IP Ranges:
Data Center Location
Internet IP Range
WAN IP Range
Taylor
Austin

32. Supplemental Materials
Reference and Description
Location
Version
External Interfaces Specification
1.19
Explanation of Market Submission Items
0.26
Market Manager User Guide
0.06
MMS Requirements
Various
Market Connectivity Handbook
0.97
DAM/RUC Known Issues List
N/A
Web Services XSDs
1.3.19
Sample Reports, Extracts, and DDLs
DAM ERCOT Operating Procedures
2.0
DRUC/WRUC ERCOT Operating Procedures
0.2
Slide 32

33. Special Topic – Jointly Owned Units
JOUs are modeled as a single physical unit
DAM uses the separate logical resources when evaluating energy and ancillary services, but Network Security Monitoring (NSM), which is a sub-process of DAM, must consider the physical unit.
JOUs offering into DAM
Owners offer their share into the DAM separately, but the physical unit must be committed together
All owners have to offer in the unit (energy or AS) to the DAM or else it cannot be committed to any owner (one exception for a self-commitment scenario described below). DAM must make a commitment decision about the physical unit, which it cannot do without offers from all the owners.
Self-commitment examples (assume three owners) – remember that self-committing by submitting Startup and Minimum Energy Costs as ‘NULL’ (leaving them out of the submission altogether rather than submitting zeroes) signals the DAM software that it doesn’t need to make a commitment decision and to ignore resource constraints.
If two owners self-commit (startup/minimum energy costs are NULL) and the other submits nothing, the unit can be awarded without making a commitment decision.
If one owner self-commits, another submits a TPO with startup/minimum energy costs, and the third submits nothing, the unit cannot be awarded
If one owner self-commits, and the other two submit TPOs with startup/minimum energy costs, the unit can be awarded after making a commitment decision based on the resource constraints and the submitted startup/minimum energy costs.
Note that if self-committed, do not submit an OFFNS offer. That offer negates the self-commitment and the DAM software will not consider it as a self-committed resource (since the QSE is requesting ERCOT to evaluate the unit offline)