1. ©2012 | Commercial in Confidence | Proprietary to Ventyx, An ABB Company NYISO Real-time Market Presentation to ERCOT METF – April 26, 2012 Confidential | ©2012 Ventyx, An ABB Company | 1

2.  Ventyx real-time market implementations with look-ahead capability  NYISO  RTC – Real Time Commitment  RTD – Real Time Dispatch  Pricing  Load and storage devices  Network Constraints  Summary  Questions Agenda ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 2

3. Ventyx Real-time market with Look-Ahead capability implementations ISORTDRTCOnline Dates NYISO XX1999 SMD2: 2005 IESO X2001 MIO: 2004 CAISO XX1998 RTMA: 2004 National Grid UK XX2013 ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 3

4. Goals of NYISO Real-time Market  Schedule commitment of fast-start generators  Schedule transactions for RTM  Dispatch energy, reserves and regulation at five-minute intervals  Take into consideration future known events in making current scheduling decisions  Consider network security  Allow system and area regulation and reserve constraints  Include Automatic Price Mitigation  Have rapid re-dispatch (and recovery) in case of unplanned events (RTD-CAM) ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 4

5. Time Scales of Real-Time Scheduling for Normal Operation  Real-time Commitment (RTC)  Schedules fast-start units and transactions  Produces advisory energy, regulation, reserve and LMP schedules  Run every 15 minutes for next 2 ½ hours  Transactions include hourly and 15 minute transactions  Real-time Dispatch (RTD)  Schedules energy, regulation and reserves  Commitment and transactions fixed  Run every 5 minutes for up to 65 minutes ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 5

6. RTC Time Line ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 6

7. RTD Time Line ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 7

8. RTC Overview  RTC solved using SCUC  Additional inputs: unit initial generation and real-time network status (from State Estimator)  Schedules Fast Start units and transactions  Hourly transactions must be constant over hour  15-minute transactions are scheduled by RTC as regular resources  Uses AMP to mitigate pricing  If market power determined, base prices used in RTD  Fast-start Management function ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 8

9. RTC-AMP  The Real-Time Commitment - Automatic Mitigation Process (RTC-AMP) is a real-time mitigation function that executes every 15 minutes on the quarter hour  RTC-AMP runs in parallel with RTC to evaluate the effect of Market Participants real-time bids and applies mitigation measures as required by market rules  RTC-AMP can be enabled and disabled by setting RTC-AMP flag. If the RTC-AMP flag is set to “NO”, both RTC and RTC- AMP are identical since there is no mitigation measure required ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 9

10.  Allows operations staff to:  Approve/disapprove startup/shutdown decisions of RTC  Initiate startup or shutdown of fast-start unit  Finalized commitment schedules are respected by subsequent RTD and RTC runs Fast Start Management ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 10 RTC- AMP RTC FSM RTD RTD-CAM GT Commitment

11. RTD Overview  Dispatch energy, regulation and reserves from:  Generators  Internal Dispatchable Load  Commitments, hourly and 15-minute interchanges are fixed  5-minute NY-HQ transactions are scheduled by RTD  Uses Security Constrained Economic Dispatch  Same as SCUC except commitment fixed ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 11

12. RTD-CAM (RTD Corrective Action Mode)  Responds to abnormal system conditions  Short look-ahead for fast basepoint  Execute on demand or periodically after first initiation  RTD-CAM Modes:  Reserve Pickup, one ten-minute step with 7 minute ramp time  Uses emergency response rate  If necessary commit 10-min GTs  With or without network model update  Basepoint As Soon As Possible, one five-minute step  Use normal response rate  No Commitments  Commitment as needed, commit 10-min GT if necessary  Maximum Generation Pickup, one five-minute step and commit all available 10- minute GTs  Units ramped at maximum rate in selected zones  Re-sequencing Run, two five-minute steps ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 12

13. NYISO Market Place Dynamics ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 13

14.  LMP calculated from the RTD multi-step optimization dispatch  GTs can set price.  Separate pricing run where:  Set GT incremental cost equal to average cost  Set GT low limit to 0  Make-whole payment considering start up cost, no-load cost and energy. Guarantee that each unit gets paid at least its production cost.  Calculate area reserve and regulation MCPs  Generator reserve costs are zero  MCP based on lost opportunity cost  Demand curve for reserve and transmission Pricing ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 14

15.  Demand-side resources  Can bid synch or non-synch reserves  If bid synch reserve => zero startup and mingen cost  If bid non-synch reserve => zero mingen cost  Pump storage (PS)  No reservoir modeling  Schedules pumping or generating based on input cost curve  Fly-Wheel (LESR)  Only supplies regulation – no energy  Not used if regulation demand curve is non-zero  Not used in RTD-CAM  Limits for first interval limited by available energy Load and Storage Devices ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 15

16.  Models losses  Iterative Network Constraints ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 16 Network Security Monitor Network Constrained Unit Commitment

17.  NYISO MMS system includes the following:  An integrated system to handle various operation issues  Fast-start generation commitment  Look-ahead dispatches and price signals  Emergency operation  Real-time price mitigation  Rigorous coupling of network security and optimization for system reliability  Consistent price setting rules in all markets Summary ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 17

18. Questions ? ©2012 Ventyx, An ABB Company Presentation to ERCOT METF April 26 2012 18 Thank You