1. 1 Market Operator User Group Meeting 1 Market Operator User Group Meeting 13 th of March 2012 The Oval, Dublin Conference Call Number: 00353 1 664 7777 Customer Pin: 97892

2. House Keeping  Please note the location of the fire exits.  If you are on the conference call we would ask that you keep your phone on Mute unless you are asking a question  Please keep mobiles on silent Copyright EirGrid/SONI 2007 2 Market Operator User Group Meeting 2

3. 3 Agenda 3 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Intra Day Trading – Training Update11:30 Customer Service 11:35 Q&A11:45

4. 4 Review of Action Items Market Operator User Group Meeting 4  Update on Currency Cost Issue – Will be provided in session

5. 5 Agenda 5 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Intra Day Trading – Training Update11:30 Customer Service 11:35 Q&A11:45

6. 6 Market Operator User Group Meeting 6 Key Performance Indicators

7. 7 Market Operator User Group Meeting 7

8. Publish MIP/LR Copyright EirGrid/SONI 2007 Operational DateTrade DateRun TypeLR Peak SMPMIP Peak SMPPublished 19/01/201215/01/2012Ex-Post Initial (EP2)€512.92€384.87MIP 22/01/201221/01/2012Ex-Post Indicative (EP1)€575.09€480.88MIP 25/01/201224/01/2012Ex-Post Indicative (EP1)€538.78€393.12MIP 03/02/201230/01/2012Ex-Post Initial (EP2)Price Floor (-€100)€290.31MIP 26/02/201202/02/2012Ex-Post Initial (EP2)€550.33€301.22MIP 03/02/201202/02/2012Ex-Post Indicative (EP1)€528.45€610.50MIP 08/02/201209/02/2012Ex-Ante (EA)€607.85€443.47MIP 12/02/201208/02/2012Ex-Post Initial (EP2)Price cap (€1000) and price floor (€-100) €301.42 (PFLOOR remained) MIP 25/02/201224/02/2012Ex-Post Indicative (EP1)€543.37€354.37MIP 26/02/201227/02/2012Ex-Ante (EA)€539.97€318.45MIP 06/03/201205/03/2012Ex-Post Indicative (EP1)€548.85€456.44MIP

9. Copyright EirGrid/SONI 2007 Pricing Issues Run Type IssueResolution AllLate Reports  Reports published late to the website and / or MPI.  The Ex-Ante market schedule was published after market deadline on three occasions for the following Trade Dates  19/02/2012  21/02/2012  23/02/2012 Due to an system defect impacting Modified Interconnector Unit Nominations.  The Ex-Post Indicative market schedule was published after market deadline at 16:45 03/02/2012 instead of 16:00 03/02/2012 for Trade Date  02/02/2012 Due to an operational error.  The Ex-Post Initial market schedule was published one day after the market deadline, instead of by 17:00 on 22/02/2012 for Trade Date  18/02/2012 Due to an system defect impacting Modified Interconnector Unit Nominations.

10. Copyright EirGrid/SONI 2007 Pricing Issues Run Type IssueResolution AllLate Publication  Reports published late to the website and / or MPI. Late Transfer  MIUN’s transferred late.  The Ex-Post Indicative shadow price was published after market deadline at 16:29 03/02/2012 instead of 16:00 01/02/2012 for Trade Date  31/01/2012 Due to an operational error.  The Modified Interconnector Unit Nominations for the Ex-Ante were published several minutes late for Trade Date 05/03/2012 Due to a system defect, a fix has since been implemented. 09/03/2012 Due to an operational error.

11. MIUN Import Capping Issue The Maximum Import Capacity for the Moyle Interconnector was capped incorrectly at 295 Mw instead of 450 Mw. The issue affected the following Trade Dates: 19/02/2012 20/02/2012 21/02/2012 22/02/2012 This was caused by a system defect. A fix has since been deployed by the vendor. The Interconnector is now correctly operating at 450 MW. Issue was discussed in the SEMO Conference Call on Thursday 8 th March Copyright EirGrid/SONI 2007 Market Operator

12. Currency Costs Defect - Update  A fix was deployed on the 6 th of January 2012.  The first defect was in relation to the application of Invoice Day Exchange Rate. Since May 2011 release an automated invoice day exchange rate was implemented. However, it was found that the system was instead picking up the last manual entry of this value and not the automated value.  The second defect was in relation to the apportioning of currency costs charges/payments. Since October 2010 release, it was found that some Participants have been incorrectly invoiced in regard to their currency costs.  The value of this error is estimated to be in the region of €1 million.  SEMO is in the process of re-calculating Currency Costs across the affected periods. Update : 13 th March 2012:  SEMO is currently analysing revised values for the affected period and will issue a further communication by end of March in relation to plan for invoicing.  SEMO will communicate with all Participants, prior to invoicing, regarding their prospective amounts and provide supporting calculations.  Interest will be applied or paid on these invoices.  It should be noted that these revised calculations will be outside of the Settlement system and therefore invoices will not available on the MPI.  A single ad hoc invoice or self billing invoice, where applicable, will be raised covering the entire period by our Funds Transfer team.

13. Settlement Issues Copyright EirGrid/SONI 2007 13 Run TypeIssueCause and Resolution Indicative Energy & VMOCLate Publishing  System Issue  25 th January (< 1 hr late)  28 th February (> 1 hr late)  1 st March (> 1 hr late)  The delays were a result of system performance issues affecting Market Systems.  A short term solution was put in place to improve performance. However, SEMO are working on a permanent fix with the vendor. Invoicing – Capacity ResettlementInvoices Cancelled *Market Conference Call held 9 th March  Operational Error  December 2010 M+13 Late Publishing  System Issue  October 2011 M+4  January 2011 M+13  A query was upheld in relation to financial discrepancies for Capacity RS. As a consequence invoices were re- issued on the same day thus voiding the original invoices. Capacity Ad hoc resettlement has been rescheduled to be invoiced 23 rd March 2012  These Capacity periods were invoiced outside of the Code timelines due a system defect concerning a ramp rate change to the interconnector. A fix was implemented and the Capacity periods were invoiced on 2 nd March 2012

14. Settlement Issues Copyright EirGrid/SONI 2007 14 Run TypeIssueCause and Resolution Invoicing – Energy ResettlementLate Publishing  System Issue  Week 1 2011 M+13 (> 1 hr late)  Week 2 2011 M+13 (> 1 hr late)  These billing periods were invoiced outside of the Code timelines due a system defect concerning a ramp rate change to the interconnector. A fix was implemented and the billing periods were invoiced on 2 nd March 2012 Invoicing – VMOC ResettlementLate Publishing  System Issue  Week 1 2011 M+13 (> 1 hr late)  Week 2 2011 M+13 (> 1 hr late)  These billing periods were invoiced outside of the Code timelines due a system defect concerning a ramp rate change to the interconnector. A fix was implemented and the billing periods were invoiced on 2 nd March 2012 Invoicing - FMOCInvoice Omitted for a Participant  Operational Error  January 2012  One Participant did not receive an FMOC invoice for January 2012. This was applied to February 2012.

15. 15 Agenda 15 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Intra Day Trading –Training Update 11:30 Customer Service 11:35 Q&A11:45

16. Copyright EirGrid/SONI 2007 16  CMS Oracle database archiving  In November 2011 SEMO completed the first phase of CMS production database archiving project. This is required for a few reasons.  The production database is approaching two terabytes in size.  Performance on some batch/processing jobs has seen impacts.  It is a requirement for IDT (migration from test to live).  Progress to date:  Successful partitioning of the main settlements tables.  SEMO have been working with the CMS vendor & Market Operations to agree,  Partitioning of the main settlements tables - Done  Agree a rolling window for ‘live’ data - Done  A method to archive - Done  An agreement on a method to access/restore off-line or archived data – Done  Next Steps:  Run through the procedure to archive and retrieve in a Non-Production test environment – Done.  Verify & test for both- In progress  Verify the results with the CMS vendor.  Notify the market of the outage of the CMS to archive in production  Will happen this month on a Friday and will require a 12hr outage. SEMO IT Technical Update

17. MIUN Update  Over weekend of 18 th February faults were experienced with MIUN Calculation as a result of two separate issues: 1.ATC was being consumed in the wrong direction – this meant that the nominations were being constrained to 290MW on Saturday – fix applied 22 nd February following SEMO testing. 2.a new scenario encountered due to the 5MW ramp rate on the Moyle Interconnector – fix applied 27 th February following SEMO testing.  Conference Call held with Participants in relation to these issues on March 8 th where these items were dealt with in detail. 

18. SEM R2.0.0: Intra-Day Trading Release Scope  The following Change Requests are in scope for the SEM R2.0.0 release: CR RefMod RefDescription CR222Mod_18_10Intra-Day Trading CR244N/ASO Security (Option 1) CR256Mod_43_10Price Taker Generator Units and Firm Access CR284Mod_18_10Data to be Utilised when MSP Software Cancellation Run occurs CR287N/AInclusion of Breach Amount in the Credit Risk Report

19. SEM R2.0.0: Intra-Day Trading Key Milestones  Vendor Functional Design Approval29 July 2011 √ Complete  Technical Overview Workshop03 Aug 2011√ Complete  MPUD and Technical documentation 29 Aug 2011√ Complete  Participant Engagement Plan09 Sep 2011 √ Complete  Vendor Coding and Unit Testing11 Nov 2011 √ Complete  Factory Test Complete23 Dec 2011 √ Complete  SIT Execution03 Jan 2012 In Progress  Market Trial Execution 30 Apr 2012 to 06 Jul 2012  Proposed Deployment* 20 Jul 2012 * Subject to successful completion of testing.

20. SEM R2.0.0: Intra-Day Trading High-level project schedule

21. SEM R2.0.0: Intra-Day Trading MPUD  MPUD V1.2 was published on February 24 th, 2012.  Updates included:  Inclusion of File_Name for reports (based on Participant feedback)  Inclusion of Report Timings  Notice of removal of column from two reports  Daily Interconnector ATC  Daily Revised Interconnector ATC  Addition of technical pre-requisites  SEMO welcomes comments on the MPUD at any time – please send feedback to the SEMO Market Helpdesk (Markethelpdesk@sem-o.com), title prefixed with the word “MPUD”Markethelpdesk@sem-o.com

22. SEM R2.0.0: Intra-Day Trading Market Trial  Connectivity testing commences 23 rd April 2012 for one week.  Execution scheduled for 30 th April 2012 - 06 th July 2012.  The following related documentation was published on February 22 nd, 2012:  Market Trial Approach Document;  Market Trial Detailed Workplan; and  Workshop Slide Pack.  A Market Trial workshop has been scheduled for March 13 th.  Further Market Trial documentation will be made available as per the timeline specified in the published Detailed Workplan.

23. SEM R2.1.0 (Oct 2012) Release Update Approved Scope  The following CRs have RA approval for inclusion in the SEM R2.1.0 release: CR RefMod RefDescription CR207N/AAutomation of FMOC Calculation CR254Mod_40_10Dwell Times While Ramping CR255Mod_42_10Single Ramp Rate CR258Mod_01_11UI Payments for Generator Units CR259Mod_06_11SRA Cancellation through the MPI CR260N/AAdditional MI-AMP Feed CR261N/ARemoval of Orphan Trading Site Settlement Points CR266N/AChange of Effective Date in the MPI CR267N/AWind and Load Forecast Data CR274Mod_10_11Interconnector Under Test CR275Mod_12_11Interconnector Losses CR280Mod_21_11UI Payments for ELUs Constrained On CR286N/APublication of Zero IUNs when no PQ Pairs available

24. SEM R2.1.0 (Oct 2012) Release Update Participant Impacts  The SEM R2.1.0 scope will have an impact on interfaces between the CMS and Participant systems.  To support this release, SEMO will put in place the necessary framework to give maximum visibility and opportunity for engagement to Participants, including:  Interface documentation set (e.g. MPI User Guide, MPUD);  Functional Workshops;  MOUG Updates; and  Market Test phase.

25. SEM R2.2.0 (Apr 2013) Release Update Modification Proposal Scope  The following CR has RA approval for inclusion in the SEM R2.2.0 release:  The Release Cut-off Date for the SEM R2.2.0 release is: Friday, 22 nd June 2012  Any Non-Code Change Requests to be considered for this release should be submitted to the SDS mailbox (SDS@sem-o.com) before this date. CR RefMod RefDescription CR281Mod_17_11Addition of D+3 Dispatch Instruction report

26. 26 Agenda 26 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Intra Day Trading – Training Update11:30 Customer Service 11:35 Q&A11:45

27. Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Market Trial IDT Deployment Market Participant Training IDT Training Update The training will be run over a one and a half day course There are three courses of the same training being held Only course with spaces left is the 26 th and 27 th March 2012 in Dublin A soft copy of the presentation was made available on Friday 9 th March 2012 Some hard copies of the presentation, appendices and glossary will be provided at the course 27 Training Registration Jan12

28. 28 Agenda 28 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Intra Day Trading – Training Update 11:30 Customer Service 11:35 Q&A11:45

29. Customer Service Statistics Copyright EirGrid/SONI 2007 29  We currently have 10 open calls over 20 working Days old  6 of the calls that we have resolved took over 20 working days to resolve

30. Customer Service Statistics – xxx 2012 Copyright EirGrid/SONI 2007 30

31. Customer Service Statistics – XX/XX 2012 Copyright EirGrid/SONI 2007 31

32. Disputes Copyright EirGrid/SONI 2007 32 There is currently two Disputes Outstanding.

33. 33 Agenda 33 Market Operator User Group Meeting Review of Action Items10:30 Market Operations10:35 IT & Market System Development11:00 Customer Service11:30 Intra Day Trading – Training Update11:35 Q&A11:45

34. Any Questions?

35. 35 Thank You for your Attendance Next MOUG Conference Call: 17 th of April 2012 Next MOUG: 15 th of May 2012 in Belfast Market Operator User Group Meeting 35