1. Decision Support with PI TXU Energy OSI PI User’s Group Page 1 Mar 2002 Decision Support With PI

2. Decision Support with PI TXU Energy OSI PI User’s Group Page 2 Mar 2002 PI System Fleet Wide Installation Review Lessons Learned Near Real Time Decision Support

3. Decision Support with PI TXU Energy OSI PI User’s Group Page 3 Mar 2002 TXU is one of the largest investor-owned energy services companies in the world with assets over $40 billion. The company is a multinational leader in electric and natural gas services, merchant trading, energy marketing, telecommunications and other energy-related services. TXU delivers energy to more than nine million customers primarily in Texas, the United Kingdom and continental Europe, and Australia.

4. Decision Support with PI TXU Energy OSI PI User’s Group Page 4 Mar 2002

5. Decision Support with PI TXU Energy OSI PI User’s Group Page 5 Mar 2002 Senate Bill 7 Impacts to Generation 50% reduction in NOx, 25% reduction in SO2 - for existing “grandfathered” electric generating facilities. Additionally, because of the proposed State Implementation Plan under the Federal Clean Air Act, TXU Electric plans to achieve an 88% reduction in NOx production from 1997 levels in the Dallas-Fort Worth non-attainment area.

6. Decision Support with PI TXU Energy OSI PI User’s Group Page 6 Mar 2002 The Need: A System for Real Time NOx and SO2 Monitoring, Tracking, Alarming, Reporting and Optimization for all TXU Generating Units at the Unit Level, Area/Region Level, and TXU System Level

7. Decision Support with PI TXU Energy OSI PI User’s Group Page 7 Mar 2002 NCMS - NOx Compliance Management System Scope Control System Modifications for Data Access Plant Historian Accurate Heat Input Additional Instrumentation Advanced Emissions Controls

8. Decision Support with PI TXU Energy OSI PI User’s Group Page 8 Mar 2002 NCMS - NOx Compliance Management System Interface Requirements Foxboro IA Honeywell TDC3000 Bailey Infi90/Net90 Allen Bradley PLC Modbus - Smart Instrumentation

9. Decision Support with PI TXU Energy OSI PI User’s Group Page 9 Mar 2002 PI System Exact duplicate machines. Dell 4300 servers. 22 servers at plant sites, 1 corporate data collector, 1 training/development server.

10. Decision Support with PI TXU Energy OSI PI User’s Group Page 10 Mar 2002 Summer 1999 - Evaluation Trial complete 7/99 Project funding requested 8/99 Hardware/Software ordered 9/99 18 Servers installed collecting from CEM PLCs and 14 control systems by 10/31/99

11. Decision Support with PI TXU Energy OSI PI User’s Group Page 11 Mar 2002 LESSONS LEARNED Duplication/Training Centralized Control of Servers Centralized Subject Matter Expert(s) Active Project Owner Tech Support vs Integrator IT

12. Decision Support with PI TXU Energy OSI PI User’s Group Page 12 Mar 2002 CURRENT STATUS NOx Bubble Management Advanced Emission Controls Cap Management Decision Support

13. Decision Support with PI TXU Energy OSI PI User’s Group Page 13 Mar 2002 NOX BUBBLE

14. Decision Support with PI TXU Energy OSI PI User’s Group Page 14 Mar 2002 ADVANCED EMISSIONS CONTROLS Software based optimization Pilots in progress

15. Decision Support with PI TXU Energy OSI PI User’s Group Page 15 Mar 2002 CAP MANAGEMENT (NOx) DFW Zonal Daily Tonnage Cap DFW Zonal Monthly Tonnage Cap East Region Annual Cap (Jan-Dec) West Region SIP Annual Cap (May-Apr) East Region SIP Annual Cap (May-Apr)

16. Decision Support with PI TXU Energy OSI PI User’s Group Page 16 Mar 2002 Availability Reliability Performance There are many inherent risks with the operation of Assets. Some of these are easily quantifiable, some are complex and some are just unexplainable. The operational risks associated with assets include availability, reliability and performance. Availability and reliability are typically trends that can be predictably quantified using recent historical information. Performance is a moving target influenced by a variety of issues, some controllable and some not. There are Operational Risks with Assets

17. Decision Support with PI TXU Energy OSI PI User’s Group Page 17 Mar 2002 80 – 90% of the cost basis is directly affected by performance Performance information is utilized in budgeting, strategic planning, unit commitment, fuel acquisition, risk valuation, benchmarking, emissions management and unit dispatching, among others. The issue of concern is that performance measuring information is usually acquired under the best possible conditions, at infrequent intervals, and does not necessarily project current operations. The ability to accurately track and predict performance characteristics increases the accuracy of, and reduces the risk of, all facets of the planning, analysis and delivery process. Performance information is the cornerstone for the decision making process

18. Decision Support with PI TXU Energy OSI PI User’s Group Page 18 Mar 2002 Performance characteristics include : Fuel Efficiency - known as heat rate and is measured in btu(of fuel) per kwh (of power produced). Emission Rates – typically measured in pounds per mmbtu heat input to the boiler. Cap limits are aggregated emissions over time. Unit operating ranges and ramp rates. Unit startups. Ancillary Services Performance can change over time. Sometimes quite rapidly.

19. Decision Support with PI TXU Energy OSI PI User’s Group Page 19 Mar 2002 Performance can be affected by a number of influences including: Sudden equipment health issues. Fuel quality and quantity. Weather. Environmental influences including emissions, lake conditions and wildlife. Mode of Operation (AGC) Control Operator Influences. Longer term influences can include normal wear and tear and unit operational excursions.

20. Decision Support with PI TXU Energy OSI PI User’s Group Page 20 Mar 2002 Acquire Verify Process Disseminate The Process of acquiring, verifying, processing and disseminating asset performance information in near real time provides instantaneous feedback to the decision making teams and engines that are continually optimizing and maximizing net portfolio positions. Although current optimization tools require static curves, near real time bias of the curves can more closely approximate real unit operations. Real Time Process information can be used to optimize decision making routines.

21. Decision Support with PI TXU Energy OSI PI User’s Group Page 21 Mar 2002

22. Decision Support with PI TXU Energy OSI PI User’s Group Page 22 Mar 2002

23. Decision Support with PI TXU Energy OSI PI User’s Group Page 23 Mar 2002

24. Decision Support with PI TXU Energy OSI PI User’s Group Page 24 Mar 2002

25. Decision Support with PI TXU Energy OSI PI User’s Group Page 25 Mar 2002

26. Decision Support with PI TXU Energy OSI PI User’s Group Page 26 Mar 2002

27. Decision Support with PI TXU Energy OSI PI User’s Group Page 27 Mar 2002

28. Decision Support with PI TXU Energy OSI PI User’s Group Page 28 Mar 2002 SUMMARY Near Real-time Risk Support Benchmarking Operational Enhancements