1. Lead from the front Texas Nodal http://nodal.ercot.com 1 Texas Nodal Independent Market Monitoring and Data Collection For Protocol Section 17 Business Requirements Document Sylvia Shiroyama – October 24, 2006

2. Lead from the front Texas Nodal http://nodal.ercot.com 2 Sources of Requirements to EDW  Requirements Through Project Teams  Requirements Due to Changing Source for Existing Reports/Extracts  Independent Market Monitor Protocol 17  Compliance Protocol 8

3. Lead from the front Texas Nodal http://nodal.ercot.com 3 Document Contents Scope Assumptions and Dependencies Definitions and Acronyms Functional Requirements Supplementary Requirements Protocol Coverage

4. Lead from the front Texas Nodal http://nodal.ercot.com 4 Document Contents Introduction –Scope –Document Conventions –Assumptions and Dependencies –Definitions Structure –Functional Requirements –Supplemental Requirements Functional Requirements –Requirements from Nodal Protocols –Requirements from other Binding Documents

5. Lead from the front Texas Nodal http://nodal.ercot.com 5 Requirements Specification Supplementary Requirements –Performance Requirements –Legal and Regulatory Requirements –System and Communication Requirements –Back up and Recovery Requirements –Availability and Redundancy Requirements –Maintainability Requirements –Training and Documentation Requirements –Usability Requirements Protocol Coverage Sub-Process Coverage

6. Lead from the front Texas Nodal http://nodal.ercot.com 6 Scope The market monitoring data collection is designed to assist the PUCT and WEMM to: (a )Protect Market Participants and Customers from the exercise of market power and from market manipulations; (b)Ensure that there is effective and persistent competition for events that are not mitigated; (c)Ensure that the market design and implementation are efficient; (d)Guard against inefficiencies in the market and market manipulations; (e)Ensure a justifiable and reasonable price impact; and (f)Ensure that data posted on the MIS Public Area fulfills the objective of transparency of market information consistent with Section 1.3, Confidentiality.

7. Lead from the front Texas Nodal http://nodal.ercot.com 7 Assumptions and Dependencies A1) Auditor will provide recommendations to address potential areas for improvement. (Reference to FR5, FR6, FR7) A2) Auditor will be auditing the data repository of required data and processes associated with that data repository. (Reference to FR5, FR6, FR7) A3) The Data Archive as stated in the protocols is any data system which retains on-line operational data for 4 years and data in these systems will be maintained for an additional 3 years. (Reference to FR3, FR8) A4) The Data Warehouse as stated in the protocols is any data system which retains on-line operational data for 4 years. (Reference to FR3, FR5, FR8) D1) Data and process owners will identify the appropriate source system of record for all required and included data to be collected into the EDW. (Reference to FR3, FR8) D2) The business owners of each source system are responsible for data validation prior to replication in the EDW. (Reference to FR3) D3) The presentation functions of the MIS Public Area will be provided by the Nodal MIS project. (Reference to FR9)

8. Lead from the front Texas Nodal http://nodal.ercot.com 8 Definitions and Acronyms ERCOT data storage systemsThis phrase is used throughout these requirements and addresses the systems used to provide required data to WEMM and PUCT as defined in FR1 Data Attributes/ Attributes Entities that define properties of data elements. Data IntegrityThe accuracy, correctness, and validity of data. Data RepositoryAny system which may be used to retain data for consumption. MTTRMean Time To Recovery is the average time to return a system to operations after a system failure. LatencyLatency is the time delay between the moment a request for data is initiated, and the moment when the requested data is returned. MTBFMean Time Between Failures is the "average" time between failures. Calculations of MTBF assume that a system is "renewed", i.e. fixed, after each failure, and then returned to service immediately after failure. PerformanceHow fast a business operation performs under defined circumstances. ReliabilityThe ability of a device or system to perform a required function under stated conditions for a specified period of time. RoleThe named set of features defined over a collection of entities (e.g., people, systems, organizations) participating in a particular context. SLAService Level Agreement (SLA) – the part of a service contract in which a certain level of service is agreed Supplementary RequirementsAlso known as non-functional requirements. Supplementary requirements impose constraints and specify overall characteristics. Examples of supplementary requirements include performance, reliability, availability, security, legal and reusability, etc, SupportabilityThe ability of technical support personnel to troubleshoot or perform root cause analysis in pursuit of solving a problem with a product/system. UsabilityThe ease with which people can employ a particular tool or system in order to achieve a particular goal. In user- interface design usability usually refers to the elegance and clarity of the design.

9. Lead from the front Texas Nodal http://nodal.ercot.com 9 Functional Requirements FR1 - Market Monitoring Data Collection FR2 - Market Data Collection and Use FR3 – Data Collection and Retention FR4 – Data Catalog FR5 – Accuracy of Data Collection FR6 – Accuracy of Data Submission FR7 – Annual Data Accuracy Audit FR8 – Data Retention FR9 – Provision of Data to Individual Market Participants FR10 – Regulatory Reports FR11 – Evaluation of ERCOT Operations and Market Performance FR12 – Response to PUCT Data Requests – Substantive Rule 25.362(e)(1)(C)

10. Lead from the front Texas Nodal http://nodal.ercot.com 10 Supplementary Requirements Data Requirement Specification Data Collection Timing Specification Data Access Specification Data Access Security Data Access Performance Requirement

11. Lead from the front Texas Nodal http://nodal.ercot.com 11 Protocol Coverage Protocol Sub-Section # (To the lowest level of granularity as possible)Description Coverage by Requirements (Full/Partial) 17.1Marketing Monitoring Data CollectionFull (FR1) 17.2Objective and Scope of Market monitoring Data Collectionn/a 17.3Market Data Collection and UseFull (FR2) 017.3.1Data Collection and RetentionFull (FR3) 17.3.2Data CatalogFull (FR4) 17.3.3 (1)Accuracy of Data CollectionFull (FR5) 17.3.3 (2)Accuracy of Data SubmissionFull (FR6) 17.3.3 (3)Annual Data Accuracy AuditFull (FR7) 17.3.4Data CatalogFull (FR4) 17.3.5Data RetentionFull (FR8) 17.4Provision of Data to Individual Market ParticipantsFull (FR9) 17.5 (1)Regulatory Reports - NightlyFull (FR10) 17.5 (2)Regulatory Reports – ScheduledFull (FR10) 17.6Evaluate ERCOT Operations and Market PerformanceFull (FR11)