1. February 20, 2006 Nodal Architecture Overview Jeyant Tamby 20 Feb 2006

2. February 20, 2006 Agenda Background Document Goals and Intended Audience System Overview Component Systems Data Interface Requirements Hardware Conceptual Design User Interface Design Hardware Costs –Objective –Methodology –Assumptions –Summary

3. February 20, 2006 Document Goals and Intended Audience Information Technology (IT) Centric view on Nodal Market Systems Architecture Provide an understanding of ERCOT IT systems and their interrelationships to support the Nodal Market. Base point for –Risk and Feasibility Analysis –HW and Data Center Plans –Project Delivery Patterns Status: –Draft version –Living document that will evolve as we move forward

4. February 20, 2006 System Overview Functions that are changing –Infrastructure, Training, Testing –Energy Management –Market Management Day Ahead Market Management Real Time Market Management –Commercial Systems –Reporting/Archiving –Network Model Management –External Interfaces Portal XML ICCP/RTU –Changes in one system may have impacts on other systems Effects sequencing of projects Impacts amount of regression testing Functions that do not have major changes –Retail Transactions –Registration –External Interfaces - EDI

5. February 20, 2006 Network Model Management System Maintains the accuracy of the Transmission Model that underlies all grid calculations Changes may come from new facilities or changes to limits Critical in modeling congestion and outages and determining solutions

6. February 20, 2006 Energy Management Systems Provides information and tools for the real time monitoring and secure operation of the grid Mission critical: fault tolerant and highly available Increased operator workload –Redesign information presentation –Increase decision support

7. February 20, 2006 Market Management Systems Provides tools and information for CRR auction, Day Ahead Markets, and Real Time Markets and congestion Mission critical: fault tolerant and highly available Complexity of correlating the various data sources with the tools will increase Increased operator workload –Redesign information presentation –Increase decision support

8. February 20, 2006 Commercial Systems Generates Settlement Statements and Invoices, including revisions as required; manages load profiling, metering, and renewable energy credits Must be able to recover within 24 hours Change in interval and granularity of bids will greatly increase amount of data

9. February 20, 2006 Information Services – Enterprise Data Warehouse

10. February 20, 2006 Data Interface Requirements

11. February 20, 2006 Hardware Conceptual Design Three types of servers Server A is powerful (typically 64 cpu) machine that can be configured to represent multiple servers in multiples of 4 cpu blocks and can address 1 TB RAM Server B is a standalone server with up to 4 cpu and can address 32 GB RAM Server C is a standalone with up to 2 cpu and can address 4 GB RAM

12. February 20, 2006 User Interface Design The design of the user interface will be based on a task oriented structure. This will involve the following: –task definition/analysis –workload analysis –job definition –tool requirements definition –tool design and testing –tool development and testing –console operations validation and testing

13. February 20, 2006 Hardware Costs – Objective Use a bottom up approach to come up with a total $ amount for hardware and standard software licenses. To develop a budget Document assumptions and reasons for later review

14. February 20, 2006 Hardware Costs – Methodology Analyze individual functionality and determine what level of computation power is required using the current production hardware as a reference. Use the “CELL” concept. Document assumptions/reasoning for computation requirements Evaluate the computation requirements for the following environments: Primary, Failover, ITEST, Development, MOTE, OTS, MOMS, Vendor Server A type cells currently available in the market are 3 times more powerful than the ERCOT production environment equivalent Server A cells. Scale the cell requirements down by 3. Server A cell type is a 4 cpu, 1 TB RAM unit of computation power ($150,653.35 per cell) Server B cell type is a 4 cpu, 32 GB RAM unit of computation power ($27,500 per cell) Server C cell type is a 2 cpu, 4 GB RAM unit of computation power ($6,500)

15. February 20, 2006 Hardware Costs - Assumptions This estimate does not include Supporting Infrastructure: –Facilities –Cabling –Networking –Storage frames –Switches –Tape backup –Disk storage Certain functions may be partly funded by the PPL. The Server A proposed for Nodal is the equivalent of an HP SuperDome Nodal Application architecture is similar to Current Zonal Architecture The number of cells and their type for individual functions is a measure of the required computation power. It does not necessarily mean the server type to be procured. DB Software license is based on Enterprise Edition with RAC and partitioning. Per CPU and Per Named User license models are used. Operating System Cost is imbedded in the “CELL” cost.

16. February 20, 2006 Hardware Costs – Summary ($ million) Total = $26.12 million Environments ComponentTotalPrimaryFailover/ Load Balancing ITESTDevMOMSMOTEOTSVendor NMMS1.070.25 0.16 EMS6.71.3 0.650.200.65 MDB1.70.30 0.20.15 0.2 DAM/Sup AS1.650.30 0.15 DRUC1.650.30 0.15 HRUC2.750.50 0.25 SCED2.750.50 0.25 CRR Auction1.500.25 0.15 CRR Trading0.50.10 0.05 Billing & Settlements 2.10.60 0.30 EMMS RSS0.350.200.100.05 L* RSS0.60.300.15 ODS2.80.80 0.4

17. February 20, 2006 Hardware Costs – Summary DB Software Licenses: Work in progress. Numbers are preliminary. Licensing is one time, support cost is per year and depends on type of license purchased. Per Processor license is $70,000, Support is $15,400. Per Named User license is $1,400, Support is $308. Existing licenses have not been discounted. Total DB Software License= $9.8 million