1

Update from ERCOT Market Services

to Board Of Directors

November 19, 2002

2

Retail Market Update

Topics– ERCOT’s Master Project Plan

– GISB 1.4 Update

– Texas Set Version 1.5

– Data Transparency and ETS

– Move-In/Move-Out Issues/Initiatives

– Quick Recovery Team Update

– Market Synchronization Activities

– IDR Meter Usage Report

– Non-IDR Meter Usage

– Resettlement Update

3

Master Project Plan Update

4

Master Project Plan

• 2002 Planned Projects– 46 Projects in progress

– 27 Projects completed between August 1st and November 1st

– 5 Projects continuing on into 2003 for completion

– 5 Projects removed from the 2002 plan (require reprioritization for 2003)

• 2002 Project Continuing into 2003 for completion include: – PR-20153 Amended POLR Process

– PR-20117 Internal Map Testing and Verification

– PR-20111 ERCOT Transaction Processing Hardening Initiative

– PR-20079 Change Deployment Instructions_PRR281

– PR-20067 Simultaneous Procurement of Ancillary Services

5

Master Project Plan (cont.)

• Next Steps…– Conduct Project Management Office Procedures Training in the

month of November

– Available ERCOT resources aligned and scheduled against Q1 2003 projects by December 6th 2002

– Start High priority projects identified in master priority list resources as resources are available

– Monthly project prioritization adjustments and recommendations:

• ERCOT Executive Steering Committee

• Market Committees and Subcommittees

• ERCOT IT and Business Support Teams

– Finalize and distribute documentation on the project request/prioritization process

6

• Provide a GISB 1.4 implementation to replace FTP• Provide a migration path toward NAESB 1.6, which is a secure data

transport• Deliverables - Support for HTTPS and GISB 1.4 - Roll-out to production - Migration of Market Participants to HTTPS or GISB 1.4

• Provide a GISB 1.4 implementation to replace FTP• Provide a migration path toward NAESB 1.6, which is a secure data

transport• Deliverables - Support for HTTPS and GISB 1.4 - Roll-out to production - Migration of Market Participants to HTTPS or GISB 1.4

• Development of code is complete• Server build out is complete• Database configuration is complete• Working on application configuration• Working on network configuration

Project Scope/Deliverables

Timeline10/15

Development

Configuration

Testing

Sign off by ERCOT

Upcoming Milestones/Market Impacts

Budget YTD Forecast Var.

Capital $0.70M $0.103M $0.140M [$0.070M]

Expense $0.0M $0.00M $0M $0.0

Financial Milestones

Executive Summary of Status

OverallFinancial

RiskStaffing

RiskSchedule

Risk

TechnicalRisk

Bus.Align/Scope RiskPR-20134 GISB 1.4

• Sign off by ERCOT• Migration of Market Participants

All of these could be affected by any delays experienced in network configuration/setup.

Completed In Progress Scheduled

• Outbound network configuration is not complete. Working with Network group to get the port opened to proxy server.

• End of Sept Labor Recorded 492hrs (Original SOW states 400hrs)

Issues/Actions

10/2510/28 11/1 2/15 3/17 4/1

Migration of Market Participants

7

GISB 1.4 Update

8

GISB 1.4 Update

• RMS agreed at August meeting to move forward with implementing GISB 1.4 at ERCOT

• Internal testing and implementation of a GISB 1.4 interface is underway at ERCOT, – Production Sign-off scheduled delayed to 11/18

• All production components are in place as of 10/11• Testing uncovered errors in outbound transmission requiring a vendor software

patch; will be testing the week of 11/4– Acceptance Testing and Market Participant Testing – 10/15-11/8

• TDTWG is surveyed market participants to finalize migration readiness dates– Preliminary migration schedule reviewed at 10-4-02 TDTWG – Market Participant migration will begin week of 11-25-02; ERCOT will work

individually with participants in any change of date for testing and migration.– Goal is to complete migration by April 1, 2003

9

Texas Set V.1.5

10

V1.5 Coordination Team Accomplishments/Goals

• Established Timeline for V1.5 Project as a Market. Completed – Established Project Phases

– Established the Solid date of 2/24/03 as Flight Test Begin Date

– Established April as month of Production Implementation

• Established clear understanding of V1.5 Requirements. Completed – Reviewed all functional change controls approved by TX SET

– Published, circulated, and reviewed ERCOT Conceptual System Designs

– Published regularly updated FAQ document

11

• Established open and up-front communication. Completed

– Created a dedicated web page for documentation, FAQ docs, and notes

– Created email address for one central point of contact

– Periodic Conference Calls and Face-To-Face meetings

– Created several pieces of documentation to assist the market with research and analysis

• Continuing efforts for Project Success. In Progress– Continued improvements in communication

– Project Status and tracking

– Production Implementation Plan

– Flight Test coordination with the TTPT

V1.5 Coordination Team Accomplishments/Goals (Cont.)

12

Project Status Summary

• Exolink provides EDI services for: Calpine, Entergy Disco, Entergy Retail, GEXA, Republic, STEC retail, TCE, Tara Energy,

• Systrends provides EDI services for: Occidental, Sharyland, Tenaska

• ESG provides EDI services for: ACN Energy, Cirro Group, Coral Energy Markets, Dynegy, Sempra Energy Solutions, Tractebel Energy Markets, UBS Warburg

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Build

Design

Test

13

PROPOSED TIMELINE AND SCHEDULE STILL BEING DEVELOPED BY THE

MARKET COORDINATION TEAM

Friday, April ? at 5 p.m.

ERCOT stops accepting all Transactions

ERCOT processes queued 1.4

transactions

Friday Midnight 1.4 transactions

processed and ready for pickup by

MPs

ERCOT Upgrades Software

Internal Testing

Sunday, April ? at 5 p.m. ERCOT begins

accepting 1.5 Inbound

Normal 1.4 operations

Normal 1.5 operations

Wednesday, April ? at 5

p.m. ERCOT stops

accepting Initiating

Transactions

= Conference Call

14

ERCOT Data Transparency

15

ERCOT Data TransparencyERCOT/Market Requirements

What do Market Participants and ERCOT need to know?– PUC

• How is the market performing over time?

– Protocol compliance

– Transaction volumes

– Transaction Success (Business Process)

– Market Participants

• What is the status of my transactions?

– Protocol compliance

– Transaction volumes and status

– View/Research transactions

16

ERCOT Data TransparencyERCOT/Market Requirements

– ERCOT Retail Market Services• How is ERCOT and the Market performing now and over time?

– Transaction Success– Protocol compliance– Backlog Transactions– State of current processing environment– Performance throughput and availability

– ERCOT IT• How are ERCOT systems performing now and over time?

– State of current processing environment– Backlog Transactions– Performance throughput and availability

17

What do Market Participants and ERCOT need to see?– Daily update on all CR transactions

• All initiating transactions received• All ERCOT responses

– List of all other associated transactions • All requests sent to TDSP• All transactions returned by TDSP

– Timeliness of responses• Transactions both ‘in’ and ‘out’ of protocols

– Failed Transactions• Transactions without a response

– Cancelled Transactions

ERCOT Data Transparency ERCOT/Market Requirements

18

ERCOT Data Transparency Existing ERCOT/Market Reports

Existing ERCOT Reports

– Market Participant Transaction Report (“Dark Side”)

• Daily EDI activity “in” and “out” of ERCOT (FTP)

– Siebel Report

• Daily ESIID transaction status by Market Participant

– 997 Report

• Daily EDI file receipt with 997 transactions

19

ERCOT Data Transparency Stakeholders and Needs

ERCOT IT

ERCOT Retail

CRsTDSPs

PUC

Performance and ThroughputBacklogs

State of Current Environment

View and Research

Transaction StatusTransactionSuccess

Protocol Compliance

20

ERCOT Data TransparencyBusiness and Operational Concerns

Business Environment– Market changes– Regulatory mandates– Transaction Management

Operational Infrastructure– System availability– Component integrity– System capability

Business Activity Business Intelligence

Monitor system performance at or near

real-time

Provide system and component availability

summaries

Monitor processes that have dependencies on

other parties

Provide transaction timing analysis for all Market Participants based on protocols

Identify failure points within the transaction

life-cycle

Proactively target failed transactions for

reprocessing

Provides Visibility into theBusiness Environment andOperations Infrastructure

21

ERCOT Data Transparency Model

Retail Transactions

(Issues /Concerns /

Gaps)

Root CauseAnalysis

CorrectiveActions

PerformanceMetrics

Transaction

Database

Provide VISIBILITY into transactions within ERCOT Systems….

• See near “real-time” transaction data• Monitor transaction flows within

ERCOT• Provide transaction status for Market

Participants• Provide a mechanism to more easily

identify Market Participant issues• Develop operational metrics reports• Develop Executive Summary reports• Improve speed and effectiveness of

business operations• Incorporate advanced business logic to

proactively identify and resolve issues

22

Data LogsData Logs

FTPFTP

TCHTCHPaperfreePaperfree

SeebeyondSeebeyond

LodestarLodestar SiebelSiebel

LodestarApp

Server

LodestarDB

Server

Siebel App

Server

Siebel DB

Server

EAITCHPaperfreeFTP

Internet

ERCOTFrame

ERCOT EDI PIPELINE (PRODUCTION)

Portal

Transaction Transparency WarehouseTransaction Transparency WarehouseDataData

EventsEvents LoggingLogging

ReportsReports

ArchiveArchive

23

Queue Depths & E-waysQueue Depths & E-ways

FTPFTP

TCHTCHPaperfreePaperfree

SeebeyondSeebeyond

LodestarLodestar SiebelSiebel

LodestarApp

Server

LodestarDB

Server

Siebel App

Server

Siebel DB

Server

EAITCHPaperfreeFTP

Internet

ERCOTFrame

ERCOT EDI PIPELINE (PRODUCTION)

Portal

Component AvailabilityComponent AvailabilityTransactionsTransactions

RelatedRelated LoggingLogging

ReportsReports

SummarySummary

24

Future

ERCOT Data Transparency Project Deliverables

Q2 - 03

Siebel Report997 ReportMP Report

Siebel Report997 ReportMP ReportTrans FlowTrans SuccessProtocol

Siebel Report997 ReportPortalTrans FlowTrans SuccessProtocolNew ReportsPUC ReportsData ArchiveSummary Rpt- Transactions % Cancelled % Failed % Reprocessed-System Avail-Component Avail-Trans Flow Rates-Volume Trending

CompetitiveMeteringReports?

BillingSummaries?

CR/TDSPSummariesBy Area?

MTD/QTDESIIDUsage

Summaries?

Auto Reprocess

Q1 - 03Nov 02In Place

Siebel Report997 ReportMP ReportTrans FlowTrans SuccessProtocolCapture MMPUC ReportsData Archive

Market Reports

ERCOTVisibility

Market Metrics /Visibility

Scorecard /Dashboard

25

ERCOT Data Transparency ERCOT Phase 1 Solution

ERCOT Visibility – ESIID Tracking System (ETS)

• Complete life-cycle view of transactional data …Near-real time updating of ETS database (every 10 minutes)…Transactions are monitored from FTP inbound to FTP

outbound…Transactions are purged from database once business process

is complete

• Daily reporting of all ‘open’ transactions …Reports include all internal system component touch points

and their respective timestamps…Reports will identify successful, failed, and out of protocol

transactions…Reports are both ‘batch’ and ‘on-demand’

26

ERCOT Data Transparency ERCOT Phase 1 Solution

ERCOT Visibility – Daily reporting of all ‘open’ transactions

• Transaction Flow Report

…Identifies the last system component that the transactions hit and their corresponding timestamps by Global ID

• Transaction Success Report

…Identifies how successful ERCOT was in processing a response transaction

27

ERCOT Data Transparency Project Benefits

How do Market Participants and ERCOT benefit?– PUC

• Knowledge of overall Market performance– Transactions ‘in’ and ‘out’ of protocol– Identify points within the Market that have transaction processing

problems– Ability to perform more independent queries

– Market Participants• Better able to manage customer expectations

– Ability to research transactions for customers– Able to identify where each transaction is located– Reports identifying backlog, successful, failed, and out of

protocol transactions– Ability to perform more independent queries

28

ERCOT Data Transparency Project Benefits

How do Market Participants and ERCOT benefit?– ERCOT Retail Market Services

• Able to identify and repair failed transactions– Research problem transactions – Reports identifying backlog, successful, failed, and out of

protocol transactions – Summary reports on transaction volumes– Enhanced capabilities to perform root cause analysis on

transaction failures– Ensure data synchronization between Siebel and Lodestar

– ERCOT IT• Know when system and components are not operating

– Knowledge of current processing status of all components– Performance throughput and transaction volumes– Ability to trend anticipated volume levels for system reliability– Potential for real time volume-based performance tuning

29

ERCOT Data TransparencyERCOT/Market Requirements

Next Steps

• Confirm design and value of ETS Phase 1• Complete vision of data transparency project and

confirm with PUCT and Market Participants• Build an overall project plan with timeline and

sequencing• Estimate resources required ($ & People)• Gain approval and proceed

30

Update from Move-In/Move-Out Task Force

31

MIMO Workshop

• Progress– 32 Concepts for improved processing have been discussed

• 7 Concepts were dismissed for various reasons

• 1 Concept was determined as addressed in Version 1.5

• 3 Concepts were combined into other concepts

• 21 Concepts in Task Force

– 6 Concepts approved by RMS on 10/16

– 3 Concepts approved by RMS on 11/14

– 12 Concepts are currently pending until additional information can be obtained

32

Approved Concepts

• Questions from RMS1. Does this concept require a coordinated implementation?

2. What parties are affected by the implementation of this concept?

3. What is the follow-up plan to ensure the concept is implemented?

4. What enforcement or accountability will we use to ensure the concept is implemented?

33

Concepts for RMS vote

• Short-Term (6 Concepts approved by RMS October 16th)

• Mid-Term– Pending 814_06s (Approved by RMS November 14th)– Retired ESI Ids (Approved by RMS November 14th)– Retired ESI Ids (Approved by RMS November 14th)

• Short-Term– Processing Efficiency (MIMO will take to RMS December 18th)– Customer Canceling Move-Ins with Move-Outs. (MIMO will take

to RMS December 18th)– Handling Switch after 650 Disconnect (MIMO will take to RMS

December 18th)

34

Next Steps

• MIMO Taskforce meetings as needed– Discussions on concepts for resolving existing issues– Discussions around concepts for handling stacking

• Recommendations to RMS at future RMS meetings– Additional Concepts

• Follow-through on execution of approved concepts• Release of implementation timelines• Coordinating test flights with TTPT as appropriate• Development of Texas Set Change Controls, Protocol Revision

Requests, and RFP (If necessary)• Deployment of Solutions• Re-Evaluation of Move-In/Move-Out processes

35

Quick Response Effort Update

36

Entity Quantity

TDSP 37077

QRE Team 2932

CR 10682

Total 50691

Current Status Quantity

New 32

In Analysis 3303

In Progress 50691

Resolved 108100

Total 162126

ESI Ids Reported to QRE (as of November 12, 2002)

Point of Failure Quantity

Cause Not Reported 19581

Not executable 20

CR 38962

ERCOT EAI 4966

ERCOT FTP 694

ERCOT Manual Process (814_08)

3442

ERCOT Out of Protocol 20

ERCOT PaperFree 8215

ERCOT Siebel 1513

ERCOT TCH 6933

TDSP 23754

Total 108100

37

Quick Response Effort

• QRE is transitioning processes and procedures to ERCOT Data Management and Registration teams by 12/20/2002.

• QRE is providing documentation for all QRE business processes to ERCOT

• QRE is hosting brown bag and individual training sessions with Data Management and Registration teams

• QRE has provided CBT training modules to ERCOT for new hires. Modules have been reviewed and modified per ERCOT comments.

• QRE will provide a week of “shadowing” ERCOT employees taking over responsibilities

38

Quick Response Effort Transition

• Transition tasks have been identified and checklist created.

• Market notification of transition and survey was sent to Market on 11/12/02.– Survey feedback will be used to assist ERCOT in identifying the

proper owner– Survey comments will be used to determine what processes worked

and what needs to be improved– Market Participant Surveys need to be returned by 11/18 in order for

comments to be considered

• Additionally, QRE will provide two documents to ERCOT by 12/20– “Lessons Learned”– “Recommendations”

39

RetailTDSP as LSENon-PTB

Market Synchronization Activities

40

• Objective – Address market issues resulting in an out of sync “Rep of Record” between

ERCOT, TDSP, and CR systems for all ESI IDs resulting from market startup/processing issues as well as subsequent workarounds

• Completed– ERCOT identified “Perfect Sync” and “1 Day Perfect” – sent lists to MPs– ERCOT identified out-of-synch categories at Sept 10th design meeting– Task Force identified additional ESI IDs considered “In Sync” – sent lists to MPs– Task Force prioritized 8 categories based upon potential customer impact – ERCOT has sent priority 1 through 6 out-of-sync files to TDSPs and CRs – November 11th face-to-face meeting to resolve “how to fix” set principles to

correct out-of-sync conditions• In Progress

– ERCOT compiling and analyzing MP responses to out-of-sync files– TDSPs and CRs completing analysis and response to priority 2-6 files– MPs making corrections per 11-11-02 decisions– Final schedule for completion being developed

.

Market Synchronization Retailer Synchronization Project

41

Next Steps– November 19th, December 3rd, 10th, 17th

Follow-up conference calls

– December 5th

Escalate issues to TAC if needed

– Next Steps: Finalize process to complete and close out this project Confirm timeline Define progress reporting format mechanism for use until

close of project

Market Synchronization Retailer Synchronization (cont.)

42

Market Synchronization“TDSP as LSE” Clean-up

October 10, 2002 RelationshipStatus exists after Active as of

Feb 01,2002 10/10/2002CenterPoint 8,350 505ONCOR 18,328 433TNMP 515 71CPL 2,246 793WTU 3,164 314

Market 32,603 2,116

• Objective– Ensure that all ESI ID are converted from the “TDSP as LSE” by the time True-Up

Settlement of February 2002 begins; which is currently scheduled for 12-07-02

• Completed – ERCOT sent TDSPs list of ESI ID affiliated

with “TDSP as LSE” any time after Feb 01, 2002

– All TDSPs have responded to ERCOT’s original list with suggested corrective action

• In Progress– ERCOT is reconciling response lists from TDSPs and confirming suggested

corrective action can be taken– TDSPs should expect there to be a subset of these ESI IDs which will require

multiple discussions prior to ERCOT performing corrective actions

43

• Objective– Make necessary corrections to ensure that >1MW Customers were switched on the

correct date in January 2002

• Completed Items – Per RMS direction, ERCOT sent lists to each MP for reconciliation:

• 1,134 ESI Ids (>1 MW) identified by CRs (meeting the April 30 deadline)

– CR and TDSP have reached agreement of Service Instance Date for all ESI IDs

– 1,035 (91%) ESI IDs are corrected

– 82 (7%) ESI IDs were agreed not to fix by TDSP and CR

• In Progress – 17 (2%) ESI IDs with action required to complete agreement

• 13 – CR agreed to TDSP date (after TDSP submits usage, ERCOT will correct)

• 4 – ESI ID retired (TDSP needs to submit 814_20 retire transaction)

Market Synchronization Non Price to Beat

44

Consumption Data Loading Reports

45

% of IDR Data Loaded by MRE (as of 11-12-2002)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

12/1 12/15 12/29 1/12 1/26 2/9 2/23 3/9 3/23 4/6 4/20 5/4 5/18 6/1 6/15 6/29 7/13 7/27 8/10 8/24 9/7 9/21 10/5 10/19 11/2

CPL

WTU

ONCOR

CenterPt

TNMP

Brazos

LCRA

Rayburn

STEC

System

IDR Data Loaded into LodestarNovember 12th Report

95% or better expected for 60 days ago

94%

46

IDR Data Status Report 99% Data Available per MRE

As of As ofOctober 11, 2002 November 12, 2002

CPL 01/14/02 01/14/02CenterPoint 12/18/01 02/24/02ONCOR 12/28/01 01/20/02TNMP 01/14/02 12/31/01WTU 01/25/02 01/30/02

Brazos 09/30/02 11/03/02LCRA 10/02/02 10/31/02Rayburn 09/30/02 10/31/02STEC 09/30/02 10/17/0209/30/02Market 01/17/02 01/28/02

Meter Reading Entity(MRE)

47

Non-IDR Data Status Report November 12, 2002

Percent of Actual Non-IDR Data from November 12, 2002 Batch Process

38%42%

25%

42% 44%

0%

40%

96% 96%

80%

91% 92%95%

99% 99% 99% 99%95%

99%

71%

NA0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CenterPoint ONCOR TNMP CPL WTU Sharyland Market

Initial (10/27/2002) - 16 days after

Final (09/15/2002) - 58 days after

TrueUp (12/11/2001) - 336 days after

48

Resettlement Update

49

Resettlement of True-up Status Update

SeptOct

NovDec

JanFeb

MarApr

MayJun

JulAug

SepOct

NovDec

20032004

December 7, 2002

True-Up Settlement of February 01, 2002

The date all ESI IDs should no longer be with

the “TDSP as LSE”.

November 1, 2002

True-Up Settlement of November 20, 2001

The date we move from the ERCOT Board resolution to the Protocols IDR Data Threshold

April 1, 2003

Date we expect to be back to six month after the trade day True-Up

Settlements

November 14, 2002

True-Up Settlement of December 17, 2001

Drop dead date for correction of Non-PTB ESID Backdating

November 12

132 re-settlements performed to date

(Operating Day 12/11/01)