April 17, 2007 1 Texas Nodal Market Implementation Readiness Update May 8, 2007

April 17, 20071

Texas Nodal Market Implementation

Readiness Update

May 8, 2007

April 17, 20072

Discussion Outline

• Guiding Principles• Current Status and Direction• Nodal Success• The Metric Map• Progressive Measurement• The Metric Template• Metric Examples• Next Steps

April 17, 20073

Metrics are designed to promote Market Readiness for 12/1/08

• Goals of Readiness– Encourage early participation– Minimize delinquency– Inform market of readiness declarations

• Characteristics of Metrics– Simplicity– Easily reportable– Motivational tool for the market as a whole– Progressive measurement– Forwarding looking– Market Participant self reporting & ERCOT Observability

April 17, 20074

New Direction: Comprehensive Draft Inventory developed

• Current Status– 78 Metrics have been defined to include measurement criteria– Metric Map aligned to Early Delivery System Sequence Timeline

• Direction– Begin preliminary measure of metrics– Review metrics with TPTF– Progressively report upon metrics status– Adopt Hall of Shame/Wall of Shame

April 17, 20075

Nodal success is dependent on three critical components

The success formula is stark and unforgiving…

Time 12/1/08Today

Nodal Control

Milestones

Readiness Metrics

Imp

ort

anc

e t

o N

od

al

Suc

cess

Progress Indicators Performance Indicators

…the emphasis will change over time

NODAL PROJECT ERCOT STAFF ALL OF US!YOU

April 17, 20076

C1 thru C9

C1 thru C9

R1

E5

E1-4

R1

E5

E1-4CRR2CRR2

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

EMO9-2MP6-2E9 EMO9-2MP6-2E9

MP1MP1

E1-3E1-3

MO2MO2 MP17-1MP17-1 MP16MP16

E6E6

E4

R2

E4

R2

CRR4

E13

CRR4

E13

EMO3

EMO2

EMO3

EMO2

EMO7

E8

EMO7

E8

CO3CO3 MP10MP10

CO7

CO6

CO5

CO4

CO7

CO6

CO5

CO4 E15

E14

E2

E15

E14

E2

MO6

MO3

MO1

MO6

MO3

MO1

MP17-3

CO10

MP17-3

CO10

MP13-1

EMO8

MP13-1

EMO8

MP17-2MP17-2

CRR1

CRR5

CO8

CRR1

CRR5

CO8MO5-5MO5-5

EMO6EMO6EMO5EMO5

N1N1

MP5

N2

MP5

N2

E1-1E1-1

MP14MP14

EMO1EMO1

CRR1CRR1

E12E12

E1-2E1-2 MP12MP12

MP11

CO9

MP11

CO9

N3

MP6-1

EMO9-1

N3

MP6-1

EMO9-1

MP4

MP2

MP3

MP4

MP2

MP3 CRR3CRR3

MP12-1MP12-1

MO5-2MO5-2 MO5-3MO5-3

MO5-4MO5-4

MO4

MO5-1

MO4

MO5-1

E11

E10

E7

E3

E11

E10

E7

E3

MO5-T1MO5-T1MO5-T2MO5-T2

Metric loading is time dependant upon Early Delivery System Sequence Timeline

Measured NotMeasured

InMeasurement

April 17, 20077

Progressive measurement provides a temporal view of market readiness

C1 thru C9

C1 thru C9

R1

E5

E1-4

R1

E5

E1-4CRR2CRR2

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4


MP1MP1

E1-3E1-3


E6E6

E4

R2

E4

R2

CRR4

E13

CRR4

E13

EMO3

EMO2

EMO3

EMO2

EMO7

E8

EMO7

E8

CO3CO3 MP10MP10

CO7

CO6

CO5

CO4

CO7

CO6

CO5

CO4 E15

E14

E2

E15

E14

E2

MO6

MO3

MO1

MO6

MO3

MO1

MP17-3

CO10

MP17-3

CO10

MP13-1

EMO8

MP13-1

EMO8

MP17-2MP17-2

CRR1

CRR5

CO8

CRR1

CRR5

CO8MO5-5MO5-5

EMO6EMO6EMO5EMO5

N1N1

MP5

N2

MP5

N2

E1-1E1-1

MP14MP14

EMO1EMO1

CRR1CRR1

E12E12

E1-2E1-2 MP12MP12

MP11

CO9

MP11

CO9

N3

MP6-1

EMO9-1

N3

MP6-1

EMO9-1

MP4

MP2

MP3

MP4

MP2

MP3 CRR3CRR3

MP12-1MP12-1

MO5-2MO5-2 MO5-3MO5-3

MO5-4MO5-4

MO4

MO5-1

MO4

MO5-1

E11

E10

E7

E3

E11

E10

E7

E3


C1 thru C9

C1 thru C9

R1

E5

E1-4

R1

E5

E1-4CRR2CRR2

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4


MP1MP1

E1-3E1-3


E6E6

E4

R2

E4

R2

CRR4

E13

CRR4

E13

EMO3

EMO2

EMO3

EMO2

EMO7

E8

EMO7

E8

CO3CO3 MP10MP10

CO7

CO6

CO5

CO4

CO7

CO6

CO5

CO4 E15

E14

E2

E15

E14

E2

MO6

MO3

MO1

MO6

MO3

MO1

MP17-3

CO10

MP17-3

CO10

MP13-1

EMO8

MP13-1

EMO8

MP17-2MP17-2

CRR1

CRR5

CO8

CRR1

CRR5

CO8MO5-5MO5-5

EMO6EMO6EMO5EMO5

N1N1

MP5

N2

MP5

N2

E1-1E1-1

MP14MP14

EMO1EMO1

CRR1CRR1

E12E12

E1-2E1-2 MP12MP12

MP11

CO9

MP11

CO9

N3

MP6-1

EMO9-1

N3

MP6-1

EMO9-1

MP4

MP2

MP3

MP4

MP2

MP3 CRR3CRR3

MP12-1MP12-1

MO5-2MO5-2 MO5-3MO5-3

MO5-4MO5-4

MO4

MO5-1

MO4

MO5-1

E11

E10

E7

E3

E11

E10

E7

E3


C1 thru C9

C1 thru C9

R1

E5

E1-4

R1

E5

E1-4CRR2CRR2

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4


MP1MP1

E1-3E1-3


E6E6

E4

R2

E4

R2

CRR4

E13

CRR4

E13

EMO3

EMO2

EMO3

EMO2

EMO7

E8

EMO7

E8

CO3CO3 MP10MP10

CO7

CO6

CO5

CO4

CO7

CO6

CO5

CO4 E15

E14

E2

E15

E14

E2

MO6

MO3

MO1

MO6

MO3

MO1

MP17-3

CO10

MP17-3

CO10

MP13-1

EMO8

MP13-1

EMO8

MP17-2MP17-2

CRR1

CRR5

CO8

CRR1

CRR5

CO8MO5-5MO5-5

EMO6EMO6EMO5EMO5

N1N1

MP5

N2

MP5

N2

E1-1E1-1

MP14MP14

EMO1EMO1

CRR1CRR1

E12E12

E1-2E1-2 MP12MP12

MP11

CO9

MP11

CO9

N3

MP6-1

EMO9-1

N3

MP6-1

EMO9-1

MP4

MP2

MP3

MP4

MP2

MP3 CRR3CRR3

MP12-1MP12-1

MO5-2MO5-2 MO5-3MO5-3

MO5-4MO5-4

MO4

MO5-1

MO4

MO5-1

E11

E10

E7

E3

E11

E10

E7

E3


• Not Measured – Metric not measured.– White = Metric criteria is not evaluated

• In Measurement – Metric is under preliminary measurement– Amber = Metric criteria is not met– Green = Metric criteria is met

• Measured – Metric is under measurement– Red = Metric criteria is not met– Green = Metric criteria is met

April 17, 20078

ERCOT Department - System Operations

Metric NameSelf

Reported Observed

MP1 - MP EngagementN1 - ERCOT Telemetry Alarm ProcessingN2 - ERCOT Telemetry/ICCP System Failover

Three distinct yet aggregated views: Temporal, ERCOT, Market Participant

EDS-1-

EDS-2-

EDS-3-

EDS-4-

C1 thru C9

C1 thru C9

R1

E5

E1-4

R1

E5

E1-4CRR2CRR2

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4

MP7

MP8

MP9

MP12-2

MP13-2

CO1

CO2

EMO4


MP1MP1

E1-3E1-3


E6E6

E4

R2

E4

R2

CRR4

E13

CRR4

E13

EMO3

EMO2

EMO3

EMO2

EMO7

E8

EMO7

E8

CO3CO3 MP10MP10

CO7

CO6

CO5

CO4

CO7

CO6

CO5

CO4 E15

E14

E2

E15

E14

E2

MO6

MO3

MO1

MO6

MO3

MO1

MP17-3

CO10

MP17-3

CO10

MP13-1

EMO8

MP13-1

EMO8

MP17-2MP17-2

CRR1

CRR5

CO8

CRR1

CRR5

CO8MO5-5MO5-5

EMO6EMO6EMO5EMO5

N1N1

MP5

N2

MP5

N2

E1-1E1-1

MP14MP14

EMO1EMO1

CRR1CRR1

E12E12

E1-2E1-2 MP12MP12

MP11

CO9

MP11

CO9

N3

MP6-1

EMO9-1

N3

MP6-1

EMO9-1

MP4

MP2

MP3

MP4

MP2

MP3 CRR3CRR3

MP12-1MP12-1

MO5-2MO5-2 MO5-3MO5-3

MO5-4MO5-4MO4

MO5-1

MO4

MO5-1

E11

E10

E7

E3

E11

E10

E7

E3


Market SegmentSummary

StatusQ NA NAQRTDLSE NA NACRR NA NA

EDS -1-

N2

- E

RC

OT

Tel

emet

ry/I

CC

P S

yste

m F

ailo

ver

N1

- E

RC

OT

Tel

emet

ry A

larm

Pro

cess

ing

MP

1 -

MP

En

gag

emen

tEDS -3- EDS -4-

Market Participants

EDS -2-

DepartmentSummary

StatusCommercial Ops NA NA NA NASystem Ops NAMarket Ops NA NA NA NACorporate NA NA

ERCOT

MP

1 -

MP

En

gag

emen

t

N1

- E

RC

OT

Tel

emet

ry A

larm

Pro

cess

ing

N2

- E

RC

OT

Tel

emet

ry/I

CC

P S

yste

m F

ailo

ver

EDS -1- EDS -2- EDS -3- EDS -4-


Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed



Metric NameSelf

Reported Observed


Market Participant - QR ABC Inc.

Metric NameSelf

Reported Observed


Roll-up Method

Reported to:ERCOT Directors Reported to:

MP AE

Roll-up Method

Roll-up Method

Roll-up Method

Reported to:TPTFTACBOD

Roll-up Method

Roll-up Method

April 17, 20079

All metrics have been defined in a consistent manner

April 17, 200710

Example: First out of the box

Initiation

Mobilization

Delivery

April 17, 200711

Example: A little later in the game

April 17, 200712

Furthering the momentum

• ERCOT to send Metric Inventory to TPTF for review and comment– TPTF to provide comment on initial review packet by: mm/dd/yyyy

• Initiate self reporting• Review Roll-up method• Begin Reporting• Hall of Fame / Wall of Shame

Documents

April 17, 2007 1 Texas Nodal Market Implementation Readiness Update May 8, 2007