1

ERCOT

Market Services Update

to TAC

December 5, 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

– 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)

• 2003 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.)

• 2002 Projects removed from active status (would require reprioritization to proceed)– PR-20068 Interzonal Congestion Management: Interim Fix

completed; any further effort will be a new project and go through prioritization process

– PR-20071 Two Settlement System: Manual fix announced to market and ERCOT Board of Directors. If automated solution desired a new project request will be submitted and prioritized

– PR-20080 Define OOME as Instructed Deviation: PRR282 withdrawn and project canceled

– PIP106 Direct Load Control: Deleted from 2002 Active Project List and has been prioritized for 2003 and included in the Master Priority List

– PR-20083 Ratcheting of OOME: Project withdrawn

6

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

7

•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

8

GISB 1.4 Update

9

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

10

Texas Set V.1.5

11

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

12

• 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.)

13

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

14

Implementation Plan

• Objectives– Ensure all parties know the status of the implementation effort

– Minimize down time

– Work as a team

• Approach: Big Bang– All parties roll-out ALL 1.5 functionality over the same weekend

15

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

16

Next Steps

• Begin Monthly Face to Face Meetings (Dates Set) for project status/issues, testing, and Production Implementation fine tuning.

– Nov 21st (Thursday)– Dec 19th (Thursday)– Jan 23rd (Thursday)– Feb 20th (Thursday)– Mar 20th (Thursday)– April 14th (Monday) – tentative depending on production

implementation schedule

17

ERCOT Data Transparency(ETS)

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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

19

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

20

ERCOT Data Transparency Model For Improvement

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

21

ERCOT Data Transparency ERCOT Interim Solution

ERCOT Interim Internal Solution – 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’

22

ERCOT Data Transparency ERCOT Interim Solution

ERCOT Interim Internal Solution – 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

• Protocol Report

… Provides a view of ERCOT’s protocol compliance for each transaction type

23

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

24

RMS Update on Move-In / Move-Out Task Force

November 14, 2002

25

MIMO Workshop

• Progress– 32 Concepts have been discussed

• 7 Concepts were dismissed for various reasons

• 1 Concept was determined as solved in Version 1.5

• 3 Concepts were combined into other concepts

• 21 Concepts in Task Force

– 6 Concepts approved by RMS on 10/16

– 6 Concepts will be taken to RMS for vote on 11/14

– 9 Concepts are currently tabled until additional information can be obtained

26

Concepts for RMS vote

• Mid-Term– Pending 814_06s

– Retired ESI Ids

– Invalid ESI ID Retry

• Short-Term– Processing Efficiency

– Canceling Move-Ins with Move-Outs.

– Handling Switch after 650 Disconnect

27

RMS Approved Recommendations

• Pending 814_06s - Mid-Term

This concept involves ERCOT holding 814_06s until the morning of 2 days prior to the effective date (5 days on 814_06s from switches). This concept also involves ERCOT rejecting any Cancels, Date Changes, or new transactions that are dated prior to the effective date for the transaction that is scheduled.

• Retired ESI Ids - Mid-Term

This recommendation is intended to develop a process to retire ESI Ids when there is an active REP of Record. The volumes of these are ‘temp’ meters. When a TDSP needs to retire an ESI ID that has a REP of Record, they will send a 650_04 with a new code to the CR. The CR must use this new code to create a Move-Out on the ESI ID. After the Move-Out is complete, the TDSP will send the 814_20 retire to ERCOT.

• Invalid ESI ID Retry - Mid-Term

If a Move-In rejects for Invalid ESI ID, ERCOT will hold and retry the Move-In at a regular interval of time for 48 hours (only counting hours on business days, but not only business hours.) After the retry period has expired, if the Move-In is still in a reject status for Invalid ESI ID, ERCOT will send an 814_17 to the submitting CR.

28

Unapproved Recommendations

The following recommendations were remanded back to the MIMO Task Force for further discussion:

• Processing Efficiency - Short-Term This recommendation involves processing efficiency goals for ERCOT and the TDSPs as well as suggestions for CRs.

• Handling Switch after 650 Disconnect - Short-TermOff-Cycle Switches: TDSP will use the off-cycle switch to re-energize an ESI ID if the ESI ID was de-energized with a 650 disconnect and no Move-Out has been received. For on-cycle Switches TDSPs will effectuate the switch, but will not energize the ESI ID. The CR must follow up with a Service Order re-connect. This would require a change to Tx SET 650 for option 1 CRs.

• Customer Canceling Move-Ins with Move-Outs - Short-Term If a TDSP receives a backdated Move-Out with the same effective date as an already completed Move-In, and the Move-Out CR is the same as the Move-in CR, the TDSP will de-energize the premise and send a final and initial with the same read and read dates and the final would have zero consumption. (Except for IDR meters) If the Move-Out is not the same CR as the Move-In, the TDSP will reject the Move-Out for not REP of Record.

29

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

30

Quick Recovery Team Update

31

•Pursuing responses from CRs and TDSPs• ~3,657 ESI Ids are awaiting more information or

acknowledgment of receipt from CR• ~29,084 have been sent to TDSPs for investigation and

are waiting for a transaction•All “New” issues have been addressed•2,697“In Analysis” issues are being worked •QRE project will be transitioned back to ERCOT Registration by 12/20/02.

•Transition activities are currently under way.

Quick Recovery Effort

32

Quick Recovery Effort

• QRE is transitioning processes and procedures to ERCOT Data Management and Registration teams.

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

• QRE has hosted 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 two week of “shadowing” ERCOT employees taking over responsibilities

33

QRE Transition

• Transition tasks have been identified and checklist created.

• Market notification of transition and survey was sent to Market on 11/12/02 and feedback was returned– 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

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

– “Recommendations”

34

Entity Quantity

TDSP 29084

QRE Team 2708

CR 3657

Total 35449

Current Status Quantity

New 0

In Analysis 2697

In Progress 35449

Resolved 124157

Total 162303

ESI Ids Reported to QRE (as of December 2, 2002)

Point of Failure Quantity

Cause Not Reported 21887

Unexecutable 81

CR 40891

ERCOT EAI 4978

ERCOT FTP 694

ERCOT Manual Process (814_08)

3496

ERCOT Out of Protocol 20

ERCOT PaperFree 8194

ERCOT Siebel 1496

ERCOT TCH 12096

TDSP 30324

Total 124157

35

Market Synchronization Activities

36

• 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– ERCOT has made corrections to ~55K ESI IDs

• 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. Initial

responses are due to ERCOT by 12-06-02– ERCOT, TDSPs and CRs making corrections per 11-11-02 decisions

.

Market Synchronization Retailer Synchronization Project

37

Next Steps

– December 10th, 17th

Follow-up conference calls

– Propose process to complete and close out this project

Establish timeline

Establish reporting mechanism

Market Synchronization Retailer Synchronization (cont.)

38

Market Synchronization“TDSP as LSE” Clean-up

• 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 original list with suggested corrective

action– Approximately 34K ESI IDs had been corrected as of 12-02-02

• In Progress– ERCOT is reconciling remaining 6K ESI IDs with TDSPs and confirming

suggested corrective action can be taken– All corrections to be completed by Friday, 12-06-2002– One TDSP to confirm that it is valid to have ESI IDs with “TDSP as LSE” after

01-31-2001.

39

• 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– ERCOT provided full list to TDSPs and CRs with agreement dates on 11/13/02

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

• 13 – CR agreed to TDSP date (after TDSP submit usage, ERCOT will correct)• 4 – ESI ID retired (TDSP needs to submit 814_20 retire transaction)

• Next Steps– ERCOT to reconcile and clean-up any outstanding issues

Market Synchronization Non Price to Beat

40

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, 2003

True-Up Settlement of December 17, 2001

Drop dead date for correction of Non-PTB ESID Backdating

December 5, 2002

180 re-settlements performed to date

(Operating Day 01/26/02)