Nodal Readiness Plan Update

Ron HinsleyUpdate for TAC

November 3, 2005

Deliverables

• Processes Touched• Project Organization (HR Issues)• Facilities / Logistics /Security• Governance• Protocol Gap / Clarification Analysis• Updated Timeline and Cost Estimate

Processes Touched

Project Start Project End

Comm

ercia

l Ope

ratio

nsTr

aining

Syste

m Op

eratio

nsIT

Finan

ce Credit MonitorSection 16

MIS Section 12

Training of Market Participants & Interested Parties

Training of ERCOT Staff

Modeling Section 3

Telemetry Section 3

State Estimator Section 3

Data Center

MP Interfaces

Extracts, Reports, Archives, Data Warehouse

Day Ahead Market Section 4

RUC Section 5Resource Parameters Section 3

COPs Section 3

Load/RPP ForecastSection 3

CRRs Section 7

Day Ahead Market Settlement Section 4

RUC Settlement Section 5

Ancillary Services Settlement Section 4

Real Time Settlement Section 6

CRR Auction Settlement Section 7

CRR Settlement Section 7 Section 9 Rules

Outage CoordinationSection 3

LFC Section 6

SCED / LMPSection 6

Ancillary Services Section 4

Finance/Training

Project Start Project End

Com

mer

cial

Ope

ratio

nsTr

aini

ngS

yste

m O

pera

tions

ITFi

nanc

e

Credit MonitorSection 16

MIS Section 12

Training of Market Participants & Interested Parties

Training of ERCOT Staff

Modeling Section 3

Telemetry Section 3

State Estimator Section 3

Data Center

MP Interfaces

Extracts, Reports, Archives, Data Warehouse

Day Ahead Market Section 4

RUC Section 5Resource Parameters Section 3

COPs Section 3

Load/RPP ForecastSection 3

CRRs Section 7

Day Ahead Market Settlement Section 4

RUC Settlement Section 5

Ancillary Services Settlement Section 4

Real Time Settlement Section 6

CRR Auction Settlement Section 7

CRR Settlement Section 7 Section 9 Rules

Outage CoordinationSection 3

LFC Section 6

SCED / LMPSection 6

Ancillary Services Section 4

Training of Market Participants and interested parties

Training of ERCOT Staff

Credit Monitor

System Operations

Project Start Project End

Com

mer

cial

Ope

ratio

nsTr

aini

ngS

yste

m O

pera

tions

ITFi

nanc

e

Credit MonitorSection 16

MIS Section 12

Training of Market Participants & Interested Parties

Training of ERCOT Staff

Modeling Section 3

Telemetry Section 3

State Estimator Section 3

Data Center

MP Interfaces

Extracts, Reports, Archives, Data Warehouse

Day Ahead Market Section 4

RUC Section 5Resource Parameters Section 3

COPs Section 3

Load/RPP ForecastSection 3

CRRs Section 7

Day Ahead Market Settlement Section 4

RUC Settlement Section 5

Ancillary Services Settlement Section 4

Real Time Settlement Section 6

CRR Auction Settlement Section 7

CRR Settlement Section 7 Section 9 Rules

Outage CoordinationSection 3

LFC Section 6

SCED / LMPSection 6

Ancillary Services Section 4

ModelingTelemetryState estimatorResource parametersCurrent Operating PlanLoad / Renewable Production Potential forecastOutage CoordinationLoad Frequency Control

Ancillary ServicesDay Ahead MarketReliability Unit CommitmentSecurity Constrained Economic DispatchCongestion Revenue Rights

Commercial Operations

Project Start Project End

Com

mer

cial

Ope

ratio

nsTr

aini

ngS

yste

m O

pera

tions

ITFi

nanc

e

Credit MonitorSection 16

MIS Section 12

Training of Market Participants & Interested Parties

Training of ERCOT Staff

Modeling Section 3

Telemetry Section 3

State Estimator Section 3

Data Center

MP Interfaces

Extracts, Reports, Archives, Data Warehouse

Day Ahead Market Section 4

RUC Section 5Resource Parameters Section 3

COPs Section 3

Load/RPP ForecastSection 3

CRRs Section 7

Day Ahead Market Settlement Section 4

RUC Settlement Section 5

Ancillary Services Settlement Section 4

Real Time Settlement Section 6

CRR Auction Settlement Section 7

CRR Settlement Section 7 Section 9 Rules

Outage CoordinationSection 3

LFC Section 6

SCED / LMPSection 6

Ancillary Services Section 4

Ancillary Services Settlement

Day Ahead Market Settlements

Reliability Unit Commitment Settlement

Real Time Settlement

CRR Auction Settlement

CRR Settlement

Section 9 rules

Information Technology

Project Start Project End

Com

mer

cial

Ope

ratio

nsTr

aini

ngS

yste

m O

pera

tions

ITFi

nanc

e

Credit MonitorSection 16

MIS Section 12

Training of Market Participants & Interested Parties

Training of ERCOT Staff

Modeling Section 3

Telemetry Section 3

State Estimator Section 3

Data Center

MP Interfaces

Extracts, Reports, Archives, Data Warehouse

Day Ahead Market Section 4

RUC Section 5Resource Parameters Section 3

COPs Section 3

Load/RPP ForecastSection 3

CRRs Section 7

Day Ahead Market Settlement Section 4

RUC Settlement Section 5

Ancillary Services Settlement Section 4

Real Time Settlement Section 6

CRR Auction Settlement Section 7

CRR Settlement Section 7 Section 9 Rules

Outage CoordinationSection 3

LFC Section 6

SCED / LMPSection 6

Ancillary Services Section 4 Market Information System

Data Center (capacity)

Market Participant Interfaces

Extracts, reports, archives, data warehouse

Organization Strawman

Program Director

Business Program Director

IT Program Director

System OpsIT Lead

System OpsBusiness Lead

FinanceIT Lead

IT / InfrastructureLead

Commercial Operations

IT Lead

Commercial Operations

Business Lead

Compliance Lead

Finance &Administration

Executive Leadership Team

Legal

Procurement

HR

Market Services Lead

PROGRAM MANAGEMENT TEAM

FinanceBusiness Lead

Facilities

System Ops Team

Commercial Ops Team

Finance Team

Facilities / Logistics /Security

• Plan to co-locate business and IT resources as much as possible during design and development. Looking at space in TCC2 as an option.

• Parallel operation of zonal and nodal systems during testing will require significant additional data center space, which must be addressed.

• Included Ann Delenela, a Manager in Corporate Security, in project organization to assist with security issues.

Governance

ERCOT Business Staff---------------------

Protocols Gaps and Clarifications

ERCOT Business Staff---------------------

Draft Requirements

TPTF-----------------

Address QuestionsClarify Protocols

TPTF-----------------Review Draft Requirements

ERCOT Business Staff---------------------

Final Requirements

TPTF & TAC-----------------Approve Final Requirements

Vendor orERCOT IT Staff---------------------

Conceptual Design

TPTF & TAC-----------------

Approve Conceptual Design

PROTOCOLS BUSINESS REQUIREMENTS

TAC / PRS-------------------

Protocols

DESIGN BUILD TEST IMPLEMENT

MarketReady

TPTF, TAC,ERCOT Staff &

Board

Vendor orERCOT IT Staff---------------------Detail Design

ERCOT & MPs-----------------Review Detail

Design

RequirementApproval

TPTF / TAC

ERCOT &MPs

---------------------Develop Market TrialsTest Plans

ISSUES ISSUES ISSUES

ISSUES

TPTF-----------------

AddressIssues1

ISSUES

1NOTE: All Issues and decisions considered by TPTF will be documented and posted.

Decisions by the TPTF will be returned to the appropriate step in the process.

ConceptualDesign

ApprovalTPTF / TAC

RFPs

ERCOT Staff---------------------

RFP

TPTF-----------------Review RFPs

ERCOT Staff---------------------

RFI

TPTF-----------------Review RFIs

Protocol Gap / Clarification Analysis

• Approximately 30 ERCOT employees are preparing a list of gaps or issues within the nodal Protocols that require clarification.

• The goal is to resolve as much ambiguity as possible prior to development of requirements.

• List will be available at first TPTF meeting• Developing Standard Requirements Templates

Updated Timeline and Cost Estimate

• Worked with KEMA to refine the timeline and cost estimate to include tasks associated with most processes touched, match the test sequence proposed in the TNT Transition Plan, account for the Contested Case, and validate test durations.

• KEMA developed a “Scheduling Risk Analysis” of the timeline.

• Plan to post KEMA’s Risk Analysis and the refined timeline by November 8

Questions