Protocol Revision Subcommittee

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Protocol Revision Protocol Revision SubcommitteeSubcommittee

Presentation to thePresentation to the

ERCOT Technical Advisory CommitteeERCOT Technical Advisory Committee

July 7, 2005July 7, 2005

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PRS SummaryPRS Summary

• 2006 System Prioritization List2006 System Prioritization List• 6 PRRs for Approval6 PRRs for Approval

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Annual Project Prioritization ProcessAnnual Project Prioritization Process

Board of Directors

TACPRS

Subcommittee( COPS, RMS,ROS, WMS ),

ERCOT,PUCT

ERCOT will identify if this request requires a

protocol change. If it does not, then it is

processed as an SCR.

Any system change that does not require a

change to the protocols will be submitted via SCR

SCRs are initiated from sub-committees, PUCT or ERCOT

PRS provides priority and

ranking

TAC approves, rejects or

remands to a subcommittee

Board of Directors

approves, rejects or remands to

TACSCR

PRR

PRS reviews language, approves, rejects or

remands and provides priority and ranking

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2006 PRS Prioritization2006 PRS Prioritization• Prioritization includes all projects competing Prioritization includes all projects competing

for capital dollars, not just computer system for capital dollars, not just computer system changeschanges

• Project summaries included cost/benefit Project summaries included cost/benefit analysis for priority 1 and 2 projectsanalysis for priority 1 and 2 projects

• Projects reviewed included 15 projects Projects reviewed included 15 projects currently in progress (IP) which would currently in progress (IP) which would consume 2006 capital dollars (~$6.5 MM)consume 2006 capital dollars (~$6.5 MM)

• Other TAC subcommittees (RMS, COPS, & Other TAC subcommittees (RMS, COPS, & WMS) recommended priorities and WMS) recommended priorities and cost/benefit informationcost/benefit information

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2006 PRS Prioritization2006 PRS Prioritization• PRS reviewed combined PUC, Market and PRS reviewed combined PUC, Market and

ERCOT project listsERCOT project lists• PUC projects update market monitoring systemsPUC projects update market monitoring systems• Market projects primarily reflect PRRs or SCRsMarket projects primarily reflect PRRs or SCRs• ERCOT projects include computer system and ERCOT projects include computer system and

“bricks and mortar” projects“bricks and mortar” projects• PRS specifically discussed included replacement of PRS specifically discussed included replacement of

“middleware”, automation of DC-tie scheduling, status “middleware”, automation of DC-tie scheduling, status of security-related projects and data center of security-related projects and data center improvementsimprovements

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Priority AssignmentsPriority Assignments

HighHigh(1.X)(1.X)

1.1 High1.1 High1.2 Medium1.2 Medium1.3 Low1.3 Low

ForcedForcedRankRank

MediumMedium(2.X)(2.X)



LowLow(3.X)(3.X)



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2006 System Project Recommendation2006 System Project Recommendation

HighHigh(1.1-1.3)(1.1-1.3)

PUC (4 – 2 IP)PUC (4 – 2 IP)Market (14 – 4 IP)Market (14 – 4 IP)ERCOT (112 – 15 IP)ERCOT (112 – 15 IP)



PUC (0)PUC (0)Market (7)Market (7)ERCOT (26)ERCOT (26)


LowLow(3.X)(3.X)



88


HighHigh(1.1)(1.1)

PUC (4) -- $1 MMPUC (4) -- $1 MMMarket (8) -- $6 MMMarket (8) -- $6 MMERCOT (67) -- $33 MM ERCOT (67) -- $33 MM (27 below the cut line)(27 below the cut line)





LowLow(3.X)(3.X)



Possible Cut Line ~ $27 MMPossible Cut Line ~ $27 MM

HighHigh(1.2-1.3)(1.2-1.3)



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• What does it all mean?What does it all mean?• Highest ranking in each priority grouping went to Highest ranking in each priority grouping went to

projects with greatest net benefit to the marketprojects with greatest net benefit to the market• Some projects referenced in the Protocols will not Some projects referenced in the Protocols will not

be donebe done• Projects recognized as necessary (1 Priority) will Projects recognized as necessary (1 Priority) will

not be done or will bump projects above the cut not be done or will bump projects above the cut lineline

• Mass Customer TransitionMass Customer Transition• New projects to correct operations or settlement New projects to correct operations or settlement

problemsproblems

1010


• PRS recommends approval of the 2006 PRS recommends approval of the 2006 Project Priorities & RankingProject Priorities & Ranking• Prioritization process is dynamic and PRS Prioritization process is dynamic and PRS

will continue to monitor and adjust the will continue to monitor and adjust the 2005 and 2006 lists2005 and 2006 lists

1111

PRR RecommendationsPRR Recommendations

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PRR 588 – Testing of Quick Start PRR 588 – Testing of Quick Start Units in the BES MarketUnits in the BES Market

• PRR submitted by Austin Energy (Muni)PRR submitted by Austin Energy (Muni)• PRR memorializes April 14, 2005 market PRR memorializes April 14, 2005 market

notice on quick start unit testing requirementnotice on quick start unit testing requirement• PRR limits UBES bid quantities to the tested PRR limits UBES bid quantities to the tested

quantity available through ERCOT’s test quantity available through ERCOT’s test procedureprocedure• Test procedure is in an OGRRTest procedure is in an OGRR

• Benefit: ERCOT concerned that quick start Benefit: ERCOT concerned that quick start units may negatively impact reliabilityunits may negatively impact reliability

• Amended by ERCOTAmended by ERCOT

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• PRS recommended approval PRS recommended approval unanimouslyunanimously

• All market segments were presentAll market segments were present• Effective September 1, 2005Effective September 1, 2005• Reliant Energy submitted comments to Reliant Energy submitted comments to

TACTAC

1414


Impact AnalysisImpact Analysis

Item ReviewedItem Reviewed DescriptionDescriptionNoNoImpactImpact

Credit Monitoring/LiabilityCredit Monitoring/Liability

BudgetBudget

StaffingStaffing

Computer SystemsComputer Systems

Business FunctionsBusiness Functions

Grid OperationsGrid Operations

ImpactImpact

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PRR 590 – Update Unit Telemetry PRR 590 – Update Unit Telemetry RequirementRequirement

• PRR submitted by ERCOTPRR submitted by ERCOT• PRR responds to Patton #14PRR responds to Patton #14• Adds requirement for QSEs to provide RT AGC Adds requirement for QSEs to provide RT AGC

status and ramp rate for online unitsstatus and ramp rate for online units• Benefit: Improves ERCOT’s ability to determine if Benefit: Improves ERCOT’s ability to determine if

QSE can meet RRS obligationQSE can meet RRS obligation• Amended by ERCOT, FPLE, Exelon & PRS Amended by ERCOT, FPLE, Exelon & PRS • PRS recommended approval unanimouslyPRS recommended approval unanimously• All market segments were presentAll market segments were present• Effective upon system implementationEffective upon system implementation• Recommended 2006 Priority 1.2Recommended 2006 Priority 1.2

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PRR 590 – Update Unit Telemetry PRR 590 – Update Unit Telemetry RequirementRequirement




BudgetBudget

StaffingStaffing




ImpactImpact

ST- testing; LT - minor impact

Add process for new data

Less than $100K

SCADA, ICCP & RTU

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PRR 593 – Behind the Fence PRR 593 – Behind the Fence Reporting of LoadReporting of Load

• PRR submitted Centerpoint Energy on behalf PRR submitted Centerpoint Energy on behalf of GATFof GATF

• PRR intended to gather information on load PRR intended to gather information on load not currently reported to ERCOTnot currently reported to ERCOT

• Benefit: Improves ERCOT load projections Benefit: Improves ERCOT load projections for reserve calculation purposesfor reserve calculation purposes

• PRS recommended approval with 1 nay vote PRS recommended approval with 1 nay vote and 1 abstentionand 1 abstention

• All market segments were presentAll market segments were present• Effective September 1, 2005Effective September 1, 2005

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PRR 593 – Behind the Fence PRR 593 – Behind the Fence Reporting of LoadReporting of Load




BudgetBudget

StaffingStaffing




ImpactImpact



1919

PRR 595 – Protocol Section 10PRR 595 – Protocol Section 10

• PRR submitted by TXU ED on behalf of Meter PRR submitted by TXU ED on behalf of Meter Working GroupWorking Group

• Conforms Section 10 to current market and Conforms Section 10 to current market and ERCOT processesERCOT processes

• Benefit: Improves clarity and accuracy of the Benefit: Improves clarity and accuracy of the ProtocolsProtocols

• PRS recommended approval unanimouslyPRS recommended approval unanimously• All market segments were presentAll market segments were present• Effective September 1, 2005Effective September 1, 2005

2020

PRR 595 – Protocol Section 10PRR 595 – Protocol Section 10




BudgetBudget

StaffingStaffing




ImpactImpact

2121

PRR 597 – Texas Test Plan TeamPRR 597 – Texas Test Plan Team

• PRR submitted by AEP on behalf of TTPTPRR submitted by AEP on behalf of TTPT• Updates Protocols for current ERCOT Updates Protocols for current ERCOT

processesprocesses• Benefit: Improves accuracy of ProtocolsBenefit: Improves accuracy of Protocols• Amended by ERCOTAmended by ERCOT• PRS recommended approval unanimouslyPRS recommended approval unanimously• All market segments were presentAll market segments were present• Effective September 1, 2005Effective September 1, 2005

2222

PRR 597 – Texas Test Plan TeamPRR 597 – Texas Test Plan Team




BudgetBudget

StaffingStaffing




ImpactImpact

2323

PRR 568 – Change Initial Settlement PRR 568 – Change Initial Settlement from 17 to 10 Daysfrom 17 to 10 Days

• PRR submitted by TXU EnergyPRR submitted by TXU Energy• Changes the day the Initial Settlement statement is Changes the day the Initial Settlement statement is

issued from 17 days to 10 days following the Operating issued from 17 days to 10 days following the Operating DayDay

• A transition plan is needed to provide market A transition plan is needed to provide market participants with information on PRR impactparticipants with information on PRR impact

• Benefit: Reduces overall credit exposure and collateral Benefit: Reduces overall credit exposure and collateral requirements due to the quicker issuance of the Initial requirements due to the quicker issuance of the Initial SettlementSettlement

• Amended by ERCOT & COPSAmended by ERCOT & COPS• PRS recommended approval unanimouslyPRS recommended approval unanimously• All market segments were presentAll market segments were present• Effective upon TAC approval of a transition plan Effective upon TAC approval of a transition plan

developed by COPS – PRR & COPS Plan now moving in developed by COPS – PRR & COPS Plan now moving in tandem through governance processtandem through governance process

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PRR 568 – Change Initial Settlement PRR 568 – Change Initial Settlement from 17 to 10 Daysfrom 17 to 10 Days




BudgetBudget

StaffingStaffing




ImpactImpact

Supports

Change to occur through O&M $

No FTE – Impact for analysis

Minor changes to systems

Change in process timing

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Recommended TAC ActionsRecommended TAC Actions

• ApprovalApproval• PRR 588 – Testing of Quick Start UnitsPRR 588 – Testing of Quick Start Units• PRR 590 – Update Unit Telemetry PRR 590 – Update Unit Telemetry

RequirementRequirement• PRR 593 – Behind the Fence Reporting of PRR 593 – Behind the Fence Reporting of

LoadLoad• PRR 595 – ERCOT Protocol Section 10PRR 595 – ERCOT Protocol Section 10• PRR 597 – Texas Test Plan TeamPRR 597 – Texas Test Plan Team• PRR 568 – Change Initial Settlement from PRR 568 – Change Initial Settlement from

17 to 10 Days17 to 10 Days

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Documents

Protocol Revision Subcommittee