1 Texas Nodal

Texas Nodal

Program Implementation

TPTF June 26, 2006

Agenda

2 Texas Nodal

Agenda

• Rational Unified Process training: 10 mins – Status …….request for action

• Nodal Market Implementation Status Report: 15 mins– Information– Qs and As

• TPTF Submission Schedule (Gantt): 15 mins – Information– Timeline negotiation, principles identified

• Key Dates for Planning: 30 mins – Information– Discussion

3 Texas Nodal

Texas Nodal

Market Participant RUP Training

June 26, 2006

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TPTF RUP Training Overview

Summary – 10 attendees confirmed to date

• Provide overview of RUP (Rational Unified Process)

• Basics to writing Use Cases

• Two 16-person classes

• One day in length

• All classes at IBM Austin – downtown

– July 12th (Wednesday)

– August 9th (Wednesday)

– Email: raldridge@ercot.com to register

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Status Report

• Nodal Market Implementation Status Report: 15 mins

– Information

– Qs and As

6 Texas Nodal

Texas Nodal Market Implementation

ERCOT Board of Directors MeetingProgram status briefing - June 20,2006

TPTF June 26, 2006

7 Texas Nodal

Overall Status

Overall program status remains redThe size, complexity and risk of the program is not yet contained: The common network model and CRR are subject to significant uncertainty Expectations for extensive fork-lifting must be tempered by the fact of unique Texas Nodal Protocols Budgetary implications are not firmEnlisting TPTF to expedite resolution of key issuesScenario analyses will inform options for substantial de-risking “green” software and integrationERCOT will confirm the budget – and its risk-based contingencies – on September 1 (to coincide with the go-live date determination)

Low confidence in the feasibility of 1/1/09 (<5%):ERCOT and the Market Participants will confirm the go-live date by September 1 (Results delivered at the 9/13/06 BOARD meeting)

Staffing is not yet fixed: Mobilization and productivity levels are behind expectations Resources for business requirements are the priority

A comprehensive staffing model is now being deployed, utilizing ERCOT staff, short-term staff augmentation, contractors and consultants

Business requirements are the short-term critical path challenge: The scale of effort required to achieve the necessary quality and approval is not yet understood Mobilization and productivity levels are behind expectations NPRRs have not been impacted through the Nodal Change Control

The combined NODAL team is driving to complete business requirements by October 30

8 Texas Nodal

Texas Nodal Team achieved a major milestone:- selected preferred vendors (RFP’s issued April 14)

Vendor selection completed on schedule: ERCOT selected preferred vendors for the critical Nodal systems Rigorous selection criteria have been applied, consistent with the Nodal Charter:

- No “green” software – code in production will have fewer bugs, more robust, with proven integration- Consistent with ERCOT’s technology roadmap/footprint – to minimize total cost of ownership- Risk mitigation – minimized integration risks having schedule and cost implications- Proven track record of delivery – client references have been leveraged to validate predicted performance- Strength of vendor team – demonstrate adequate commitment of skills and experience, particularly project management

The results of selection are strictly confidential, pending explicit advice to the contrary

Preferred Vendor Other comments

Credit Monitoring ROME Corporation

CRRNexant, Inc.

Energy Solutions Division

EMS AREVA T&D, Inc. (current vendor)

Financial transfer None To be developed internally

Load Forecast AREVA T&D, Inc. (current vendor)Improvements to the zonal application currently underway will be migrated to Nodal. The application will be supplemented by a forecasting service for reference/assurance

Market OperationsABB, Inc.

PSN/Power Systems Division

Network Modeling & TelemetryNexant, Inc.

Energy Solutions DivisionAssessment and improvement of model and SE – short- and long-term

NMMSSiemens Power Transmission & Distribution, Inc.

Energy Management & Automation Division

Outage SchedulerABB, Inc.

PSN/Power Systems DivisionVendor governed by MMS selection

RPP forecast AWS Truewind, LLC

Note - Commercial Systems (including Billing and Settlement) to be developed internally).

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A strategy for integration has been established – requiring additional procurements

The strategy – messaging through web services with specialized solutions e.g. for real time and bulk data: Focus on information architecture – applications need common definitions to communicate Applications are loosely coupled through web services – insulating each application from changes in other applications.

Changes center on messages, not the implementation of messages Applications need not be “aware” of the web services, transforming interfaces into messages Adhere to widely adopted open standards (i.e. xml, soap, wsdl, uddi) to reduce the technology implementation issues Preferred vendors can all support this strategy

The strategy for integrating information addresses a number of risks: Applications must communicate with each other, an EDW and presentation layer Avoids the risk of point solutions without incurring the cost and effort of a major EAI implementation

ERCOT will issue an RFP to specialist IT integration vendors

10 Texas Nodal

Spending year to date

O&M Internal labor $ 1452K Equipment, tools, supplies $ 19K Outside services $ 878K Facilities and Utilities $ 91K Employee expenses $ 19K Interest and fees $ 21K Total O&M: $2,480K

Capital Total Capital $ 473K

Total spending through May $2,953K 83% since April

11 Texas Nodal

TPTF Submission Schedule

• TPTF Submission Schedule (Gantt): 15 mins

– Information

– Timeline negotiation, principles identified

12 Texas Nodal

Integrated timeline to September – as of 6/22/06

Week ending dates (Friday) Jul 14 Sep 15Jul 28Jul 21Jun 16Jun 9Jun 2 Jun 30Jun 23 Jul 7May 26 Sep 8Aug 4 Aug 11 Sep 1Aug 25Aug 18Jul 14 Sep 15Jul 28Jul 21Jun 16Jun 9Jun 2 Jun 30Jun 23 Jul 7May 26 Sep 8Aug 4 Aug 11 Sep 1Aug 25Aug 18

NMMS NMMS Vendor T&M Contract Mobilize

CSD TPTF approval

NMMS – Requirements, DSOW, Use Case, Conceptual Design Development

CSD TPTF submission

Conceptual System DesignNMMS NMMS Vendor T&M Contract Mobilize

CSD TPTF approval

NMMS – Requirements, DSOW, Use Case, Conceptual Design Development

CSD TPTF submission

Conceptual System Design

EMS Proposal Refinement

TPTF approval

EMS – Requirements, DSOW, Use Case, Conceptual Design Development

TPTF submission

Contract MobilizeEMS Proposal Refinement

TPTF approval

EMS – Requirements, DSOW, Use Case, Conceptual Design Development

TPTF submission

Contract Mobilize

IDA

Vendors on board 7/5

RUP Training Delivery

Vendor demos

RUP standards definition

Bus process validation

Configuration Mg Plan

Vendors selected

6/7

Overall architecture

6/7

CSD & Interface doc templates

ERCOT Readiness & Transition

As-is Org Analysis Org Vision & Principles

EDS Release Strategy – V0.9

Org Options Org Design

EDS Release Strategy – Socialization EDS Release Strategy – V1 EDS 3 Release Plan

People Strategy Capabilities Planning

Testing StrategyProject

Staffing & startup

Nodal Resourcing Template Nodal Resourcing Template – V1 ERCOT Readiness Criteria RC link to MPERP Organization Readiness Plan V1

Draft EDS Release Strategy

Testing Strategy

EDS Release Strategy TPTF submission

EDS3 Release Plan

People Transition plans

EDW EDW – Architecture definition EDW – Roadmap definitionEDW EDW – Architecture definition EDW – Roadmap definition

MMS

Reqts TPTF submission

MMS – Requirements, DSOW, Use Case DevelopmentMMS Vendor T&M Contract MobilizeMMS

Reqts TPTF submission

MMS – Requirements, DSOW, Use Case DevelopmentMMS Vendor T&M Contract Mobilize

Infrastructure

Business Implementation plans

Commercial Systems

CM - Contract

FT - Assessment

Reqts TPTF approval

Reqts TPTF submission

Mobilize Credit Monitoring - Requirements, Use Case Development

Financial Transfer - Requirements, Use Case Development

Disputes

Registration - Conceptual System DesignRegistration - Requirements, Use Case Development

Reqts TPTF approval

Reqts TPTF submission

Settlements & Billing - Requirements, Use Case Development (multiple drops)

Commercial Systems

CM - Contract

FT - Assessment

Reqts TPTF approval

Reqts TPTF submission

Mobilize Credit Monitoring - Requirements, Use Case Development

Financial Transfer - Requirements, Use Case Development

Disputes

Registration - Conceptual System DesignRegistration - Requirements, Use Case Development

Reqts TPTF approval

Reqts TPTF submission

Settlements & Billing - Requirements, Use Case Development (multiple drops)

Resourcing

Test Lab DefinitionIntegrated Testing Test Case Template; Procedures Early Test Cases (EMS/MMS)

Test Script template

Test Case template

Test lab configuration

SAT CriteriaDetailed Planning Test Lab DefinitionIntegrated Testing Test Case Template; Procedures Early Test Cases (EMS/MMS)

Test Script template

Test Case template

Test lab configuration

SAT CriteriaDetailed Planning

CRRRequirements, Use Case, DSOW DevelopmentCRR Vendor T&M Contract

ResourcingReqts TPTF submission

Clarification Questions to TPTF

CRRRequirements, Use Case, DSOW DevelopmentCRR Vendor T&M Contract

ResourcingReqts TPTF submission

Clarification Questions to TPTF

MP Engagement & Readiness

TPTF Review/Approve Nodal PRRs TPTF – Review/Approve Business Requirements & Conceptual Systems Designs

Discuss Readiness Criteria with TPTFMP Engagement & Readiness

TPTF Review/Approve Nodal PRRs TPTF – Review/Approve Business Requirements & Conceptual Systems Designs

Discuss Readiness Criteria with TPTF

Use Cases

EMMS H/W vendor selection

MISMIS-Posting/Reports/Extracts - Requirements

MIS Strategy definition MIS Roadmap definition MIS –UI Requirements from applications identified

Integration Strategy definition Integration RoadmapIntegration

Existing data center rationalization

Changes/additions in blue

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Planning Dates

• Key Dates for Planning: 30 mins

– Information

– Discussion

14 Texas Nodal

Preliminary Key Dates

• 6/7/06 Preferred vendors selected• 7/5/06 Start joint requirements, use cases, test cases was 6/30/06

• 7/6/06 EDW Roadmap complete• 7/10/06 Market Participant readiness activities list• 7/30/06 MIS & Integration Roadmap complete

» Scenario Development and Choices 6/7-9/1

• 9/13/06 ERCOT Board of Directors meeting (commitment: date and dollars)

• 10/30/06 Rqmts complete and approved *requires TPTF approval

• 3/31/07 Market Participant interface specs complete• 4/1/07 EMS FAT begins

• 1/1/08 Market Participant SCED offers begin (EDS3)• 7/1/08 Market systems, Market Participant offers (EDS4)