22 May 2008TPTF

Texas Nodal Program:Market Readiness Metrics Update

Mike Beck

2Texas Nodal Program UpdateMay 22, 2008 2

Program Status: Readiness

There has been a mix of positive and negative changes since the last meeting:

ERCOT: red green (+)EDS3: red amber (+)

MP: green red (–)

3Texas Nodal Program UpdateMay 22, 2008 3

ERCOT

• Engagement (green)• ERCOT remains fully engaged

• Training (green)• a new round of training for ERCOT

operators started this week • completion target is August 31, 2008

• Process (green)• updated weekly• completion target is August 31, 2008

• Staffing (majority green)• updated transition plans expected in early

June• this remains the only category with red

and amber • recruitment is ongoing

• Testing (green)• no recent developments

ERCOT readiness status is GREEN, but likely to go AMBER June 1st based on staffing metric

4Texas Nodal Program UpdateMay 22, 2008 4

Market Participants

• Engagement (>95% green)• will be updated June 12th when Cycle 4

Survey is scored

• Connectivity (>95% green)• no change, pending further EDS

developments (MIS Portal, TML)

• Registration and Qualification (red)• MP17 goes active June 2nd

• MP10 and MP11 (Resource Mapping and RARF Submissions) are causing overall red status

• Telemetry (green)• no change, present measurements complete

• Training (>95% green)• will be updated June 12th when Cycle 4

Survey is scored

• Trials Participation (>95% green)• no change, pending further EDS

developments

Market Participant readiness status is RED, driven by MP10 and MP11

5Texas Nodal Program UpdateMay 22, 2008 5

Market Participant Readiness

Overall registration and qualification status for Market Participants is RED• Situation

• A number of Market Participants are not in compliance with MP11 (Registration Activities)

• There are an estimated 215 RARFs representing 720 unit-specific resources, 671 of which are modeled (the remaining 49 are distributed generation resources).

• 91% (608 of 671) of Generation and Load Resource units have been submitted, representing 93% of MW capacity

• Most RARFs are expected to be returned to MPs for revision (most likely several rounds)

• Current rate of acceptance [with Tier 1 review] of submittals into RARF database is about 80% Acceptance does not indicate valid data

• QSE’s w/Resources that represent Resource Entities who are missing RARFs will be rejected from EDS trials

• June 16 closed loop LFC test (and preceding open-loop test) will not be conducted until 100% of MW capacity has been accepted by ERCOT

• Mitigation Steps• Contacted non-responding resource entities [completed]

• Developed a temporary work-around for TML submission [completed]

• Ongoing outreach to MPs to assist in addressing issues [ongoing]

• Publish “wall of shame” for non-responsive entities [ongoing]

Data as of 5.21.08

6Texas Nodal Program UpdateMay 22, 2008 6

Market Participant Readiness

Data as of 5.21.08

QSEs with Resources - RED

• American Electric Power Service Corp• Barton Chapel Wind LLC• City of Austin DBA Austin Energy• Eagle Energy Partners I LP• Formosa Utility Venture LTD

• FPL Energy Power Marketing• Lower Colorado River Authority• Luminant Generation Company LLC• NRG Texas LP• Reliant Energy Power Supply LLC

QSEs without Resources - RED

• Aquila Inc DBA Aquila Networks• Citadel Energy Products LLC• Clearview Electric Inc• Glacial Energy Inc

MPs with red status under registration and qualification

• Kansas City Power and Light Company• National Power Company Inc• Texpo Power LP• Urban Energy Source LLC

7Texas Nodal Program UpdateMay 22, 2008 7

EDS

• EDS 1 (green) no recent changes

• EDS 2 (red) remaining metrics are intertwined with the state estimator quality of data being delivered to ERCOT is not compliant with the state estimator

• EDS 3 (amber) following recent acceptance of ACE data by TAC EDS 3 went from red to amber

• EDS 4 (red) outage evaluation system is not yet completed

EDS 1, 2, and 4 status remains the same, while EDS 3 has improved to amber

8Texas Nodal Program UpdateMay 22, 2008 8

Readiness Metrics

We will begin to measure the following metrics in early June

Metric Description Start CompleteEMO8 Conduct EECP Test 6/1/2008 8/1/2008

E7 Validate EDW WEMM Access & Accuracy

6/2/2008 8/31/2008

E10 Validate EDW Commercial Systems Access &

Accuracy

6/2/2008 8/31/2008

E11 Validate EDW Compliance Data Access

6/2/2008 8/31/2008

MP17* MP Qualification Activities 6/2/2008 8/15/2008

* With the implementation of MP17, all existing MP metrics are active

9Texas Nodal Program UpdateMay 22, 2008 9

Market Participant Engagement Survey: Cycle 4

• Cycle 4 of the Market Participant Engagement Survey was released on May 15 th

• This survey focuses on staffing, processes, and technology from present through the 168-hour test

• This survey will be open for response through May 30th

• Results will be available June 12th on the scorecards

• ERCOT Account Managers will take an active role with outreach to MPs will beginning mid-survey to ensure full participation

Market Participants are currently completing Cycle 4 of the Engagement Survey

10Texas Nodal Program UpdateMay 22, 2008 10

Questions ?