WMS UPDATEWMS UPDATE

Day Ahead Market RFP TeamDay Ahead Market RFP TeamTimelineTimeline

7/287/28 RFP ReleasedRFP Released 8/38/3 Team MeetingTeam Meeting

– FocusFocus– Process overviewProcess overview– Review RFPReview RFP– Requirements – TNT White Paper, TNM Protocols Requirements – TNT White Paper, TNM Protocols

Section 5Section 5– Timeline/milestonesTimeline/milestones– Evaluation Criteria/weightingEvaluation Criteria/weighting– DemoDemo

WMS UPDATEWMS UPDATE

8/118/11 Notice of Intent to Bid\Submit questionsNotice of Intent to Bid\Submit questions 8/168/16 Team Meeting 9:30 to 2:00 (Austin Met Team Meeting 9:30 to 2:00 (Austin Met

Center, Room 168)Center, Room 168)– Review questions/responsesReview questions/responses– Bidder’s ConferenceBidder’s Conference– Amend RFP?Amend RFP?– Review criteria weightingReview criteria weighting

8/188/18 Respond to Questions (Bidder’s Respond to Questions (Bidder’s Conference)Conference)

8/208/20 Amend RFP if neededAmend RFP if needed 9/109/10 Submit ProposalsSubmit Proposals

WMS UPDATEWMS UPDATE

9/13- 9/149/13- 9/14 Team Meeting 9:30 to 4:00 Team Meeting 9:30 to 4:00 (Austin Met Center, Room 168)(Austin Met Center, Room 168)– Review ProposalsReview Proposals– Rank proposals (short list)Rank proposals (short list)

9/21- 9/22 9/21- 9/22 Bidder Presentations 9:30 to Bidder Presentations 9:30 to 4:00 (Austin – offsite – to be announced)4:00 (Austin – offsite – to be announced)– Review presentationsReview presentations– Forced ranking within each criteriaForced ranking within each criteria– Recommend bidderRecommend bidder

WMS UPDATEWMS UPDATE

10/110/1 Final selection (begin contract Final selection (begin contract negotiations)negotiations)

10/1510/15 ERCOT contracts with bidderERCOT contracts with bidder

11/111/1 Implementation beginsImplementation begins

WMS UPDATEWMS UPDATE• On the afternoon of July 7, 2004, TXU QSE On the afternoon of July 7, 2004, TXU QSE

received unit specific Local Balancing received unit specific Local Balancing instructions to back down the following instructions to back down the following generating units as a part of ERCOT generating units as a part of ERCOT Operations local congestion management for Operations local congestion management for the the post contingency overload of Jewett – post contingency overload of Jewett – Watson Chapel 138 kV Line for the loss of Watson Chapel 138 kV Line for the loss of the Gibbons Creek – Twin Oak double the Gibbons Creek – Twin Oak double circuit 345 kV Line:circuit 345 kV Line:• Approx. 1,100 MW of Martin Lake generation Approx. 1,100 MW of Martin Lake generation

(lignite/coal)(lignite/coal)• Approx. 225 MW of TNP One (lignite/coal)Approx. 225 MW of TNP One (lignite/coal)• Approx. 300+ MW of Stryker (gas)Approx. 300+ MW of Stryker (gas)

WMS UPDATEWMS UPDATE

• ERCOT issued on average 1,700 MW of unit ERCOT issued on average 1,700 MW of unit specific down instructions (average specific down instructions (average generation shift factor impact of 2.2%) and generation shift factor impact of 2.2%) and approximately 300 MW of unit specific up approximately 300 MW of unit specific up instructions.instructions.

• If all units responded as ERCOT requested, If all units responded as ERCOT requested, these instructions represented roughly these instructions represented roughly $189,000 of Local Congestion management.$189,000 of Local Congestion management.

WMS UPDATEWMS UPDATE

• A review of the daily ERCOT Operation A review of the daily ERCOT Operation Congestion Reports since their inception on Congestion Reports since their inception on June 18, 2004 through July 27, 2004 (i.e. a 40 June 18, 2004 through July 27, 2004 (i.e. a 40 day period) indicates that:day period) indicates that:

• The constraint has become active 17 times on 15 The constraint has become active 17 times on 15 different days.different days.

WMS UPDATEWMS UPDATE

• WMS is having the Operational review WMS is having the Operational review group discuss What, if any, Curtailment group discuss What, if any, Curtailment Threshold criteria should be used by Threshold criteria should be used by ERCOT to determine the minimum ERCOT to determine the minimum generation shift factor that a generator generation shift factor that a generator must have on a post contingency must have on a post contingency overloaded line before unit specific up overloaded line before unit specific up and down instructions are issued to QSEs and down instructions are issued to QSEs for Local Congestion management?for Local Congestion management?