PRR Impact Analysis Update

Steve Wallace Program Management Office

October Board Meeting

PRR Requests and Impact Analysis Plan• Why this topic now?

•ERCOT going through its annual budget and fee setting exercise

•F&A Committee and Board have requested that ERCOT staff provide additional details as it relates to PRR’s and SCR’s so that the long term costs of the PRR/SCR are part of the Board approval process

•Current rate of PRR requests/adoption more than double 2002 rate and increasing

•This rate of PRR’s has significant impact ERCOT staff to create impact analysis and implement and maintain the approved PRR’s (short and long term, $’s/FTE’s not in plan)

•We are still in an additive phase for the PRR’s & SCR’s vs. replacing functions/protocols

PRRs for TAC Review

02468

1012141618

Month

Num

ber o

f PR

Rs

Items

PRRs for BOD Review

0

2

4

6

8

10

12

14

16

Month

Num

ber o

f PR

Rs

Items

PRS Agenda Items per Month

0

5

10

15

20

25

30

35

Jan-0

3

Feb-0

3

Mar-03

Apr-03

May-03

Jun-0

3Ju

l-03

Aug-0

3

Sep-0

3

Oct-03

Month

Num

ber o

f Age

nda

Item

s

Items

Sample Unplanned PRR/SCR Impacts

PRR/SCR Description IA Done

ERCOT Impact

StaffST/LT

Project CostsIf Any

Year 1 $’s / 3 Year $’s in 000’s

PRR327*Confidentiality

N Manual .75/.75 NA 75/225

PRR408*HVDC Tie Schedule Data

P Manual 1.5/.5 NA 150/300

PRR420*MCPE When All UBES is Deployed

P Manual .5/.5 NA 150

PRR422*Out of Merit Zonal Dispatch Instructions

F Manual to Automated

1.5/.5 400 550/650

PRR441Enhanced Impact Analysis

F Manual 4.5/4.5 NA 450/1,350

PRR444*MIMO/Stacking

F Automated & Manual

9/11 4800 5,700/7,900

Market Sync/SCR 727* N Manual & Automated

8/9 2000 2,800/4,600

*= Long term staffing support in business and IT requested as part of 2004 budget/fee request

PRR Requests and Impact Analysis Plan•Current process for impact analysis set to improve with PRR 441 (Protocol Revision Impact Analysis and Implementation Information Enhancement)

• Recommendation:

• Using PRR441 as a base (Enhanced Impact Analysis), each PRR brought to TAC with completed impact analysis and initial 3 year estimated project and staff costs. Deliver updated information to Board as available as part of TAC packet.

• Work to deliver high level impact analysis and estimates prior to PRS meeting (target is 80-90% of PRR’s prior to PRS, Urgent Timeline Issue, late postings, etc.)

• Direct ERCOT staff to fully support PRR 441 with the additional financial details, effective with January PRS, TAC, F&A and Board meetings

•Deliver with the following confidence levels, impact analysis to:

•PRS – 60%, initial high level estimate

•TAC – 70%, high level estimate, including PRS changes to PRR/SCR

•BOD – 80%, planning estimate, including TAC changes to PRR/SCR

•Follow the enhanced template and program process flow shown on next slide

• Enhanced process will give PRS, TAC, F&A and the Board the financial and staffing impacts of proposed PRR’s and SCR’s.

ERCOT’s EnhancedProgram Management Process

PRR, SCR and Project Request Initiation Process

Market Initiation andPrioritization

Phase

Project SetupPhase

Review/ApprovalPhase

Release GroupingPhase

PrioritizationPhase

ConceptualPhase

Project Request/Est outlining

functional reqmtsof project concept

developed

Coordinationbetween Business

and ITcounterparts in

reviewing/assessing PR

Conceptapproved byboth IT/Bus?

RetireProposal No

Yes

Obtain PR SignOff and Release/

PriorityRecommendation

PMO receivesrevised released

sked with businessrecommendationfor OC review/

approval

RecommendedRelease

Schedulessubmitted to PMO

for OC Review

OC Review

OC ApproveRel Sched?

ApprovedRel Schedprovided to

BoD

No

Yes

NoConsolidate/Prioritize all

Project Submittalsinto ProjectPriority List

TO IT/BusScrub PPL

and prepareRelease

Comm IT/BusScrub PPL

and prepareRelease

PMO/IT ProjectDept coordinate

the categorizationof the PPL into

releases accordingto strategicinitiatives

Finalized RelSched issued/maintained at

PMO

PMOestablishes

projectbudget

codes w/Finance

Final Rel Schedand associatedBudget Codesreleased to IT

Project Dept forexecution

ProjectDevelopmentProcess onall approved

project begins

Is this anannual

submittal?

Business Review

Business Review

AnnualMonthly

Appropriate BusReview Team

prioritize/approveagainst currentRelease Sked

Priority updatesand revisions

made to releaseskeds accordingly

Revised ReleaseSkeds Published

OC ApprovedRel Skedchanges?

Yes

No

Yes

Systems IT/Bus ScrubPPL andprepareRelease

Corp/Facilities IT/Bus ScrubPPL andprepareRelease

SCR or PRRsubmitted to PMOfor review/posting

(protrevreq)

Approved?

PMO assignsProduct Manager

for Impact Analysis(IA)

SCR or PRR w/IAsubmitted to PRS/60% Confidence

Approved?

SCR or PRRsubmitted to

F&A/BoD80% Confidence

Approved?

Yes

Yes

Rejected orWithdrawn No

Now/cmts

SCR or PRR w/IAsubmitted to TAC70% Confidence

Yes

Rejected orWithdrawn No

Now/cmts

Rejected orWithdrawn

Now/cmts