texas nodal market implementation tptf readiness advisor november 29, 2006

Texas Nodal Market Implementation

TPTFReadiness AdvisorNovember 29, 2006

AGENDA

• Overview of approach taken at MISO

• Contrast MISO situation with ERCOT situation

• Approach recommended for ERCOT readiness advisor function

• Schedule of readiness advisor activities over the next 12 weeks

Readiness Advisor Team

• Steve Balser• Jesse Harmon

• Don McCormick

Readiness Advisor

Readiness Advisor at the Midwest ISO


MISO engaged in a dialogue with its members and stakeholders to provide a greater degree of transparency and certainty about its

commitment to successfully launch its energy markets

One common characteristic of well-run projects is that they have specific interim goals or milestones which can be identified and measured so that progress toward achievement of an ultimate objective can be transparently understood.

The Midwest ISO stakeholders requested that additional milestone reports be disseminated so that the stakeholders can better monitor the Project’s progress.

This resolution also requested that the Midwest ISO make monthly reports to the Advisory Committee regarding progress towards satisfying such performance criteria.

In an attempt to respond to stakeholders’ requests for additional milestone and metrics reports, the Midwest ISO conducted a series of stakeholder consultations to determine the milestones and related performance criteria stakeholders believe should be used to evaluate the Project’s progress in each milestones report

The MISO’s interaction with stakeholders, including especially the Transmission Owners Core Working Group (“TOCWG”), led to development of a set of Readiness Metrics

Accordingly, the Midwest ISO agreed with the TOCWG and the RA that a Metric Interpretive Guidance document (“MIG”) would be created for each metric to clarify its meaning, as well as to identify the principal pieces of information that would be considered to determine whether or not the metric had been met and the specific standards against which each piece of relevant information would be judged.

Another feature of the MISO’s metrics process is the development of a completion review process by the MISO for each metric, once the MISO believes that the metric has been completed. Input to the review process summarizes the evidence that demonstrates completion. Once the review process for each metric is completed and has passed internal MISO review, it is then provided to a Readiness Advisor for further review and verification of whether or not the metric has indeed been successfully completed.


• Facilitate the development of metrics with the Metric Interpretive Guidance Task Force (MIGTF)

• Examine the evidence for each Metric and render the decision of when the Metric has been verified as met

• Follow up with MISO on any outstanding questions or issues that are preventing the completion of Metric verification

• Provide regular periodic readiness assessments to the CEO and the MISO Board of Directors and Stakeholders

• Produce regular interim reports that cover all milestones and metrics, providing information such as (and not limited to), any observed issues potentially impeding progress

• Produce an Executive Report prior to the start of Market Trials and send the report to all stakeholders in advance of its final presentation

• Produce an Executive Report prior to the launch of the Markets and send the final report to all stakeholders in advance of its final presentation

• Provide presentations on readiness to the CEO and the Board of Directors and the Advisory Committee and the Organization of MISO States as requested

The Readiness Advisor was formed as an independent advisor to the Midwest ISO (MISO) senior management, MISO Board of Directors, MISO Market Participants,

and the Organization of MISO states on the status of preparation of activities leading up to and including launch of the day-ahead and real-time energy

markets.

Readiness Advisor Activities

Readiness Advisor at the Midwest ISOOrganization

MISOExecutive Management

MISOMetric Owners

Organization of MISO States

Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor

MISOMetric Interpretive Guidance

Task Force



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

Market Participants Representing 15 states and 1 Canadian Province

Presented Readiness Status Monthly

Met with as requested



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

30+ member committee representing the Market Participants and Organization of MISO States

Presented Readiness Status Monthly as part of standing agenda



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

Organization of state regulators within MISO footprint

Presented Readiness to OMS on an “as required” basis

Interacted with frequently on FERC filings



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

MISO Board of Directors meet monthly

Presented Readiness Status Monthly as part of BOD standing agenda



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

MISO CEO and Direct Reports

Report Readiness Project Status weekly

Met frequently



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

MISO personnel responsible for metric development and completion

First line of communication for Readiness Advisor during the verification process, observations and interviews



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

Task force consisting of MISO personnel, Market Participants and OMS members acting as final authority of metric development

Provided SME expertise for MIGTF monthly and adhoc meetings



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

Federal Energy Regulatory Commission

Available to FERC personnel for Readiness Status on an as-required basis



MISOMetric Owners


Market Participants

Advisory Committee

Board of Directors

FERC

Readiness Advisor


Task Force

On Site Readiness Advisor Team

Review and verify submitted metrics

Provide scheduled status reports

Provide the Verification Report

Conducted weekly “Call” inviting all parties to ask Readiness Status questions

Provide milestone reports to include a Final Report

A “metric” in the MISO definition is a further definition of milestones that

give a more transparent view of progress being achieved.

A description and achievement verification criteria for each metric was defined by the metric “owner”

and final approved by a joint team of MISO staff and MPs with additional

facilitation by the RA team.

One hundred and twenty-six (126) “metrics” were identified for

measurement representing ten (10) areas key to a successful market

launch

Readiness Advisor at the Midwest ISOMetric Development

• The 126 MISO metrics were aggregated into 10 groups called metric categories. The metric categories provided the means to visibly track and report progress. The following is a list of the 10 MISO metric categories.

– Business Practice Manual Readiness (7)– Market Participant Readiness (18)– Control Area Readiness (11)– Joint Operating Agreement Readiness (16)– State Estimator / LMP Readiness (17)– Financial Transaction Rights (FTR) Readiness (10)– Market Monitor Readiness (3)– Contingency Readiness (11)– Systems Readiness (14)– Participant-Side Readiness (3)



Sample of actual metrics for 3 selected metric categories:

• Market Participant Readiness– Ninety percent (90%) of Market Participant Applicants who have started registration

and provided all required data on or before April 30, 2004 [per metric 42.1] complete asset registration.

• State Estimator / LMP Readiness– Real-Time Performance Criteria – For thirty (30) consecutive days a Valid State

Estimator solution must be achieved for ninety-seven percent (97%) of the five (5) minute periods within that thirty (30) day period. There will be no more than three (3) consecutive five (5) minute periods without a valid solution (except when there is a planned system software migration as required by the Energy Markets project or when ICCP data is unavailable due to remote CA ICCP node errors). Valid solution is defined as one converged solution in a 5 minutes period using converge tolerance of .002 per unit voltage magnitude and/or angle and maximum power mismatch of 50MW inside the State Estimator model within the Midwest ISO Market footprint.

• Contingency Readiness– For failure to achieve the Real-Time solution, Midwest ISO shall have a process for

evaluating and approving the future operation that manages congestion and maintains reliability. The processes shall be tested and shall include for each geographical area: Demonstration of generation dispatch.


Market Launch

March 1, 05

40.3 Data xfer mkt to non-

mkt

40.4 Data xfer mkt to mkt

40.5 UDS ids lack of

generation capability

40.6 Day-prior RA ids lack of

gen & ID’s gen starts

40.7 Day-prior RA ids lack of gen to solve congestion

40.8 P&P to move from voluntary to

binding dsptch

40.1 Marginal loss calc per

JOA

40.2 Redisptch ext flow gates mkt

to non-mkt

56.1.1 CRD 40.6 & CRD

40.7

40.4.1 Calc mkt flow &

upload NERC IDC per JOA

40.3.3 TLR & LMP rdisptch

usng NNL limits per JOA

40.3.2 Comp MISO OATT

to NNL & AFC per JOA

40.3.1 Calc network native

load limits

59 Seams protocol

approved by NERC

57 Rectifies Seams Issues

56.1.2 CRD 40.6 & CRD

40.7

87 Establish MISO Mngmt to Mkt Monitor

Interface

86 Mkt Monitor has RTM Data

Access

85 Mkt Monitor has

connectivity to Mkt Systems

30 Clear RTM by bids, offers & UDS for 1

week

88 Dist settlement

objectives SA 70 Type II

29 Produce settlements &

weekly invoices

31 – Pub day ahead market & RAC for 1

week

25 Operate 1 week of market

functions

35 Reserve sharing

agreement simulation

45.4 Operate RTM for 2 one-hour periods

45.1 Rpt system

deviations to all SH

45.3 Simulate mkt system

ops for 1 week

45.2 ID critical & hi level

defects in Mkt systems

33 Two 1-hr RTM test

using LMP on 75% load

54 Publish emergency operation

procedures

13 Dev and publish mkt

rules

10 BPM documents CA & MISO

functions

11 Mkt continuity plans &

processes doc

12 Dev & pub procedures for

RT ops

44 Receive approved mkt

tariff from FERC

43 Publish BPMs

69 MP Cert & registration complete

72 ISO mbr complete readiness

checklist act.

39 MP telemetry & xfer & timing test for LMP

42.6 Post cert entities to MMI

website

42.5 MP posted

readiness checklist cmplt

42.4 MP DILE defined user roles on MMI

website

42.3 MP in DILE have completed XML tests

42.2 MP in DILE have

claimed assets

42.1 Register MP in DILE

70 MP assets registered & confirmed

75 MP DILE Checklist complete

80 MPs able to XEQ Mkt Functions

79 MPs able to xchng timely Mk

transactions

28 Xtrans volume test

for all MPs for 24 hrs

76 MPs complete

Readiness Checklist

77 MPs complete

asset registration

78 MPs complete

credit verification

83 MP Saff Trained

84 MPs complete

Readiness Checklist

07 FTR initial allocations completed

64 Develop residual FTR

business process

60 Finalize FTR allocation

process

65 Document & distribute

FTR process

66 Post non-prop FTR data fro SH review61 MP submit

nominations for FTRs

63 Publish FTR allocation

web site

62 Test FTR allocation software

67 Test FTR auction bidding software

32 Process FTR auction for 1 week

03 SE Resolution = .002puV &

50MW

02 SE availability =

97% for 1 week

01 SE availaibility + resolution for

1 week

46.1 ICCP links monthly avail > 99%

38 Monthly snapshot of

network model topology

37 Final review of net model inputs

52 DARA – must

sensitivity <+/- 5%

51 Non limtg elmnts,

telemtry – SE flow <+/- 10%

50 outside MISO telemtry flow – SE flow

<+/- 5%

49 Telemetereds

volts – SE volts <+/- 2%

48 Power flow base case - Se flow <+/-

1%

47 Telemetered

flow – SE flow <+/- 5%

46 SE avail + resolution met

for 30 days

26 LMP & UDS @ 5

minute intervals

58 DA & RTM load forecasts 1 wk <=+/- 5%

27 Validate LMP

41.2 CA compltn of reimburse checklist

41.5 Distribute digt certs to CA for DILE

41.4 Distribute digt certs for

testing to CAs

41.3 Cert Cas represent 75% load posted to

web site

41.1 Completion of

CRD 41.2

71 Cas validate data xchng (ICCP,

XML)

82 CA Staff Trained

81 MPs able to resp to

simulated gen base pt comm

73 Cas simulate NSI

34 CA digt test cert xfer’d before launch

36 Settlement LMP

generation without SE

55.1 Exit SE Process

55.2 Generate unit dispatch for SE failure

55.3 Calculate NSI for SE

failure

55.4 Demo congested

relief for SE failure

53 MISO back-up facility &

systems test

56.2.1 Generate unit dispatch for RAC failure

56.2.2 Alleviate

congestion for RAC failure

56.2.3 Define load

reductions for RAC failure

Market MonitorReadiness

Market ParticipantReadiness

BPMReadiness

SystemsReadiness

Market Readiness

JOA Readiness

ContingencyReadiness

CA Readiness

LMP / SE ReadinessFTR Readiness

MISO METRIC MAP

Readiness Advisor

48

Day in the Life E

Verified

Market Launch

Market Trials

Readiness Advisor Report As of

December 1, 2004

0Awaiting Owner

Sign Off

DOES NOT INCLUDE 16 CRDS VERIFIED BY PREVIOUS READINESS ADVISOR

4Less Than Adequate

As of December 1, 2004

47.1 Telemetry –

Gen SE < 5%

Readiness Advisor at the Midwest ISOMetric Verification

PlanningPlanning(Coordinate betw een (Coordinate betw een

SAIC & MISO)SAIC & MISO)

PlanningPlanning

MISO &MISO &StakeholderStakeholderObjectives, Objectives,

Criteria, MetricsCriteria, Metrics

PerspectivesPerspectives•• “ISO Unique”“ISO Unique”•• Industry Industry

Step 1

Step 2

MetricMetricDataData

ReviewReview

InfrastructureInfrastructure

Data QualityData QualityRepeatabilityRepeatability

Ease of AccessEase of Access

ReadinessReadinessStateState

OperationalOperationalAlertsAlerts

Casual FactorsCasual Factors

ReviewReviewPlanPlan

Periods / CyclesPeriods / CyclesKey Trend FunctionsKey Trend Functions

Success CriteriaSuccess Criteria

ReportingReportingRYGRYG

Trend ViewTrend ViewQuantitiesQuantities

AlertsAlerts(Advanced(AdvancedReporting)Reporting)

PerformancePerformanceProgressProgressAnalysisAnalysis

Step 5

Process Process AssessmentAssessment

State ofState ofReadinessReadiness

PeriodicPeriodicReviewsReviews

Step 6

Step 7

TrendsTrends InterimInterimReportsReports

ReportsReports

ExecutiveExecutiveReportsReports

ReadinessReadinessPresentationsPresentations

Step 3

Step 4




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 1 Planning - The planning step ensures that all parties agree, up front, to the way the project will be conducted. It baselines the scope, schedule, and approach of the effort and forms the basis for all subsequent steps




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 2 MISO & Stakeholder Objectives, Criteria, and Metrics - This step focuses on reviewing MISO’s MMI with respect to its objectives, commitments, and requirements. It will begin immediately after the planning activity and encompass collection of pertinent objectives around MMI




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 3 Infrastructure - The purpose is to institute a repeatable, defensible collection and analysis process for the MISO-defined metrics




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 4 Performance and Progress Analysis - The goal is to aggregate, relate to the critical path for tariff implementation, and document the selected MISO MMI metrics, analyze development performance, and project progress against the success criteria and critical path for MMI. This goal includes observation of MISO testing and validation of the network model, the LMP calculation, and other key calculation tools like load forecasting and the commercial model underlying FTR allocations and markets




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 5 Trends - This step will synthesize the information of the Analysis step, develop trend functions that provide additional information about performance and progress often of predictive value, and identify metrics that (during specific periods) may provide forward-looking cues of emerging critical issues




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

• Step 6 State of Readiness - This step will synthesize the information of the metrics and trends steps to enable a valuation of the state of readiness of the MMI systems and processes, including key models and calculation tools




PlanningPlanning




Step 1

Step 2


ReviewReview














Step 5




Step 6

Step 7


ReportsReports



Step 3

Step 4

Step 7 Executive Reports and Presentation - This step will develop the reports and presentations necessary to properly communicate the state of readiness, performance and progress metrics, and performance and progress trends


Completion ReviewDiagram (CRD)

Summarizes the evidence that demonstrates completion. Once the CRD for each metric is completed and has passed internal MISO review, it is then provided to the RA as part of the RA’s review and verification of whether or not the metric has indeed been successfully completed.


Completion Review Document Submitted

RA Reviews CRD Criteria and

Results / Supporting

Documentation

Metric Verified

Verified

Less Than Adequate

Returned to MISOResolution Significant?

Impact Assessment

Acceptable

Modify Metric

Correct Weakness

DocumentResults

Yes

No Yes

No

No

No

Yes

Completion Review Document verification process:

Verification Report

The Verification Plan document sets forth, on a metric-by-metric basis, the approach that the RA will take to verify that each metric has been completed or achieved. The Verification Plan indicates the types of approaches that will be applied by the RA to verify different metrics and establishes the minimum set of activities that will reasonably establish that the metric has been met.

Readiness Advisor at the Midwest ISO Metric Verification

Readiness Advisor at the Midwest ISOReporting

• Reported market status directly to the MISO Chief Executive Officer and his direct reports weekly.

• Presentation to the Board Of Directors monthly.

• Presentation to the Market Participants and Stakeholder Advisory Committee monthly.

• Presentation to the Organization of MISO States, an organization represented state regulators for the 15 states residing within the MISO footprint. These sessions were scheduled on an as-requested basis. In person presentations were performed on 3 occasions.

• Readiness Advisor formal reports evaluating market readiness was delivered prior to Day-In-The-Life, Market Trials, Parallel Operations I & II and for the MISO filing to FERC requesting approval for subsequent market launch on April 1, 2005.

Readiness Advisor at the Midwest ISOReporting

Readiness Advisor

Readiness Advisor at ERCOT

ERCOT Metric Category Framework as derived from the ERCOT BusinessProcess Architecture (appendix) and the known MISO Metric Categories:

– Power System Readiness– Power System Operation Readiness– Wholesale Market Operation Readiness– Wholesale Market Settlement Readiness– Wholesale Market Services Readiness– Compliance Readiness

– Market Monitor Readiness– Market Participant Readiness– Participation-Side Readiness– External Business Readiness– Management Readiness– Contingency Operation Readiness

ERCOT Metric Category Framework


ERCOT Readiness Advisor Project Plan


• Proposed Project Plan Overview - Approach to Establishing a Readiness Advisor at ERCOT

– Aligning the organization

• Metric Task Force (MTF) – Subgroup of TPTF responsible for assisting the RA in developing the Metric Category Framework and for oversight in providing the detailed Metrics associated with each category

• Metric Category Managers (MCM) – Person in charge of a particular category of Metric.; Metric Owners report to the Metric Category Managers.

• Metric Owner (MO) – Person responsible for developing the criteria and executing the measurements associated with a particular Metric. Metric Owner is responsible for developing the measurement system, ensuring the measurements are completed, and the determination the status of the Metric.

• Readiness Advisor (RA) – Entity responsible for facilitating the development and execution of the Readiness Program

– Establishing the infrastructure

• Metric Category Framework – List of activity/process/calculation categories that require Metric definitions

• Metric Category – A grouping of metrics associated by business function, the responsibility of a Metric Category Manager.

• ERCOT Metrics – Measurable criteria that is used to determine whether a particular activity/process/calculation is being correctly performed

• ERCOT Metric Landscape - Collection of Metrics used to determine whether the Nodal implementation is ready to go live.

– Preparing for “Verification”

• Ongoing Process

ID Task NameNov 2006 Dec 2006 Jan 2007 Feb 2007

11/19 11/26 12/3 12/10 12/17 12/24 12/31 1/7 1/14 1/21 1/28 2/4 2/11

1 ERCOT Project Plan Approved

2 Metric Task Force Established

3ERCOT Metric Category Framework Complete

4 Metric Category Mangers Selected

5 Metric Owners Selected

6 ERCOT Metrics Identified and Defined

7 ERCOT Metric Landscape Approved

ERCOT Readiness Advisor Schedule

Project Plan Texas Nodal – Readiness AdvisorProject Number Charter Date November 29, 2006

Program Director IRT Project Manager

Readiness Advisor Scope This Phase of the Texas Nodal Readiness Advisor Program will entail the establishment of the organization and infrastructure

necessary to support the ongoing readiness activities as the ERCOT transitions from a zonal to nodal market. Four major activities will be accomplished during this timeframe:

•Establishment of the readiness organizational responsibilities: –the Metric Task Force; –the Metric Category Managers and –the Metric Owners

•Development of the Metric Category Framework•Identification of Metrics•Development of the Metric Landscape

–Verification Report which includes high level metric description–Metric Map

The Readiness Advisor Project team will participate, facilitate and, when required, lead the successful achievement of the above activities.

Readiness Advisor Objectives

Provide an ERCOT Metric Landscape that will serve as a baseline for the Readiness Advisor activity to provide an accurate, timely, ongoing and transparent representation of key activities and milestones as the market transitions from a zonal based market to a nodal based market

Specific objectives are to:

Provide and facilitate an organizational infrastructure and associated processes to develop:The ERCOT Metric FrameworkThe ERCOT MetricsThe ERCOT Metrics landscape


Project Plan Texas Nodal – Readiness AdvisorReadiness Advisor Processes

As shown below:

Develop Project Plan encompassing Readiness Advisor Step

2 Activities

Present the Project Plan to the TPTF for comment and

approval. The Project Plan will detail the proposed ERCOT

approach to the Readiness Advisor activity to include a

detailed schedule outlining Stakeholder and ERCOT project

participation. Also included with the Project Plan is an

overview of the readiness activity as practiced at the

Midwest ISO.

Approve the Project Plan

Establish the Metric Task Force (MTF) ~ A subgroup of the

TPTF assigned to specifically oversee the Readiness Advisor

Project, to facilitate Market Participant participation and to

provide final approval for all Metrics

Develop the Metric Category Framework which defines the

highest level of categorical areas as defined within the

scope of the Readiness Advisor Program. The Metric

Category Framework is derived from the ERCOT Process

Model (level 1 & 2) and the MISO Category List

Establish Metric Category Managers (MCM) for each Metric

Category. The MCM is responsible for a specific metric

category and the development of metrics applicable to that

category

Establish Metric Owners (MO) for each metric as identified

within the Readiness Program. MCMs may also be MOs

and the relationship of MOs to Metrics can be one-to-one

or one-to-many

Develop the ERCOT readiness metrics to include a brief

description of each Metric and a proposed method of

measurement. The ERCOT metrics will be derived

from the ERCOT Process Model (level 2) and the

MISO Metric List

Approve the ERCOT Metrics creating the Approved ERCOT

Readiness Metrics

Develop the ERCOT Metric Landscape which is a

presentation depicting the ERCOT Metric Category

Framework with all associated ERCOT Metrics and the

ERCOT Metric Verification Report

Approve ERCOT Metric Landscape for final delivery


Project Plan Texas Nodal – Readiness Advisor

Key Milestones Key Dependencies

Acceptance of the Readiness Advisor Project Plan

Metric Task Force Established

Metric Category Framework Established

Metric Category Managers Identified and Staffed

Metric Owners Identified and Staffed

ERCOT Readiness Metrics Identified

ERCOT Metric Landscape Complete and Delivered

Input Dependencies: ERCOT Business Process Architecture Map Levels 1 & 2 MISO Metric Category List

Output Dependencies: ERCOT Metric Landscape

External Dependencies: TPTF

Approve Project Plan and ApproachApprove ERCOT Metric CategoriesApprove ERCOT MetricsApprove ERCOT Metric Landscape

Assumptions TPTF has appropriate participation, resources, and time available.

The Metrics Task Force Team is represented by all Stakeholder sectors

The Metric Task Force Team (MTF), the Metric Category Managers (MCM) and the Metric Owners (MO) are staffed by personnel

with domain expertise pertaining to their responsible area.

In an ongoing fashion, key ERCOT and Stakeholder personnel will be available to RA team members for such activities as

scheduled interviews, metric clarification and work process and system observation.

RA team will work in a work area to insure confidentiality of metric information and resulting information


Project Plan Texas Nodal – Readiness AdvisorReadiness Advisor Deliverables

As shown below:.

ERCOT Metric Category Framework - List of high

level activity/process/calculation categories that

require Metric definitions

ERCOT Metrics - Full set of Metrics including a

description and criteria necessary to test readiness.

Specific acceptance criteria will be addressed in the

Readiness Project’s next phase

ERCOT Metrics Landscape - Collection of Metrics, by

Metric category, used to scope the next phase of the

ongoing Readiness Project and to status the ongoing

progress of the Nodal implementation once

underway. To be presented in as the ERCOT Metric

Verification Report and the ERCOT Metric Map.


Project Plan Texas Nodal – Readiness AdvisorKey Risks Risk Mitigation Strategy

Identification and participation of Metric Task Force (MTF) members that represent a cross-section of business sectors representing ERCOT stakeholders

1. The TPTF will select MTF members to represent as many business sectors within the ERCOT stakeholder community as possible

Identification and Participation of Metric Category Managers (MCMS) and Metric Owners (MOS) that possess the in-depth domain expertise an knowledge necessary to define metrics and metric criteria

1. MCM and MO team members will be selected based on pertinent domain expertise and domain responsibilities

All team members, Metric Task Force (MTF), Metric Category Managers (MCM) and Metric Owners (MO) and associated resources will be available to participate as scheduled in support of, and for the duration of, the Readiness Advisor activities

1. Team members will be assigned that have a desire to participate and who will be available to the effort on an ongoing basis

2. The Readiness Advisor project schedule will provide the information required for all team members to plan for their participation in advance of the time requirement


Project Plan Texas Nodal – Readiness AdvisorApproach Key elements of the required approach are clear:

This project plan establishes the metric baseline for going forward with the Readiness Advisor Program – Future changes to

this scope will be subject to formal change control as employed by the Metric Task Force (MTF)

The ERCOT Metric Category Framework will be approved prior to moving forward with the definitions of the ERCOT Metrics

All ERCOT Metrics will be approved by the Metric Task Force (MTF)

Descriptions and metric acceptance criteria will be established by the Metric Owners (MO)

Organization Model The readiness project team consists of:

Metric Task Force

Metric Category Managers

Metric Owners

ERCOT Management

ERCOT Employees

Readiness Advisor Team

Next Steps Establish the Metric Task ForceEstablish the ERCOT Metric Category FrameworkEstablish the Metric Category Managers


Readiness Advisor

ERCOT Readiness Advisor Schedule and Resource Requirements

Readiness Advisor

MISO Market Launch Progress as Seen Through the Monthly Metric Maps

Readiness Advisor

End of October

Readiness Advisor

End of November

Readiness Advisor

End of December

Readiness Advisor

End of January

Readiness Advisor

End of February

Readiness Advisor

End of March


APPENDIX


Level 1: Capability Level 2: Process

CPPS P01 PlanFutureBaseCase Plan future base casesP02 EvaluateVoltageSetpoints Evaluate voltage set pointsP03 ReviewUpdateUnitStatus Review and update unit status

COPS P01 ModelManageData Model and manage the power system dataP02 ProcessMonitorTelemetry Process and monitor telemetry P03 CoordinateOutages Coordinate outagesP04 EstimateStateAnalyzeContin

gencies Estimate system state and analyze contingenciesP05 ForecastLoad Forecast loadP07 DevelopASAnalyzeVoltageSt

ability Develop AS requirements and analyze voltage stabilityP08 MonitorDeployAS Monitor and deploy ancillary servicesP09 ReportMktRegComplMgmt Report to Market, Regulatory, Compliance and Mgmt

COWM P01 RunDAMarkets Run the day-ahead marketsP02 RunSuppASMarkets Run the supplementary ancilary services markets P03 RunRUC Run the Reliability Unit Commitment P04 RunRTMarkets Run the real-time marketsP05 ConductCRRMarkets Conduct the CRR marketP06 ValidateCOPPrices Validate COP and prices P07 AnalyzeMarket Analyze the marketP08 ReportMktRegComplMgmt Report to Market, Regulatory, Compliance and Mgmt

Adjustment Period Operate all features of Adjustment PeriodShort Term Wind Power Forecast Rolling 48 hour wind generation forecast

Plan the power system

Operate the power system

Operate the wholesale market



CSWM P01 MeterAcquireData Meter and acquire dataP02 CreateLoadProfileAggData Create load profile and aggregate data

Aggregate CRR data Aggregate CRR ownership and revenue collectionP03 SettleBillTransfer Settle, bill and transferP04 ReportMktRegulatoryMgmt Report to Market, Regulatory and Mgmt

CPWM P01 RegisterValidateMarket Register and validate wholesale marketP02 MonitorCredit Monitor creditP03 ManageAccountsIssuesDisp

utes Manage accounts, issues and disputesP04 ReportExtractData Report and extract dataP05 ReportMktRegulatoryMgmt Report to Market, Regulatory and Mgmt

CMSC P01 MonitorReportCompliance Monitor and report adherence to regulatory standardsP02 SupportMarketMonitoring Support wholesale market monitoring

TSP Performance Monitoring

Provide wholesale market services

Monitor and support compliance

Settle the wholesale market



Market Monitor Market Knowledge Understanding of all market rules and operationsDetection and Prevention of Minipulation Develop and implement necessary monitoring toolsEvaluate Market Operation, Current Protocols, Proposed Changes to Protocols

Evaluate current and future market protocolsReporting and PUCT Enforcement Support Reporting and enforcement support

Market Participants Register MP Register Market ParticipantsCertify units Certify generators and capabilitiesRenewable Energy Credits Registration of renewable energy credits account holdersRetail Customer Choice Register Retail Choice CustomersProtected Information Maintain confidentiality of Protected Information


Participant Readinesss COPSubmit daily Current Operating Plan

Submit inputs into DA market Submit inputs into Day Ahead MarketSubmit availability of RMRand Black Start Units Report availability of RMR and Black Start Units to DA MarketCredit Establish market credit requirementsResource Performance Monitoring and Compliance

Provide resource performance reports

External Business Requirements

Joint Operating AgreementsExecute and maintain Joint Operating Agreements

RMR Execute and maintain RMR contractsAncillary ServicesNERC certification Maintain NERC cerftification




Management Outage Coordination Administer outage coordination requirementsAnalysis of Long Term Resource Adequacy Determine and meet long term resource adequacyChanges to Grid Administer grid changes requirementsLoad Zones Determine and maintain load zone definitionsHubs Determine and maintain Hub definitiions

Load ParticipationAdminister load participation in A/S markets and RT voluntary response

Resource Parameters Administer resource parameter reporting requirementsSplit Generation Meters Record and model split generation meteringConstrained Competitiveness Test Determine and administer competitive constraints

Contingency Operation

texas nodal market implementation tptf readiness advisor november 29, 2006

Documents

midwest iso stakeholders

midwest isoreadiness

metrics reports

development of metrics

midwest isomiso

midwest isofacilitate

set of readiness metrics

completion review process