1. EMS User’s Group 2008 Presented By Curtis Crews of ERCOT and Margaret Goodrich of Project Consultants, LLC Presented to EMS User’s Group Atlanta, GA September 8, 2006 CIM and Utility Integration

2. 2 © 2008 Project Consultants, LLC All rights reserved. Topics ERCOT Nodal Project Introduction –Who is ERCOT –What is Nodal –The ERCOT Challenge –The CIM Requirement –Project Schedule Nodal Implementation Plan Data Exchange Plan CIM Implementation Plan Operational to Planning Model Conversion Lessons Learned

3. 3 © 2008 Project Consultants, LLC All rights reserved. ERCOT Nodal Project Introduction – Who is ERCOT Grid covers 75% of Texas’ land and serves 85% of Texas’ load 38,000 miles of +60kV transmission lines 750 miles of 345kV lines added since 1999 ~4000 miles of transmission lines over the next 5 years (wind) 70,000 MW of total resources 26,000MW of generation added since 1998 ~4000 MW/yr of new generation over the next 5 years (wind) 63,056 MW peak load (8/17/2006) 5400 Bus Model ERCOT is a single control area with no seams issues ERCOT has 3 pairs of DC ties ERCOT has roughly 2000 model changes per year ERCOT

4. 4 © 2008 Project Consultants, LLC All rights reserved. ERCOT Nodal Project Introduction – What is Nodal Zonal Market Insufficient price transparency Resources grouped by portfolio Indirect assignment of local congestion Minimum number of Congestion Management Zones Nodal Market Improved price signals Improved dispatch efficiencies Direct assignment of local congestion 4000 Nodes

5. 5 © 2008 Project Consultants, LLC All rights reserved. ERCOT Challenge is unique in North American Interconnected Grids Unique ERCOT Characteristics  Intra-state electric interconnection  Single regulatory body – Public Utility Commission of Texas (PUCT)  Registration is unique in Texas  Unique provisions for Non Opt-In Entities (Munis and Coops) in Texas  Requirement to model equipment at lower voltages (down to 60kV)  High pace of economic growth in Texas  Wholesale and Retail scope impact  Metering and data aggregation is unique at ERCOT Texas consumers and market participants expect benefits similar to that of other ISOs in the Nodal market, but ERCOT differs significantly in technical protocols, governance, organizational structure and economic landscape.

6. 6 © 2008 Project Consultants, LLC All rights reserved. The CIM Requirement The principal binding document (the ERCOT Nodal Protocols signed into Order, Docket #31540) established the requirements for the Nodal Program Document was approved by the PUCT & the Market Participants Section 3.10 (7) states: ERCOT shall use an automated process to manage the CIM-compliant packages loaded into the Network Operations Model as each construction phase is completed. Section 3.10 (8) states: each change must be posted using the CIM data exchange format showing incremental changes to the last posted ERCOT Network Operations Model Section 3.10.4 (8) states: ERCOT shall provide model information through the use of the Electric Power Research Institute (EPRI) and NERC- sponsored Common Information Model (CIM) and Web-based XML communications.

7. 7 © 2008 Project Consultants, LLC All rights reserved. Initial Project Schedule The PUCT, the Texas Legislature, and the Market Participants defined the Schedule as follows: –CIM Model and all CIM Data Exchange functions to Go Live on March 31, 2008 –Real-Time Operations to Go Live on December 1, 2008 –Day Ahead and CRR Market to Go Live on December 08, 2008 This schedule gave ERCOT less than 3 years to select the vendors and implement the Nodal Market. All RFPs were written, distributed and all Vendors were selected by June 2006 – AND THE PROJECT BEGAN….

8. 8 © 2008 Project Consultants, LLC All rights reserved. Nodal Market Scheduled to Go Live December 2008 EMS Trials & Implementation MMS CRR MIS NMMS Commercial Systems ERCOT & MP Readiness Q2 2008Q3 2009Q4 2008Q3 2008Q2 2007Q1 2007Q4 2006Q4 2007Q1 2008Q3 2006Q1 2009 Integration EDW Q2 2009 EDS 3 MMS FATITEST CRR Design, Build, Pre-FATCRR FATITEST Final MP Interface Specs 3/31 12/01/08 Real Time Operations GO LIVE MIS (EMS/MMS/CRR) Design, Build, Pre-FAT EDW FATITEST Statements Layout Script test ITESTEMSEMS FAT EMS Requirements, Conceptual Design ITESTMIS (SCED) Design, Build, Pre-FATMIS FAT MMS Design, Build, Pre-FAT MMS Requirements, Conceptual Design ITEST OS Build FAT OS Requirements, Conceptual Design CRR Requirements, Conceptual Design Commercial Systems Design, Build, Pre-FATCS FATITEST EDW Requirements, Conceptual Design ITESTSCED BuildSCED FAT SCED Requirements, Conceptual Design Registration ready Business Requirements complete 10/30 Preliminary MP Interface Specs 12/31 CS Requirements, Conceptual Design EDW Design, Build, Pre-FAT MIS FATITEST EDS 4 Go-live Trans. OTS ITEST OTS FAT EDS 3 Mote & ERCOT UAT Planning UI FATITEST Naming Convention DB Common model update process NMMS Conceptual Design Naming Convention information collection Model Data Certification Model Data Remediation Reconciliation NMMS Build Outage Scheduler EDS 1/2 BuildFATITEST Requirements, Conceptual Design ITESTOS FAT 6/30/08 LMP Market Readiness Criteria MET Q3 2007 Operations UI Qualification Freeze Registration complete 168 hour market trials End of Trials MP Nodal Registration MP Financial & Operational Qualification MPSCED Offers Begin MP trial participation 3/31/08 Single Entry Model GO LIVE 12/08/08 Day Ahead Market/CRR GO LIVE Zonal Shutdown GO/NO GO

9. 9 © 2008 Project Consultants, LLC All rights reserved. Project Schedule The schedule was too aggressive The schedule did not include sufficient time for integration of the systems The initial schedule will not be met. An assessment is underway and a new schedule will be completed soon.

10. EMS User’s Group 2008 10 Nodal Implementation Plan

11. 11 © 2008 Project Consultants, LLC All rights reserved. ERCOT’s Zonal Implementation Key ERCOT Siebel Areva Manual LODESTAR Other MP Registration Market Operations OSGenesys EDWTMLEMS CM&M Load FMOS Business and Engineering Model SettlementMid TermDay AheadReal Time User Interface Power Operations QSE Systems S&B Integration IMM Current Application Vendors  B&SBilling & Settlements  CRRCongestion Revenue Rights  CM&MCredit Monitoring & Management  DAMDay-Ahead Market  EDWEnterprise Data Warehouse  FT Financial Transfer  IMMIndependent Market Monitor  LFLoad Forecast  MISMarket Information System  MP RegMarket Participant Registration  NMMSNetwork Model Management System  OSOutage Scheduler  RUCReliability Unit Commitment  SCEDSecurity Constrained Economic Dispatch

12. 12 © 2008 Project Consultants, LLC All rights reserved. ERCOT Nodal Implementation Key ERCOT Siebel Siemens ABB Areva ROME AWS Truewind Nexant LODESTAR UISol Enterpulse Other MP Registration Market Operations OSCRRNMMS EDWMISEMS DAM CM&M Load FSCEDRUC Business and Engineering Model SettlementMid TermDay AheadReal Time User Interface Power Operations QSE Systems S&B Tibco Integration Bus IMM RPPF Nodal Application Vendors  B&SBilling & Settlements  CRRCongestion Revenue Rights  CM&MCredit Monitoring & Management  DAMDay-Ahead Market  EDWEnterprise Data Warehouse  FT Financial Transfer  IMMIndependent Market Monitor  LFLoad Forecast  MISMarket Information System  MP RegMarket Participant Registration  NMMSNetwork Model Management System  OSOutage Scheduler  RUCReliability Unit Commitment  SCEDSecurity Constrained Economic Dispatch

13. 13 © 2008 Project Consultants, LLC All rights reserved. Majority of ERCOT Systems to be replaced or upgraded… MP Registration Market Operations OSCRRNMMS EDWMISEMS DAM Commercial Applications CM&M LF SCEDRUC Business and Engineering Model SettlementMid TermDay AheadReal Time User Interface Power Operations IMM Integration (information bus)  B&SBilling & Settlements  CRRCongestion Revenue Rights  CM&MCredit Monitoring & Management  DAMDay-Ahead Market  EDWEnterprise Data Warehouse  FT Financial Transfer  IMMIndependent Market Monitor  LFLoad Forecast  MISMarket Information System  MP RegMarket Participant Registration  NMMSNetwork Model Management System  OSOutage Scheduler  RUCReliability Unit Commitment  SCEDSecurity Constrained Economic Dispatch Degree of change 100% New/replacement >50% Upgrade/enhancement <10% Enhancement QSE Systems RPPF Integration Architecture is being upgraded to improve flexibility and maintainability

14. EMS User’s Group 2008 14 Data Exchange Plan (AKA NMMS using CIM/XML RDF Standards)

15. 15 © 2008 Project Consultants, LLC All rights reserved. Data Exchange Plan Integration had to handle exchange of data between 13 different systems. There were 4,000 separate and distinct data exchanges that had to be completed – point to point integration was not possible The data also had to be available to all ERCOT stakeholders ERCOT had to have a single, well documented and well understood data format that was not proprietary that all vendors could embrace It was decided the only way to complete integration in time was to use the CIM as the foundation to maintain, distribute and exchange the data This data exchange would include all models, model files and messages.

16. 16 © 2008 Project Consultants, LLC All rights reserved. Data Exchange Plan Create a central repository Database with a GUI and features to import, export and validate models and model changes Generate all models for all processes (and Vendors) –Repository for all model information –Both full and incremental CIM files –Use CIM/XML RDF Standards for file exchange format Accept incremental modeling updates in CIM/XML RDF standard file exchange format –Submitted by the Market Participants (TSP, RE)

17. 17 © 2008 Project Consultants, LLC All rights reserved. The Big Picture – NMMS: the CIM Repository

18. 18 © 2008 Project Consultants, LLC All rights reserved. NMMS Scope and Value Proposition NMMS High Level Scope Summary: Consistency between Operations and Planning models Streamlined method of entering modeling changes Common Industry Standard Format for submitting and posting model data, to eliminate a significant amount of manual work Faster, more efficient method of loading models and ability to provide multiple time-based models Improved tracking of model changes

19. 19 © 2008 Project Consultants, LLC All rights reserved.  ERCOT NMMS system provides Transmission Service Providers and ERCOT staff with the capability to submit changes to the network model electronically  Via a Graphical GUI interface  Via a CIM/XML RDF Incremental File or a CIM/XML RDF Full Model  NMMS performs initial validation on connectivity, equipment uniqueness, and basic constraints to reduce errors  NMMS exports the changes in a CIM/XML RDF Incremental file for each change that is submitted  NMMS generates CIM/XML RDF Incremental files or Full Models for all Downstream systems and the Transmission Service Providers. Common Data Entry

20. 20 © 2008 Project Consultants, LLC All rights reserved. Time Based Models  Capability to provide time based models on a consistent basis  Sending the same model to multiple destination applications for any future date  NMMS is a single model generating solution for all downstream applications at ERCOT.  NMMS can create both CIM/XML and PSSE file formats

21. EMS User’s Group 2008 21 CIM Implementation Plan

22. 22 © 2008 Project Consultants, LLC All rights reserved. CIM Definition – Obligatory Slide CIM is… –An information model that describes real-world objects and their interrelations within the electric power industry –A format for exchanging information Why is it important? –Provides a standard way of depicting data –Enables the integration of multiple applications and vendors –Facilitates bulk and incremental model exchange Common Information Model (CIM)

23. 23 © 2008 Project Consultants, LLC All rights reserved. ERCOT CIM – Namespaces and Profiles Required non-CIM attributes must be added to a separate namespace There are 3 namespaces that make ERCOT CIM CIM SPC – Siemens ETX – ERCOT

24. 24 © 2008 Project Consultants, LLC All rights reserved. CIM Extension Statistics (to date)  12 new packages defined: ETXContingency, ETX, ETXLoadModel, ETXMonitoring, ETXNetwork, ETXPlanning, ETXRating, ETXRegulation, ETXSCADA, etc  Roughly 140 new Classes  Roughly 850 new Attributes  Roughly 250 Associations  Roughly 70 Data Types defined  Roughly 150 Data Type enumeration defined  ERCOT is continuing to work with all vendors to ensure that the extensions will work in downstream applications (e.g. EMS, MMS, etc)  For each downstream system, a profile is created that contains each CIM Class, Attribute and Association required for that system.

25. 25 © 2008 Project Consultants, LLC All rights reserved. ERCOT CIM Profiles  ERCOT NMMS CIM Repository provides profile data exchange files for each of the following applications:  Emergency Management System (EMS) – Real-Time Model  Outage Scheduling (OS) – Model Topology  Outage Evaluation (OE) – Time Based Models  Operation Training Simulator (OTS) – Real-Time Model  Market Management System (MMS) – Day Ahead Model  Planning (PSS/E) – PSS/E Bus Branch Model  Congestion Revenue Rights (CRR) – Augmented Bus Branch Model  Settlements and Billing (S&B) – Small Profile Settlement Data File

26. EMS User’s Group 2008 26 Operational to Planning Model Conversion

27. 27 © 2008 Project Consultants, LLC All rights reserved. Operational to Planning Model Conversion  Requires ERCOT to transfer and convert Operations modeling (Breaker level) data to Planning (Bus-Branch level) data  Requires business process in adding new equipment into the network model and conversion of the new equipment to planning models  Requires fast performance  NMMS solved this by creating a back end API to convert Operations models to Planning models

28. 28 © 2008 Project Consultants, LLC All rights reserved. Operational to Planning Model Conversion NMMS provides the tools and interfaces to create a Planning Model from the Operational Model. Planning Model is generated from the Operations Model A Topology Processor is used to modify the Operations Model The Topology Processor has options that may be selected based on the planning or CRR needs: –Consolidate Transformers to Three Winding Transformers –Distribution System Reduction –Remove Parallel Zero Impedance Branches Defined CIM Extensions for Planning and submitted to the EPRI CIM for Planning project for review and possible submission to the IEC standards group.

29. 29 © 2008 Project Consultants, LLC All rights reserved. NMMS High Level Architecture Network operation and Planning use a single platform with multiple applications and business processes to generate models Single set of user interfaces for submitting changes for Market Participants Single application architecture allows for “soft” coupling of application systems. Network Operation Model Planning Model

30. 30 © 2008 Project Consultants, LLC All rights reserved. Consistent Network & Planning Models  Traditional network modeling practices are for planning and operations organizations to use separate topological representations  ERCOT Nodal Protocols states that Planning models must be consistent with Operations models.  ERCOT will convert Operations models to Planning models on a time basis, including approved future based changes

31. EMS User’s Group 2008 31 Lessons Learned

32. 32 © 2008 Project Consultants, LLC All rights reserved. Lessons Learned Know your Data and define the following prior to extending the CIM: –Data Owner – this is the primary source of the Data –Data Consumer – what applications need a specific data element. This needs to be as detailed as possible –Make this the first part of the project and do not define the final integration plan until this effort is complete Do not try to implement every system across the enterprise at the same time. Set up Phases that bring value add to the organization as each phase is completed. Each phase should be small enough to complete in one year Get management complete buy-in and keep it with the phased successes

33. 33 © 2008 Project Consultants, LLC All rights reserved. Contact for Additional Information Curtis Crews – ERCOT –Email: ccrews@ercot.com Margaret Goodrich – Project Consultants, LLC –Email: margaretgoodrich@earthlink.netmargaretgoodrich@earthlink.net