1. Market Operator User Group Meeting 1 Market Operator User Group Meeting May 18th, 2010 Belfast

2. Market Operator User Group Meeting 2 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

3. Review of Action Items Market Operator User Group Meeting 3  Updates to April payment dates on Settlement Calendar  Website - list of dynamic reports  Reducing Ad-hoc Resettlement discussion

4. Market Operator User Group Meeting 4 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

5. Market Operator User Group Meeting 5 2010 Published Reports

6. Market Operator User Group Meeting 6 Market Operator User Group Meeting / June 30 th 2009 Key Performance Indicators

7. Market Operator User Group Meeting 7 P&S Issues Market Operator User Group Meeting / June 30 th 2009 Trade DateIssueResolution 29 th Mar  EP2 publication late due to publication events running before data was pushed to Market Interface Database (DSP module)  Events were rerun. Awareness of publication events times highlighted to Market Controllers 31 st Mar  SONI I/C trade file for EP1 could not be automatically loaded to an initial error in the schema. This delayed the publication time for EP1  File corrected and sent through to Market Controller for manual upload 3 rd & 4 th AprilMissing reports  PUB_D_InitialExPostMktSchDetail report missing from website and MPI  PUB_D_EPInitShadowPrices report missing from website and MPI  ABB investigating. Additional logging in SEM R1.7.0 release

8. Market Operator User Group Meeting 8 Settlement Issues Market Operator User Group Meeting / June 30 th 2009 Settlement RunRun TypeIssueResolution 25 th March 2010Capacity Indicative Late Publishing  Due to resource type change from PPMG to PPTG on this date.  Issue calculating CPGPF preventing settlement processing.  Temporary script deployed into Settlements system to ensure a ‘P’ type statements were issued to Participants.  This scenario will be tested and fixed in the next system release March 2010Capacity InitialLate Publishing  Knock on effect from Capacity Indicative publication  Published one working day late. Participants notified via market message. March 2010Capacity InvoicingLate Publishing  Knock on effect from Capacity Initial publication being delayed  Published two working days late. Participants notified via market message. Week 52, 2009M+4 Energy Resettlement Late Publishing  Late file submission for settlement dates 27 th and 28 th December by MDP delaying processing  Published one working day late. Participants notified via market message. 31 st March 2010Energy IndicativeLate Publishing  Due to Ex Post Indicative pricing run being delayed as a result of SONI file requiring manual upload  Published at 17:59 instead of 17:00 obligation timeline under T&SC. Participants notified via market message.

9. Market Operator User Group Meeting 9 Recent Registrations Party  Castledockrell Supply Ltd – Effective 06/05/2010  Crystal Energy Ltd – Effective 06/05/2010  NRG Vend Ltd – Effective 15/04/2010  Hunters Hill Windfarm Ltd – Effective 20/03/2010  No other Party applications currently in progress Units Generation  Hunters Hill Windfarm Ltd (Hunter’s Hill APTG) – Effective 13/05/2010  Garvagh Glebe Power Ltd (Garvagh Glebe APTG) – Effective 06/05/2010  Hibernian Wind Power Ltd (Tullynahaw APTG) – Effective 29/04/2010  ESB AER (Arklow Bank Phase 1 APTG) – Effective 22/04/2010 transfer from Arklow Energy Ltd  Airtricity Ltd (Kingsmountain Phase 2 (Dunniel) APTG) – Effective 08/04/2010  Viridian Energy Ltd (Ballincollig Hill APTG) – Effective 04/03/2010  Five other Generator Unit applications in progress Supply  Six Supplier Unit applications in progress Market Operator User Group Meeting / June 30 th 2009

10. Market Operator User Group Meeting 10 Recent Registrations Party  Castledockrell Supply Ltd – Effective 06/05/2010  Crystal Energy Ltd – Effective 06/05/2010  NRG Vend Ltd – Effective 15/04/2010  Hunters Hill Windfarm Ltd – Effective 20/03/2010  No other Party applications currently in progress Units Generation  Hunters Hill Windfarm Ltd (Hunter’s Hill APTG) – Effective 13/05/2010  Garvagh Glebe Power Ltd (Garvagh Glebe APTG) – Effective 06/05/2010  Hibernian Wind Power Ltd (Tullynahaw APTG) – Effective 29/04/2010  ESB AER (Arklow Bank Phase 1 APTG) – Effective 22/04/2010 transfer from Arklow Energy Ltd  Airtricity Ltd (Kingsmountain Phase 2 (Dunniel) APTG) – Effective 08/04/2010  Viridian Energy Ltd (Ballincollig Hill APTG) – Effective 04/03/2010  Five other Generator Unit applications in progress Market Operator User Group Meeting / June 30 th 2009

11. Market Operator User Group Meeting 11 Recent Registrations Units Supply  Six Supplier Unit applications in progress Unit Type Change  Garves Windfarm from APTG to VPTG – Effective 25/03/2010  Aughinish Alumina Ltd two PPMG to PPTG – Effective 25/03/2010 Market Operator User Group Meeting / June 30 th 2009

12. Market Operator User Group Meeting 12 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

13. SEM R1.7.0 Release Market Operator User Group Meeting / 22 nd September 2009  Release postponed – notification issued April 28 th.  Why the delay?  Market Trial uncovered issue downloading a small number of Settlement reports via Type 3 – this was as a result of the Java 3 rd party upgrade.  Workaround was available (Type 2) but this was deemed unacceptable to support Production operations.  Not enough time remaining to: Take delivery of the fix; Test internally (system & regression); and Test with Participants (Market Test).

14. SEM R1.7.0 Release Market Operator User Group Meeting / 22 nd September 2009  What has this identified?  Our vendors  Vendor Unit / System testing must be expanded  Quality of deliverables must be improved  SEMO  Internal Integration Testing must be broadened to cover all reports (Type 2 and Type 3 was tested but not all reports were run for each channel)  Our Participants  Must engage in a meaningful way with Market Test phases. SEMO cannot verify impact on downstream Participant systems. The onus is on the Participant to ensure interfaces are functioning as expected.  Overall  Must guard against complacency. Each stakeholder has a responsibility for the successful implementation of change. “Past Performance is not a guarantee of future success”.

15. SEM R1.7.0 Release Market Operator User Group Meeting / 22 nd September 2009  What is being done to mitigate future risk?  SEMO  Expanding Integration Testing coverage to include all reports for both Type 2 and Type 3.  Investigating Automated Testing to: Allow for greater coverage in same test period duration; Ensure more robust and consistent testing; and Reduce the risk of “human error”.  Have agreed a release checklist / procedure with our vendors to improve quality of deployments to test environments.  Exploring the implementation of KPI’s with our vendors to measure improvements.  Have established monthly meeting with senior ABB management to evaluate quality issues, implement appropriate controls and monitor progress.

16. SEM R1.7.0 Release Market Operator User Group Meeting / 22 nd September 2009  What is being done - Vendors?  Established Fact: Up to this point the vendor testing function has been too closely aligned to the development teams.  Set up of a dedicated “offshore” test team to Ensure impartial testing takes place; and Increase test coverage.  Vendors are also investigating Automated Testing.  Monthly management meetings with SEMO.

17. SEM R1.7.0 Release Market Operator User Group Meeting / 22 nd September 2009  The methodology worked: Market Test fulfilled it’s function.  SEMO have identified and will implement more thorough and robust controls with our vendors  Refocus:  All of us must guard against complacency – we have been very successful to date but “past performance ………….”  Delivering change to a complex suite of systems across multiple platforms is not a simple task.  Importance of engagement – all stakeholders (SEMO, Participants, MDPs, TSOs etc) are responsible for their own testing – this cannot and should not be delegated.

18. SEM R1.7.0 Release – Updated Deployment Market Operator User Group Meeting / 22 nd September 2009  May 7 th : Vendors deliver software update to SEMO to resolve issue   May 10 th to May 21 st : SEMO executes internal testing   May 10 th : SEMO issues revised Market Test Schedule to the SEM   May 17 th to May 27 th : Market Test Phase - Conference Calls daily at 16:30  Phone No: 01 6647777  Participant PIN : 79592  May 28 th : Deployment of SEM R1.7.0 to Production (subject to successful conclusion of testing).

19. SEMO IT – SEM Release R1.7.0 – Scope Reminder Market Operator User Group Meeting / 22 nd September 2009  In addition 73 defects (46 raised from Production) are included in scope. Change Requests Ref.Mod. RefSub-SystemDescriptionRaised By SEM_PC_CR139N/AMIChange to Daily Load Forecast Report. Current report reports on a Trading Day basis. The T&SC code stipulates this report should be on a Calendar Day basis. SEMO SEM_PC_CR151N/ASettlements / Metering SEMO Internal Meter Data Loading MechanismSEMO SEM_PC_CR157N/AMIEnhance SEMO ability to update Registration Effective Date as required.SEMO SEM_PC_CR165N/ASettlementsInvoice Job – Confirmation for Approval of Invoices.SEMO SEM_PC_CR166N/ASettlementsInvoice Job – Self-Billing Invoice Due Dates Defaulted.SEMO SEM_PC_CR169N/AMISingle entry of Exchange Rates.SEMO SEM_PC_CR17588_07MIActual Load Summary Report: Provide a new version of the Daily Actual Load Summary Report to be run at d+4 and to include EP2 data only. Mods Cmte SEM_PC_CR177N/AMI / Settlements Data Service for the transfer of data from the Central Market Systems to the new SEMO website (Regulatory approved project). SEMO SEM_PC_CR194N/AMIRemove ability of Interconnector Units to enter default data (e.g. COD).SEMO SEM_PC_CR196N/ARCUCVPT OptimisationSOs

20. SEM Release R1.7.0 – MP Functional Changes Market Operator User Group Meeting / 22 nd September 2009  Release will have minimal functional impact on Participants:  1 new report – D+4 Daily Actual Load Summary MPUD has been issued along with sample reports on Jan 14 th to aid Participants development effort  1 modified report – 4 Day Load Forecast Report Switching from Trading Day to Calendar Day No interface change required however contents will differ (TD Vs CD)  Specific tests for verifying that these changes function correctly were included in the Market Test Pack issued on April 8 th.

21. SEM R1.8.0 – Scope Reminder Change Requests Ref.Mod. RefSub-SystemDescriptionRaised By SEM_PC_CR14534_08MI/MADual Rated Generator AmendmentMods Cmte SEM_PC_CR14847_08MI / MAEnduring Solution for the validation of Technical Offer Data – dependency on SEM_PC_CR158. Mods Cmte SEM_PC_CR150N/ASettlementsCross Border VAT.Legislative SEM_PC_CR158N/AMIRegistration – Additional Validations.SEMO SEM_PC_CR164N/ASettlementsInter-day Batch DependencySEMO SEM_PC_CR167N/ASettlementsProcessing Environment DashboardSEMO SEM_PC_CR179N/AMIUnit Under Test SchedulingSEMO SEM_PC_CR191N/ASettlementsFix for Eligible Availability WorkaroundSEMO SEM_PC_CR195N/AMISEMO MPI User Effective Date in the pastSEMO SEM_PC_CR197N/AMIM+13 JESU FeedEirGrid TSO SEM_PC_CR202N/ASettlementsDispatch Start Up Cost CalculationSEMO SEM_PC_CR208N/ASettlementsIPCCEN IPCCCP Batch AlertSEMO  Defined scope includes 12 Change Requests:

22. SEM R1.8.0 – Major Milestones Market Operator User Group Meeting / 22 nd September 2009  March 18 th : Scope confirmed   March 26 th : High-Level scope document issued to Participants   March 30 th : Potential Participant impact document issued to Participants   May 14 th : First official draft of interface documentation from vendors (SEMO review)   End May: Issue of first draft (post SEMO Review) to Participants  Early June: Participant Workshop – feedback  End June: Final Documentation issued from vendors  Early July 2010: Follow up Participant workshop  September 27 th - October 22 nd : Market Test (4 weeks)  October 29 th : Deployment

23. SEM R1.8.0 Timeline

24. SEMO IT – SEM Release R1.9.0 (April 2011) Market Operator User Group Meeting / 22 nd September 2009 Release Cut-Off Date for the SEM R1.9.0 release Friday, August 27 th, 2010

25. SEMO-IT Infrastructure Update Market Operator User Group Meeting / 18th May 2010  Central Market Systems – Planned Maintenance  Tuesday 24 th of April  The CMS were taken offline as part of our monthly planned maintenance.  Tuesday 4 th of May  The CMS were taken offline to perform Database maintenance.  Monday 17 th of May – 27 th of May 2010  Market Test (MT) performed by Participants – covering both functional and technical upgrades. SEMO strongly recommends that all participants test their systems (which will include their upgrades). These tests should include both Type 2 & Type 3 and cover all critical business processes.

26. SEMO-IT Infrastructure Update Market Operator User Group Meeting / 18th May 2010  Issues: DateIssueCauseResolution 7 th & 8 th of MaySome Market Participants received an error when trying to retrieve certain reports. Issue identified in cross-site synchronisation application. Issue only effected retrieval requests that were serviced by the Belfast site, an interruption to one of the Wide Area Network circuits caused the sync application to fall behind. The application was allowed to ‘catch-up’. All reports were available on the Dublin side during the issue. 17/5/10All CMS applications stopped responding to requests at 12:30pm. Still under investigation but initial indications are pointing towards a network infrastructure issue. Stopped all CMS applications and brought the second Oracle server into the cluster. Market applications were then restarted.

27. SEMO-IT Infrastructure Market Operator User Group Meeting / 18 th May 2010 SEM Release R1.7.0 (May 2010): Release time  Revised release window:  SEMO will bring the Central Market Systems offline at 6pm on Friday the 28 th of May until 6am of Saturday the 29 th at 6am.  The Dublin servers will be upgraded first followed by Belfast site.

28. Market Operator User Group Meeting 28 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

29. Market Operator User Group Meeting 29 Query Statistics Mar-Apr 2010 No. of calls older than 30 days: 12

30. Market Operator User Group Meeting 30 Query Statistics Mar-Apr 2010

31. Market Operator User Group Meeting 31 Disputes – May 2010  There are currently no outstanding disputes  2 disputes have been resolved since the last MOUG in March

32. Market Operator User Group Meeting 32 Group Customer Survey  Eirgrid Group Customer Survey  Eirgrid TSO, SONI & SEMO  Participant consultation at development phase  Timescales – July 2010  Findings will be reported – MOST & Group Customer Conference

33. Market Operator User Group Meeting 33 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

34. Market Operator User Group Meeting 34 SEMO Website Project  Project Update  Testing ongoing  User Awareness – June  Go Live – late June  For further details visit www.sem-o.com

35. Market Operator User Group Meeting 35 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

36. Introduction Market Operator User Group Meeting / June 30 th 2009  Understanding of SEMO market system for units requesting to go under test  Unit under test current process  Proposed new unit under test process  Process for units requesting to come off test

37. UUT Semo Market System Market Operator User Group Meeting / June 30 th 2009  Parameters that are submitted by Market Participant for Unit Under Test Effective Date -SEMO controller will accept unit under test request in market system. It’s only when effective date equals the Ex-Ante date, the details will be processed in our system. - The request expires when new request has been accepted. Only 1 valid request in the system at any one time. - Its specific to SEMO Market Systems in order to change units from PPMG to PPTG. Start Date & End Date -Dates are inclusive. - Submit start date and end dates relating to the trading days the unit will be under test. For example if the unit is going under test from the 06th to the 15th, the unit will be under test from 6am on the 06th until 5.59am on the 16th. -I f the test is for 1 day only, Test Start Date = Test End Date. Participant Name & Number Generator Number  Ex Ante pricing schedule is run ONE DAY BEFORE the TRADE DATE.  Under test flag follows TRADING day convention, not calendar day.

38. UUT Current Process Market Operator User Group Meeting / June 30 th 2009 Example: Effective Date: 04/02/10 Start Date: 06/02/10 End Date: 15/02/10 The Trading and Settlement code states that 5 working days notice in advance of unit under test start date. Approval/Rejection time is required from the TSO (currently around 24 hours) Effective date is prior to Start Date option to make amendments to Unit Under Test request. Accept/ Reject can be delayed until more information is obtained. New request can overwrite current accepted request up until effective date. Market Participant can cancel request. System has been designed and tested around the 5 working day’s notice.

39. UUT proposed new 5 working day Process Market Operator User Group Meeting / June 30 th 2009 Monday D-5 01/02/10 Market Participant send email notification Tues D-4 =02/02/10 and Wed D-3 = 03/02/10 Market Participant can finalise information with TSO Thurs D-2 = 04/02/10 1. Market Participant submit through MPI by 12noon. 2. SEMO email TSO to accept or reject by 12:30. 3. TSO Accept/Reject Request by 16:00 & email SEMO. 4. SEMO Accept through MPI by 16:30 and change MP status. 5. Alert Market Participant and TSO 6. Market Participant can submit nomination profile. Fri D-1 = 05/02/10 Market Participant submit COD until 10:00am SEMO run Ex-Ante @10am for 06/02/10 Before submission of request through the MPI date range and profiles will be agreed. Strict response timeline by all making process more efficient. SEMO market operator will review under test request @ 12noon for D-2. If a Market Participant submits a request through MPI ahead of D-2 this request will not be picked up until D-2. TSO has just 4-5hrs to review and accept request. System not fully tested to deal with criteria, defects may arise. Impossible to change start date once it’s been accepted in SEMO market system. A script will be required. Must receive 5 working day notice. If email notification is not received, request will be rejected. Process not applicable at weekends. Example: Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10

40. Changing End Date Market Operator User Group Meeting / June 30 th 2009 Extending or Reducing End Date: -Request must be submitted D-2 from test end date as per the trade and settlement code. -The end date and effective date is required to be equal. -The Ex-Ante for the prior date must be completed before new request is accepted. -The same process applies, TSO must approve any changes. Example of Extending End Date Original Request:New Request: Extend to 20/02/10 Can only be accepted in SEMO market system after Ex-Ante for Trade Date 15/02/10 has been completed. Example of Reducing End Date Original Request:New Request: Reduce to 10/02/10 Can only be accepted in SEMO market system after Ex-Ante for Trade Date 09/02/10 has been completed. Example: Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10 Example: Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10 Example: Effective Date: 16/02/10 Start Date: 16/02/10 End Date: 20/02/10 Example: Effective Date: 10/02/10 Start Date: 10/02/10 End Date: 10/02/10

41. Market Operator User Group Meeting 41 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55

42. Market Operator User Group Meeting 42 Cost to the Market of Resettlement Approx 75 Participant Accounts in Market ½ day per resettlement event to reconcile and pay MO time, 5-10 person days per event => Estimate of 45 Person Days for each Resettlement event 24 ad-hoc resettlement events per year => 3 people for a year 200 Post M+13 resettlement events per year => 24 people for a year

43. Market Operator User Group Meeting 43 Quality of Feeds & Calculations Timing of Corrections Criteria for Ad-hoc Effective Resettlement

44. Market Operator User Group Meeting 44 Errors by Responsible Party

45. Market Operator User Group Meeting 45 Quality of Feeds & Calculations Timing of Corrections Criteria for Ad-hoc Effective Resettlement

46. Market Operator User Group Meeting 46 Resolution of Errors by Resettlement Run 40% 20%

47. Market Operator User Group Meeting 47 Quality of Feeds & Calculations Timing of Corrections Criteria for Ad-hoc Effective Resettlement

48. Market Operator User Group Meeting 48

49. Market Operator User Group Meeting 49 Quality of Feeds & Calculations Timing of Corrections Criteria for Ad-hoc Effective Resettlement Quality of data feeds and processing needs continue to improve Timing of Queries needs to be appropriate Conclusions Changes to criteria for ad- hoc resettlement needs considered, especially due to re-pricing and Post M+13

50. Market Operator User Group Meeting 50 Lets Discuss…….. Option 1: Discrete periods for Query of Resettlement Option 2: Increase Materiality Level Option 3: Timetabled Resettlement of Re-pricing only Option 4: Threshold for Whole Market Resettlement Post M+13

51. Market Operator User Group Meeting 51 Agenda Market Operator User Group Meeting / 11th August 2009 Releases and Infrastructure 10:50 Website Update 11:10 Market Operations 10:40 Questions and Answers12:20 Customer Service11:00 Review of Action Items10:30 Unit Under Test Discussion 11:30 Resettlement Discussion11:55