1. ©2005 PJM 1 Development of Wholesale Electricity Scheduling and OASIS Determining the Future Needs of the Open Access Same-time Information System Andy Rodriquez, PJM Interconnection

2. ©2005 PJM 2 1988 - 1996 Open Access Issue: Limited access to transmission system constrains sales of economy energy to the detriment of consumers Organization – FERC Response – Merger Conditions, Orders 888, 889 Result – OATTs, OASIS Cost – High Benefit – High for Business, Low for Reliability

3. ©2005 PJM 3 1995 -1997 Reliability and Curtailments Issue: Reliability Coordinators needed a way to quickly identify transactions to halt should reliability be threatened Organization – NERC Response – Tagging Requirements Result – Automation of the TLR process Cost – Medium Benefit – Low for Business, High for Reliability

4. ©2005 PJM 4 1997 - 1999 Coordination of Complex Wheeling Issue: As wheeling become more common, it became critical to improve the speed for processing tags Organization – NERC Response – E-Tag Requirements Result – Automation of the Tagging process Cost – High Benefit – Med for Business, Med for Reliability

5. ©2005 PJM 5 1999 - 2002 Technology Improvements Issue – E-Tag technology not able to easily support process enhancements or changes Organization – NERC Response – E-Tag 1.7 XML schema Result – Further integration and automation throughout the industry Cost – High Benefit – Med for Business, Med for Reliability

6. ©2005 PJM 6 Changing Environment Challenges of the past have largely been addressed through updates to OASIS and E-Tag Increasing maturation of industry has reduced scheduling complexity significantly –The growth of large ISOs, RTOs, Regional Tariffs, and Joint OASIS nodes is eliminating the need for how to do it standards, focusing on what to accomplish standards –Reduction in number of pure marketers and speculative traders reduces schedule complexity –Growth of centralized energy markets reduces need for complex schedules –Development of new congestion management methods eliminating need for schedule documentation

7. 147 Scheduling Entities NYISO ISONE PJM

8. 133 Scheduling Entities ERCOT PJM NYISO ISONE As of March 2005

9. 104 Scheduling Entities ERCOT PJM MISO NYISO ISONE

10. 55 Scheduling Entities ERCOT PJM MISO SPP WestTrans OASIS Grid West NYISO ISONE Grid Florida Est. 2008-2010

11. ©2005 PJM 11 Todays Issues Problems to be Solved by OASIS II Standardized Data Exchange Enhanced Posting of Data (Pub/Sub) Standardized Market Interfaces Elimination of Seams through Technology

12. ©2005 PJM 12 Todays Responses Standardized Data Exchange –E-Tag and OASIS are standards already in wide-use –Additional standards are being developed as needed on a regional, voluntary basis –Third-Party software products provide much of this functionality

13. ©2005 PJM 13 Todays Responses Enhanced Posting of Data (Pub/Sub) –Many regional tools have already been developed to provide this functionality –Third-Party software services have been developed to help address this need

14. ©2005 PJM 14 Todays Responses Standardized Market Interfaces –The growth of RTOs, ISOs, and Coordination Agreements has reduced complexity that drove this issue –Third-Party software products also provide much of this functionality –Reduced call for standardization due to trading environment changes

15. ©2005 PJM 15 Todays Responses Elimination of Seams through Technology –The growth of RTOs, ISOs, and Coordination Agreements has significantly reduced this concern –Seams are also being eliminated through local initiatives and coordination agreements –Third-Party software products have been developed that reduce the impact of seams

16. ©2005 PJM 16 Conclusion The Industry has been given adequate signals to incent resolution of customer concerns ISOs, RTOs, and Transmission Providers are developing processes and tools to eliminate scheduling complexity and improve data exchange Costs associated with a major change to the OASIS may be high, and possibly not justified by the benefits