Lead from the front Texas Nodal 1 Texas Nodal Energy & Market Management System EMS/MMS Projects Requirement Documents November 30, 2006 Al Hirsch EMS/MMS Project Manager

Lead from the front Texas Nodal 2 EMS/MMS Agenda – Thursday, November 30, 2006  EMS & MMS Project Status Update  Overview of Submitted Outage Scheduler Requirements  Report on TPTF Comments on MMS Requirements  Presentation & Overview of EMS/MMS Whitepapers

Lead from the front Texas Nodal 3 EMS/MMS Agenda – EMS & MMS Project Status Update MMS Phase 1 & Phase 2 Accelerated SCED Milestones

Lead from the front Texas Nodal 4 EMS/MMS Agenda – EMS & MMS Project Status Update

Lead from the front Texas Nodal 5 EMS/MMS Agenda – EMS & MMS Project Status Update MMS Phase 2 Milestones SCED FAT MMS FAT

Lead from the front Texas Nodal 6 EMS/MMS Agenda – EMS & MMS Project Status Update MMS Phase 2 – Accelerated SCED Delivery

Lead from the front Texas Nodal 7 EMS/MMS Agenda – EMS & MMS Project Status Update MMS Phase 2 – MMS Delivery

Lead from the front Texas Nodal 8 EMS/MMS Agenda – EMS & MMS Project Status Update MMS Phase 2 – Original Integrated MMS Delivery

Lead from the front Texas Nodal 9 EMS/MMS Agenda – EMS & MMS Project Status Update EMS FAT – Still A Target

Lead from the front Texas Nodal 10 EMS/MMS Agenda – EMS & MMS Project Status Update

Lead from the front Texas Nodal 11 Presented By: Sai Moorty MMS Project Engineer EMS/MMS Agenda – Overview of Submitted Outage Scheduler Requirements

Lead from the front Texas Nodal 12 EMS/MMS Agenda – Overview of Submitted Outage Scheduler Requirements  Outage Scheduler Requirements Document Submitted for TPTF Review on November 22, 2006  TPTF review comments due to ERCOT on December 8, 2006  Informal TPTF review feedback is that Outage Types listed in Requirements documents are more than that specified in the Nodal Protocols.  ERCOT is of the opinion that the Outage Types listed in the Requirements Document are needed. However, ERCOT is analyzing the feasibility of treating the Outage Types of concern as Sub-Types of Outage Types defined in the Nodal Protocols.

Lead from the front Texas Nodal 13 EMS/MMS Agenda – Report on Received Comments on MMS Requirements  5 Spreadsheets detailing the disposition of TPTF review comments on MMS Requirements documents.  Accepted: Requirements document to be changed as per review comment.  Clarification Provided* : Requirements document to be changed as well as clarification provided in spreadsheet  Clarification Provided: Clarification provided in spreadsheet  Response: Moved to IDA Punch List – Issues predominantly pertaining to interfaces with other ERCOT systems.  Rejected: Review comment rejected as it does not comply with Nodal Protocols.

Lead from the front Texas Nodal 14 EMS/MMS Agenda – Report on Received Comments on MMS Requirements  5 Clarification notes are also provided on the following topics:  Explanation of Market Submission Items  Ancillary Service Offer Modeling  CRR related issues in DAM  Pricing Issues with Fixed Quantity Block Offers and Bids in DAM  Additional information regarding Competitive Constraint Test Procedures (option to add this as an appendix to CCT Requirements document)

Lead from the front Texas Nodal 15 EMS/MMS Agenda – Presentation Overview of Eight (8) EMS/MMS Whitepapers  Objective:  Concurrence and disposition from TPTF of concepts described in White Papers  Refine design direction based upon TPTF feedback  Background:  Requirements analysis of Real-Time Operations related to Load Frequency Control (LFC) and its interaction with Security Constrained Economic Dispatch (SCED) raised some issues.  Subsequent discussions between ERCOT, Vendors (AREVA and ABB) and Floyd Trefny (Consultant) resulted in decision to submit White Papers to TPTF for review.

Lead from the front Texas Nodal 16 EMS/MMS Agenda – Presentation Overview of Eight (8) EMS/MMS Whitepapers  HDL And LDL During Start up and AS Recall  During Responsive Reserve recall if the calculated HDL falls below LSL then calculate:  HDL = LDL = Max (POWERTELEM - (SCED Down Ramp Rate * 5), LASL)  During Generation Resource startup when POWERTELEM is above 90% but less than LSL then calculate  LDL = HDL = Min (Actual Gen + (SCED Up Ramp Rate * 5), HASL)  During Generation Resource startup when POWERTELEM falls below 90% of LSL then calculate  HDL = LDL = POWERTELEM  SCED Base Point Dispatch  QSEs will receive the following two Base Point values for each Resource:  The Base Point as calculated by SCED at every SCED execution  The Updated Desired Base Point updated every 4 seconds by LFC. The Updated Desired Base Points represent the ERCOT desired control each LFC cycle  Ancillary Service Schedules and Deployment Telemetry  Expand the set of data to be telemetered from QSE to ERCOT to include the Ancillary Service Resource Responsibility for each participating Resource

Lead from the front Texas Nodal 17 EMS/MMS Agenda – Presentation Overview of Eight (8) EMS/MMS Whitepapers  Responsive Reserve Deployment and Recall  ERCOT’s deployment of RRS to QSEs will include the following two signals:  RRS capacity deployment signal wherein each QSE will simply adjust their RRS schedule on their Resources and wait for SCED to produce new Base Points that can include additional Responsive Reserve MW requirement.  RRS energy deployment signal that requires each QSEs to produce that additional energy through their own deployment to its Resources providing RRS.  QSE’s telemetry to ERCOT will include the following two signals:  Signal to indicate the RRS Resource Responsibility  Signal to indicate the remaining RRS Ancillary Service Schedule that is the difference between the RRS Resource Responsibility amount and deployed amount.  Non-Spin Deployment Notification and Availability  QSEs are requested to provide to ERCOT two data items related to Non-Spin:  Non-Spin Responsibility (reflects Non-Spin obligation for the Resource where deployed or not deployed)  Non-Spin Ancillary Service Schedule (normally equal to Non-Spin responsibility, changes to zero when the QSE makes the Resource available for dispatch following an ERCOT request for Non-Spin deployment, and returns to the Non-Spin responsibility value when ERCOT recalls Non-Spin).

Lead from the front Texas Nodal 18 EMS/MMS Agenda – Presentation Overview of Eight (8) EMS/MMS Whitepapers  Base Point above HASL Flags  It will not be necessary to implement either the “Base Point above HASL” or “Pseudo-Resource Dispatch” flags in the ICCP telemetry to QSEs  Indication of Pseudo-Resource Dispatch will be provided in the MIS Secure Area  Coincidental Deployment of Up and Down Regulation  LFC should not be artificially constrained in a way that regulation deployment of some QSEs may have opposite signs from the other QSEs  Emergency Base points Calculation and Deployment  During SCED failure, Emergency Base Points will be calculated and issued to QSEs through Generation Subsystem in the EMS. Distribution of Emergency Base Points will cause the current regulation deployment to be reset the same as an update of the SCED solution

Lead from the front Texas Nodal 19 EMS/MMS Agenda – Conclusion  Wrap-Up  Next Steps