22 May 2008 TPTF Texas Nodal Program: Market Readiness Metrics Update Mike Beck

2 2 Texas Nodal Program UpdateMay 22, 2008 Program Status: Readiness There has been a mix of positive and negative changes since the last meeting: ERCOT:red  green (+) EDS3:red  amber (+) MP:green  red (–)

3 3 Texas Nodal Program UpdateMay 22, 2008 ERCOT Engagement (green) ERCOT remains fully engaged Training (green) a new round of training for ERCOT operators started this week completion target is August 31, 2008 Process (green) updated weekly completion target is August 31, 2008 Staffing (majority green) updated transition plans expected in early June this remains the only category with red and amber recruitment is ongoing Testing (green) no recent developments ERCOT readiness status is GREEN, but likely to go AMBER June 1 st based on staffing metric

4 4 Texas Nodal Program UpdateMay 22, 2008 Market Participants Engagement (>95% green) will be updated June 12 th when Cycle 4 Survey is scored Connectivity (>95% green) no change, pending further EDS developments (MIS Portal, TML) Registration and Qualification (red) MP17 goes active June 2 nd MP10 and MP11 (Resource Mapping and RARF Submissions) are causing overall red status Telemetry (green) no change, present measurements complete Training (>95% green) will be updated June 12 th when Cycle 4 Survey is scored Trials Participation (>95% green) no change, pending further EDS developments Market Participant readiness status is RED, driven by MP10 and MP11

5 5 Texas Nodal Program UpdateMay 22, 2008 Market Participant Readiness Overall registration and qualification status for Market Participants is RED Situation A number of Market Participants are not in compliance with MP11 (Registration Activities) There are an estimated 215 RARFs representing 720 unit-specific resources, 671 of which are modeled (the remaining 49 are distributed generation resources). 91% (608 of 671) of Generation and Load Resource units have been submitted, representing 93% of MW capacity Most RARFs are expected to be returned to MPs for revision (most likely several rounds) Current rate of acceptance [with Tier 1 review] of submittals into RARF database is about 80% Acceptance does not indicate valid data QSE’s w/Resources that represent Resource Entities who are missing RARFs will be rejected from EDS trials June 16 closed loop LFC test (and preceding open-loop test) will not be conducted until 100% of MW capacity has been accepted by ERCOT Mitigation Steps Contacted non-responding resource entities [completed] Developed a temporary work-around for TML submission [completed] Ongoing outreach to MPs to assist in addressing issues [ongoing] Publish “wall of shame” for non-responsive entities [ongoing] Data as of

6 6 Texas Nodal Program UpdateMay 22, 2008 Market Participant Readiness Data as of QSEs with Resources - RED American Electric Power Service Corp Barton Chapel Wind LLC City of Austin DBA Austin Energy Eagle Energy Partners I LP Formosa Utility Venture LTD FPL Energy Power Marketing Lower Colorado River Authority Luminant Generation Company LLC NRG Texas LP Reliant Energy Power Supply LLC QSEs without Resources - RED Aquila Inc DBA Aquila Networks Citadel Energy Products LLC Clearview Electric Inc Glacial Energy Inc MPs with red status under registration and qualification Kansas City Power and Light Company National Power Company Inc Texpo Power LP Urban Energy Source LLC

7 7 Texas Nodal Program UpdateMay 22, 2008 EDS EDS 1 (green) no recent changes EDS 2 (red) remaining metrics are intertwined with the state estimator quality of data being delivered to ERCOT is not compliant with the state estimator EDS 3 (amber) following recent acceptance of ACE data by TAC EDS 3 went from red to amber EDS 4 (red) outage evaluation system is not yet completed EDS 1, 2, and 4 status remains the same, while EDS 3 has improved to amber

8 8 Texas Nodal Program UpdateMay 22, 2008 Readiness Metrics We will begin to measure the following metrics in early June MetricDescriptionStartComplete EMO8Conduct EECP Test6/1/20088/1/2008 E7Validate EDW WEMM Access & Accuracy 6/2/20088/31/2008 E10Validate EDW Commercial Systems Access & Accuracy 6/2/20088/31/2008 E11Validate EDW Compliance Data Access 6/2/20088/31/2008 MP17*MP Qualification Activities6/2/20088/15/2008 * With the implementation of MP17, all existing MP metrics are active

9 9 Texas Nodal Program UpdateMay 22, 2008 Market Participant Engagement Survey: Cycle 4 Cycle 4 of the Market Participant Engagement Survey was released on May 15 th This survey focuses on staffing, processes, and technology from present through the 168-hour test This survey will be open for response through May 30 th Results will be available June 12 th on the scorecards ERCOT Account Managers will take an active role with outreach to MPs will beginning mid-survey to ensure full participation Market Participants are currently completing Cycle 4 of the Engagement Survey

10 Texas Nodal Program UpdateMay 22, 2008 Questions ?