Structured / Unstructured Market Trials Weekly Update – Friday Meeting September 20, 2013

Call Reminders Please help to minimize disruptions: Mute your phones Do not dial-in from a recorded line Do not put the call on hold, even if you are on mute When asking a question on the phone, please state your name and the entity you represent 2

Agenda TCR Update (5 min) 9:00-9:05A Preliminary Results Sept 16 – 20 (5 min) 9:05-9:10A Analysis Sept 9 – 15 (35 min) 9:10-9:45A Settlements (15 min) 9:45-10:00A Announcements & Outstanding Questions (10 min) 10:00-10:10A Look-Ahead Sept 23 – 29 (15 min) 10:10-10:25A Updates (10 min) 10:25-10:35A Release Scorecard Migration Report Known Issues Log Questions (5 min) 10:35-10:40A 3

TCR Market Trials Go Live Planning TCR Go Live Discussion held on 9/11 & 9/18 (CWG Meeting Materials)CWG Meeting Materials Publish Go/No-Go Data for CWG Review on October 3rd CWG Go/No-Go Recommendation Due on October 7th Go-Live team Decision on October 11th 4 Jamel Thomas

Final Monthly Process Good Participation is Requested/Expected Allocation Nominations: Auction Bids/Offers: 5 September September 9 September 16-17, August TCR Market Trials Jamel Thomas

Preliminary Results from Sept Alan Adams Scheduled Scenarios 16.1 DA Offer Curve Mitigation – details page RUC Offer Curve Mitigation 16.3 RTBM Mitigation – details page Block Demand Response Questions?

Scenario 16.1 – DA Offer Mitigation (Initial Analysis) General Results: Executed on 9/17 for 9/18 Operating Date. SPP found it much more difficult to force mitigation on resources than we did during our testing in lower environments. Scenario was successful from a software perspective and SPP’s Market-wide visibility perspective. Many Participants would not be able to verify the results because their resource did not get mitigated. Should this scenario be re-executed – understanding that broad individual Participant results may not improve dramatically? Initial Analysis Data Points from the Scenario: Lots of Behavior Test Failures (Not visible to MPs) –Failures for Energy Offer Curve – Maximum 83 (HE04), Minimum 74 (HE12). 25 MPs with at least one offer curve submitted that failed the behavior test. –Failures for No Load = 94, Failures for Cold Startup Cost = 102, Failures for Intermediate Startup Cost = 102, Failures for Hot Start Up cost = of the Resources that failed the Energy Offer Curve behavior test were not committed at all. 24 distinct resources mitigated for SCUC, SCED or both for some hours of the day based on mitigation of commitment and/or energy curve parameters. 9 distinct Resources from 7 Market Participants were mitigated for SCED Energy Offer Curve. 7 Jeff Fruit

Scenario 16.3 – RTBM Offer Mitigation (Initial Analysis) General Results: Executed on 9/18 for 9/18 Operating Date. Ran from 08:00 to 16:00. Mitigation parameters were set at protocol levels from 08:00 to 12:00 with no mitigation. Mitigation parameters were lowered from 12:00 to 16:00 triggering mitigation. Scenario was successful from a software perspective and SPP’s Market-wide visibility perspective. Some Participants would not be able to verify the results because their resource did not get mitigated. –Not all resources had substantial impacts on the active constraints. Initial Analysis Data Points from the Scenario: Behavior Test Failures (Not visible to MPs) –79 Resources –25 Market Participants Final Solution Mitigation –36 distinct resources mitigated at least one interval. –17 Market Participants had resources mitigated. –SPP observed mitigation flags via Markets UI and XML Notifications. 8 Alan Adams

Analysis: Sept 9 – Sept 15 9 Alan Adams Structured Market Trials Statistics posted the day after each OD Structured Market Trials Statistics spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings Analysis of Sept 9 – 13 Operating Days posted Tues to spp.org Analysis spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Presentations, Statistics, MP Meetings

Market Settlement System (MSS) Known Issues KIL# 558 Bilateral Notification Types need to be added to the Notification Service. This is being installed on September 20. KIL# 647 Determinant Report issue with DaMccHrlyPrc not producing for Sink Locations. Fix was installed in Production on September 16. Initial Settlements for ODs Sep 11 forward includes the missing bill determinants. Final Settlements for ODs Sep 1 forward includes the missing bill determinants. 10 Tony Alexander

Market Settlement System (MSS) Known Issues KIL# 659 Prevents RtSE5minQty/RtSELoss5minQty/RtResMtrHrlyQty from being mapped to the determinant reports for MP shadowing. Fix was installed in Production on September 16. Initial Settlements for ODs Sep 11 forward includes the missing bill determinants. Final Settlements for ODs Sep 1 forward includes the missing bill determinants. 11 Tony Alexander

Market Settlement System (MSS) Known Issues 12 These 3 fixes will get Settlements close to 100% upstream data. Goal to be at 100% upstream data by October 1. KIL# 691 Settlements is unable to receive Day Ahead Commitment Data from upstream systems. Fix is expected by September 20. KIL# 692 Settlements is unable to receive RUC Commitment Data from upstream systems. Fix is expected by September 20. KIL# 693 Real Time As Dispatched Offer Commitment Data is overlapping between runs. This is failing Settlements Validations and causing settlements to fill the data with test data. Fix is expected by September 20. Tony Alexander

Who can submit a Dispute? Only individuals authorized by their LSA have the ability to submit Disputes on behalf of their company. 13 Please have your LSA submit an RMS ticket to include the names of individuals allowed to submit Disputes for your company. Tony Alexander

How will Disputes be handled? Market Trials Using the production RMS, customers will select “Submit Request”. Select the “Settlement Dispute” Quick Pick. The Request Type “MT Settlement Dispute” indicates that the Dispute is associated with Market Trials settlement results. 14 Tony Alexander

How will Disputes be handled? Go-Live Using the production RMS, customers will select “Submit Request”. Select the “Settlement Dispute” Quick Pick. The Request Type “Settlement Dispute” indicates that the Dispute is associated with post go-live settlement results. All Disputes submitted post go-live will be financially binding. 15 Tony Alexander

Market Settlements Dispute Submission All MPs need to submit a dispute. Readiness Metric - STL-05: Submit Dispute  Market Participants have the ability to submit disputes. RMS Link Actual disputes will be counted as passed. You can submit a test dispute by typing “Test Dispute” in the subject line and filling in all required information. Submitting one dispute is all it takes to pass (Actual or Test). 16 Tony Alexander

Announcements & Outstanding Questions Credit Scenarios rescheduled for October 3.0a Successful Credit - Oct 21 for OD Oct Violate Credit - Oct 22 for OD Oct Ginny Watson

Look-Ahead: Sept 23 – Sept Sept 23 – Sept 29 Daily Calendar Sept 23 – Sept 29 spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Includes some Settlements Dates. All details on Settlements Calendar marketplace.spp.org > Public > Settlements > CalendarsSettlements Calendar Scheduled Scenarios 21.0 RTBM Scarcity Shortages 15.0 Commitment Mismatch Official Operating Days Monday - Friday Friday Maintenance Saturday reserved for MP Testing Ginny Watson

21.0 RTBM Scarcity Shortages Scenario Description RTBM Operating Reserve scarcity pricing will be invoked by the following sub- scenarios: 1.System-wide OR shortage only 2.System-wide OR shortage, Zonal OR shortage 3.System-wide OR shortage, System-wide REGUP shortage 4.System-wide REGUP shortage, Zonal OR shortage 5.System-wide OR shortage, System-wide REGUP shortage, Zonal OR shortage 6.Zonal OR shortage only 7.System-wide REGUP shortage only 8.System-wide REGDN shortage only –Scarcity pricing results from a capacity shortage on either a Reserve Zone basis or a system-wide basis. Capacity shortages do not include shortages of Operating Reserves relating to insufficient ramping capability. –For details on the Sub-Scenario schedule, see the Scenario Document herehere 19 Alan Adams

21.0 RTBM Scarcity Shortages Expected Result Following execution of the RTBM SCED, LMPs and MCPs will be communicated to the Market Participants. To ensure rational pricing of cleared Operating Reserve products, the SCED algorithm will include product institution logic as follows: –Any Regulation-Up Offers remaining once the Regulation-Up Requirement is satisfied may be used to meet Contingency Reserve requirements if Regulation-Up Offer is more economic or is required to meet overall Operating Reserve requirement; –Any Spinning Reserve Offers remaining once the Spinning Reserve Requirement is satisfied may be used to meet Supplemental Reserve requirements if Spinning Reserve Offer is more economic or is required to meet the overall Operating Reserve requirement; –The product substitution logic ensures that within each reserve zone the MCP for Regulation-Up is always greater than or equal to the Spinning Reserve MCP and that the Spinning Reserve MCP is always greater than or equal to the Supplemental Reserve MCP 20 Alan Adams

21.0 RTBM Scarcity Shortages Expected Result Even with product substitution, there will be a shortage of the OR cleared –Scarcity Pricing will be invoked as described under Section of the Protocols –All applicable demand curves will be applied to the LMP when the next additional MW of energy causes an increase in the corresponding shortage conditions 21 Alan Adams

21.0 RTBM Scarcity Shortages MP Activities *Applicable to MPs with Resources Activities will be the same as the Base Scenario Observe LMPs and MCPs via user interfaces 22 Alan Adams

15.0 Commitment Mismatch Scenario Description A commitment mismatch occurs when a resource outaged in the external outage scheduler (CROW) conflicts with the COP status for the resource as committed by the Day Ahead market. –The CROW outage will prevail in the RUC solution. A commitment mismatch also occurs when a resource outaged in the RTBM commit status conflicts with the COP status for the resource as committed by the DA market. –The RTBM commit status outage will prevail in the RUC solution Scenarios: –Outage in CROW for previous commitment period –Outage in Commit Status for previous commitment period 23 Alan Adams

15.0 Commitment Mismatch Expected Result Outaged resources will not be committed in the RUC process for the outaged intervals SPP operators will update COP MPs should receive a STOP notification based on when the resource is to be outaged 24 Alan Adams

15.0 Commitment Mismatch MP Activities: Outage in CROW *Applicable to MPs with Resources Submit an RMS Ticket labeled Scenario 15 indicating which resource will be used during the Outage in CROW portion of Scenario 15 by 12P Wed Sept 25 Submit a commit status of “Self” in the DA Market offer to ensure a resource will be committed in the DA Market and therefore be committed in the COP during the DARUC process. SPP will simulate the CROW outage on the MPs behalf by entering the outage directly into the market software for the selected resources that have been cleared in the DA Market. The outages will cause a commitment mismatch between the COP and CROW Review the START/STOP notifications indicating when the unit will be committed and offline. –MPs can check that a STOP notification was received for the outage in the Market User Interface –START/STOP notifications are located on the Resource Offers tab > Date > Market Results > Commitments > View 25 Alan Adams

15.0 Commitment Mismatch MP Activities: Outage Commit Status *Applicable to MPs with Resources Submit a commit status of “Self” in the DA Market offer to ensure a resource will be committed in the DA Market and therefore be committed in the COP during the DARUC process. Submit a Commit Status of “Outage” in the RTBM offer prior to the execution of DARUC (1700) on the resource that cleared in the DA Market Review the START/STOP notifications to verify that the resource with a Commit Status of “Outage” received a STOP notification for the beginning hour of the Outage period. 26 Alan Adams

Release Scorecard 27 Release ScorecardRelease Scorecard posted to spp.org: spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Ginny Watson

Migration and Maintenance Report 28 Migration and Maintenance Report Migration and Maintenance Report posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder MT Tagged Transactions MT Tagged Transactions documentation posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder > Structured Market Trials Reference Documents Wendy Reynolds

Known Issues Log 29 Market Trials Known Issues Log Market Trials Known Issues Log posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Carrie Simpson Issue #RMS ID #ComponentSynopsisSeverity 718 Markets Systems Mitigation is not being applied in SCED in emergency conditions Severity 2: High 719 Markets Systems Currently Control Zone Dynamic Schedule communicated from RTGEN to MDB are not being recognized with areas that are modeled under a BA like MISO (i.e. AMRN and MEC). AMRN and MEC are modeled in RTGEN as OPA and consequently the Control Zone Dynamic Schedule is communicated as From or To these OPA's and not MISO. The disconnect exists because the schedules with these settlement locations all map to MISO Pnode. Severity 2: High Markets Systems A resource's Effective Min is incorrectly decreased during partial outage for a combined cycle (multi-unit) resource. Only the effective Max should be adjusted - if necessary." Severity 2: High

Known Issues Log 30 Market Trials Known Issues Log Market Trials Known Issues Log posted to spp.org spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Carrie Simpson Issue #RMS #ComponentSynopsisSeverity 714Markets UI The following error is generated in the Notifications log. When this error occurs, the XML is not generated to send to MPs. This doesn't happen frequently, but needs to be resolved. org.apache.cxf.interceptor.Fault: Marshalling Error: Error writing request body to server Severity 3: Medium 715Markets UI When the credit system sends a PostCreditDefault notification to the Markets system, this should trigger the Market system to issue a cancelation (delete) for all future Virtual Bids/Offers associated with the Asset Owner in default. In the current release, the system does not delete the virtual bid/offer and all previously approved bids/offers remain in an approved state. Severity 3: Medium

Scheduled Scenarios 31 Sept 23 – Sept – RTBM Scarcity Shortages 15.0 – Commitment Mismatch Sept 30 – Oct DA Capacity Excess 6.2 – RUC Capacity Excess Ginny Watson

Market Trials Useful Resources SMT Hotline: for critical & high issues Mon-Fri 8A – 5P Please submit all other inquiries via the Request Management System (RMS)Request Management System (RMS) Settlements Calendar marketplace.spp.org > Public > Settlements > Calendars Integrated Marketplace Market Trials Project Documentation Folder spp.org > Integrated Marketplace > Market Trials > Structured/Unstructured Test > Integrated Marketplace Market Trials Project Documentation Folder Documents found here include: Daily Calendar, Release Scorecard, Migration Report, Known Issues Log, Market Participant Guidehere SMT Presentations, Statistics, MP Meetings Folder SMT Reference Documents Folder New! Tag Validation Criteria for MT TestingTag Validation Criteria for MT Testing SMT Scenarios Folder New! SMT Scenarios ScheduleSMT Scenarios Schedule Change Tracker spp.org > Integrated Marketplace > Marketplace Documents 32