1. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 1 EDS 3 R6.3 8 Focused Input Test (FIT) II Web Ex Texas Nodal Load Frequency Control (LFC) October 7, 2008

2. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 2http://nodal.ercot.com LFC – R6.3: LFC SE & SCED FIT Web Ex Agenda Agenda – Welcome & Admonition Meeting Objective Focused Input Test II Overview & Set-up EOC, Inc/Dec Offers and OS s ERCOT Assessment and QSE Self Assessments QSE Pre-Test Schedule & Prep Summary

3. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 3 Antitrust Admonition ANTITRUST ADMONITION ERCOT strictly prohibits Market Participants and their employees who are participating in ERCOT activities from using their participation in ERCOT activities as a forum for engaging in practices or communications that violate the antitrust laws. The ERCOT Board has approved guidelines for members of ERCOT Committees, Subcommittees and Working Groups to be reviewed and followed by each Market Participant attending ERCOT meetings. If you have not received a copy of these Guidelines, copies are available at the Client Relations desk. Please remember your ongoing obligation to comply with all applicable laws, including the antitrust laws.

4. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 4 LFC – R6.3: LFC FIT II Web Ex Objective Review the Test Design & Objectives to enable all parties to have a successful test. (LFC Release 6.3)

5. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 5http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex Pre-Test Overview & Set-up Ken McIntyre

6. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 6 LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex Why? Provide the market an opportunity to tune and operate Nodal system updates. Create Test Data Files for use in system tuning & testing The focused input test days will provide additional system wide open loop testing to prove SE & SCED system functions. It will provide an opportunity to tune Nodal functions for future Test Events (8 & 48 Hour Tests). Provide additional integration testing of Nodal Systems.

7. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 7 LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex How? SCED will calculate Base Points TCM will be used for activating constraints for SCED No settlement impacts will occur as all actual unit control and dispatch will take place in the existing Zonal system framework Two 3 x 8 Tests (8 hours/day for 3 days) Five 72 hour Tests (24 hours/day for 3 days)

8. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 8http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex ICCP Data Submittals Ken McIntyre

9. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 9 LFC – R6.3: LFC SE & SCED Focused Input Testing Data Market Participant EMS Data Submittals – –RLC/LFC Support (Nodal=Zonal) Resources Net MW (ICCP) Resources Gross MW (ICCP) HSL, LSL (ICCP) HEL, LEL (ICCP) Resource Status Code (ICCP) Regulation Ancillary Service Schedules (ICCP) Responsive Reserve Ancillary Service Schedules and Responsibilities (ICCP) Non-Spin Reserve Ancillary Service Schedules and Responsibilities (ICCP) Resource Specific DSR Schedules and QSE DSR Load (ICCP) Regulation Participation Factors (ICCP) Combined Cycle Configurations (ICCP) Ramp Rates (RARF data up to date) Raise/Lower Block Status (ICCP) As called for in the Market Notice dated February 26, 2008. Nodal Regulation Responsibility will function on a 10 Minute basis as in Zonal 24 Support for SE, SCED, Telemetry & Market Offers

10. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 10 LFC – R6.3: LFC SE & SCED Focused Input Testing Data Market Participant EMS Wind Unit Data Note – Section 6.5.5.2 Operational Data Requirements –For each wind-powered Generation Resource the QSE shall set the HSL to the output capability of the facility based upon all available units and the current measured wind speed (HSL must be equal to or greater than the latest telemetered net real power of the wind- powered Generation Resource). ( http://nodal.ercot.com/protocols/2008/05/06/06-050108_Nodal.doc) http://nodal.ercot.com/protocols/2008/05/06/06-050108_Nodal.doc –Telemetry HSL values for wind resources need to conform to this protocol for the LFC system wide focused input testing periods

11. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 11http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex Energy Offer Curves, Inc/Dec Offers and Output Schedules Jeff Gilbertson

12. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 12 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Market Participant Data Submittals – –All Resources must have a COP –All Online Resources must have either an Energy Offer Curve, Output Schedule, or Output Schedule with Inc and/or Dec curves Current Operating Plan (COP) –Should reflect expected Resource Status and Limits –AS Schedule in submitted COP is not required for this testing period Energy Offer Curve –Should cover telemetered LSL/HSL range –Should reflect portion of BES carried by Resource in both MW and price Output Schedule –Should fall within telemetered LSL/HSL range –Should reflect expected MW output of Resource Inc/Dec Curve –Requires Output Schedule –Should reflect portion of BES carried by Resource in both MW and price –May require deviation from Zonal bids as first Inc price point must be > first Dec price point

13. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 13 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Submittal Timeline –Current Operating Plan (COP) Submit COP as early as 7 days in advance but no later than 1700 one day ahead of the testing period COP may be updated anytime prior to the end of the Adjustment Period (one hour before start of Operating Hour) Output Schedule submission requires COP submission as OS MW values are validated against COP HSL and LSL in MMS Release 3 Inc/Dec curve requires COP submission with ONDSR or ONDSRREG status SCED uses telemetered Resource Limits and Status, so submitted COP is not used by SCED Submitted COP will be used to determine if appropriate Energy Offer Curve, Output Schedule, and Inc/Dec curve have been submitted

14. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 14 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Submittal Timeline –Energy Offer Curve EOC submission may begin seven days prior to Operating Day EOC submission blocked for next Operating Day between 1000 and 1800 EOC may be updated after 1800 (beginning of Adjustment Period) to one hour prior to Operating Hour (the end of the Adjustment Period) There are rules for updating a DAM or RUC committed Resource, but DAM and RUC will not be performed during the testing window

15. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 15 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Submittal Timeline –Output Schedule Output Schedule submission may begin seven days prior to Operating Day Output Schedule may be updated until the end of the Adjustment Period OR the Operating Interval for DSR Requires COP for validation –Inc/Dec Offer Curves Inc/Dec Offer Curve submission may begin seven days prior to OD and ends at the end of the Adjustment Period Inc/Dec Offer Curve requires COP Resource Status of ONDSR or ONDSRREG Inc/Dec Offer Curve requires Output Schedule submission for SCED use –Inc/Dec Offer Curves both start at 0 MW –Inc is monotonically increasing in price; Dec monotonically decreasing –Offer Curve used by SCED constructed by adding Dec curve to the left of Output Schedule MW and Inc curve to the right of Output Schedule MW

16. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 16 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Submittal Timeline –Example timeframes for Operating Hour 10/23 12:00 pm – 1:00 pm 10/16 12:00 am – submission window for COP, Output Schedule, EOC, Inc/Dec begins 10/22 10:00 am – DAM deadline for 10/23. EOC submission window ends. 10/22 6:00 pm – Adjustment Period begins. EOC submission window re-opens. 10/23 11:00 am – End of Adjustment Period. COP, Output Schedule, EOC, and Inc/Dec submissions window ends (except Output Schedule for DSR) 10/23 12:00 pm – Start of Operating Hour. Output Schedule for DSR submission window ends.

17. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 17 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Market Participant Data Submittals – –Good Resource dispatch example Telemetry: HSL = 450; LSL=150; MW = 440 RLC: HDL = 450; LDL = 430 TPO covers 150 – 500 SCED BP = 450 MW; EOC price at 430MW = $20; LMP = $50 MW $20 $0 $ 150450 430 450

18. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 18 LFC – R6.3: LFC SE & SCED FIT SCED/MMS Data Submittals Market Participant Data Submittals – –Bad Resource dispatch example Telemetry: HSL = 300; LSL = 100; MW = 150 RLC: HDL = 160; LDL=140 TPO covers 0 – 100 SCED BP = 140; TPO price at 140MW = $1000; LMP = $50 MW $-250 $1000 $0 $999 $ 100300 140160

19. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 19http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex ERCOT Assessment & QSE Self Assessments Burton Kunz

20. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 20http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Assessments Assessment – ERCOT will analyze the Test results and report on: Market Participation Network Events System Performance –SE for Convergence (EMO 9) –SCED for consistent solutions, Shift Factors, LMP Note: ERCOT will provide analysis assistance in the form of answers to questions. It is the responsibility of each market participant to analyze their own test results from the R6.3 FIT II Tests.

21. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 21http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Web Ex QSE Test Schedule & Prep Summary Burton Kunz

22. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 22http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Open Loop Testing FIT II Test Time & Dates – 3x8 Tests October 21, 22 & 23, 2008 November 4, 5 & 6, 2008 The Test will start at 8:00 AM The Test will end at 5:00 PM 72 Hour Tests (3x24) November 18, 19 & 20, 2008 December 2, 3 & 4, 2008 December 16, 17 & 18, 2008 January 6, 7 & 8, 2009 January 20, 21 & 22, 2009 The Test will start at 12:01 AM the first day The Test will end at 12:00 Midnight the third day Please make sure that all ICCP Data Submittals are working in real time. ERCOT will be making contacts as needed to improve the quality of data submittals.

23. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 23http://nodal.ercot.com LFC – R6.3: LFC SE & SCED Focused Input Testing Schedule Test Contacts Form – Each MP is required to provide a test form for FIT II by October 10 th. The form can be found on the Nodal Readiness Web Site. People – Each MP needs to have their experts on hand each test period to support: ICCP Energy Offer Curves, Inc/Dec Offers and Output Schedules

24. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 24 LFC – R6.3: LFC SE & SCED FIT II Test Form

25. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 25 LFC – R6.3: LFC SE & SCED FIT Data Submittals Market Participant EMS Data Submittals – –RLC/LFC Support (Nodal=Zonal) Resources Net MW (ICCP) HSL, LSL (ICCP) HEL, LEL (ICCP) Resource Status Code (ICCP) Ancillary Service Schedules and Responsibilities (ICCP) Resource Specific DSR Schedules and QSE DSR Load (ICCP) Regulation Participation Factors (ICCP) Combined Cycle Configurations (ICCP) Ramp Rates (using RARF data) Raise/Lower Block Status (ICCP) As called for in the Market Notice dated February 26, 2008. Nodal Regulation Responsibility will function on a 10 Minute basis as in Zonal 24 Support for SE, SCED, Telemetry & Market Offers

26. Lead from the front Texas Nodal Version 1.0 http://nodal.ercot.com 26http://nodal.ercot.com LFC – R6.3: FIT II Web Ex Thank you. LFC@ercot.com