1. ©2004 PJM 1 OASIS Phase II Approaching the Problem General Discussion on Strategy and Philosophy Andy Rodriquez - PJM Presented to the NAESB ESS and ITS February 16, 2004

2. ©2004 PJM 2 How did we get here? OASIS 1A Fax Tagging E-Mail Tagging Electronic Tagging XML Electronic Tagging OASIS Phase II/Electronic Scheduling ANOPR

3. ©2004 PJM 3 Core Objectives Customer-driven Development Incremental Value Cost Effective Market Design Neutral Encourage seamless boundaries whenever possible Leverage Existing Tools… without being bound by those tools

4. ©2004 PJM 4 How do we start? Begin with the ESC Use Cases Evaluate and Define OASIS functionality Identify Modular Components Determine Architecture Develop Approach

5. ©2004 PJM 5 Architecture This should NOT necessarily be a discussion on technical issues Focus should be on deployment strategy that meets core objectives Identify modular groups where appropriate

6. ©2004 PJM 6 Approach Should focus on incremental deliverables to provide ongoing value Staged approached to functionality will allow amortized cost burden to companies Can also be utilized to address regional diversity –If upgrades can be done on an incremental basis, we can work to ensure backward compatibility where possible

7. ©2004 PJM 7 Ongoing Efforts IDC – Next Generation –No dependence on tags CIM Market Extensions –Coordination between RTOs PJM/MISO Congestion Management –Quantifying internal dispatch Information Technology Council –Facilitated Checkouts, Other Initiatives

8. ©2004 PJM 8 Collaboration Should encourage participation to meet openness goals and ensure coordinated attack – minimal duplication of effort –NAESB Groups Seams Collaborative Information Technology Subcommittee –NERC Community Interchange Subcommittee Transaction Information Systems Working Group Operations Reliability Subcommittee Interchange Distribution Calculator Working Group –ISO/RTO Council Information Technology Committee

9. ©2004 PJM 9 What is OASIS (my thoughts)? A market-oriented solution that optimizes the market interchange scheduling function –This would be developed by NAESB A reliability-oriented solution that meets the needs of the functional model with regard to operational interchange scheduling –This would be developed by NERC A set of interfaces to allow for market activity within a ISO/RTO/TP –This would be developed by the ISO/RTO/TP, but would align with the NAESB functions A market/reliability interface between the two, called the Interchange Authority, that would tie markets and reliability together –This would jointly be developed by NERC, NAESB, and the IRC

10. Proposed Vision

11. ©2004 PJM 11 Suggested Timeline Spring/Summer 2004 – Develop Functional Design Documents –Detailed Scope –ESC Use Cases Summer/Fall 2004 – Develop Strategic Architecture Plan –Modules –Compatibility plans and requirements Winter 2004 – Identify Implementation Plan 2005 – Design Stage I Components 2006 – Implement Stage I Components, Design Stage II Components 2007 – Implement Stage II Components, Design Stage III Components 2008 – Implement Stage III Components

12. ©2004 PJM 12 Initial Phases Stage I –OASIS Phase I Legacy Bridge –E-Tag Legacy Bridge (replace Authority with limited IA functionality) –IDC Architectural Split (Impact Calculator vs. TLR Process) Stage II –OASIS Phase II Functions –Legacy Bridge Upgrades –Operations Scheduling Tools (Functional Model) –Enhanced IA to Reliability Interface –IDC Next Generation Stage III –Electronic Scheduling –Market to IA Interface

13. ©2004 PJM 13 Question Do we agree upon the core principles? –Customer-driven Development –Incremental Value –Cost Effective –Market Design Neutral –Encourage seamless boundaries whenever possible –Leverage Existing Tools without being bound by those tools

14. ©2004 PJM 14 Question Does everyone agree with these next steps? –Functional Design Work Begin with the ESC Use Cases Evaluate and Define OASIS functionality –Identify Modular Components Identify key components –Determine Architecture Group components logically based on dependencies –Develop Approach Build implementation plan for staged approach

15. ©2004 PJM 15 Key Components Develop appropriate representation across the industry Establish governance issues –Identify leadership –Determine other key liaisons and roles –Set up meeting schedules –Agree to vision and scope –Establish milestones and deliverables

16. NAESB OASIS II Development Overview Information Technology Subcommittee Electronic Scheduling Subcommittee OASIS II Structural Design Task Force OASIS II Implementation Task Force ESC Use Cases Vision and Scope Structure Design Document Use Case Document Functional Requirements S&CP Documents Business Practices Implementation Plan Joint OASIS Phase II Implementation Task Force FERC Filed Documents

17. ©2004 PJM 17 Vision and Scope NERC IS NERC ORS NAESB ESS STF Vision and Scope IRC, Customers, Others Functional Model Vision – Downstream of the IA Next Generation IDC Vision RTO Internal Systems (Current and Future), General Guidance Customer-driven focus – Upstream of the IA Overall long-term vision – where do we want to be?

18. ©2004 PJM 18 Use Case Document Use Case Document NERC TISWG NERC IDCWG Functional Model Component – Operational Scheduling Next Generation IDC Functions NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF Business Analysis, Facilitation, Customer Focus Detailed walkthrough of functionality, business logic IRC, Customers, Others RTO Internal Systems (Current and Future), General Guidance

19. ©2004 PJM 19 Functional Requirements Functional Requirements NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF IRC, Others RTO internal Systems (Current and Future) Beyond Use Cases – blueprints for S&CP Includes System Requirements Documentation and Technical Guidance

20. ©2004 PJM 20 Structure Design Document Structure Design IRC, Customers, Others NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF How do we want to organize the functional pieces? Business Analysis, Facilitation, Customer Focus Logical Guidance, Priorities

21. ©2004 PJM 21 Implementation Plan Implementation Plan NERC IS NERC ORS IRC, Customers, Others NAESB ESS JOP2ITF NAESB ESS STF NAESB ITC SDTF How do we roll everything out? How do we coordinate with the Functional Model Implementation? How do we coordinate with the Next Generation IDC? How can we bring in new and existing systems? Facilitation and Technical Guidance

22. ©2004 PJM 22 S&CP NERC TISWG NERC IDCWG IRC ITC NAESB ITC How do you build it? How do we coordinate with the Functional Model Implementation? How do we coordinate with the Next Generation IDC? How can we integrate new and existing systems? Facilitation and Technical Guidance EPRI CME What parts of the CIM can we leverage? Vendors What technologies can we leverage?

23. ©2004 PJM 23 Business Practices Implementation Plan NERC IS NERC ORS IRC, Customers, Others NAESB ESS How do you operate it? What criteria does NERC have we need to coordinate with? What BP Standards can we agree to? Facilitation and Technical Guidance IRC Seams, NAESB Seams Can BP Standards fix some seams?

24. ©2004 PJM 24 Questions?