1. May 7, 2008 TPTF Early Delivery Systems Status Daryl Cote

2. 2 2 TPTF4/1/2008 Agenda EDS SLA EDS 2 –Release 3: State Estimator –Release 4: NOMCR EDS 3 –Release 5: SCED –Release 6: LFC –Release 7: CRR EDS 4 –Release 8: COMS –Release 9: DAM / RUC / SASM Go-live Procedure

3. 3 3 TPTF4/1/2008 EDS SLA Metrics

4. 4 4 TPTF4/1/2008 TSP - Request for Telemetry Status

5. 5 5 TPTF4/1/2008 Load Status

6. 6 6 TPTF4/1/2008 Next Steps ERCOT has communicated production ICCP server information to TSP and QSEs with Resources –ERCOT asked MPs to respond with completed AIEF (Association Information Exchange Form) within 3 days of receipt –ERCOT will coordinate with TSPs and QSEs with Resources to implement / test the new links Goal is to migrate TSPs and QSEs to new Servers by Mid-June Send follow up emails to QSEs for SI points and to confirm ownership of points TSPs indicated they do not own –Emails to go out Mid-May after TSPs respond (see slide 3)

7. 7 7 TPTF4/1/2008 Alarm Configuration and Testing Status Market Facing Notifications and Alerts –Current Status: Business is reviewing list of alerts and notices –Next Steps: Obtain ERCOT Business approval Submit to TPTF for review and approval After ERCOT and TPTF approval MIS will submit to the appropriate Nodal teams who will schedule implementation Control Room Alarms –Current Status: Business is reviewing list of alarms for category, priority and text –Next Steps: Implement and test Alarms with EMS 5 FAT testing. FAT is scheduled to be completed by the end of June.

8. 8 8 TPTF4/1/2008 Release 4 – NMMS / NOMCR 2007 2008 SepOctNovDecJan Feb R4: NOMCR / Network Model verification E2 R4 NOMCR Checkout Network Model Verification  Onsite NMMS training and scripted scenario execution completed by:  AEP, Rayburn, STEC, and College Station, AEN, CenterPoint, Garland, & CPS  Onsite training to occur week of 5/7 for:  Brownsville, TNMP, TMPA, LCRA  Onsite training to occur week of 5/13 for:  BEC, MVEC, Denton, Greenville  All MP to complete onsite training week of 5/19  BTU, MEC, Oncor  Concurrent user test conducted May 1 st  28 MPs and 15 ERCOT users simultaneously used the system

9. 9 9 TPTF4/1/2008 Release 5 - SCED 2007 2008 SCED R5.1SCED R5.3: RT ICCPSCED R5.4: LMP Post SepOctNovDecJan Feb SCED R5.2 E3 R5 6-month LMP Posting RT ICCP EDS 3 Release 5 Exit Criteria % Complete Comments Daily submissions of COP, TPO, and OS~90%Expect large payload support in August SCED Inputs verified: HRL, LRL, SURAMP, SDRAMP, HDL, LDL; GTBD, ICCP 100% (90%) Results from first pre-6.3 test provided to QSEs Results from second pre-6.3 test provided to QSEs SCED Outputs verified: QSE’s ability to receive Resource Base Points and LMPs via ICCP 100% (90%) Base Point and LMP calculation verified for Resources with Offer Curves or Output Schedules 100% (100%) Reports100% (100%) LMPs verified for Reasonability and posted to MIS for Market Participant review100% (100%) Legend: % in parentheses are from the 4/1 TPTF update

10. 10 TPTF4/1/2008 Release 6 - LFC 2008 JanFebMarAprMay Jun E3 R6 R6.1: RLC & ACE EDS 3 Release 6.1 Criteria % Complete Comments ACE Performance Verification 100% (0%) Approved by TPTF April 21, 2008 Completed Test Form Received back from MP 100% (80%) Completed RLC Validation Completed 100% (71%) Completed Emergency Base-Point Validation Completed 100% (33%) Completed EDS 3 Release 6.2 Criteria % Complete Comments Pre-Test & Test Times Scheduled 100%Dates have been set with all QSE organizations Submit Units for Testing 74% Provide Ramp Rate Curves and 5 Minute BPS 28% Prove ability to receive Nodal Instructions 28% Ability to receive Nodal & Zonal instruction Simultaneously 28% Pre-Test Complete 28% R6.2: QSE TestingR6.3: TST Legend: % in parentheses are from the 4/1 TPTF update

11. 11 TPTF4/1/2008 Release 6 – LFC Phase II Testing Status  The remaining schedule is very full, Mondays and Fridays being used to accommodate long running test, and make-ups.

12. 12 TPTF4/1/2008 LFC 6.3 pre-Test Prior to R6.3 (total system test) the market desires an open loop test to validate SCED dispatch. Approach to accomplish this: –Performed open loop test on 4/28 from 10am-noon Results on following slides –Performed open loop test on 5/5 from 4pm-9pm Results on following slides –Perform open loop test on 5/12 from 7am-9am

13. 13 TPTF4/1/2008 Nodal SE Convergence: 4-28 Began Contacting QSEs

14. 14 TPTF4/1/2008 MW set to 15 & MVar at 30, spikes removed from graph (4/28)

15. 15 TPTF4/1/2008 Limits during test period 4-28, 10am - Noon  Results look good minus the aggregated LEL limits (one resource had 6099 for the LEL)

16. 16 TPTF4/1/2008 LMPs Vs GTBD (4/28)  Aggregated offer curve had a flat point of a few 100 MWs  Changes to amount of MW considered by SCED correctly moved LMPs  Uniform LMP result of no constraints in Nodal  LMPs, for the most part, remained between min and max zonal MCPEs

17. 17 TPTF4/1/2008 Nodal SE Convergence: 5-5 Began Contacting MPs

18. 18 TPTF4/1/2008 MW set to 15 & MVar at 30, spikes removed from graph (5/5)

19. 19 TPTF4/1/2008 Limits during test period 5-5, 4pm – 6pm  Limits Improved from first pre-test but a number of units continued to have questionable values

20. 20 TPTF4/1/2008 Reference LMPs Vs GTBD (5/5)  Price remained flat from 1730-1750 while GTBD changed due to the generation that was changing over this period were price takers  Other nuances attributable to generation with no EOC, changes in OS, and telemetered limits  MCPE for this period remained slightly lower than the Reference LMP

21. 21 TPTF4/1/2008 LMP Graphics from 5/5

22. 22 TPTF4/1/2008 Target Dates for 6.3 Tests Week of June 16 th – 2 hour test –ERCOT desires to proceed with the 2hr test with/out CIM –EDS plans to purge the resource data from MMS on May 15 and load it with data from the Certified RARFs Week of July 7 th – 8 hour test Week of July 28 th – 48 hour test

23. 23 TPTF4/1/2008 EDS 3 Release 7 - CRR EDS 3 Release 7 Status% CompleteComments Release 7.1 Connectivity and Submissions100% (0%) 59 participants successfully completed UI testing (97% participation) * completion of R7.1 qualifies MP for production cert Release 7.2 Scripted Monthly Auction100% (0%) No Change Release 7.3 unscripted Monthly Auction100% (0%) No Change Release 7.4 Unscripted Annual Allocation/Auction 66% (0%) 9 participants successfully submitted PCRR nominations (82% participation) 46 participants successfully submitted bids (75% participation) Jan 08Feb 08Mar 08Apr 08May 08Dec 07 CRR–R7.0CRR–R7.1CRR–R7.2CRR–R7.3 CRRR7.4 CRR–R7.5 (TBD) Jan 08Feb 08Mar 08Apr 08May 08Dec 07Jan 08Feb 08Mar 08 Apr 08 May 08Dec 07 CRR–R7.0CRR–R7.1CRR–R7.2CRR–R7.3CRR–R7.5 (TBD) R7.4 exit delayed 10 Business Days (to 5/16) due to issues clearing annual auction: Data and system environment / application tuning Legend: % in parentheses are from the 4/1 TPTF update

24. 24 TPTF4/1/2008 Release 8 – COMS Statements and Invoices Posted Statements and Invoices posted to Readiness Center: Standard Statements and Invoices Mock CARD Invoices Mock CRR Balancing Account Invoices Mock DAM Late Fee Invoices Mock DAM Settlement Statements and Invoices Release 7.2 CRR Auction Invoices MIS Certified Area: DAM Statements and Invoices for Operating Days 4/18/08, 4/23/08, 4/25/08 and 4/30/08 (DAM awards only) Release 7.3 CRR Auction Invoices

25. 25 TPTF4/1/2008 Release 8 – continued Reports, DDLs, XSDs and Reports posted to Readiness Center: CMM Credit Standing to ERCOT Counterparty Report CMM Total Potential Exposure Detail Report EDW – PRDE Draft DDL EDW – Settlements Draft DDL EDW – PRDE Draft XSD EDW – Settlements Draft XSD COMS – Market Data Transparency Specifications Verifiable Costs: Received a large number of intent emails with resources specified ERCOT will generate “temporary” Verifiable Costs for EDS testing based on resources provided in intent email

26. 26 TPTF4/1/2008 Release 8 – Upcoming Activities Mock RTM Initial Settlement Invoices and RTM Late Fee Invoices with input data to Readiness Center. (May 15, 2008) Mock RTM Settlement Statement in which there is no DAM for the Operating Day with input data to Readiness Center. (May 15, 2008) CRR Auction Invoices – Release 7.4 Auction Results (2 business days after auction clears)

27. 27 TPTF4/1/2008 EDS 4 Release 9.1 2008 JanFebMarAprMay Jun E4 R9 R9.1: DAM/RUC Submission TestingR9.3:R9.4: DAM/ Adj Period, RT R9.2: Outage Scheduler Legend: % in parentheses are from the 2/22 TPTF update EDS 4 Release 9.1 Exit Criteria% Complete Comments Sign-Up Testing Window Scheduled94% (86%) The following need to schedule test windows: Aquila, Clearview Electric, Glacial Energy, Kansas City Power and Light, National Power Company, Texpo Power, Urban Energy Source MP8 - QSE Ability to Submit Transactions Via MIS 92% (86%) MP9 – QSE Ability to Submit Web Service Transactions 100% (100%) Of those who indicated desire to use Web Services

28. 28 TPTF4/1/2008 EDS 4 Release 9.2 2008 JanFebMarAprMay Jun E4 R9 R9.1: DAM/RUC Submission TestingR9.3:R9.4: DAM/ Adj Period, RT R9.2: Outage Scheduler Legend: % in parentheses are from the 4/1 TPTF update EDS 4 Release 9.2 Exit Criteria% Complete Comments Test Window Scheduled83% (0%) The following need to schedule test windows: QSEs: FPL, STEC, Scurry, Westar TSPs: College Station, Denton, MVEC, MEC, Rayburn, STEC, TNMP Completed Scripted Testing0%Recurring Outages: target release 5/19 Grouped Outages through UI: target release 5/26 Opportunity outage: target release 6/2 Outage Notifications: target release to sandbox mid- June; EDS late June Participate in Performance testing0% Participate in Dual Entry days (prior to 168hr test) 0%

29. 29 TPTF4/1/2008 EDS 4 Release 9.3 2008 JanFebMarAprMay Jun E4 R9 R9.1: DAM/RUC Submission TestingR9.3:R9.4: DAM/ Adj Period, RT

30. 30 TPTF4/1/2008 Go-Live Procedure: TPTF Comments Guiding principals –Reduce risk by limiting the number of moving parts leading up to, during, and just after the Texas Nodal Market Implementation Date (TNMID) –Reduce risk by operating the systems as-if they are production prior to operating under protocols –Reduce risk by regression testing nodal systems –Provide decision makers with a guideline for protocol section 21.12.5 Reinstatement of Zonal Protocol Provisions

31. 31 TPTF4/1/2008 Go-Live Procedure: TPTF Comments New Resources coming on-line between the start of the 168-Hr test and the TNMID –New QSEs for resources coming on-line after the start of the 168 hour test but that are not associated with a QSE that is fully qualified that demonstrate that there is no feasible way to become qualified before the 168 hour test shall be allowed to qualify for zonal and/or nodal operation after the 168 hour test is completed

32. 32 TPTF4/1/2008 Go-Live Procedure: TPTF Comments It is one thing to complete Nodal testing and another to complete qualification. Qualification means that at an establish date of the Transition Plan each QSE will have completed required testing and have posted whatever required credit/collateral with ERCOT. If required items are missing then digital certificate access to Nodal MIS will be suspended just before Go-Live. –If a QSE is currently active in Zonal and is transitioning to Nodal they must complete Nodal testing and post any change in credit/collateral prior to establish date in the Transition Plan. –If a QSE is not currently active in Zonal and expects to participate in the Nodal Market at Go-Live the QSE must complete Zonal qualification (posting collateral and/or completing any remaining zonal tests). This is required because if for some reason ERCOT must fail back to Zonal after Go-Live all entities must be Zonal qualified. –If a QSE is not currently active in Zonal and wishes to begin active participation some time after Go-Live the QSE may wait until ERCOT is ready to begin qualifying QSEs at an establish time after Go-Live (stabilization period).

33. 33 TPTF4/1/2008 Go-Live Procedure: TPTF Comments Sempra Energy Solutions (SES) is troubled to learn that the latest version of the Go-Live Period contemplates a 7X24 parallel operation of both our zonal market systems and our nodal market systems prior to the TNMID. This request, coming after the completion of the 168-Hour Test, imposes at least 90-days of burdensome and duplicative efforts on scheduling and operational resources, resources that have already, presumably, been certified by ERCOT Staff that all Market Readiness Criteria have been met. –SES offers three possible solutions; 1) shorten the parallel operation time period to the final week of November, 2) exempt QSEs from the parallel operation requirement if they have received certification that they have met the Market Readiness Criteria and schedule less than 1,000 MWs per hour, on average, or 3) a combination of items #1 and #2.

34. 34 TPTF4/1/2008 Go-live Procedure: TPTF Comments Market Participants must also enforce a strict code change control procedure managing all aspects of their Texas nodal systems. Beginning thirty days prior to the TNMID, MPs shall notify make no upgrades to key systems such as Generation Management System (GMS) and Market Systems without written approval from ERCOT’s Nodal Executive Director of any changes it intends to make to its Generation Management System (GMS) and Market Systems. Such requests will be made available to all Market Participants. TPTF will determine if Market Participant’s code upgrades in aggregate are significant enough that regressive testing of all Market Participant’s systems must be made.

35. 35 TPTF4/1/2008 Go-Live Procedure Use of Constant Frequency control –Suggested maximum use range from 1 to 24 hours ERCOT recommends no more than 12

36. 36 TPTF4/1/2008 Go-Live Procedure: TPTF Comments What is the estimated “significant effort, unusual work hours and additional labor costs” What is the escalation procedure during this time should MPs observe issues relating to data and / or processing? How will the MP landscape be made aware beyond monitoring the MIS in regards to section 10.1 Guidelines for switching back to Zonal: How can ERCOT ensure Accuracy and Intent without the operation of SCED, RUC, DAM, etc. Given that we are migrating to a Financial market these operations are just as critical to the aforementioned systems. If not addressed and should this event occur the likelihood of multiple ADR’s becomes very real.

37. 37 TPTF4/1/2008 Go-live Procedure: TPTF Comments The task on the bottom of page 5 listed as “ Entry of Ninety Day Outages into the nodal Outage Schedule by TSPs to Support December CRR Auction” with a target date of October 5, 2008 looks to be outside of protocols. In section 3.1 of the Nodal Protocols where the requirements for coordination activity for outages are specified; a 90 Day Outage is not defined. What is defined is an ERCOT approval timeline for outages that are submitted on a 90 day period. When will ERCOT Nodal system move from EDS to Production? What is the time period to verify MP source data such as MP Resource Registration data?

38. 38 TPTF4/1/2008 EDS Deliverables EECPGo-Live168Hr TestDST Post for TPTF Comment Apr 10April 22June 2May 23 Comment CloseApr 25May 2June 11May 30 TPTF VoteMay 5 June 23June 10 Legend: indicates completion

39. 39 TPTF4/1/2008 Questions?