1. http://nodal.ercot.com 1 Nodal Update for: Single Entry Model (SEM) Go-Live Transition NDSWG May 19, 2009 Matt Mereness

2. http://nodal.ercot.com 2 SEM Go-Live Transition Update SEM updates –SEM Overview moved to Appendix Schedule review Communications with stakeholders Training Update Ownership versus Operatorship SEM Go-Live Criteria Metric Discussion (NOMCR training & submission) Processes/Submissions during June-Aug’09 transition RARF Follow-up on validation

3. http://nodal.ercot.com 3 SEM updates Today’s NMMS 6 Status: –NMMS 6 was released from FAT on 4/30/09 –NMMS 6 was loaded into Nodal iTest on 5/13/09; anticipate exiting N-iTest end of month. Issue escalation to TAC/ROS/WMS –Model posting issue- disclosure of Resource data (TAC/ROS/WMS) May 7 TAC direction to work with ROS and WMS on Resource data May 14 ROS and May 18 WMS direction to: –Consider posting CIM model only to TSPs in the interim (too much zonal market left) –Long-term concern with PUN/Load Profile data being in CIM file –Consider posting “clean” CIM file without Resource data for all MPs –SEM Go-Live approval without TPTF Initial direction to have ROS replace TPTF approval TAC chair asked to defer to next month discussion –Both would be changes to SEM Go-Live Procedure Consideration if Board approval is required

4. http://nodal.ercot.com 4 SEM updates (continued) Communication –May 6 th to 15 th TSP outreach through Wholesale Client Services TDSP/TO associations sent to 23 TOs Solicit training headcount from TOs (pre and post Go-Live)

5. http://nodal.ercot.com 5 SEM updates (continued) Communication (continued) –May 15- Market Notice sent for SEM Kick-off call to occur –May 15- SEM Update provided on regular EDS Market Call –May 28- SEM Kick-off WebEx 10:00-11:30am Go-Live timelines and activities for June - August 2009 Training overview and sign-up Dates and access methods to test submissions of NOMCRs Readiness metrics related to training and testing Communications mailbox and SEM market call schedule –Question- Will Friday morning market calls work or are some folks on 4x10 or 9x80 schedules?

6. http://nodal.ercot.com 6 Schedule Review Coming into critical window of final Zonal->Nodal model transformation, market training, application roll-out

7. http://nodal.ercot.com 7 Communications with Stakeholder Meetings (cont’d)

8. http://nodal.ercot.com 8 Training Update TSP Submission Testing and Training environments will be the same system - Model to be used will be snapshot from October 2008 Submission Testing system access –Available June 8 – Aug 10 –NOMCR testing system will be on-line and available to all TSPs –ERCOT has established a dedicated email and have staff available to support questions (nomcrhelp@ercot.com)nomcrhelp@ercot.com –Existing “NMMS Sandbox” will be replaced in coming weeks Training to be hosted in Taylor –Pre-SEM classes June 22 – Aug 3 Current plans for at least six 3-day sessions Planning for 12-18 seats for each class Large dedicated training room –Post-SEM classes Sept 23- Oct 20 Fewer sessions and smaller classes (tbd) Make-up classes, not just-in-time training for all staff after go-live

9. http://nodal.ercot.com 9 Training Update (continued) Thanks for the input provided on training Concern over enough classroom time Concern over which equipment types will be modeled in the class ERCOT extended from 2 to 3-Day Class One class per week for 6 weeks Start 1pm Tuesday / End noon Thursday Trainees can stay in Lab Thursday afternoon for Q&A If schedule fills up, ERCOT will shorten class to 2-days for the overbooked weeks June 23-25, June 30- July 2 July 7- 9, 14-16, 21-23, 28-30 Next 4 slides show summary of training format and equipment Full training outline in Appendix (no change from last month) Testing/Training will only include Level 1 Validation Level 1 – Automatic by the system upon submitting. Level 2 – Visual by the N/W Model Coordinator Level 3 – Power flow run on the one NOMCR. Level 4 – Power flow run on all NOMCRs for that day. Level 5 – Power flow run on the AREVA system.

10. Training (continued)

14. http://nodal.ercot.com 14 Ownership vs Operatorship Issues Discussion Friday, May 15 meeting ERCOT, MP-Volunteers (D.Bogen, C.Crews, Ebby John, Hill Brady) Discussion highlights Ask ERCOT to provide how RARF Owner/Operator will be reflected in NMMS when entered by ERCOT Ask ERCOT to provide downstream consumption of Owner/Operator NMMS, Outage Scheduler, Telemetry metrics Should ERCOT consider recognition of Owner/Operator in Protocols 3.10 as the TO in the Operating Guides Concern with equipment owners that are unregistered-at-ERCOT being in conflicting with NERC standards Whether NMMS reporting could reflect a category of unregistered Owners for reporting Consider if early NMMS reports are “draft” Questioned and answer that NMMS supports: Multiple Owners (percentages can be assigned) and single Operator

15. http://nodal.ercot.com 15 SEM Go-Live Criteria SEM Go-Live Criteria defined in the SEM Go-Live Procedure http://nodal.ercot.com/readiness/golive/index.html http://nodal.ercot.com/readiness/golive/index.html Section 4- The following entry criteria shall be met for SEM Go-Live –TSPs & ERCOT complete EDS 2 Release 4 activities (next page) –Nodal network model validated and approved as baseline for SEM Go-Live by ERCOT System Ops and Market Ops Directors –ERCOT publishes CIM model to be used for SEM Go-Live –ERCOT sufficiently staffed for maintenance of nodal & zonal systems –Nodal EMS is capable of consuming NMMS CIM files through the EMS CIM importer for use in the Nodal EMS application suite –SEM Go-Live readiness approved by TPTF, TAC and ERCOT BOD presume ROS approval in place of TPTF –ERCOT publishes the following documents for TSPs ERCOT Network Operations Model validation whitepaper ERCOT Network Operations Model validation results NMMS Modeling Guidelines / Validation Rules document Latest CIM data dictionary and schema

16. http://nodal.ercot.com 16 SEM Go-Live Criteria (cont’d) –All TSPs complete EDS 2 Release 4 activities MPs have enrolled and can access the ERCOT MIS portal MPs have been trained on the NOMCR process TSPs can electronically submit data changes utilizing the NOMCR user interface and CIM compliant format for data exchange or via the manual MIS NOMCR process QSEs can submit data changes utilizing the registration submission and subsequent ERCOT NOMCR process MPs can receive NOMCR acknowledgement of submittals, verifications, and confirmation of data posting –ERCOT completes EDS 2 Release 4 activities ERCOT is ready to fully utilize the NOMCR process for all TSP/QSE data change requests TSP MPs can successfully submit data changes via the CIM compliant electronic NOMCR process. QSE can successfully submit data changes through registration submissions (and updated in the Network Operations Model via the NOMCR process) ERCOT has processes in place to use a “single entry point” to maintain both Nodal and Zonal network model databases when MPs submit changes via the NOMCR process NMMS is the database of record for the Network Operations Model including the ICCP modeling point database and operatorship / ownership information NMMS database is under full change control by ERCOT Network Model Group ERCOT discontinues the use of Service Requests for data changes and change control ERCOT begins the use of the NOMCR process for data changes and change control

17. http://nodal.ercot.com 17 Metric Discussion MP14 – B – MP EDS-2, Release 4 Trials Participation Reported By: TSP Target Completion: Single Entry Model Go-Live minus 30 Days Category: Trials Participation Metric Description: This metric evaluates the level of TSP market participant participation in the EDS 2, Release 4 Trials. Background: The intent of this metric is to ensure that Market Participants are actively participating in the NOMCR process. Criteria: The Readiness Team will review documentation that an adequate number of TSPs have submitted modifications through the NMMS tool following the NOMCR process. # of TSP MPs Participating in Trial participating in the NOMCR process >= 95% RAG Rules - MPs Red - Not participating in trials Amber – Not Applicable Green – Meeting criteria RAG Rules – Market Segment Red – Not meeting criteria Amber – within 10 percent of criteria Green – meeting criteria Reporting Data Sources: Self-Reported ReferencesTP: 5.4.1TNP: 3.10.8, 3.3.2.1, 3.10.7 Metric inventory posted at: http://nodal.ercot.com/readiness/metrics/index.htmlhttp://nodal.ercot.com/readiness/metrics/index.html For MPs, two metrics will be assessed during SEM Go-Live:

18. http://nodal.ercot.com 18 Metric Discussion (continued) MP13 – MP Completes Nodal Operations Related Training Reported By: QSER, QSE, TSP Target Completion: Cyclical in preparation for the 168-Hour Test and Go-Live transition sequence Metric Description: Market Participants complete the applicable training modules associated with nodal operations related readiness Background: The intent of this metric is to ensure that Market Participants participating in Nodal have adequate knowledge of the Nodal Operations to participate Criteria: The Readiness Team will review self-reporting from each Market Participant indicating their level of training necessary to assure the Market Participant’s ability to successfully operate in the Nodal Market meets the scope of activities described in the ERCOT developed Training Materials included in the following courses.  Basic Training Program;  Non-Opt In Entity NOIE (QSE) Operations;  Generation 101;  Transmission 101;  Network Model Management;  ERCOT 101 for Wind Generation. For Market Participants Completed Survey with All Positive Responses = Green Completed Survey with One or More Negative Response = Amber Did Not Complete Survey = Red For Market Segment Over 95% of Market Share Responded Positively to the Survey = Green Over 5% of Market Share Did Not Respond to the Survey = Red Any Alternative Scenario = Amber Reporting Data Sources: Self-Reported Survey ReferencesTP:TNP: N/A

19. http://nodal.ercot.com 19 Processes/Submissions during June-Aug’09 transition –Does NDSWG agree with this approach, and is approval needed? –Transition periods: June 1- Aug 30, 2009 (objective to minimize SvcReq during this period) –No equipment name changes (defer until after SEM Go-Live 8/31/09) –Submit changes as far in advance as possible Aug 15-30, 2009 –Two weeks no submissions, except for emergency changes Aug 31, 2009 - Feb 2010 (NOMCRs for any/all network changes) –Initially the NOMCR timeline will align with zonal timeline »NOMCRs received and translated to zonal model change »30-day lead-time, compliant with current zonal database schedulezonal database schedule »Status is tracked and communicated via system emails –SRs that did not go into zonal production will be converted to NOMCRs for verification and submission by TSPs in Sept –TSP gradually transitions to NodalProtocols(3.10) 90-day reqts

20. http://nodal.ercot.com 20 RARF follow-up on validation Follow-up from previous NDSWG regarding validation rules for RARF –Resource Asset Registration spreadsheet files are submitted by Resource Entities via a Service Request (this will not change in Nodal) –Validation steps: –Limited enforcement in Excel file (drop-down fields) –Submission screening process –RARF visually reviewed by Client reps for completeness –Audit process executed to enforce 1800 business rules –Example Low Limits <= High Limits –ERCOT has matured process and posting validation rules for current and future Planning and Transmission submissions –Plans to go-back after current RARF activities and create market-facing validation rules by end-of-year –If issues found, RE contacted for correction –Submission into NMMS subject to Network Modeling Guidelines

21. http://nodal.ercot.com 21 Questions Questions or comments can be submitted to: –nomcrhelp@ercot.comnomcrhelp@ercot.com –mmereness@ercot.commmereness@ercot.com

22. http://nodal.ercot.com 22 APPENDIX Overview of SEM Training Outline

23. http://nodal.ercot.com 23 SEM Go-Live Overview Single Entry Model (SEM) Go-Live is the switchover on Aug 31, 2009 for TSP submissions of network operations model change requests –from “Service Request” submissions via TML –to “NOMCR” submissions via the NMMS –System of record for Model remains Zonal/Genesys system until Dec 2010 TSP Current Activity Submit Modeling Change via Service Request ERCOT Uploads Svc Request into Zonal Genesys Model ERCOT Copies/Converts Zonal Model “seed” Into Nodal NMMS Model TSP Aug 31, 2009 Submit Modeling Change via NOMCR/NMMS Tool (includes ICCP) ERCOT Incrementally Converts NOMCR Into Svc Req Uploads into Zonal Genesys Model ERCOT uploads NOMCR Into Nodal NMMS Model to support nodal testing Data Consistency Checks are run to ensure model synchronization/fidelity Periodic checks are run to ensure model synchronization/fidelity Full Copy Incr. NOMCR

24. 24 Current Network Operations Model Maintenance for TSPs ERCOT Zonal EMMS Model (system of record through 12/1/2010) Submits Service Request to Change Model ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) Periodic full copy and conversion of model (zonal seed used for nodal systems) TSP

25. 25 After 8/31/2009: SEM Go-Live Network Operations Model Maintenance for TSP ERCOT Zonal EMMS Model (system of record through 12/1/2010) ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) ERCOT enters NOMCRs into zonal model ERCOT runs consistency checks to ensure models are aligned and maintained Submits Model Change Request (NOMCR) TSP NMMS Model System of Record Nodal Go-Live 12/1/2010

26. 26 Network Operations Model Maintenance for Resource & QSE ERCOT Zonal EMMS Model (system of record through 12/1/2010) ERCOT Nodal NMMS Model (nodal testing model- CIM file for EMS/MMS/etc) ERCOT enters into zonal model NMMS Model System of Record Nodal Go-Live 12/1/2010 Submits RARF (Resource Asset Reg Form) via Service Request Submits ICCP Change via Service Request ERCOT process QSE RE

27. http://nodal.ercot.com 27 General Review of SEM Transition (cont’d) The processes and approvals leading up to this activity were outlined in the SEM Go-Live Procedure approved by TPTF and TAC in Aug/Sep 2008 –http://nodal.ercot.com/readiness/golive/index.htmlhttp://nodal.ercot.com/readiness/golive/index.html In the coming months ERCOT will continue to provide updates to NDSWG and ROS on details of the implementation and switchover activities. All nodal presentations to NDSWG continue to be consolidated and posted on Nodal Readiness Center: –http://nodal.ercot.com/readiness/eds2/documents/index.htmlhttp://nodal.ercot.com/readiness/eds2/documents/index.html

28. APPENDIX TRAINING- TRAINING OUTLINE

29. TRAINING-Course Objectives: To give course participants: … a working level understanding of the time-line, participants, transition tasks, roles and responsibilities associated with the SEM go-live … a review of the basics of the ERCOT modeling process Cont …

30. TRAINING- Course Objectives cont.: … proficiency in the handling of the “life of a NOMCR / SAMR” – understanding the process. This involves: –Project Tracker & Coordinator entry –NOMCR creation –Model updates »IMM changes »Upload CIM XML –Validations & submissions –Status notifications –Additional features (history, archive, comments, filter, name mapping)

31. TRAINING- Course Agenda Section 1: Introduction – Basics Review Section 2: SEM highlights for transition Section 3: NOMCR Creation (PTC) Section 4: Modeling Overview Section 5: A day in the life of a NOMCR Section 6: Modeling Exercises Section 7: Wrap Up

32. TRAINING- Section 1: Introduction – Basics Review Course Openers – Welcome, Objectives, Course Structure ERCOT Models – General, What gets modeled, Typical Attributes, The Network Operations Model, Derivative Models (Planning & CRR) The Operations Model: What’s Changing & Why it’s Changing. Roles and Responsibilities. The SEM Process – basics. Overview of the Change Submittal Process: The NOMCR & The SAMR Overview of the Change Submission User Interfaces: PTC and IMM

33. TRAINING- Section 2: SEM highlights for transition What is SEM? SEM Transition and Schedule SEM Pre Go-Live – Objectives and responsibilities SEM Go-Live – Actions during process SEM Post Go-Live - Actions

34. TRAINING- Section 3: NOMCR Creation (PTC) Project Tracker & Coordinator login and interface – Log-in, NOMCRs, SAMRs, the interface, Visibility states (public or private) Hands-on exercise: NOMCR Creation

35. TRAINING- Section 4: Modeling Overview Background on (ERCOT CIM) Network Operations model Overview of Modeling Validation Rules/Process Small hands-on activity (create, validate, and submit NOMCR)

36. TRAINING- Section 5: A day in the life of a NOMCR State Diagram Introduction – What it is and how to use it Definition of Terms - Walk-through of terms MPs will see: Explanation of the Status Table NOMCR Timelines – Including Interim Update provisions Walk through State Diagram – from a TSP and ERCOT perspective Exercise – based on flow process

37. TRAINING- Section 6: Modeling Exercises The entry of a NOMCR using scripted scenarios Usage of the Modeling Guidelines document Additional topics, as identified by course participants

38. TRAINING- Section 7: Wrap Up Discussion of any remaining items. Closing comments