baseline 2 update

June 21st, 2007

PRS Meeting

Baseline 2 Update

Jeyant Tamby

2

PRS, TAC and BoD play a key role in the Nodal Change process…

Roles in the Nodal Change Process

NPRRs & Nodal SCRs White Papers, Change Items and other design and

implementation decisions

Approval process is recommendations by PRS

and TAC to the BoD for approval

Approval process is internal to the Nodal Program and subject

to approval by the Executive Director*.

* On selected items, TPTF to endorse essentiality for ‘Go-Live’

3

Summary of June 12th meeting …

• Summary facts from Baseline 1– 12 Groups– 59 Items– 43 NPRRs– Total impact of $5M - $6M

• Key decisions– Recommend IA’s of Baseline 1 NPRRs to TAC

• Action items for the Program– Define Baseline 2, determine related impact analysis and

present to PRS on 6/21/2007 for recommendation to TAC– Splitting costs of NPRR 049. The updated costs are –

• NPRR 049:$100K - $250K

• CI 67:$0.5M - $1.0 M

4

Getting to Baseline 2…

• The Challenge– Draft 9 NPRRs for posting– Share draft information with vendors for rapid cost and schedule

impact assessments– Limited time available to consolidate and integrate information

• Outcome– New NPRRs were not posted 7 days in advance– Preliminary “Impact Assessment” on 11 NPRRs– Full “Impact Assessment” on 18 NPRRs

55

Texas Nodal Program Update

In Baseline 2, PUC requirements is a new source in addition to all the other sources established in Baseline 1…

Initial Nodal Protocols

2004 - 2005

Zonal Protocols

April 2004

PUCT approved Nodal Protocols Baseline 0

May 2006

Nodal Protocols Baseline 2 June/July

2007

Zonal PRRs

April 2005

Source #1 Synchronization

(by ERCOT & TPTF)

2005 - 2007

Source #7 PUC Requirements

Source #5 Consistency, Integration &

Design Authority (IDA) White Papers

Source #6 Market Participant

Requirements

Source #3 Requirements Development

Q1 2006 - 2007

Progression of Nodal Protocols

Sources of change

6 Items

16 Items

3 Items

6 Items

5 Items

Total Items in Baseline 2 – 36•NPRRs – 29•IDA White Papers – 6•Change Items - 1

66


Requested action items for today…

1. Recommend Language on NPRRs in Baseline 2 to TAC

2. Recommend Impact Analysis of NPRRs in Baseline 2 to TAC

Baseline 2 NPRRs

11

29 NPRRs

18

Preliminary Impact Assessment (Raw data from vendors)

Impact Assessment complete including:

• Justification for change

• Justification for cost

Key

For all items in Baselines 1 & 2, the Program will partner with the vendors to minimize cost and schedule impacts

77


Cost summary for all the 29 NPRRs

Category Cost ($’ 000s)

Source 1 $250K-$500K

Source 2 -


Source 4 -

Source 5 -


Source 7 $500K - $1M

Cost Impact Level

Number of Items**

<$0 9

<$50K 8

$50K-$100K 4

$100K-$250K 6

$250K-$500K 1

$500K - $1M 1

Total Est. Cost =$2M-$3M

June 21st, 2007

PRS Meeting

Appendix – NPRRs with Impact Assessment Complete

99

Texas Nodal Program UpdateJune 21, 2007

NPRR 20 - ERCOT Nodal Implementation Surcharge

NPRR No. 20

Characteristics

Total $ impact range <$50K

Total schedule impact (weeks) None

EDS (1/2/3/4) EDS4

Essential for Go-Live (E/D/N) E

Detail

Item description: Cost Drivers / Risks / Dependencies:

This NPRR documents how ERCOT shall calculate the

Nodal Implementation Surcharge (NIS) to comply with the

Final Order issued in Public Utility Commission of Texas

(PUCT) Docket No. 32686, Application of the Electric

Reliability Council of Texas for Approval of a Nodal Market

Implementation Surcharge and Request for Interim Relief, to

fund implementation of the nodal market redesign

Cost Drivers: S&B: The proposed solution is to modify the S&B rate

language code to implement the algorithm as defined in

protocol language within NPRR 20. The cost is based on

time and effort required to code the algorithm in the

settlements and billing modules. In addition this includes

time for additional documentation, testing, etc. Not

previously defined in requirements or May 2006 Protocols

EIP: One additional low complexity info flow from S&B to

CMM (Nodal implementation surcharge amount). New info

flow required to support passing surcharge to CMM from

S&B for collateral management.

Risks: None

1010


NPRR 26 - Nodal Implementation Surcharge Verifiable Costs

NPRR No. 26

Characteristics



EDS (1/2/3/4) EDS4


Detail


This NPRR allows a resource owner an opportunity to

recover the nodal implementation surcharge if and when the

resource owner submits verifiable cost information for any

services provided for reliability.

Cost Drivers: S&B: This has no impact, since it is only a change to a

manual business process.Assumptions:

There are no changes to the equations. This NPRR requires that the surcharge cost be accepted as a valid Verifiable Cost.

The surcharge (in $/MWh), if submitted by the QSE for a Resource, will be included in their Verifiable Costs. [Minimum Energy Costs and verifiable variable O&M costs.]

The increase (due to the inclusion of this cost) in the Minimum Energy Offer Caps for offers submitted into the DAM is acceptable.

The increase (due to the inclusion of this cost) in the amount reimbursed to an RMR owner for all the generation by the RMR Resource is acceptable. (Even when the RMR Resource is selected in the DAM.)

The increase (due to the inclusion of this cost) in the Minimum Energy Cost for a Resource is acceptable and the use of this increased Minimum Energy Cost in RUC settlement is acceptable. (Even for QSE claw-back hours).

The increase (due to the inclusion of this cost) to the Mitigated Offer Caps for those Resources that have submitted verifiable costs above the 14.5 or 10 heat rate times FIP or FOP is acceptable.

Risks: None

June 21, 2007

1111


NPRR 37 - Conforming Section 13 to Nodal Format and Changing Frequency of Transmission Loss Base Case Calculations

NPRR No. 37

Characteristics



EDS (1/2/3/4) EDS 4


Detail


This NPRR provides changes to the frequency of

transmission loss base cases calculations and conforms

Protocol Section 13 to the Nodal Protocol format.

Cost Drivers: COMS: Modify existing data aggregation code to

perform

transmission losses base case calculations monthly. The

cost is based on time and effort required to code the

algorithm in the data aggregation modules. In addition

this includes time for additional documentation, testing,

etc. Not previously defined in requirements or May 2006

ProtocolsRisks: None

June 21, 2007

1212


NPRR 40 - Synchronization of Emergency Electric Curtailment Plan (EECP) Event Realignment

NPRR No. 40

Characteristics

Total $ impact range $100K-$250K


EDS (1/2/3/4) EDS 4


Detail


This NPRR incorporates relevant language from: PRR682, EECP Event Realignment, which was

approved by the ERCOT Board on November 14, 2006.

Cost Drivers: MMS:ABB assumes that this NPRR is only related to

EMS. No impact to MMSEMS: Vendor response not available yet. Costs based

on

team assessments.COMS: Registration provides the parameters and

MMS/EMS uses them to do their calculations.EIP: new info flows required to support net dependable

capability requirements; assumed that net dependable

capability would move from REG to MMS and that MMS

will be the system of record and that EMS will perform the

EECP processINT: Additional integration testing to reflect new

information flows. Risks: None

June 21, 2007

1313


NPRR 45 – Wind Power Forecasting

NPRR No. 45

Characteristics

Total $ impact range $0


EDS (1/2/3/4) 4

Essential for Go-Live (E/D/N)PRS to decide

Detail


This NPRR adds definitions for terms used in more than one

section and describes the process for developing the 80%

confidence level forecast for wind-power generators

Cost Drivers: EMS: This is a clarification NPRR. This NPRR does not

introduce any additional requirements except TEWPF

calculation and posting. EMS team estimates no impact.

Risks: None

June 21, 2007

1414


NPRR 54 - Update of Nodal Protocols to Comply with NERC Name Change – Companion to PRR711

NPRR No. 54

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR updates Nodal Protocol References to reflect the

recent NERC name change from North American Electric

Reliability Council to North American Electric Reliability

Corporation.

Cost Drivers: None Risks: None

June 21, 2007

1515


NPRR 55 - Correction of Voltage Support QSE Total Bill Determinants

NPRR No. 55

Characteristics



EDS (1/2/3/4) 4


Detail


This Nodal Protocol Revision Request (NPRR) corrects

Voltage Support QSE Total bill determinants and their

calculations for the purpose of breaking out the Voltage

Support charge types on the settlement statement.






time for additional documentation, testing, etc. Not

previously defined in requirements or May 2006 Protocols. Risks: None

June 21, 2007

1616


NPRR 58 - Clarification of Standard Form Market Participant Agreement

NPRR No. 58

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR removes discrepancies between Section 16,

Registration and Qualification of MPs, and Section 22 –

former Attachment H, now Attachment B, Standard Form

Market Participant Agreement. The primary change is

removing legacy references to individual Agreements that

have since been consolidated into a single Standard Form

Market Participant Agreement.


June 21, 2007

1717


NPRR 59 - Reconfiguring the Annual CRR Auction

NPRR No. 59

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR reconfigures the annual Congestion Revenue

Right (CRR) Auction from a 24-month simultaneous

optimization of three Time Of Use (TOU) blocks to separate

optimizations for each TOU block for each year.

Cost Drivers: Separate optimizations for each Time Of Use (TOU) for

each year (year one and year two) The annual CRR

Auction can now be solved in a reasonable amount of

time with available software and hardware. Risks:

There is a greater risk to CRR if this is not

implemented.

June 21, 2007

1818


NPRR 62 – Constraint Competitiveness Test

NPRR No. 62

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR provides clarification on the process for

determining competitive constraints as defined in Section

3.19, Constraint Competitiveness Test (CCT).

Cost Drivers:MMS: MMS requires NMMS to provide new Classes,

attributes and associations to implement this NPRR. The

changes are mainly related to ERCOT's own processes,

rather than to the CCT function. The changes simplified

certain logic within the engine for CCT. No changes

required to Test Procedures 1 and 2 for CCT.NMMS: This NPRR clarified the CCT requirements in

May

2007. As the clarifications rippled through MMS it was

determined that modifications to existing CIM was

required. New validation code will be necessary to ensure

data management. MIS:Assumes the files will be posted to MIR, with

appropriate metadata, where MIS will retrieve them. No

cost impact. Risks: None

June 21, 2007

1919


NPRR 63 – Electrical Bus Clarification

NPRR No. 63

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR provides clarification on designation of

Electrical Buses within the Network Operations Model that

will meet the needs of the Nodal Market.


June 21, 2007

2020


NPRR 66 – Synchronization of PRR 698, Remove Default QSE Provisions

NPRR No. 66

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR incorporates relevant language from: PRR698, Remove Default QSE Provisions, which was

approved by the ERCOT Board of Directors on 12/12/06.

It revises provisions for the Emergency and Virtual Qualified Scheduling Entity (QSE) to allow them to provide for Resource Entities and Load Serving Entities (LSEs) in the event that their QSEs are suspended.

It removes the Default QSE concept, including all references to a Default QSE.


June 21, 2007

2121


NPRR 68 – Settlement Clarifications to Startup Eligibility, Decommitment Payments and Corrections to RUC Formulas

NPRR No. 68

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR : Clarifies the sections that dealing with whether a

Resource is Eligible for startup compensation in the Day-Ahead and Reliability Unit Commitment (RUC) Make-Whole payment calculations

Modifies the definition of the hours used in calculating the RUC Decommitment Payment in Section 5.7.3.

Corrects the parentheses in three formulas in Section 5.7.1.1






time for additional documentation, testing, etc.

NPRR slightly modifies language in May 2006 Protocols. Risks: None

June 21, 2007

2222


NPRR 69 - Changes to SURAMP

NPRR No. 69

Characteristics


Total schedule impact (weeks) None*

EDS (1/2/3/4) 4


Detail


This NPRR revises the Security Constrained Economic

Dispatch (SCED) Up Ramp Rate (SURAMP) formulation.

This change removes reserving part of Ramp Rate for

Responsive Reserve Service (RRS) deployment by Load

Frequency Control (LFC)

Cost Drivers: MMS: Change SURAMP formulaEMS:A formula change to use the SURAMP formula in

Resource Limit Calculator (No vendor estimates available.

Team assessments) Risks: None

June 21, 2007

2323


NPRR 072 – Day-Ahead RMR Settlement Clarifications

NPRR No. 072

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR modifies the Day-Ahead Make-Whole Payment

calculation such that an Amount data cut is not calculated

for an eligible Reliability Must Run (RMR) Unit; consistent

with the Protocol requirement prohibiting RMR Units from

receiving payment through the Day-Ahead Make Whole

Payment. DAMWAMT will not be calculated for RMR Units DAMWRMRREV will be calculated for RMR Units


language in order to implement the changes as defined in

NPRR 72. The cost is based on the time and effort

required to modify the code in the settlements and billing

modules. In addition this includes time for additional

documentation, testing, etc. The NPRR is a slight change

to the May 2006 Protocols. Risks: None

June 21, 2007

2424


NPRR 073 – Update of Protocol 6 Due to Revisions Found When Processing Requirements, Use Cases and CSDs

NPRR No. 073

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR revises Sections 6.6 and 6.7 to align them to the

Requirements, Use Cases and Conceptual System Designs

(CSDs).

Cost Drivers: NoneRisks: None

June 21, 2007

2525


NPRR075 - Settlements Clean-up

NPRR No. 075

Characteristics



EDS (1/2/3/4)


Detail


This NPRR: Clarifies the contents of the various invoices. Clarifies the payment dates for the various invoices. Corrects the list of DAM Settlement Charge Types. Specifies contents and timing of RTM Uplift Invoices Corrects the RTAML definition for the ERCOT System

Administrative Charge


June 21, 2007

June 21st, 2007

PRS Meeting

Appendix – NPRRs with Impact Assessment not complete

2727


NPRR 24 - Synchronization of PRRs 627 and 640

NPRR No. 24

Characteristics



EDS (1/2/3/4)


Detail


This NPRR incorporates relevant language from: PRR627, RMR Transmission Issues and RMR Contract

Extension, that was approved by the Board on 2/21/06; and

PRR640, Update Provisions for Capacity and Energy Payments for RMR Service and Add a New Standard Form Agreement for Synchronous Service, that was approved by the Board on 3/21/06

Cost Drivers: Risks:

June 21, 2007

2828


NPRR 36 - Market Operations Test Environment (MOTE) in the Nodal Market

NPRR No. 36

Characteristics


Total schedule impact (weeks)

EDS (1/2/3/4)6 months post

“Go-Live”

Essential for Go-Live (E/D/N) D

Detail


In the nodal Market, Transmission Service Providers (TSPs)

need access to an environment of the ERCOT EMS where

the following are available for their review and analysis Network operations model, Results of the real -time State Estimator (within 5

minutes of the real time solution) including Contingency Analysis.

MOTE serves as a tool to validate the integrity of the ERCOT

Network Operations model, and to perform studies that

facilitate better coordination of network operations between

the TSPs and ERCOT. TSP need to continue to have a tool

like MOTE in the Nodal Market. The new MOTE should have

all the functionality that the current MOTE offers

Cost Drivers:Includes the purchase, installation, base operating

system

of 8 windows server servers and the allocation of 2 virtual

Unix servers to support the environment. Assumptions

are: Sufficient capacity exists in the data centers to

install the equipment. Sufficient unallocated capacity exists in the virtual

Unix environments to allocate the two partitions necessary to support the environment

Licensing costs for the application software to be installed in the environment are excluded from the $100,000 estimated impact.

Risks:

June 21, 2007

2929


NPRR 53 - Creation of a New Trading Hub at Venus Switching Station

NPRR No. 53

Characteristics



EDS (1/2/3/4) 4

Essential for Go-Live (E/D/N)PRS to decide

Detail


This NPRR creates a new trading hub at Venus Switching

Station.

Cost Drivers: Assumption: The cost is dependent on approval of

NPRR

060 (Hub clarification). The new hub should be included in

the ERCOT hub average pricing calculation. Risks:

June 21, 2007

3030


NPRR 57 - Posting Requirements Pursuant PUC Subst. R. 25.505

NPRR No. 57

Characteristics

Total $ impact range$500K - $1.0M


EDS (1/2/3/4)


Detail


This NPRR implements posting requirements outlined in

new P.U.C. SUBST. R. 25.505, Resource Adequacy in the

Electric Reliability of Texas Power Region.

Cost Drivers: MMS: Posting and Calculation of Generation Capacity

and

Load CapacityEIP: 1 additional medium & 1 additional high complexity

info flows from EMS to MIS (hourly generating resource

capacity & load resource capacity for rolling 1 week) and

Planning to MIS (weekly peak generating resource

capacity & load resource capacity for rolling three years).

New info flows to support posting of requirements to

comply with PUCT order (PUC Subst. R. 25.505)MIS – Assumes the files will be posted to MIR, with

appropriate metadata, where MIS will retrieve them.INT: More integration testing to reflect the new

information flows Risks:

June 21, 2007

3131


NPRR 60 – Hub Clarification

NPRR No. 60

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR clarifies the concept of “Hub Bus” allowing for

direct assignment of Electrical Buses to a Hub and clarifies

the number of Hub Buses in a Hub based on operating

model Electrical Bus configuration.

Cost Drivers: Risks:

June 21, 2007

3232


NPRR 61 – Scarcity Pricing Mechanism (Companion to PRR709)

NPRR No. 61

Characteristics



EDS (1/2/3/4)


Detail


This NPRR revises the ERCOT Nodal Protocols to provide

for a scarcity pricing mechanism as required by subsection

(g) of P.U.C. SUBST. R. 25.505, Resource Adequacy in the

Electric Reliability Council of Texas Power Region.

Cost Drivers: MMS:

SWCAP part -MI changes: Remove external global parameters for SWCAP. Create internal SWCAP global parameters which is to be populated when settlements passes a new SWCAP.“ change external global parameters for SWCAP to internal procedure to update SWCAP

MA changes: MA needs to read the SWCAP value from MI. SCED needs to use the dynamic SWCAP for proxy curve creation.

Scarcity Pricing Mechanism part: This part is completed new. ABB assumes that this is Settlement's responsibility. No impact to MMS.

EIP: 3 additional low complexity info flows from S&B to

MMS, MIS (system-wide offer cap) and MMS to MIS

(PNM). New info flows to support scarcity pricing

mechanism requirementsMIS: Assumes the files will be posted to MIR, with

appropriate metadata, where MIS will retrieve them.

Risks:

June 21, 2007

3333


NPRR 64 – Modeling of Generic Transmission Constraints

NPRR No. 64

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR provides for the definition of and posting of

Generic Transmission Limits (GTLs) in Network Operations

Modeling requirements.

Cost Drivers: MMS: The description of generic transmission constraints in this NPRR

is general and does not contain sufficient information for evaluation.ABB assumes that what this NPRR asks for is what ABB and ERCOT have already agreed. This cost is for implementing the agreed functionality. ABB's analysis also assumes that this NPRR's requirement of posting generic transmission constraints to MIS is to be done by EMS. Assumption is EMS will provide the Generic Constraint data (also called Non-thermal constraints) in a specific interface table on an hourly basis.NMMS: Although the Nodal Protocol descriptions of Network Security Analysis and Congestion Revenue Rights (CRR) Auctions reference the use of “generic” transmission constraints, Section 3.10, Network Operations Modeling and Telemetry does not provide for their definition and for limits on their use. This clarification NPRR was not proposed until May 2007.EIP: New info flows to support addition of GTL constraints

Risks:

June 21, 2007

3434


NPRR 65 – Synchronization of PRR647, Gross and Net MW/Mvar Data Reporting

NPRR No. 65

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR incorporates relevant language from: PRR647, Gross and Net MW/Mvar Data Reporting, that

was approved by the ERCOT Board (Board) on 1/16/07 NPRR035, Nodal Protocol Clarifications Required For

Net Metering Provisions

Cost Drivers: MMS: Gross/Net MW/MVarNMMS: CIM model will require extensions to provide for

formula distribution. Coordination with all vendors will be

required as this has not been delineated in previous

meetings to the extent that design could occur. This

request was not in Protocols or any other supporting

document.

Risks:

June 21, 2007

3535


NPRR 67 – Modeling of Private Use Networks

NPRR No. 67

Characteristics



EDS (1/2/3/4) 4


Detail


This Nodal Protocol Revision Request (NPRR) provides a

mechanism for ERCOT to model generation located within a

Private Use Network.

Cost Drivers: MMS: ABB assumes that no work has to be performed

by

ABB, and all work will be performed by ERCOT.EMS: Potential Areas of Change: CIM Interface, Model

Validation; Load Schedule Adaptation; Load Distribution;

Load Forecast Inputs (No vendor estimates, team

assessment)NMMS: Create Private Use Network classes, attributes,

and associations. Create validation code to effectively

manage new entity. Use Network was recently added to Protocols.

EIP: 1 additional low complexity info flows from

EMS to MMS (private use generator flag) new

information flows required to allow identification and

modeling of privately used generators Risks:

June 21, 2007

3636


NPRR 70 - Changes to DAM clearing start time allocation of McCamey Flowgate Rights in Day-Ahead

NPRR No. 70

Characteristics



EDS (1/2/3/4) 4


Detail


This Nodal Protocol Revision Request (NPRR) changes the

requirement for DAM clearing to start at 1000 in the Day-

Ahead Market to allow time for submission validations. This

NPRR incorporates the TPTF discussions for Allocation of

McCamey Flowgate Rights (MCFRIs) in Day-Ahead.

Cost Drivers: MMS: MI changes: Synchronization of DAM and

MI.Change to support up to 10:00 submission. Change

DAM and MI formula. MA changes: This requires DAM to

be executed after Market close and MI has completed

validation. Currently MA already checks the MI market

close flag. MA needs to check additional flag.

Risks: This NPRR is required by NPRR 005.

June 21, 2007

3737


NPRR 071 – Trade Validation by Matching Identical Trade Submissions

NPRR No. 071

Characteristics



EDS (1/2/3/4) 4


Detail


This NPRR incorporates the TPTF determination regarding

Trade confirmation.

Cost Drivers: MMS: MI & Interface changes: Support for same buying

and selling QS trades. MA SCED changes:retrieve energy

trades for a DSR QSE as both selling and buying parties.

Use this amount in the MA SCED output schedule

validation. ABB assumes that even though, it is not

specifically written in the NPRR texts, ABB assumes that

the Energy Trades with the same buying and selling QSE

will be used to indicate the net energy purchase/sales

between QSE's DSR generators and DSR loads.

therefore, the amount of energy trade with the same

buying and selling QSE will be used in MA SCED real

time Output Schedule validation.

Risks:

June 21, 2007

3838


NPRR 074 – Revisions to Monitoring and Qualification Tests in Section 8, Performance Monitoring and Compliance

NPRR No. 074

Characteristics



EDS (1/2/3/4)


Detail


This NPRR makes the testing and compliance requirements

consistent with NPRR049, Generation Subsystem Changes

to Incorporate Approved Whitepapers, and the white papers

“Generation Resource Responsive Reserve Deployment

and Recall” and “Non-Spin Deployment Notification and

Availability” approved by TPTF located at

http://nodal.ercot.com/docs/pd/mms/index.html#oth.

Cost Drivers: EMS: LFC Ancillary Service Monitoring data collection

and

Calculations. (No vendor estimates available. Team

assessments) Risks:

June 21, 2007

baseline 2 update

Documents

texas nodal program

texas nodal program

nodal format

livetexas nodal program

mtexas nodal program

nodal protocols baseline

nodal change processroles

initial nodal protocols2004