1

Update from ERCOT Retail

Market Services

to TAC

January 9, 2003

2

Retail Market Update

Topics– GISB 1.4 Update

– Texas Set Version 1.5

– ERCOT Data Transparency

– ERCOT Registration/QRE Team Transition Update

– Move-In/Move-Out Task Force

– Market Synchronization Activities

– Resettlement Update

3

GISB 1.4 Update

4

GISB EDM 1.4 Migration Update

• Connectivity Testing with Market Participants has started

– HTTPS/MPCS/FTP Replacement • Testing with Sharyland, Occidental, and Tenaska has completed• Awaiting a migration date from Release Management

– GISB EDM 1.4• AEP , Exolink, Green Mountain, Oncor, and TXU are currently in

progress.ERCOT is correcting a network configuration issue, which is delayingthe completion of the connectivity testing.

5

GISB 1.4 Update

• RMS agreed at August meeting to move forward with implementing GISB 1.4 at ERCOT

• Internal testing and implementation of a GISB 1.4 interface (PR-20134) at ERCOT is complete

• TDTWG has surveyed market participants in order to finalize migration readiness dates– Preliminary migration schedule reviewed at 10-4-02 TDTWG

– Market Participant migration will begin week of 11-25-02; ERCOT will work individually with participants in any change of date for testing and migration.

– Goal is to complete migration by April 1, 2003

6

Texas Set V.1.5

7

Page 22ERCOT Program Management Office Report to Steering Committee, November 21, 2002

•Replacement of manual work around activities with automated process.•Improve communications between ERCOT, CRs and TDSPs.•Enable COOP/MUNI participation in the market.

•Main Deliverables• Conceptual System Designs• Technical System Designs• 1.5 System• Testing• Training

•Replacement of manual work around activities with automated process.•Improve communications between ERCOT, CRs and TDSPs.•Enable COOP/MUNI participation in the market.

•Main Deliverables• Conceptual System Designs• Technical System Designs• 1.5 System• Testing• Training

• Majority of Market Participants on schedule

• ERCOT testing is on schedule

• Coordinating with ERCOT Test Lead to prepare for User Acceptance Testing

• Additional Scope Item added by RMS on 12/18/02 has created scope addition.

• Minor adjustments will be made to the timeline, however, the main project timeline has not changed.

Project Scope/Deliverables

Timeline6/28

Current Assessment

Conceptual System Design

Technical System DesignTesting Strategy

Reporting Requirements

SRAD

Upcoming Milestones/Market Impacts

Budget YTD Forecast Var.

Capital $4.2M $1.8M $4.2M $0.0

Financial Milestones

Executive Summary of Status

OverallFinancial

RiskStaffing

RiskSchedule

RiskTechnical

RiskBus.Align/Scope Risk

ERCOT Internal Status V1.5

•System Test Completion 1/17/03•User Acceptance Test begins 1/20/03•Flight Test begins 2/24/03

Training Plan

Completed In Progress Scheduled

• ERCOT’s risk associated to the 1.5 implementation will be greatly reduced if the existing PaperFree Hardening project is implemented in production at least one month prior to 1.5.

• UPDATE: Map hardening is scheduled to be implemented in production in early March… this would eliminate the above risk.

• Risk is associated to the Certification environment involving the FTP/GISB servers

Issues/Actions

7/5 7/21 8/16 8/30 2/17 4/11

Test FlightDeployment

9/16 9/27

Transition Plan

2/24

Project Manager: Dave Odle/Daryl Cote Project Sponsor: Nancy Hetrick

8

Market Project Status Summary – 12.17.02

•Exolink provides EDI services for: Republic, TCE, Calpine, Entergy Retail, Entergy Disco, GEXA•Systrends provides EDI services for: Sheryland, Tenaska, Occidental•EC Power provides EDI services for: AEP A-REP, SmartEnergy, Just Energy•ESG provides EDI service provider for: ACN Energy, Cirro Group, Coral Energy Markets, Dynegy, Sempra Energy Solutions, Tractebel Energy Markets, UBS Warburg, Tara Energy

0102030405060708090

100

ERCOT

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ONCOR

TNMP

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AEP A-R

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Conste

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EC Power

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Exolin

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First C

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Power

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Mou

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etail

Republi

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Utility

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Design

Build

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9

Project Status Summary

DESIGN

BUILD

INTERNAL TEST

Spark EnergyUtility Choice EnergyERCOT

TXU ESRepublic

XERSFirst Choice Power

Certain PowerTNMP

CenterPointAEP A-REP

Green MountainEntergy TDSP

Constellation AEP TDSP (Logica)EC Power

ESG

Exolink

25% 50% 75% 25% 50% 75%

25% 50% 75%

NuecesSan PatricioONCORSystrendsReliant Energy Retail

STEC Retail

10

Accomplishments/Next Steps

• Production Implementation Plan has been defined– April 11th is the planned Production cutover weekend for V1.5– Schedule for events of cutover weekend has been built for all transactions:

• Both ERCOT transactions and Point to Point transaction• Conference Call schedule during cutover weekend is last step

• Next Steps– Monthly face to face meetings with market thru April for coordination– Form contingency plans– Policy and procedures dealing with individual MPs

11

ERCOT Data Transparency(ETS)

12

ERCOT Data Transparency

• ETS Phase I database is beginning to show complete transaction life-cycles as data continues to be successfully loaded– All lost Paperfree transactions were reloaded as of 12/18

• A Project was requested to capture transactions submitted through GISB (scheduled production date mid-January) and to correctly report transaction timestamps per Protocol

• An Impact analysis on TX Set 1.5 changes (scheduled market testing mid-February 2003) will be submitted by the TX Set PM.

• Currently identifying requirements for the Scorecard concept for statistical summary reporting and for making ETS available to Market Participants (projected mid-2003)

13

ERCOT Registration/QRE Team Transition Update

14

Summary of Quick Recovery Effort 6/10/02 to 12/20/02.

• 162,825 ESI IDs submitted.• 129,456 ESI IDs resolved.• 33,259 ESI IDs are currently “In Progress”• 110 ESI IDs are “In Analysis”• 0 ESI IDs are in “New Status”

Breakdown on the point of failure for resolved ESI IDs:

• 22,007 cause not reported.• 41,713 cause at CR.• 31,113 cause at TDSP.• 34,623 cause at ERCOT.

Quick Recovery Effort

15

QRE Transition

Breakdown of “In Progress” ESI IDs:• 28,651 awaiting information from (TDSP)• 2,695 awaiting information from (CR)• 1,913 ESI ID issues transitioned to ERCOT Registration.

Effective 12/20/2002 the ERCOT Registration Team assumed responsibility for the resolution of the remaining unresolved ESI ID issues and has began using the QRE Tracking system for all new ESI ID issues submitted to the Registration Team.

16

Registration Update

Since transitioning QRE to the Registration Team:

• 423 new FasTrak issues were received.• 418 FasTrak issues were resolved.• New/In progress issues have increased by 5

• 13,028 new ESI IDs have been loaded from FasTrak to the QRE tracking system.

• 19,250 ESI IDs have been resolved.• New/In Analysis/In Progress issues decreased by 6,222

17

Move-In / Move-Out Task Force

18

Timelines for approved concepts

• ERCOT Monitoring– Cancelled with Exception ERCOT System Impact Analysis due 1/8/2003

– Rejects In Analysis

• Date Reasonableness Implemented 12/19/2002

• Pending 814_06s ERCOT will implement short-term fix by 1/31/2003

• Retired ESI Ids Version 1.6

• Invalid ESI ID retry ERCOT System Impact Analysis due 1/8/2003

19

MIMO Workshop

• Progress– 33 Concepts have been discussed

• 13 Concepts were dismissed for various reasons

• 1 Concept was determined as solved in Version 1.5

• 3 Concepts were combined into other concepts

• 16 Concepts in Task Force

– 6 Concepts approved by RMS on 10/16

– 3 Concepts approved by RMS on 11/14

– 2 Concepts approved by RMS on 12/18

– 5 Concepts are currently tabled until additional information can be obtained

20

Market Synchronization Activities

21

• Objective – Address market issues resulting in an out of sync “Rep of Record” between

ERCOT, TDSP, and CR systems for all ESI IDs resulting from market startup/processing issues as well as subsequent workarounds

• Completed– ERCOT identified “Perfect Sync” and “1 Day Perfect” – sent lists to MPs– ERCOT identified out-of-synch categories at Sept 10th design meeting– Task Force identified additional ESI IDs considered “In Sync” – sent lists to MPs– Task Force prioritized 8 categories based upon potential customer impact – ERCOT has sent priority 1 through 6 out-of-sync files to TDSPs and CRs – November 11th face-to-face meeting to resolve “how to fix” set principles to

correct out-of-sync conditions– ERCOT has made relationship corrections to ~101K ESI IDs (priority 1 &2)

• In Progress– ERCOT compiling and analyzing MP responses to out-of-sync files– ERCOT, TDSPs and CRs making corrections per 11-11-02 decisions– ERCOT has still not received responses from some Market Participants – Reporting mechanism has been define and put in place (see excel attachment)

.

Market Synchronization Retailer Synchronization Project

22

Market Synchronization Retailer Synchronization (cont.)

Next Steps

– Follow-up conference calls for January 2003 to be scheduled

– DART process to be refined and functional for completion of out-of-sync conditions

– Propose process to complete and close out this project

0

100

200

300

400

500

600

700

800

09-23-02 10-11-02 10-23-02 11-11-02 12-04-02 12-16-02

Th

ou

san

ds

Not Analyzed

(6) Active Row Only (A) - 3 MPsSubmitted Records(5) Active Row Only (B) - Only 1MP submitted Records(4) 1 Row Only from each MP

(3) Multiple Active CR Row s

(2) Active Row Only (C) - 2 MPsSubmitted Records(1) Missing Relationship

23

Market Synchronization“TDSP as LSE” Clean-up

• Objective– Ensure that all ESI ID are converted from the “TDSP as LSE” by the time True-Up

Settlement of February 2002 begins; which started 12-14-2002• Completed

– ERCOT sent TDSPs list of ESI ID affiliated with “TDSP as LSE” any time after Feb 01, 2002

– All TDSPs have responded to ERCOT original list with suggested corrective action (several iterations of file swapping have taken place)

– Approximately 145K ESI IDs had been corrected since August 8, 2002– 1,169 ESI IDs confirmed by TDSPs as active with “TDSP as LSE” past Jan ’02

• In Progress– ERCOT is performing clean-up on several ESI IDs with difficult relationship

mismatches– ERCOT will provide a lists of ESI IDs to the TDSP requesting they provide all

relationship records. ERCOT will then perform reconciliation confirmation to finalize this project.

24

• Objective– Make necessary corrections to ensure that >1MW Customers were switched on the

correct date in January 2002

• Completed Items – Per RMS direction, ERCOT sent lists to each MP for reconciliation:

• 1,134 ESI Ids (>1 MW) identified by CRs (meeting the April 30 deadline)

– CR and TDSP have reached agreement of Service Instance Date for all ESI IDs

– 1,048 (92%) ESI IDs are corrected

– 82 (7%) ESI IDs were agreed not to fix by TDSP and CR

– 4 (1%) ESI IDs were identified as retired by the TDSP

– ERCOT provided full list to TDSPs and CRs with agreement dates on 11/13/02

• Next Steps– Close the project!

Market Synchronization Non Price to Beat

25

Status of True-up Settlements

SeptOct

NovDec

JanFeb

MarApr

MayJun

JulAug

SepOct

NovDec

20032004

April 26, 2003

Date we expect to be back to six month after the trade day True-Up

Settlements if current pace of True-ups continue

January 9, 2002

268 re-settlements performed to date

154 operating days in 2001

114 operating days in 2002(Current True-up Operating Day March 26, 2002)

December 29, 2003

Date we expect to be back to six month after the trade day True-Up Settlements

Contingent on April 01, 2003 re-start of true-up for 01-01-2002