ERCOT IT Update

Ken ShoquistVP, CIO Information Technology

Board Meeting

August 2003

July 2003

page 2AgendaAgenda

Metrics Project Updates Security Texas Electric Market (TEM) Forum Update

July 2003

page 3IT HighlightsIT Highlights

Production – 27 missed intervals in EMMS environment (approx 1%) due to flawed code and internal processes. Vendors working code issues. ERCOT and Vendors working process issues.

Development – Continue to analyze architecture evolution. Issues of data access and quality, performance, and vendor support continue to remain as high priority. Architecture evolution will need to strike appropriate balance between focus on Market Redesign and IT Operations.

Security - Role of ERCOT Security continues to evolve in supporting Market.

Texas Electric Market IT Forum – Superior speakers and content; 118 Market Participants registered.

July 2003

page 4

21

2

11

6

2

27

050

100150200250300350400450500550600650700750

0

5

10

15

20

25

30

EMS (Frequency Control) 8 4 - 10 57 152 2

Market User Interface - - - - - 60 746

RTB Intervals Missed 2 1 2 11 6 2 27

Jan Feb Mar Apr May Jun Jul

2003 Mission Critical Unplanned EMMSEMMS Outages

Ceiling TargetEMS and MUI

45 minutes (99.9%)

OutageMinutes

IntervalsMissed

Ceiling Target3 RTB Intervals

System ReliabilitySystem Reliability

4 distinct software issues caused 27 intervals to be missed in July: 2 resolved by Alstom (EMMS vendor) 1 resolved by HP 1 issue remains under investigation

July 2003

page 5Transaction ProcessingTransaction Processing Infrastructure changes for performance continue with good results. Next major step will be

investment in support of Data Warehouse effort scheduled for end of year. Lack of high availability continues to be a challenge. This will need to take a higher priority in

project list. All major Commercial System Components are either on outdated application releases and/or are

operating on unsupported versions of the Oracle Database. The operational impact with respect to data quality, performance, reliability, and support cost will continue an issue until resolution. Business and IT have joint plan in place for driving resolution.

38.8

3435.134.632.131.5 30.5

0

5

10

15

20

25

30

35

40

45

Jan Feb Mar Apr May June July

Includes all 32 transaction types

Retail Transaction Volumes (In Millions)

January - July 2003

July 2003

page 6Reporting PerformanceReporting Performance

0

2000

4000

6000

0%

20%

40%

60%

80%

100%

Total Settlements 2,015 1,931 2,668 2,655 3,251 5,564 6,193

Missed Settlements 707 358 248 - 801 349 2,109

Settlement PCT 65% 81% 91% 100% 75% 94% 66%

Jan Feb Mar Apr May Jun Jul

2003 Report PostingSettlements

Volume increase represents BOD mandated resettlements of 2002 that began in mid-May and will continue through year-end.

Settlements success rate has decreased June to July due to increased volume issues, batch timing, and hardware and software implementations.

Performance improvements made in August are expected to reduce resource contention and batch processing time. Next level of tuning due by end of Q3.

July 2003

page 7

Change Request by AreaJanuary – July 2003

Change Requests by AreaChange Requests by Area

Package 1Package 2Package 3

Corporate Apps.Web Portal

TOTAL# CR - Total 121 91 103 116 110 128 86 755

121

91

103

116110

128

86

0

20

40

60

80

100

120

140

Jan Feb Mar Apr May June July

Total Monthly Change RequestsJanuary – July 2003

EMMS36%

Commercial34%

Data Warehouse8%

Corporate Apps.19%

Web Portal3%

Commercial Paperfree server upgrade SeeBeyond outage

EMMS SPD Code Errors Alstom user interface code error Hardware upgrade Real-time balancing error Digital certificate renewal

July Outage SummaryEMMS & Commercial Apps System Uptime

84%

86%88%

90%92%

94%

96%98%

100%

Jan Feb Mar Apr May June July

EMMS Commercial Apps

July 2003

page 8IT Project PerformanceIT Project Performance

IT Project Updates

Projects Deployed in July 2003 Year-to-date Priority 1 and 2 Projects: 32 complete, 17 in progress, and 19 in planning

Combined Cycle Settlements – PRR 369 for settling combined cycle plants

Outage Scheduler Phase 2 – Enhancement to Outage scheduler for operations

Internal Map Testing – EDI map testing and verification automation

SCADA Transmission Alarms – Enhance alarms for operations.

Monthly Activity Project Performance

0

5

10

15

20

25

30

April May June July

Completed In Planning In Progress

0%

20%

40%

60%

80%

100%

1st Qtr 2nd Qtr 3rd Qtr

On Time On Budget

July 2003

page 9Upcoming DeploymentsUpcoming Deployments

PUCT Market Monitoring Plan (Aug 2003)

QSE Market Testing (TBD) Increase availability Increase functionality

Portal Replacement (Oct 2003) Portfolio Mgmt Software (Nov 2003) Document Management (TBD) Lawson G/L Upgrade (Dec 2003) Enterprise Data Warehouse (TBD)

BUL / LAAR (Sept 2003) Load Research Sampling (TBD) Mismatched QSE Schedules (Aug 2003)

Commercial Dev/Test Systems (Nov 2003)

MIMO Long Term Market (Aug 2004) Market Coordination Team formed Requirements being finalized

Texas Set 1.6 (Dec 2003)

Energy Management Systems

Enterprise Operations

Settlement & Billing

Transaction Processing

July 2003

page 10

Project Objective: Support the PUCT requirements to effectively monitor the ERCOT market Joint effort between PUCT, ERCOT, Alstom and Potomac Economics

Business: Planning phase completed. Detailed work plan defined. High-level

architecture has been defined. General project requirements have been collected. Initial data requirements have been compiled. First draft on design documents completed (per schedule).

Technical: ERCOT Infrastructure, Network and Security teams preparing for

project implementation. ERCOT to host systems and provide data. Alstom and Potomac Economics locations will be linked by a secure

direct connection to ERCOT’s site.

7/1/03 8/1/03 9/1/03 10/1/03 11/1/03 12/1/03

Planning4 weeks

Design6 weeks

Build6 weeks

Int &Test4 weeks

Install & test4 weeks

Today Ship

PUCT Market Monitoring PUCT Market Monitoring SystemSystem

July 2003

page 11ERCOT’s Security TeamERCOT’s Security Team

Manager, Physical Security

(Former FBI Agent)

Manager, Cyber Security

(Former State of Georgia CISO)

Director, Corporate Security

(Former Naval Cryptologist)

July 2003

page 12

Department of Energy NERC/

CIPAG

ISO CIO Security Committee

ERCOTERCOT

Members

State Agency

Educate on Best Practices / Standards Provide Forum for Information Sharing Coordinate Security Incidents Distributing Information from Federal and State Agencies Solicit Federal and State Funding Where Appropriate Represent ERCOT Market’s Interest to Federal and State Agencies

Growing Interest in ERCOT Security Role in Texas MarketGrowing Interest in ERCOT Security Role in Texas Market

Department of Homeland Security

Federal Bureau of

Investigation

U.S. Secret Service

July 2003

page 13

118 participants registered 43 unique companies 79% ESIIDs represented 83% of load

Dynamic Guest Speakers Security Focused

Dept of Homeland SecurityFBISecret Service California ISONew England ISOPublic Utility Commission of Texas

IT TEM ForumIT TEM Forum

July 2003

page 14

Austin Energy Brazos Electric Bryan Texas Utilities CenterPoint Energy Cirro Energy City of Bastrop City of Georgetown Coral Power El Paso Electric Energy America Entergy Solutions Ltd Fire Fly Electricity FPL Gexa Energy Green Mountain Energy Company HILCO Electric cooperative Inc. LCRA New Mexico Natural Gas LP d/b/a

StarLight Electric

Occidental Petroleum Oncor Pedernales Electric Cooperative Public Utility Commission of Texas Reliant Resources Inc. Republic Power Sempra Shell Trading G&P North America South Texas Electric Coop Strategic Energy Taylor Electric Cooperative Tenaska Inc. TESI Texas Commercial Energy TNMP TNP Enterprises Tractebel North America Inc. TXU Energy Utility Choice Electric

TEM Forum Market ParticipantsTEM Forum Market Participants

July 2003

page 15SummarySummary

Production Management:

Resettlements will continue to focus development on tuning and capacity planning.

EMMS Stability remains high priority for improvement.

Commercial Systems Architecture:

Working with business to define requirements and select evolution path.

Data Warehouse will complete first phase late ’03.

TEM Forum:

Shaping into significant information sharing event.

118 Market Participants registered.