Texas Nodal Registration Kick-off Meeting Follow-up (Meeting #2) Matt Mereness June 29 th , 2007

http://nodal.ercot.com 1Lead from the front

Texas Nodal

Texas Nodal

Registration Kick-off Meeting

Follow-up (Meeting #2)

Matt Mereness June 29th, 2007


Texas Nodal

Registration Kick-Off Meeting- Follow-Up (Mtg#2)

Agenda:

• Anti-Trust Admonition & Roll Call

• Review of High-Level Registration (and Qualification) Activities

• Review of Nodal Registration and Qualification Guide

• Review updated Registration Forms

• Review Timeline

• Next Steps

• Questions and Answers


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Roll Call:

• Please un-mute phones to go through Roll Call

– Please mute your phones after Roll Call

– Please do not put your phone on hold- resulting in music



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Agenda:





• Review Timeline

• Next Steps



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Recall from last meeting: Registration & Qualification interact with Early Delivery Systems (EDS)

ED

S 4

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Alarms Processing

FAT

EMS 2A

ED

S 1

ED

S 2

ED

S 3

FAT – Rel 3

EMS 2B EDW 1

FAT – Release 4

NMMS 1 NMMS 2 EIP 1

FAT – Release 5

REG 1 MMS 1

EMS 2C

EIP 2 S&B 1MIS 1EIP 3

EDW 2

FAT – Release 6

EMS 3EDW 3

EIP 4

FAT – Release 7

EDW 4CRR 1CMM 1 EIP 5

FAT – Release 8

MMS 2S&B 2

EDW 5 EIP 6

FAT – Release 9

MMS 2S&B 2

OS

NMMS 3 EMS 4EDW 6

EIP 7EMS 5 DIS

P2P Checkout

SE Verification

ITEST

RTM Go-Live

DAM Go-Live

EDS 2 Release 3: SE VerEMS- State Estimator & Tel Perf Stds,NSA, SPS/RAP, SCADA and DynRatings for Single Model

EDW– SE Statistics

EDS 2 Release 4: NM VerNMMS- Network Model, NOMCR

EMS- EMS /NMMS Interface

EIP

EDS 3 Release 5: LMPsMMS– SCED

EMS- NSA, RLC

COMS- S&B (FIP, FOP,Ver Costs)- Registration

EIPMISEDW

EDS 3 Release 6: LFC TestingEMS- LFC

EIPEDW

EDS 3 Release 7: CRRCRRCOMS- CMM

EIPEDW

EDS 4 Release 8: RT SettlementsMMS- RT Settlements InterfaceS&BEIP, EDWEDS 4 Release 9: DAM, RUCMMS- All Markets- OSEMS – Load Forecast, Out EvalNMMSS&BEIP, EDW

ITEST

ITEST

LegendIntegration TestingProject FAT Activities

Settlements Statements

Upload Bids

Test Settlements

Outages DAM, RUC, SASMFull Nodal Functionality

24*7 Operation 168 Hr Test

NOMCR Chk out Network Model Verification

Rel 1

Rel 2

EDS 1 Release 1:EMS COTS

EDS 1 Release 2:ICCP Upgrade

Rel 3

FAT

EDS

FAT

ITEST

EDS

FAT

ITEST

EDS

SCED TestingRegUpload Offers

Rel 4

Rel 5

Rel 7

Rel 6

6 month LMP Posting

CRR Data Validation Trial Ops of CRR

LFC Comms Testing

ITEST

EDS

FAT

FAT

EDS

ITEST

ED

S 4 Go-Live

Activities

EDS 1 EDS 2 EDS 3 EDS 4

MP Interface Spec

Start of EDS activities

FAT milestones

EDS Preparatory Milestones

Rel 8

Rel 9

LFC Testing

ReadinessDeclaration

Readiness Declarations


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High Level Summary of Registration & Qualification Activities

Overview:• Registration and Qualification is a series of business processes defined

in Protocols Section 16 that must be completed to participate in the ERCOT market– These processes include signing agreements, completing applications, and

verifying financial and systematic capabilities.

• In transitioning from the Zonal market to the Nodal market, some of these Registration and Qualification processes have been changed, others have not.– What is Registration? The paperwork– What is Qualification? The testing and verification

• The impact of transitional activities for YOU are dependent on how you participate in ERCOT


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High-Level Summary of Registration and Qualification Activities (continued)

• Market Participants can register in ERCOT to participate in multiple roles:– Congestion Revenue Rights (CRR) Account Holder– Load Serving Entity (LSE)– Qualified Scheduling Entity (QSE)– Resource Entity (RE)– Transmission and/or Distribution Service Provider– Renewable Energy Credit (REC) Account Holder

Nodal Impact

Nodal Impact

Nodal Impact

Nodal Impact


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High Level Summary of Registration & Qualification Activities

And each role will drive the Registration and Qualification Activities:


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Agenda:





• Review Timeline

• Next Steps



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Registration and Qualification Guide for Transitioning to the Nodal Market

Registration and Qualification Guide for Transitioning to the Nodal Market- Guide designed as roadmap to navigate the transition of the forms and processes

- Updated Guide (v0.45) included in the materials for this meeting- no objections from TPTF to move forward with this version.

- Guide received over 100 comments/clarification on two rounds of comments Figure 1- Table of Registration and Qualification Steps

CRR = CRR Account Holder X Required Q = QSE without Resource (equivalent to zonal Level 1&2 QSEs) X* Required only for new MP QR = QSE with Resources (equivalent to zonal Level 3&4 QSEs) O Optional TD = Transmission and/or Distribution Service Provider RE = Resource Entity

Step R2 - Standard Form Agreements Activity Standard Form Agreements

Who All LSEs, QSEs, TSPs, DSPs, CRR Account Holders, Resource Entities, REC

Account Holders What Market Participants are required to execute the approved nodal version of the

Standard Form Market Participant Agreement (SFMPA) with ERCOT. This agreement is embodied in Section 22 of the ERCOT Nodal Protocols. This process of circulating and signing the updated agreements will be administered by the ERCOT Legal department.

When For existing Market Participants, the SFMPA will be circulated upon approval of two protocol changes needed prior to circulation, NPRR058 and PRR729. These two revisions are necessary to align both nodal and zonal versions of protocols to reflect a single MP Agreement. The soonest the ERCOT stakeholder process would approve both revisions is October 2007. The target date for circulation upon ERCOT Board approval. For new Market Participants, the SFMPA is signed during the process of submitting applications to become a new participant in ERCOT activities.

Participation

- Registration step is required. - Registration step is satisfied when ERCOT Legal and Market Participant have signed the Standard Form Agreement.

References

Section 22 of the ERCOT protocols contains the Standard Form Market Participant Agreement; however, this agreement is under revision by NPRR058- Clarification of Standard Form Market Participant Agreement. This NPRR and the Nodal Protocols can be downloaded from ERCOT’s website at the following location. http://nodal.ercot.com/protocols/index.html


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Registration and Qualification Guide for Transitioning to the Nodal Market (continued)

Registration and Qualification Guide for Transitioning to the Nodal Market • Each of the activities for Registration and Qualification are described• At the Kick-Off Meeting on June 6th we walked through the draft document

Each step is detailed with • Who- Describe which Market Participant activities are impacted• What- Describes the nature of the activity• When- Defines the timeline for activity• Participation- Describe if requirement is mandatory and the outcome of qualification step• References- Provides reference materials to facilitate the successful completion of the qualification activity

• It is now complete and on the Readiness Center (under Registration and Qualification) (http://nodal.ercot.com/readiness/rq/documents/index.html)

• This is a document that is supportive of Zonal and Nodal Registration, but does not stand alone.

– ERCOT will be working to deliver a full guide on entering the Nodal Market that addresses the universe of forms and detailed qualification activities, which will be developed in parallel as nodal EDS and Qualification activities are detailed in the coming months

• New entrants to the market today would still follow Zonal Registration, and then join in transitioning to the Nodal Market EDS Activities

– For examples, a new QSE without Resources coming into the market in December 2007 would register and qualify in Zonal market, and then join in EDS activities for Qualification in the Nodal Market


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Agenda:





• Review Timeline

• Next Steps



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Review of Updated Registration Forms

View of Registration Activities- by role


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Review of Updated Registration Forms (continued)

View of more details regarding Registration documents/artifacts:


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Availability and execution of Registration Forms:• The new Registration Forms are on the Readiness Center (

http://nodal.ercot.com/readiness/rq/documents/index.html )– 3 Applications, and 1 Attestation are completed

• ERCOT will be sending two Market Notices on the Applications– First notice in the next 2-3 Business Days announcing that the current

QSE Application for Registration and TDSP Application for Registration on ERCOT.com are being replaced with the updated applications

• Application forms were changed to streamline process and introduce small changes conforming to Nodal protocols

• Applications are applicable to Zonal and Nodal Markets• New QSE and TSP/DSP Applications do NOT need to be filled out by EXISTING

Market Participants

– Second notice in mid-July announcing the availability of theCRR Account Holder Application for Registration on ERCOT.com

• Extra time needed to build out web page for CRR Account Holder Application

• Notice these applications will be on ERCOT.com– ERCOT.com is the “production environment” for applications, so this marks completion of

work on the applications– Will also allow Nodal Readiness Center to link to new forms.

• Remember- New QSE and TSP/DSP Applications do NOT need to be filled out by EXISTING Market Participants


Texas Nodal


Availability and execution of Registration Forms (continued):

• ERCOT will be sending another Market Notice in the coming days on the Attestation of Qualification for Ancillary Services

– TPTF reviewed and acknowledged the Attestation this week

– Attestation summary• Allows QSEs proving Ancillary Services to qualify for Nodal without individual

resource-specific qualification testing• QSEs attest the Resource has successfully provided A/S in Zonal• QSEs attest the Resource(s) will participate in EDS testing• QSE attest they will comply with Nodal Protocols and Operating Guides

– Important correction to a question from last meeting• The Attestation and EDS Participation DOES allow QSE with Resources to

retain A/S qualification into Nodal Market• BUT- this DOES NOT reset the clock on the expiration of your A/S

Qualification– So if qualified in 2006, still need to fully re-qualify in 2011


Texas Nodal


Availability and execution of Registration Forms (continued):

• Standard Form Agreement is still in Market Stakeholder process (not tied to EDS activities)– NPPR058 and PRR729 to align to Nodal and Zonal Protocols

to reflect single Standard Form Market Participant Agreement– Will issue market notice when available, to be executed no

later than March 1, 2008

• Resource Asset Registration Form (tied to EDS activities)– Releasing for market comment today, June 29– TPTF review at July 23-25 Meeting– Release to market July 27


Texas Nodal


Resource Asset Registration:

• Proposed approach for completing Asset Registration

– Phased (iterative) approach to support EDS releases.• EDS 3 – Release 5 SCED, Release 6 LFC, Release 7 CRR, EDS 4, etc.

– Baseline set of data.• Collect from Resource Entities limited set of Resource Asset Data

• With market feedback in July, ERCOT will release by 7/27/07

• Due date from Resource Entities – by 9/01/07

– Iterations will lead to certified RARF in 2008.

– ERCOT will provide current GARF and LARF on record to Resource Entities.


Texas Nodal


Agenda:





• Review Timeline

• Next Steps



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Calendar of Registration Documentation

Calendar of Registration Documentation• Dates aligned with EDS Milestones:

• Resource Registration data (RARF)– Provide to ERCOT by 9/1/07– In time for 10/1/07 mandatory EDS3/SCED testing

• Attestation for Qualification of Ancillary Services– Provide to ERCOT by 9/1/07– In support of LFC testing preparation/scheduling 1/1/08

• Sign MP Standard Form Agreements– Time of BOD approval for PRR/NPRR, not EDS– Estimate BOD approval in place by 10/1/07– Target completion no later than 3/1/08

• CRR Account Holder Application– Provide to ERCOT by 3/1/08– In time for 4/1/08 testing of CRR Auction

• QSE Application (new QSEs)– QSEs with Resources (case-by-case)– QSEs without Resources provide to ERCOT by 3/1/08– Receive by 3/1/08, in time for 4/1/08 testing of DAM


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Review Timeline for Registration Activities (continued)

• Summary of documentation timeline:

Note:

For any dates falling on a weekend or holiday, the deadline is the following Business Day


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Agenda:





• Review Timeline

• Next Steps



Texas Nodal

Next Steps- and Questions/Answers

Next Steps

• 6/29/07 – ERCOT posts RARF for Market Review

• Next 2-3 days: – Market Notice for QSE and TSP/DSP Applications available for new MPs– Market Notice for Attestation for Qualification of Ancillary Services– 2 weeks later- Market Notice of CRR Account Holder Application on ERCOT.com

• 7/16/07 - Market Comments due on RARF

• 7/23/07 – Discuss market feedback at TPTF Meeting on RARF

• 7/27/07 – Nodal Market Registration Meeting to focus on Resource Registration (RARF)

Questions/Comments

Contact info: Matt Mereness / [email protected] / 512.248-3089

Documents

Texas Nodal Registration Kick-off Meeting Follow-up (Meeting #2) Matt Mereness June 29 th , 2007