nodal delivery success depends on 3 key dimensions…

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

Texas Nodal

Texas Nodal Market Implementation

TAC MeetingProgram Update

March 08, 2007

Jerry Sullivan, Executive Director, Nodal Program

[email protected]


Texas Nodal

Nodal Delivery Success depends on 3 key dimensions…

Nodal

Scope / Quality

CostSchedule


Texas Nodal

Nodal

Scope / Quality

CostSchedule

Scope / QualityScheduleCost

Legend

Summary

Which are currently showing both success and areas to address…

Amber

The program has completed the latest cost review cycle with current

overall projected estimate at complete tracking within 1% of

budget. A significant proportion of

contingency has been earmarked specifically for EMS, MMS, NMMS

and COMS.

Amber Amber

The program is in the process of defining the next iteration of its

critical path baseline and is identifying issues that need resolution to help attain the published Go-Live date.

Two critical systems, (Energy and Market Management Systems) are baselined on the May 2006 version of the protocols and not yet in sync with the latest approved NPRRs.

Red

Amber

Green Estimate at Complete = <$248m

Estimate at Complete = $248 - $263m

Estimate at Complete = >$263m

Go-live = 12/1/08

Go-live = <30 days+

Go-live = >30 days+

Program is aligned with current protocols

Program is aligned to previous version of protocols

Program is not wholly aligned to protocols


Texas Nodal

Measured by…

The “Nodal Success Equation”

In order to succeed, Nodal Program Delivery must be aligned with broader ERCOT Inc. and external readiness…

Without success of all 3 elements, Nodal success will be compromised…

Nodal

Delivery

ERCOT

Readiness

Market Participant

ReadinessNodal

Successx =

Nodal

Scope / Quality

CostSchedule

x

Cost

Schedule

Scope / Quality

Amber

Amber

Amber

Market ReadinessDeclaration

Status via Market Readiness Function (TBD)

Registration & Qual.

Transition Plan Exe. Transition Plan Exe.

Nodal Go-Live Plan

ERCOT Readiness MP Readiness

TBD

TBD

TBD

TBD

TBD

TBD

TBD

* New version of presentation


Texas Nodal

ERCOT has taken the measures necessary to alleviate the most pressing staffing issue on Nodal: The EMMS Development team provided 3 experienced staff to Nodal – 2 with immediate

effect. The EMMS Production Support team provided 5 experienced staff to Nodal – 4 with

immediate effect These staff will be 100% dedicated to Nodal for the balance of 2007

The transition needs to balance support of existing operations: A period of transition for some of these staff is necessary to minimize disruption to

existing workload, including Zonal enhancements required for Nodal The impact on Zonal initiatives has been factored in (some initiatives will be delayed 30 –

60 days, backfills are being sought for some of these staff) Response to critical production issues may require involvement of some staff

Additional measures taken: An advertisement campaign has been launched for EMMS resources – both contract and

full time positions are being considered Recruitment efforts in EMS markets outside of both ISO and Texas area

EMS staffing is approaching resolution


Texas Nodal

Progress Highlights

• Market Operations Sandbox delivered 1/31/07– 2 QSEs successfully connected

• ERCOT learning Management System launched to Market Participants 2/15/07

• Requirements approved by TPTF– Approvals for MMS, Outage Scheduler requirements complete

• CSDs approved by TPTF– Approvals for MMS, CRR, MIS and most COMS CSDs approved

ahead of schedule• EDS 1 application (vanilla (basic) EMS) currently in I-Test• Nodal Deep-Dive Communications Meeting held with Steering

Committee on 1/26/07


Texas Nodal

Program Management Office (PMO)– Completed Nodal deep-dive presentation to ERCOT Steering Committee.– Completed user interface for balanced scorecard.– Met with all projects to define program critical path in cooperation with IRT.

Integration Design Authority (IDA) Package– Assignment of IDA’s issues continued.– Preliminary review of EMS RPP CSD.– Review and response to TPTF comments for EMS requirements.

Commercial Systems Package (COMS)– Defined short term milestones and owners for outstanding architectural

discussion points.– Continue integration planning - continued meetings with CRR, participated in

CMM - registration POC with UISOL team.– Registration Requirements approved on 1/9/07 as scheduled.– Financial Transfer requirements approved.

Network Model Management System/Network Model Package (NMMS)– Developed training documentation.– Prepared training classes.– Clarified and documented modeling issues.– Obtained CSD approval from TPTF.– Continued work on Detailed design issues.– Network operations modeling issues: Now 77% complete with 4,153 Closed out

of the 5,360 identified data issues. Now 25% complete with 243 completed out of the 973 identified Critical Measurements.

– SIR 11147 and 11181 have been approved to be promoted into the iTEST / Production 2/22/2007 release.

Energy Management System Package (EMS)– Completed 1st Week of Change Impact Analysis for TPTF (Presentation

Available).– Confirmed & Committed Phased Delivery Dates for EMS Phase 2.

Market Management System/SCED Package (MMS)– Completed Execution of MMS (ABB) Phase 2 SOW.

Congestion Revenue Rights Package (CRR)– BOD budget approval.– Zonal replacement for Stacy Barry on-boarded; transition complete.– Updated PCRR – generator list.– Completed Detailed Design Documents.– PSA executed with Nexant. – Continued work on SOW & associated agreements.

Progress this Month (Detail)

Enterprise Data Warehouse Package (EDW)– Achieved definitions of 80% of project areas and have begun process of high-level

requirements gathering for those identified.– First deliverable “State Estimator Statistics” requirements being worked with EMS

team. Enterprise Integration Package (EIP)

– Sandbox effort successfully demonstrated connectivity.– Prioritized list of Interfaces.– High Level Design of CIM.

Market Participant Engagement & Readiness Package (MER)– Executed new SOW for 2007 engagement for the Mosaic Company (training firm)

for 2007.– Interviewed candidates for contract training delivery personnel.– Completed major review of the structure of 5 day QSE Basic Training Sessions

(Course content, how to break 5 days into modules, scheduling, NERC CE hours issues etc…).

– Market Information System (MIS): Proof of Concept with LDAP– MIS: Presentation of 3 Design Styles for the portal.

Integrated Readiness & Transition Package (IRT)– Training: Completed 30% of Curriculum Reviews, Started 70%.– Market Trials: Refine EDS Detailed Plan (ongoing through March 07).– Market Trials: Conducted reviews with business owners.– Sandbox: Met 1/31/2007 release date. Great team effort.– Sandbox: 2 QSEs have successfully connected.– Readiness Advisor: Metrics Map - Version 6 for Metric Subgroup review.– Readiness Advisor: Verification Plan - Version 3.

Infrastructure Package (INF)– EDS1/2 Environment: All systems delivered for testing.– EA Lab: VMWare license issue resolved.

Integrated Testing Package (INT)– COMS: Conducted Test Case training for business.– Received ROME-hosted access to the credit risk software for familiarizing ourselves

with the application; Created draft CMM test plan. – EMS/MMS/CRR: Reviewed CRR Component Use Cases.– Submitted rough draft of assumptions and durations for FAT testing of CRR.– Data/E2E/Info: Data Transformation Presentation Preparation for other Teams in

progress; Delivered First Phase of Mini Market.– NMMS: Team created 77 proposed lower level business flows; System test case

candidate analysis; Started initial NMMS FAT Test Plan creation.– Tools: Create Daily Metric Reporting Data; Update Severity and Priority for Defect

Tracking.


Texas Nodal

The short-term milestones, except Requirements, are on track

Control Milestone Baseline Actual/F’cast Comment

Requirements approval 10/31/2006 3/31/2007 EMS requirements have been approved by the TPTF. EDW requirements will be submitted soon

Key CSD submission 12/31/2006 12/31/2006 Planned CSDs issued on schedule

Key CSD approval 2/28/2007 2/28/2007 CRR, MIS and most COMS CSDs approved ahead of schedule

Vendor SOW BOD approval

12/10/2006 1/16/2006 CRR vendor approved in January

Interface specs – draft 12/31/2006 12/31/2006 Deliverable issued to TPTF on schedule

Market Operations Sandbox

1/31/2007 1/31/2007 Initial sandbox delivered on schedule

Interface specs – final 3/31/2007 3/31/2007 Cross-program working group focused on achieving key MP milestone


Texas Nodal

RT FAT

Time line update

Energy Management System (EMS)

Trials & Implementation

Market Management System (MMS)

Congestion Revenue Rights (CRR)

Market Information System (MIS)

Network Model Management System (NMMS)

Commercial Systems (COMS)

ERCOT & MP Readiness

Enterprise Integration (EIP)

Enterprise Data Warehouse (EDW)

Q2 2008 Q4 2008Q3 2008Q2 2007Q1 2007Q4 2006 Q4 2007 Q1 2008Q3 2006 Q1 2009Q3 2007

Infrastructure (INF)

Key

Requirements Submitted to TPTF

Requirements Approved by TPTF

CSD Submitted to TPTF

CSD Approved by TPTF

Vendor Development SOWs Completed

Draft Interface Specs Submitted to TPTF

Final Interface Specs Submitted to TPTF

Final Interface Specs Approved by TPTF

Base Product Stood Up

FAT Start

FAT end

EDS Start

EDS End

Go-Live

UI and EDS 3 components

DA Model Build DA Model

CRR, UI, Planning

CIM Model

DAM Build

RT FAT

DA FAT

FAT

RT FAT

DA Build DA FAT

FAT

EDS 1 /2 EDS 3 EDS 4

Single Entry Model3/31/

RT Market12/01

DA Market12/08168 Hour Trials

DA FAT

RT FAT

POC

DA FAT

Readiness Metrics

Start MP Registration

RegistrationFreeze

MP QualBegin

Qual FreezeTraining Complete

ITest 1/2 ITest 3 Itest 4

Build Dev Environments

Build ITest & EDS1/2

Build ITest 3 Build EDS 3

Build ITest 4 Build EDS 4

Acronym KeyFAT – Factory Acceptance Testing

CSD – Conceptual System Design

SOW – Statement of Work

EDS – Early Delivery System

I test – Integration Testing

POC – Proof of Concept

Blue diamonds right of Business requirements line denote schedule slippage

Business Requirements

Target

NSA Generation Sub-system RPP, LF Study Apps

Today


Texas Nodal

The overall schedule and critical path are the major concerns

IDA NMMS INF MMS EMS CRR COMS EDW MIS MER INT EIP IRT Commentary

Scope & baseline = = = = = = = = =

Working to close NPRR backlog. Plan presented to TPTF. Technical Change control Board started.

Resourcing = = = = = = = =

Looking to ramp up committed resources from zonal for nodal projects and transition preparation.

Recruiting EMS developers.

Costs = = = = = = = = = Tracking to budget with some variances.

Closing variances with finance.

Timescales = = = = = = = =

Working on remaining requirement and CSD approvals with TPTF.

EMS requirements under review by TPTF. CSDs scheduled for submission 2/23/07

Critical dependencies = = = = = = =

Finalizing integrated project schedules to confirm feasibility of build sequence and timescales for downstream projects (Integration, I test, and market trials)

Vendors = = = = = = = = = =

Project team assessing capabilities of key vendors to deliver on time and under Nodal protocols.

Stakeholders = = = = = = = = = =

MP Sandbox delivered 1/31/07 “Deep dive” review held with ERCOT

Executives, business/IT owners and Nodal leadership as a step to improve engagement

Acronym Project Name Acronym Project Name

IDA Integration & Design Authority EDW Enterprise Data Warehouse

NMMS Network Model Management System MIS Market Engagement & Readiness – Market Information System

INF Infrastructure MER Market & Engagement & Readiness – Training

MMS Market Management System INT Integration Testing

EMS Energy Management System EIP Enterprise Integration

CRR Congestion Revenue Rights IRT Integrated ERCOT Readiness & Transition

COMS Commercial Systems

No major threats

Known and contained threat – continue to progress and maintain a watching brief

Major threat (or unknown) – “hair on fire” is the only acceptable response


Texas Nodal

Nodal build & release overview

Project Focus Market Timeline Focus

A1

R2

R3

R4

R5

R6

R1A2

A3

A…RM

B1

B2

B3

B…RM

C1

C2

C3

C…

RM

RM

RM

RMRM

RM

RM

RM RM

C1

C2

C3

C…

RM

RM

RM RM

C1

C2

C3

C…

RM

RM

RM RM

C1

C2

C3

C…

RM

RM

RM RM

Transition Plan Milestones

* Data & Telemetry Standards Met

* SE 6 months

* Real Time Sequence

* TXMACS 1.0

* Reasonable LMPs (6 months)

* Bids & Offers Submitted

* RT Settlements

* Day Ahead Market

* DA Bids & Offers Submitted

* DA Settlements

* 168 hour test

EDS (Trials)Releases (UAT)Builds (ITEST)Project (FAT)

EDS 1

EDS 2

EDS 3

EDS 4

* CRR

8 X

5 B

uild &

Ma

intain

24

X 7

Requirements Use Cases Business Function


Texas Nodal

Critical Path Update

Objective: – Revise the existing Logical Program Schedule into a linked and verified program level Critical

Path Gantt to drive integrated delivery milestones across projects.

Approach: Define all Builds (32), Releases (7), EDSs (4)

• Build and Release Matrix• Build Sequence Diagram• Map business requirements and use cases to each build and release

Based on above definitions, identify build FAT completion dates with PMs and Vendors Insert Release Management, ITest (INT) and Market Trial (EDS) activities Utilize the program level Gantt as a tool to verify and manage the shortest viable program

duration Optimize critical path to honor transition plan & PUCT order (modified to 12/1/08)

Guiding Principles:– Ensure Nodal Transition Plan elements are used to guide EDS– Minimize the number of Releases flowing into EDS Phases– Utilize a number of Builds to break Releases into logical and sequential groupings – Establish the optimal number of Builds to support the schedule – Consider vendor and project delivery capabilities in estimates– Account for all system functionality and requirements


Texas Nodal

Nodal spending to date

EXPENDITURE CATEGORY JAN Program Total

O&M Expenses (,000): Internal Labor 9 1,712 Equipment, Tools, Materials & Supplies 0 50 Outside Services/Consulting (68) 4,922 Software license 54 123 Hardware 50 149 Facilities & Utilities 0 1 Employee Expenses 0 34 Interest and Fees 46 430 Depreciation and Amortization 478 3,344 Other 10 291 Sub-Total 579 11,056

Capital Expenditures (,000): Sub-Total 5,126 49,584

Total Expenditures (,000) 5,705 60,640

Commitments $36,178

Notes:

* Hardware spending to support Nodal represented $3.2 MM of the $5.1 MM January capital spending.

** Total spending through December was $54.9 MM with the additional year end accruals.

**

*


Texas Nodal

Texas Nodal

Critical Path UpdateTechnical Advisory Committee

March 08, 2007

* New presentation


Texas Nodal

Critical path – overview of complexity

Integration 1 Integration 2

I-Test 1

Integration N

I-Test N

EDS 1 EDS N

EMS1 EMSX

MMS X

NMMS1 NMMS X

MMS1

Build 1

Release 1

Build 2 Build N

Multiple project software drops...

…integrated into builds...

…for testing and release...

…into Early Delivery Systems for market

trials prior to Go LIve

>50 Drops

~33 Builds

4 EDS

9 Releases

NMMS2

EMS2

MMS2

EMS X


Texas Nodal

Initial emphasis – individual project mobilization & requirements

EMS Functionality

MMS Functionality

S & B Functionality

Add. COMS Functionality

CRR Functionality

Other Nodal Project Functionality

Protocols & NPRR

Common Projects(IDA, IRT, INF, EIP)

Program Activities• Define Requirements• Conceptual Design• Functional Scope• Protocol Interpretation and

Mapping• Vendor(s) Identification and

Delivery Estimates• Internal Development Team(s)

Delivery Estimates

Critical Path Status

Critical Path Confidence

Schedule Confidence

Independent Project Focus

Project scope, requirements, development

estimates (budget)

RED

Low Increasing No Change

Legend – Confidence Level


Texas Nodal

Last Few Months – Vendor Mobilization and Application Focus

EMS1

CRR 1

Vendor Delivery Capabilities


Program Activities • Req. Finalization & Conceptual

Design• Define Common Terminology &

Delivery Milestones• Define Common Goals Across

Projects• Identify Project Interdependencies• Organize into Releases• Define Assumptions• Unconstrained End Date

EMS2 EMSX

MMS1 MMS2 MMSX

S&B1 S&B2 S&BX

COMS1 COMS2 COMSX

Build1 Build2 BuildX

Critical Path Status


Schedule Confidence

Project Delivery Focus

RED

Project software drops, feasible delivery dates, vendor SOWs




Texas Nodal

Current State – Cross Project Design and Integration Alignment

Nodal ProtocolsTransition Plan Guidance


Program Activities• Conceptual & Detailed Design• Cross Project Alignment• EDS Deliveries Identified• Key Design Issues Identified• Key Program Risks• Identify Project

Interdependencies• Identify Releases• Organize Pieces

EDS 3 (Rel 5)

Proj 1 Proj 2

Proj 3 Proj x

EDS 1 (Rel 1)

EDS 2 (Rel 3)

EDS 4 (Rel 7)

Proj 1 Proj 2

Proj 3 Proj x

Proj 1 Proj 2

Proj 3 Proj x

Proj 1 Proj 2

Proj 3 Proj x

EDS 3 (Rel 6)

Proj 1 Proj 2

Proj 3 Proj x

EDS 1 (Rel 2)

EDS 2 (Rel 4)

Proj 1 Proj 2

Proj 3 Proj x

Proj 1 Proj 2

Proj 3 Proj x

AMBERCritical Path Status


Schedule Confidence

Program Delivery Focus

Integration builds, EDS

release scope, integrated

schedules & trade-offs




Texas Nodal

Future State – Program and Business Delivery Alignment

Program Activities• NPRR Backlog Cleanup• Rigorous Scope Change Control• Design Issues Resolved• Confirm EDS strategy with TPTF,

including potential exceptions to Transition Plan

• Build delivery confidence (early drops)• Rigorous critical path and dependency

management• Go-Live risk review

GREENCritical Path Status


Schedule Confidence

Business Capability Focus

Committed control

milestones, finalized vendor

SOWs,Business Transition

Nodal ProtocolsTransition Plan Guidance


EDS 3 (Rel 5)

Integrated Build

Training Transition

EDS 1 (Rel 1)

EDS 2 (Rel 3)

EDS 4 (Rel 7)

EDS 3 (Rel 6)

EDS 1 (Rel 2)

EDS 2 (Rel 4)

Integrated Build

Training Transition

Integrated Build

Training Transition

Integrated Build

Training Transition

Integrated Build

Training Transition

Integrated Build

Training Transition

Integrated Build

Training Transition




Texas Nodal

Meeting the 12/1/2008 target, needs thrust on multiple areas

Nodal Program• Technical Design Leadership and Alignment• Vendor Delivery Management• Application Integration

External Support• Clearing NPRR Backlog• TPTF Review / Approval Turn Around• Transition Plan Clarification


Texas Nodal

Texas Nodal Market Implementation

TAC Meeting

Update on NMT Model Activities

March 08, 2007

Raj Chudgar, ERCOT


Texas Nodal

NMT – Network Operations Modeling & Telemetry - Project

Topics to Cover– Network Model Data Issues– Critical Measurements Telemetry Analysis– Measurement Weights Modeling– NMT Transition Plan


Texas Nodal


Model Data Issues – as of 2/27/2007– Began with 200+ manually entered issues in August 2006

– Developed the Automated Query Process to scan for additional issues Ran First Case from September 2006 thru October 2006

– Generated 4000 new issues

– NMT Closed 78% before running next case Ran Second Case from November 2006 thru December 2006

– Generated 1100 new issues

– Total baseline is 5400 issues

– NMT has Closed 4600+ or 86% of the new baseline

– Remaining issues = 764

• Will run Third Case from January 2007 thru February 2007

– Next Steps• Documenting NMT processes to hand over to ERCOT Operations

• Begin wrap of NMT project to end on 3/31/2007


Texas Nodal


Network Model Data Issues Status – by MP


Texas Nodal


Critical Measurements Telemetry Analysis– Spreadsheet Feedback

• Continuing to work with each of the Market Participants to:– collect and document comments and feedback– clarify questions– perform additional analysis

– Completed 2nd on-site visit to larger TSPs to expedite resolutions– Next steps:

• Continue to implement modeling changes as a result of analysis• Complete documentation of feedback• Publish results and schedules by end-of-March 2007


Texas Nodal


Critical Measurements Telemetry Analysis – by MP


Texas Nodal


Measurement Weights Modeling - Update

Analysis and Progress Update Setup Tuning Environment with near real-time feeds from Production

– Measurement weights were re-defined– Requires software change to add plausibility checks on negative load

telemetries– Changed the limits for a set of unit capability curves

Tuning Environment Results– Reduced Bus mismatches (Mw/Mvar) after SE convergence– Reduced difference in Mw/Mvar flows between SE and Power Flow– Reduced number of voltage violations on the RTCA base case– Improved performance index

Implementation Plan – Software fix successfully implemented into Production– Data changes are being monitored in Study Environment

– To complete implementation early March


Texas Nodal


NMT Transition Plan– Documented Procedures:

• Data Issues Management Process• SE Fallback Procedure

– Nexant (3rd party) review and recommendations:• SE and Network Model• Nodal standards• Zonal procedure changes needed for Nodal

– Review and summary of:• Critical Measurements• Tap Estimation• Measurement Weights Tuning• Load Modeling• Parameter Estimation


Texas Nodal


Summary– Major Model clean-up underway

• Target to complete by 3/31/2007

– Major effort to reduce critical measurements and improve observability underway

• Target to have all justifications and schedules for new implementations by 3/31/2007

• Implementation schedule will be published end of 1Q2007

– Measurement Weights tuning recommendations are being implemented into Production in early March 2007

– NMT creating a Transition Plan of activities and processes to ERCOT operations


Texas Nodal

Texas Nodal

Market Readiness FunctionTechnical Advisory Committee

March 08, 2007



Texas Nodal

Readiness Metric Development Phase – Current

• Facilitate the development of metrics with the TPTF Metric Sub Group and ERCOT Business Managers (metric owners)

• Meet with the TPTF Metric Sub Group (MSG) as necessary to address metric issues• Baseline readiness metrics with TPTF and TAC

Metric Verification Phase – Begins in April 2007

• Begin collecting metric status • Incorporate readiness status into program level reports• Report readiness activities to the TPTF & TAC via nodal program updates• Report to the main TPTF as necessary to obtain approval for new metrics and changes to existing metrics

Produce Market Readiness Declaration – November 2008

Readiness Metrics become important as we approach Go-Live

Time 12/1/08Today

Nodal Control

Milestones

Readiness Metrics

Impo

rtan

ce t

o N

odal

Suc

cess

Progress Indicators Performance Indicators



Texas Nodal

Texas Nodal

Status of Identification of MP ExecutivesTechnical Advisory Committee

March 08, 2007

Trip Doggett, ERCOT


Texas Nodal

ACCOUNTABLE EXECUTIVE DESIGNATION

QSE AE Designation

AE Designations with Qualified Scheduling Entities (Sub-QSEs not considered).

Level 4 (A/S provider)………………… – 22 of 29

Level 2 (Load only)…………………… – 15 of 38

Level 1 (Bilateral Trades only)………. – 17 of 29


Texas Nodal


QSE AE Designation by Sector

AE Designations with Qualified Scheduling Entities (Sub-QSEs not included). *Sector assignment figures are estimates.

Investor Owned Utilities – 2 of 3

Cooperatives – 3 of 3

Municipal – 4 of 4

Independent Generator – 13 of 17

Independent Power Marketer – 17 of 29

Independent REP – 15 of 38

Industrial Consumers – 0 of 2


Texas Nodal


TSP AE Designation

Number of AE Designations for Transmission Service Providers. *Sector assignment figures are estimates.

Investor Owned Utilities – 4 of 4

Cooperatives – 3 of 5

Municipal – 9 of 9


Texas Nodal

For more information . . .

To designate your Accountable Executive, please contact your ERCOT Account Manager

Texas Nodal Website: http://nodal.ercot.com

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