TAC Feb. 7 Meeting - Nodal Program Update

At the Feb. 7 meeting of the Technical Advisory Committee (TAC) the committee received the following Nodal update.

Approval of the Transition Plan Task Force (TPTF) milestone completion for the following:

  • Infrastructure Market Participant Identity Management Requirements
  • Infrastructure Market Participant Identity Management Conceptual System Design
  • Enterprise Data Warehouse (EDW) Conceptual System Design

Approval of the following Readiness Metrics:

  • E2, Verify ERCOT Performance Monitoring Test Plan
  • E4, Transition Pricing Mechanisms
  • E7, Validate EDW Access and Accuracy of Postings Required by the Independent Market Manager (IMM) and Public Utility Commission of Texas (PUCT) rules
  • E10, Validate EDW Commercial Systems Access Accuracy
  • E11, Validate EDW Compliance Data Access
  • E14, Verify Qualified Scheduling Entities (QSE) Performance Monitoring Test Plan
  • E15, Verify Transmission Service Provider (TSP) Performance Monitoring Test Plan
  • EMO3, Verify Outage Evaluation System Functionality
  • EMO8, Conduct Emergency Electric Curtailment Plan (EECP) Test
  • MO3, Verify Supplemental Ancillary Services Market (SASM)
  • C1, Contingency Plan Procedures for Weekly, Daily, and Hourly Reliability Unit Commitment (RUC) Failure
  • C2, Contingency Plan Procedures for Day-Ahead Market (DAM) Failure
  • C3, Contingency Plan Procedures for Inter-Control Center Communications Protocol (ICCP) Data Failure
  • C4, Contingency Plan Procedures for Security Constrained Economic Dispatch (SCED) Failure
  • C5, Contingency Plan Procedures for Key Settlement and Financial Transfer Processes
  • C6, Develop Plan for State Estimator (SE) Failure
  • C7, Contingency Plan Procedures for a Backup Facility
  • C8, Contingency Plan Procedures for Portal/Application Programming Interface (API) Failure
  • C9, Contingency Plan Procedures for Site Unavailability
  • C10, Verify Single Point of Failure Recovery Energy Management System (EMS)/Market Management System (MMS)/Network Model Management System (NMMS)/Congestion Revenue Rights (CRR)/Commercial Systems (COMS)
  • IMM1, Market Monitor Systems Capability
  • N4, Network Modeling Single Entry
  • R0, Market Participants Operations Readiness
  • R1, Nodal Readiness Declaration
  • R2, Develop Texas Nodal Market Launch Plan
  • R3, 168-Hour System Stability Test and Trial Real Time Settlement
  • MP14, Market Participant EDS 2 Trials Participation

Jerry Sullivan presented the nodal project update, with some controversy related to scope. He stated that the nodal team and ERCOT believe that Dec. 1, 2008 go-live date is still possible, although there is a lot of work left to do. As many items are expected to be finalized around Apr. 22, this would be the litmus test. He added, however, that all projects have slipped aspects of delivery, although there are efforts to get them on track again. The new budget has yet to be approved by the PUCT; with the additional funds paying for external labor, software, financing costs, etc.; some increases are also the result of Baseline 1 and 2 changes. Jerry also agreed that additional Board meetings (maybe via telephone) could be needed to speed up the decision-making process. The 168-hour test is planned for September, with one month being planned for successful execution of the test over a continuous 168-hour period. Some members asked about contingency plans if there were an error during the test. The 168-hour test will not control the grid. If a significant error is discovered and curtails the test, the 168-hour clock will be re-initiated upon correction of the defect. Jerry opined that if the 168-hour test is not successful, the Dec. 1, 2008 go-live date would be unlikely, and added that he does not expect to pass the test the first time. He also said that the window on any changes is closing, and only Nodal Protocol Revision Requests (NPRRs) essential for the go-live date should be approved. We will enlist the help of TPTF to evaluate any changes that might be deemed essential for go-live.

Mark Dreyfus stated that MPs want to know about any items that would not be delivered (as originally designed), and how and when they would be delivered. Jerry responded that only two reports (related to CRRs) are not being implemented, all else should be delivered. There is a work-around for the multiple network models, otherwise the date would be jeopardized. Brad Belk commented that some items, like co-optimization of ancillary services (AS) and energy for self-committed resources in Day-Ahead Market (DAM), were being mischaracterized as out of scope, when they were clearly included in the original protocols, and should be delivered. He asked for a list of all items that would not be delivered and to have a subgroup of TPTF work on these issues. He also suggested that the Board should not be told that these items require new funding, since they were part of the original scope. Jerry responded that ABB cannot complete the co-optimization piece by April, and that he does not have all historical facts on these items. Larry Gurley asked whether the question of self-committed units is a key functionality for the go-live date, and is it worth to delay the market over it. Jerry suggested that TPTF address this quickly. Chris Brewster commented that because this functionality would not be available, load will pay more. Mark Dreyfus thought that more items like this would come up, and that ERCOT should take it seriously, and use all resources to determine how to address them.

Jerry continued that the summary readiness statistics are now available even without a password. There are on-going training classes for all market participants. A TAC member commented that at TPTF, the participants have been asking for added visibility, but are often told that the problem is with vendors’ confidentiality agreements, and that this is a matter that deserved more thought. Jerry’s entire presentation is posted as 14. TAC Nodal Update 020708 Issued and updated v2New Window (slides 11 and 12 enumerate items that would likely not be included at the go-live date).