Credit Monitoring and
Management Status
TPTF
December 17, 2007
Agenda
• Project Status
– Release Approach
• CreditRisk Architecture
• Planned Release Phases
– Current Status
– Vendor Relations
• Where CMM Fits in Nodal & EDS
• Project Interactions with TPTF
December 17, 2007 TPTF Meeting
Slide 2
Project Status – Release Approach
Credit Risk/CMM Architecture
Integration Layer Functionality
Base Product Functionality
•Calculate Current &
•Counter-Party
Common Custom Future Credit
Maintenance
Exposure Calc
•Financial Statement Configurable Exposure / •Calculate Average
Reviews
•Credit Rating Functionality Management Daily Prices
•Integration to Nodal
•Credit Score for all ROME Functionality Systems
•Credit Limits
•Collateral
Customers Specific to •Credit Reporting
ERCOT •ERCOT Specific ACL
Management
and Collateral
•Workflows
Management
•Default Analysis
•Credit Analytics
•Backcasting
CreditRisk DB Integration DB
December 17, 2007 TPTF Meeting
Slide 3
Project Team
Raj Chudgar
Program Director
Cheryl Yager Dickey Triche
Sylvia Shiroyama Vera Weber
ERCOT Treasurer ROME PM
CMM PM Test Manager
Executive Sponsor
S Pabbisetty
Srini Sundhararajan M Gaddam
Tom Keney Bill Kaspar M. Poythress 2 INT Test
Vanessa Spells Rizaldy Zapanta Senior Financial David Swartz R Somavarapu 5 ROME
Business Systems IT Application UI Designer / Automation
Credit Manager Credit Analyst Analyst DBA J Motheral Developers
Analyst Support Test Engineer Engineers
D Komandla
G Hegedus
ERCOT employee ERCOT Contractor Vendor employee Direct Report Matrix Report
December 17, 2007 TPTF Meeting
Slide 4
Project Status – Release Approach
Release Phases
1. Base Product Functionality (see prior architecture chart)
2. Custom Calculations
3. Nodal Integration – EDS 4 Requirements
4. Custom Management Functionality
5. Back-casting
December 17, 2007 TPTF Meeting
Slide 5
Current Status – Part I
• Base Product Release – completed FAT 8/31/07
• Custom Calculation Release – in FAT (as of 12/12/07)
– 441 test scripts
– 399 executed
– 353 passed
– 8 open: 2 sev 2, 4 sev 3, 2 sev 4
– 15 ready for retest: 4 sev 1, 5 sev 2, 5 sev 3
– 15 closed
– 8 deferred: 1 sev 3, 5 sev 4, 2 sev 5
– Expected completion w/ regression testing – 12/21/07
• Originally scheduled to complete 10/26/07
– Complexity of calculations
– Complexity of ensuring coverage in test scripts
– Complexity of data preparation
December 17, 2007 TPTF Meeting
Slide 6
#
11
/7
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December 17, 2007
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Time
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Slide 7
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CMM Custom Calc Test Stats
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/1 07
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07
Fail
Total
Pass
Open
Closed
Deferred
Executed
TPTF Meeting
FAT Statistics – Custom Calc Release
FAT Statistics – Base Product Release
Base Product FAT
250
200
Executed
Pass
150
Fail *
#
Open *
*
100
Closed
Total
50
0
7/ 0 7
7/ 0 7
7/ 0 7
7/ 0 7
07
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9/
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25
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Time
* Remaining open defects were deferred to future releases
December 17, 2007 TPTF Meeting
Slide 8
Current Status – Part II
• Nodal Integration
– Requirements
• Complete for CRR, S&B, Registration
• In process for CSI/MMS, in concert with S&B
– Detail Design – in process for integration layer
– FAT – target entry 1st quarter 2008 to match EDS drops
• Custom Management Functionality
– Currently defining detailed specifications
– Functionality deliveries through 2nd quarter 2008
• Back-Casting – 3rd quarter 2008
December 17, 2007 TPTF Meeting
Slide 9
Vendor Relations
• Vendor –
• Excellent delivery record
• Responsive
• Within authorized budget
December 17, 2007 TPTF Meeting
Slide 10
Interactions with Market Participants
During EDS 4
• Where MPs Will See CMM during Market Trials
– Direct Visibility:
• ACL Postings via MIS - .pdf ACL reports
• CRR Auction Credit Limit allocations
• CRR Bilateral Trade Approval
• DAM Bid Credit Limits
– Indirect Impact via inputs to Credit Calculations
• CRR Inventory
• S&B Settlements Statements, Invoices and Payments
• DAM and RT Transactions
December 17, 2007 TPTF Meeting
Slide 11
Where CMM Fits in Nodal & EDS4
MIS EDW
10 CMM Interfaces
5 1: Creditworthiness
Registration R8.1: CRR Auction 2: ACL
R8.1: Credit Monitoring 3: CRR ACL
1 2 3 8 9 4: Residual ACL
R8.2: DAM Settlement Statements and DAM Invoices and other Invoices
Evolve from posting statements/invoices of mock data, to test data, to integrated EDS data. 5: MP ACL Reports (MIS)
6: DAM activity & prices
R8.3: RTM Settlement Statements and RTM Invoices 7: RT activity & prices
Evolve from posting statements/invoices of mock data, to test data, to integrated EDS data.
8&9: Settlement Statements,
R8.4: Verifiable Costs
Invoices, Payments
10: Replication
R8.5: Disputes
Jan 08 Feb 08 Mar 08 Apr 08 May 08 Jun 08 Jul 08 Aug 08 Sept 08 Oct 08
R9.1: DAM/RUC Submission Testing
4
R9.2: Outage Scheduler Data Submission and NMMS Network Model Upload
R9.3: Initial DAM/
RUC Execution 6 7
R9.4: Execute Day-Ahead,
Adjustment Period, and Real-Time
Operations
R9.5: Pre-Test for 168-hour Test 168-hr Test
Other Activities running outside of EDS4- (Bars below do not convey completion of formal EDS release-
rather they reflect the cumulative integration of nodal functions)..
SCED Running
ACE Calculation LFC by QSE LFC System-wide test
CRR Mock CRR Unscripted CRR Muli-month
N/W Model CIM/Powerflow * NOMCR Production
December 17, 2007 TPTF Meeting
Slide 12
CMM Project Interactions with TPTF
• Status of Document Reviews
– Requirements and CSD have been approved
thru Baseline 1
– No updates required for Baseline 2
– Detail Designs for Base Product
implementation and Calculations available
now
• No others currently scheduled
• What else do you want to hear about?
December 17, 2007 TPTF Meeting
Slide 13
Summary
• Good team working well together
• Good vendor product and support
• Going slower than expected due to:
– Complexity of calculations
– Capturing currently manual business processes
– Complexity of defining data integration
– Constrained resources
– but …
• On target to meet EDS dependencies
December 17, 2007 TPTF Meeting
Slide 14
• Questions?
December 17, 2007 TPTF Meeting
Slide 15