Item 09 - EERM Update

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					ERCOT Enhanced Reliability
& Markets Implementation:
    Program Update

             Janet Ply
     EERM Program Director

  Special Nodal Program Committee
  15 June 2009

 •   Nodal Update
      – Timeline
      – Milestones
      – Critical Path/Near-Critical Path
      – People
      – Program Initiatives
      – Risks/Issues
      – Audit Points

 •   Financial Review

 •   Appendix

        15 June 2009                   2   Special Nodal Program Committee

      15 June 2009   3   Special Nodal Program Committee
Milestones Performance

Tracking Milestones Planned       May 2009     • 6 of 13 tracking
                                                 milestones for
                                                 May completed

Tracking Milestones Planned       June 2009    • 13 tracking
                                                 scheduled for

           15 June 2009       4        Special Nodal Program Committee
Milestone Variance Analysis

 •   May Tracking Milestones
      – MMS: ETAG to MMS iTest: originally omitted from schedule because of
        miscommunication about testing (already in Zonal); inserted to test with

      – NMMS: “Interface Testing Complete” Milestone: dependent on NMMS6
        delivery to NiTest (delayed due to SV2 defects & resource constraints)

      – MMS UI Project End: defects were found, patch retracted & new technical
        platform implemented

      – COMS CMM: REG - CMM iTest: EIP smoke testing taking longer than
        expected in NiTest

      – NMMS-NMMS 7 INT: delayed into FAT by NMMS 6 being in FAT; other
        projects not dependent … functionality for use by NMMS team

      – EMS Release 6.6.x Patch 3 FAT: delays due to vendor resource
        constraints for same people needed on release 6.5

         15 June 2009                      5               Special Nodal Program Committee
Nodal Program Critical Path

      15 June 2009            6   Special Nodal Program Committee
Near Critical Path Work Stream Status (1 of 2)

       15 June 2009            7           Special Nodal Program Committee
Near Critical Path Work Stream Status (2 of 2)

       15 June 2009            8           Special Nodal Program Committee
People: EERM Leadership

                                                                Chief Technology
                                                                   Mike Cleary
                                      EERM Admin
                                                                                                Exec Admin Asst
                                       Jenn Geyer
                                                                                                 Doris Berninger
                                       Lynn Waters

     PMO             Communications                                       Systems               Program Control      ERCOT & Market       Applications
                                              Management &
                                                                                                   & Review            Readiness         Infrastructure
                                              Human Capital
  Janet Ply            Tom Kleckner                                      Murray Nixon              Betty Day           Vikki Gates        David Forfia
                                              Andrew Rinaldi

Schedules/                                                                                       Traceability         Process &          Operational
Budget                                                                                                                Procedures         Readiness
                    Market             Reliability       Web Presence            Enterprise      Internal Audit
                   Systems              Systems                                  Verification
Vendor/                                                                                                               ERCOT              System
                  Hope Parrish         Cagle Lowe        Adam Martinez          David Luedtke
Contracts                                                                                        Sunset Review        Readiness          Cutover

Workflow         Market Mgmt          Network            MIS Portal             Enterprise       External Audit       MP                 Infrastructure
                 System               Model Mgmt                                Integration      Coordination         Readiness
Resource                              System             Current Day                                                                     Cyber
Reconciliation   Independent                             Reports                Data Mgmt                             Market             Security
                 Mkt Monitor          Energy Mgmt                                                                     Training
Risk/Issues                           System             Enterprise             Integration
                 Congestion                              Data                   Testing                               Readiness
QA               Revenue              Outage             Warehouse                                                    Metrics
                 Ri ht
                 Rights               Scheduler                                 End-to-End
                 Credit Mgmt          Operator
                 Monitoring           Training                                  Market Trials                                         Responsibilities

                 15 June 2009                                                     9                                Special Nodal Program Committee
People: New Additions to EERM

 People: Recent Additions
                                       Contract Staff                                                       ERCOT Staff

 Vikki Gates/Readiness & Transformation PM
 •     12 years experience in energy/utility sector
 •     ERCOT, MISO, PG&E, Entergy                                                              John Adams/Readiness & Transition
 •     Market-rules development (ERCOT, SERC), translating rules into system design specs      • Director, Grid Operations
                                                                                                           ERCOT,      industry
                                                                                               • 13 years ERCOT 30 i d t
 David Luedtke, Verification PM
 •    13 years utility and energy consulting experience                                        Betty Day/Program Control & Review
 •    MISO, ESB National Grid, Southwest Power Pool, ERCOT, Constellation                      • Director, Markets
 •    Led system-cutover team for MISO ASM and led planning/execution of MISO market trials    • 9 years ERCOT, 23 industry
 Bob Spangler, Project Control & Review Industry SME
          g        j                              y
 •    20 years experience in regulatory/energy/nuclear sectors                                 C l L       /R li bilit S t
                                                                                               Cagle Lowe/Reliability Systems PM
 •    Luminant Energy, Johnson Controls, US Nuclear Regulatory Commission                      • Manager, Divisional Project Office
 •    Protocol/design development of Nodal Program; develop ERCOT/MP consensus on              • 13 years ERCOT, 28 industry
                                                                                               Matt Mereness/Market Readiness
 Floyd Trefny, Project Control & Review Industry SME                                           • Supv, Market Operations Support
 •    38 years experience in power systems operations, wholesale and retail power markets                ERCOT,
                                                                                               • 6 years ERCOT 18 industry
 •    Reliant Energy, Houston Lighting & Power
 •    Primary contributor to the drafting process and key player in training for Texas Nodal   Sanjay Mijar/Integration Testing
      Market Protocols                                                                         • Senior Enterprise Architect
 Jeff Fruit, Vendor Relations Lead                                                             • 2 years ERCOT, 14 industry
 •     20 years experience in energy and trading; extensive ISO/RTO experience
 •                      Pool, CAISO, MISO,
       Southwest Power Pool CAISO MISO Henwood Energy Services                                 Hope P i h/M k t S t
                                                                                               H     Parrish/Market Systems PM
 •     Managed/validated Areva’s delivery schedule; key player in launch of MISO’s $25B        • Manager, Market Operations DPO
       market                                                                                  • 7 years ERCOT, 11 project management
 Harry Nelson, Enterprise Integration Lead
 •    29 years IT, energy experience                                                           Kenneth Ragsdale/Data Management
 •    MISO, Maxcess, ATT, AMS                                                                  • Manager, Market Redesign
 •              analyzing planning,
      MISO PM analyzing, planning designing infrastructure/integration components for $70M               ERCOT
                                                                                               • 9 years ERCOT, 25 industry

              15 June 2009                                               10                     Special Nodal Program Committee
Program Initiatives
  •   Vendor Contract Re-Negotiations
         To b                     h d l    d            i    i
       – T better manage costs, schedule and emergency situations
            •   Vendor resource and workflow management
            •   Rates/costs
            •   Warranties
            •          non-core
                Obtain non core vendor code
       – Goal: Re-negotiate existing contracts by June 30, negotiate new maintenance
         contracts thereafter
       – Current status:
            • Currently restructuring largest contract and secondary vendor
            • In negotiations with other three vendors
            • Options include placing ERCOT personnel on site

  •   Resource Management
         Continuously evaluating resources t ensure quality personnel
       – C ti       l     l ti                to            lit        l
       – Looking for opportunities to transition and train ERCOT staff

  •   Third-Party External Review
          Board        tf    t    l dit
       – B d request for external audit
       – RFP currently in process

  •   Items of Concern
          Continuing             effecti e communication ith Texas Legislature
        – Contin ing emphasis on effective comm nication with Te as Legislat re
        – Continuing emphasis on media responses to project milestones

         15 June 2009                              11                   Special Nodal Program Committee
Risks & Issues to Achieving EERM’s Major Milestones

  •   Complete Integrated Systems (2-12-10)
       – Issue: Resource constraints for program
       – Issue: Handling CMM delays for program

  •   Market Trials (2-12-10)
         Risk: R      ili     t
       – Ri k Reconciling protocols, systems and market expectations
                                 l      t      d    k t      t ti

  •   Nodal Go-Live (12-1-10)
       – Risk: Data Center capacity concerns
       – Risk: Integrity of SEM data provided by Market Participants

         15 June 2009                 12              Special Nodal Program Committee
External Audit Status Summary

         Audit          Audit Points    Audit Points in          Date to Complete
                         Identified       Execution                 Last Point
  IBM Report 7               4                    1                    12/31/09
  Utilicast Report 8         6                    2                       2011
  Utilicast Report 10       10              4 in progress;              7/31/09
  (Morgan)                                   6 complete
  Utilicast Report 10       13              10 in progress;             9/17/09
  (Cleary)                                    3 complete
  Utilicast Report 10        1              1 in progress               9/14/09

         15 June 2009                  13                     Special Nodal Program Committee
   Financial Review

Special Nodal Program Committee
15 June 2009
Monthly Financial Review - May 2009 Performance

      15 June 2009           15         Special Nodal Program Committee
Monthly Financial Review - LTD Performance through May

 * Note: Effective with February 17, 2009 approved budget, LTD budgeted spend set to actual spend
   through December 31, 2008; accordingly, cumulative variance “reset” as of January 1, 2009.

                 15 June 2009                                                           16          Special Nodal Program Committee
Monthly Financial Review – Contingency Monitoring

      15 June 2009           17          Special Nodal Program Committee
Monthly Financial Review - Program Cost Management

                                                    Note: Post-2010 amounts are primarily
                                                    additional debt service costs

      15 June 2009          18          Special Nodal Program Committee
Questions ?


ERCOT-Wide Issue:
Zonal Resource Constraints for EERM Program
       Potential Milestone Impact: Complete Integrated Systems
 Issue: Zonal Resource                         Because the go-live date has been delayed, there are a number of
 Constraints for EERM Program                  Zonal projects, PRRs, and IMM suggestions for Zonal
                                               improvements that result in resource constraints for the EERM
         Issue Life Cycle State
         Plan                 Manage
             Mitigation Plans                     Who        Target Date                    Current Status
 1. Manage list of PRRs and SCRs to a          D. Forfia     Ongoing          5/15/09 – Meetings were held, to review
 resource plan that uses a strategy to
          p                      gy            D. Troxtell                                          y             y,
                                                                              EACs with Mike Cleary and Janet Ply, with
 avoid impacting program personnel                                            updates made
 resources when delivering additional                                         4/24/09 – Meetings of PM with Program
 Zonal enhancements.                                                          Office and with Resource Managers set for
                                                                              week of 4/27/09, to address personnel
 2. Manage Project Priority List (PPL) with    D. Forfia     5/29/09 for      5/29/09 – Prototype solution completed, and
 clear view of resources needed for any        D. Troxtell   solution to be   resource over-allocations identified for PM
 projects in flight or about to be launched,                 used for         and Resource Manager resolution. Work in
 with a strategy to avoid impact on Nodal                    resource         progress to resolve those over-allocations.
 personnel resources.                                        monitoring       Progress review with Executive Team on 6/1

                                                                              5/22/09 – Nodal and ERCOT PMOs reviewed
                                                                              progress and plans

             15 June 2009                                      21                       Special Nodal Program Committee
EERM Program Issue:
Handling CMM Delays for EERM Program
      Potential Milestone Impact: Complete Integrated Systems
Issue: Handling CMM Delays                   Delays in completing the detailed requirements and designs for
                                             CMM have occurred because of turnover in both ERCOT and
                                             vendor staff. There are limited business resources allocated to
        Issue Life Cycle State
                                             complete creation of requirements and to perform reviews
       Plan                  Manage

           Mitigation Plans                     Who         Target                      Current Status
      ea   e definition a d de e op e
1. Break the de       o and development      H. Parrish
                                                 a s      Contract
                                                          Co ac                  SOW o e contract drafted and
                                                                         6/5/09 SO for new co ac d a ed a d
of remaining CMM capability into                          revisions in   reviewed, but not yet signed, as discussions of
incremental releases. Modify contract                     process        quality of work continue
with vendor to fit the approach.
2. Identify ERCOT business resources to      H. Parrish                  6/5/09 2 backfill positions filled
ensure the plan can be executed                                          4/17/09 2 additional Credit FTE resources are
                                                                         participating in testing. Business to have at
                                                                         least 2 backfill.
3. Identify vendor resources to ensure the   H. Parrish   As needed      5/7/09 ERCOT on site at TriplePoint, providing
plan can be executed.                                                    PM oversight and 2 testers for pre-FAT

4. Receive software and perform FAT in       H. Parrish   7/08/09        5/15/09 Deliveries of software scheduled from
increments, to keep overall program on                                   through 5/26/09, with testing incrementally to
schedule.                                                                7/17/09

              15 June 2009                                  22                        Special Nodal Program Committee
EERM Program Risk:
Reconciling Protocols, Systems and Market Expectations
     Potential Milestone Impact: Market Trials

 Risk: Reconciling Protocols,                  Experience with deploying nodal markets by other ISOs has
 Systems and Market                            shown that expectations of the market participants are often
 Expectations                                  missed, despite best efforts at defining tariffs or protocol
                                                   i      t                d to                h i k i t for this
                                               requirements. ERCOT needs t assume such a risk exists f thi
           Risk Life Cycle State
                                               nodal implementation as well.
  Define       Plan      Manage       Watch
             Mitigation Plans                           Who         Target Date              Current Status
 1. Assess maturity and readiness of           Nodal Project    7/1/09            4/13/09 Program is planning the
 software in the initial nodal release,        Managers                           assessment activities.
 focusing on new/tailored capability for the
 EERM Program.
 2. Add team members to the program            J. Ply           8/1/09            6/1/09 Both members now on board
 with Texas market experience to ensure                                           and working on tracing and delta
 readiness for Market Trials. Have them                                           analysis under Betty Day’s leadership
 assess completeness of requirements                                              with recent program restructuring.
 addressed by the software new/tailored for
 the Texas market and participate in end-
 t    d testing.
 to-end t ti
 3. Keep the oversight groups apprised of      M. Cleary        Ongoing           4/13/09 Risk incorporated into the set
 progress.                                                                        being reported externally; will be
                                                                                  maintained actively.

             15 June 2009                                      23                     Special Nodal Program Committee
ERCOT-Wide Risk:
Data Center Capacity Concerns
                                      Go Live
     Potential Milestone Impact: EERM Go-Live
Risk: Data Center Capacity Space            Data center capacity, space, and power may be inadequate for
Concerns                                    EERM go-live, unless plans for expansion are adequate.
          Risk Life Cycle State
 Define       Plan     Manage       Watch
            Mitigation Plans                 Who          Target Date                     Current Status
1. Establish an Information Lifecycle       D. Forfia   Implementation       3/31/09 ILM Roadmap has been completed
Management approach, to manage the life                 ongoing              by SAIC, and next planning activities
cycle of data being managed.                                                 underway
                                                                             ERCOT project PR 90006_01 Commercial
                                                                             Systems Information Lifecycle Management:

2. Expand current data center space, and    D. Forfia   TCC1 build out       3/30/09 Work underway to expand current
build out new data center, to increase                  complete 9/09        TCC1 data center
ERCOT data center capacity.                                                  ERCOT project PR_80047
                                                        South DC in          TCC1 equipment to be purchased May
                                                        production Feb       2009.
                                                        2011                             j t PR_80001
                                                                             ERCOT project PR 80001
                                                        TCC3 in production   South DC will run parallel Oct 2010 – Feb
                                                        May 2011             2011 to test and avoid disruption to Nodal

3. Validate and monitor EERM data           D. Forfia   Plan: May 2009       5/11/09 Plan under review by D. Forfia
   p    y       p
capacity assumptions for Go Live                            y
                                                        Analysis: to
                                                        complete 7/15/09

             15 June 2009                                    24                      Special Nodal Program Committee
Program Risk
Integrity of SEM Data Provided by Market Participants
                                            Go Live
           Potential Milestone Impact: EERM Go-Live

 Risk: Quality of Model Data from            The market participants do not populate the SEM with data and
 Market is insufficient                      we do not have a quality network model for Go-Live.

           Risk Life Cycle State
  Define       Plan      Manage      Watch

             Mitigation Plans                     Who           Target Date             Current Status
 Participant Readiness will plan and         V. Gates       TBD               Planning is underway.
 implement an initiative to assist the MPs
 in entering their data and to ensure the
 best quality possible for the network
 model at Go-Live.

             15 June 2009                                  25                     Special Nodal Program Committee
Audit Points to Address from Utilicast Report 8
   ID     Description                 Action Plan                    Responsi                  Target Date
 UTI08- The individual      a. Long –term vendor contracts           J. Ply     a) Target: 6/30/09 for contracts to be
 01     project budgets         will be negotiated with the                        renegotiated for 5 top vendors
        should be               assistance of a 3rd party                       3/31/09 Third party has been engaged to
        challenged in the       negotiator, to address budget                      conduct one vendor negotiation as an
        following areas:        matters as well as others.                         initial effort, to be complete 3/31
        a. Vendor           b, c. Plans for use of contract                     3/3/09 Have completed one review of our
        contracts               staff, as well as the orderly                      key contracts by an outside firm
        b. Contract staff       transition to ERCOT teams are                   b) 3/30/09 resourcing of remaining effort
           Internal staff
        c. I t    l t ff        being examined, as we refine                       shows growth in size of ERCOT teams
                                the schedule and plan for the                      and reduction of contract staff as testing
                                remainder of the schedule                          effort is re-planned incrementally ;
                                                                                   Program has engaged a resource
                                                                                   manager to review all staffing.
 UTI08- There should be     A project has been initiated to          J. Floyd   Early 2011
 05     immediate           expand the data center in Taylor
        investment in       (PR-80047). Planned occupancy
        new data center     date is September 2009, with plan
        capacity to allow   to add or move hardware under
        for expansion of    development Additional data
        IT infrastructure   center space planned as part of the
        to support the      Met Center disposition project (PR-
        Nodal Program.      80001). Those data centers should
                            be online in early 2011. Plans are
                            under development to p  provide
                            capacity prior to those new data
                            centers becoming available.

             15 June 2009                                       26                      Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 1

 ID      Short                Recommendation                           Action Plan Status                Resp
                                                                                                         Resp.       Resp
                                                                                                                     Resp.      Target
       Description                                                                                        Dir.       Mgr.        Date

UTI- Release Mgmt,   A plan will be developed to               A plan will be developed to              R. Morgan   D. Forfia   7/3/09
10 - Change Mgmt,    consolidate into one respository after    consolidate into one repository after
01B Access Mgmt,     the final releases of software are        the fi l l          f ft
                                                               th final releases of software are
     Problem Mgmt    available for nodal go-live. Execution    available for nodal go-live. Execution
                     of the plan is not expected to occur      of the plan is not expected to occur
                     until mid-2010.                           until mid-2010.
UTI- Release Mgmt,   The Nodal Project Team should             Release Mgt (RM) Team is working         M. Cleary   J. Ply      9/4/09
          g   g ,
10 – Change Mgmt,                     q           p
                     continue to require the implementation    with the teams to define methods for
01C Access Mgmt,     of ClearCase for use as the automatic     all Nodal Project teams to do auto-
     Problem Mgmt    code deployment tool, and the Nodal       deployment using the standard RM
                     PM’s should be required to use their      process and coordinator roles by
                     assigned Release Coordinators to          August 2009. This will be enforced
                     facilitate their use of the RM process.   by the nodal program.
UTI- Release Mgmt,    The Nodal Project Teams should           Weekly release planning sessions         M. Cleary   J. Statz;   9/4/09
10 – Change Mgmt,    work with their Release Coordinators      began the week of 4/20/09 at both                    D. Gwinn
01D Access Mgmt,     to refine their release planning          program and project level.
     Problem Mgmt    processes and work toward a               Measurement will be done to monitor
                     forecasting accuracy of +/- 20% or        progress toward improved
                     better.                                   forecasting accuracy.

              15 June 2009                                           27                          Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 2

 ID       Short                     Recommendation                           Action Plan Status             Resp
                                                                                                            Resp.       Resp
                                                                                                                        Resp.      Target
        Description                                                                                          Dir.       Mgr.        Date

UTI- Information        Develop a program roadmap to guide the          A roadmap is under                 R. Morgan   D. Forfia   7/3/09
10 – Technology         implementation ITIL V3 service management       development. There are
02A Infrastructure      module with a target completion by December         lti l   j t in flight that
                                                                        multiple projects i fli ht th t
     Library            2010 and assess the ability of the internal     will be synched with the
                        staff to support the ITIL effort while          roadmap, and some will need
                        maintaining zonal operations and supporting     to be funded in the project list
                        Nodal testing and go-live.                      for 2010.
UTI- Information                                           p
                      Evaluate the costs and benefits of purchasing g   This will be included as an        R.
                                                                                                           R Morgan    D.
                                                                                                                       D Forfia    7/3/09
10 – Technology       a complete set of ITIL processes and related      element of the roadmap being
02B Infrastructure    consulting services from one of the vendors       developed for implementing
     Library          who have pre-configured their tools to support    ITIL V3.
UTI- Taylor Data      Continue to manage the Taylor Control             Expansion is underway,             R. Morgan   J. Floyd    9/14/09
10 – Center Expansion Center Expansion project to ensure that the       controlled by ERCOT
04A Project Mgt       additional capacity is available, as planned,     facilities; no budget or
                      by October 2009.                                  schedule issues known.
UTI- Taylor Data      Continue to track and trend data center usage Capacity planner in place,             R. Morgan   J. Floyd    7/31/09
10 – Center Expansion and available capacity to ensure that the     collecting data on capacity
        j     g
04B Project Mgt                 g                    p          g
                      actual usage remains within expected ranges. needs Defining process for
                                                                    monthly review of needs.

                15 June 2009                                            28                           Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 3

 ID      Short                    Recommendation                            Action Plan Status            Resp
                                                                                                          Resp.     Resp
                                                                                                                    Resp.      Target
       Description                                                                                         Dir.     Mgr.        Date

UTI- Vendor          The Nodal Program should work with the            Changes being made to how the      J. Ply   J. Statz,   6/30/09
10 – Performance     vendor to expedite the release cycle and to       work is planned and tracked, to             E. Hall
05B Management                                              time.
                     decrease the average defect closure time           t     li the
                                                                       streamline th process.
                     The overall process needs to be reviewed.         Incorporating these changes into
                     The current process includes overhead             re-negotiated contracts with
                     activities that need to be streamlined to         vendors.
                     support upcoming test phases. Testing
                     should drive the release schedule; the release
                     schedule should not drive the testing
UTI- Vendor          The measure of defect closure time should be      Defect states will reflect         J. Ply   J. Statz,   6/30/09
10 – Performance     updated to reflect only the time spent by the     changes agreed to in contract               E. Hall
05C Management       vendor to correct assigned defects. The           re-negotiations.
                     current values include contracting time,
                     migration time and other factors that are not
                       l d           d      f
                     related to vendor performance. A i        d   d
                                                       As introduced
                     in Report #8, negotiations should continue
                     with the vendors to deliver more value for the
                     overall cost. Vendor costs continue to exceed
                     industry peers.

              15 June 2009                                             29                        Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 4

 ID      Short                Recommendation                            Action Plan Status                  Resp
                                                                                                            Resp.       Resp
                                                                                                                        Resp.       Target
       Description                                                                                           Dir.       Mgr.         Date

UTI- End-to-End      Use manual triggers, or other            The End-to-End (E2E strategy will define      J. Ply   A. Shepherd    9/17/09
10 – Business        workarounds, to string together          this. Manual triggers or workarounds
06B Readiness        business functions to simulate End-      (documented i t t scripts) will b used
                                                              (d        t d in test    i t ) ill be d
     Activities      to-End testing. This will be             where necessary to execute an end-to-
                     particularly beneficial in areas where   end or bid-to-bill test.
                     ERCOT has unique market rules
                                                              Not all of ERCOT's unique market rules
                                                              will be executed in E2E testing. Due to
                                                              time constraints, E2E will first execute a
                                                              Base Case scenario, then a select set of
                                                              scenarios expected to occur frequently
                                                              after go-live.
UTI- End-to-End      Ensure Nodal processes and               There is a plan for ensuring that all nodal   J. Ply     M. Nixon    9/17/2009
10 – Business        procedures are completed so they         processes and procedures that will need
06C Readiness        can be exercised during End-to-End       to be exercised during end-to-end testing
     Activities      testing                                  are scheduled for completion prior to the
                                                              execution of those processes and
                                                              procedures per the end-to-end schedule.
UTI – End-to-End     Prior to End-to-End testing, complete    Consolidate the results of the review of      J. Ply    B. Luedke    9/4/2009
10 – Business        a final review of the Protocols to       protocols to system capabilities and
06D Readiness        compare against current system           identify any gaps.
      Activities     capabilities. Such reviews are
                     underway on many of the project

               15 June 2009                                           30                           Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 5

 ID      Short                    Recommendation                             Action Plan Status                Resp
                                                                                                               Resp.       Resp
                                                                                                                           Resp.      Target
       Description                                                                                              Dir.       Mgr.        Date

UTI- Organization     A comprehensive organizational                  Such an analysis has begun, in           J. Ply   A. Rinaldi    7/1/09
10 – Assessment       assessment should be completed to confirm       collaboration with the ERCOT HR
07A                   that skilled staff is in place to support the   f    ti     f ll          t l     ill
                                                                      function. A full assessment plan will
                      Nodal Program. The objective of the             be developed.
                      assessment should be: 1) to verify that
                      dual operations can be run and supported
                      and 2) to confirm that ERCOT has the
                      appropriate staff in place to support long-
                      term Nodal Market operations.
UTI- Contingency      Utilicast recommends that the Nodal             1. Manual workarounds will be            J. Ply   A. Shepherd   9/17/09
10 – Plans for Failed Program should create and execute               created where needed, documented
08   Data Transfers contingency plans for failed data transfers       either as a part of the test script or
                      which would include the following               as a defect.
                      components:                                                                  pp
                                                                      2. Our common data set approach
                      1) C                l     k
                           Create manual workarounds f d for          details how data will be collected,
                      situations where interfaces fail to enable      made common, released, and
                      continued End-to-End operations.                managed in terms of defects and
                      2) Create procedures to correct flawed or     modifications.
                      missing data from upstream systems. The         3. Other actions TBD upon
                      workarounds and procedures could evolve         clarification of this item.
                      into a long-term data controls and data
                      quality management process.
                      3) Utilize these tools now to support
                      functional Integration Test while technical
                      components are still evolving.

                 15 June 2009                                           31                            Special Nodal Program Committee
 Audit Points to Address from Utilicast Report 10 – 6

 ID      Short                Recommendation                              Action Plan Status               Resp
                                                                                                           Resp.    Resp
                                                                                                                    Resp.      Target
       Description                                                                                          Dir.    Mgr.        Date

UTI – End to End     The Nodal Program should provide         Progress tracking charts have been           J. Ply   J. Statz   9/4/2009
10 – Testing         monthly End-to-End Testing               developed to show progress through the
09    Readiness                   updates.
                     Readiness updates Utilicast              Interface and Adapter testing, per
                                                              I t f         d Ad t t ti
      Updates        recommends that the Nodal Program        connector (interface or adapter), to
                     provide an End-to-End Testing            complement the milestone tracking that is
                     Readiness update each month to the       already underway. In addition, there are
                     Special Nodal Program Committee          entry criteria established for End-to-End
                     Meeting. To reduce the subjectivity in   Testing which must be met before it can
                     status reporting the Nodal Program       start. All of these comprise our readiness
                     should report the status of End-to-End   measures for End-to-End testing.
                     requisite components (not simply %
                     complete of tasks). Milestones should
                     be developed that clearly cover the
                     entry criteria for End-to-End testing.

               15 June 2009                                          32                           Special Nodal Program Committee
 Audit Points Complete – to be Verified – 1

 ID      Short                Recommendation                         Action Plan Status               Resp
                                                                                                      Resp.       Resp
                                                                                                                  Resp.       Target
       Description                                                                                     Dir.        Mgr         Date

UTI- Release Mgmt,   The Nodal PMO in conjunction with IT      Nodal team provides reports on        R. Morgan   D. Forfia   5/8/09
10 - Change Mgmt,    should ensure that proper education is    incidents, from which IT does its                             Complete;
01A Access Mgmt,     provided to the Nodal PMs and new staff       bl                t T i i
                                                               problem management. Training                                  t be
                                                                                                                             to b
     Problem Mgmt    regarding the IT processes including      was recently provided on nodal                                verified
                     contact information for those who         release and change
                     support the IT processes.                 management. The Access Mgt
                                                               team is updating its
                                                               documentation and will provide a
                                                               concierge to train and assist with
                                                               the process. Training on Access
                                                               Mgt will be done the week of
UTI- Release Mgmt,    Since the version of the IDM project     After the first phase is complete,    R. Morgan   D. Forfia   4/20/09;
10 – Change Mgmt,    scheduled to be completed by              a plan will be built for the                                  complete;
01E Access Mgmt,     November 2009 will only support SAS       succeeding project. It is likely to                           to be
     Problem Mgmt    70 related environments and Active        be part of the 2010 PPL.                                      verified
                     Directory, a follow-on project is
                     recommended. This project should focus
                     on ensuring that the remainder of the
                     ERCOT environments will be supported
                     by IDM at Nodal go-live
UTI- Release Mgmt,   Establish an IT SWAT team dedicated to    A forecast is being built based       R. Morgan   D. Forfia   6/5/09;
10 – Change Mgmt,    the Nodal effort and focused on           on the nodal schedule, to                                     complete;
01F Access Mgmt,     developing plans to mitigate the impact   establish a plan for adding                                   to be
     Problem Mgmt    of potential Nodal workload waves on IT   contract staff to handle workload                             verified
                     process performance.                      waves.

              15 June 2009                                         33                            Special Nodal Program Committee
 Audit Points Complete to be Verified – 2

 ID      Short                      Recommendation                           Action Plan Status                Resp
                                                                                                               Resp.        Resp
                                                                                                                            Resp.       Target
       Description                                                                                              Dir.        Mgr.         Date

UTI- Nodal               The Nodal Program should continue to           This is underway, as part of         R. Morgan    D. Forfia   5/29/09;
10 – Infrastructure      perform a “deep dive” on the INF project       mapping out resource needs for                                complete;
03A Budget               specifically focusing on challenging the        ll                       d l
                                                                        all ERCOT resources - nodal                                   to b
                                                                                                                                      t be
                         work expected and the resources                and otherwise - for 2009.                                     verified
                         required to support the Nodal Program.
UTI- Nodal                A reoccurring planning exercise between       This is underway, as part of         R. Morgan    D. Forfia   5/29/09;
10 – Infrastructure      the INF project manager and the other          resource management for all                                   complete;
03B Budget               Nodal project managers should occur to         ERCOT resources - nodal and                                   to be
                         ensure that IT Operations and                  otherwise. A process will be                                  verified
                         Infrastructure support requirements are        established for monthly review.
                         more thoroughly assessed and
UTI- End-to-End          Establish a common test bed with data          Common Data Set Approach            J. Ply       A. Shepherd Complete; to
10 – Business            from common business days to allow             communicated week of 4/20.                                   be verified
06A Readiness            data validation logic to be fully exercised.   Scheduling to release first data
     Activities                                                         set version (DSV) on June 1.
                                                                        Goal is to establish a DSV with
                                                                        good data for E2E prior to the
                                                                        start of E2E testing as well.
UTI Organization         ERCOT staff should be deployed in time         Resource plans for End-to-End       J Ply
                                                                                                            J.           A.
                                                                                                                         A Shepherd Complete; to
10 – Assessment          for End-to-End testing to take advantage       testing are being identified in the                         be verified
07B                      of the training opportunity and to assist      resource planning spreadsheet,
                         with the dual operation workload.              with appropriate ERCOT staff
                                                                        handling their operations roles.

                      In addition, two audit points were verified as being complete on 5/27 – UTI10-4C and UTI10-5A

                15 June 2009                                                 34                            Special Nodal Program Committee