Business Integration Update to PRS

1

Business Integration Update to PRS


June 2011

Includes:

•
2011 Project Portfolio Update

•
Parking Deck Impact Assessment

•
2012 Project Prioritization


2

–
2011 Project Portfolio Update





p. 3
-
7

•
Project Portfolio Gantt Chart

–
Sorted by go
-
live date

•
Recent Developments


–
Parking Deck Impact Assessment




p. 8
-
10

•
Introductory Comments

•
Impact Assessment Results

•
Endorsement Consideration (vote)


–
2012 Project Prioritization





p. 11
-
20

•
Schedule

•
Introductory Comments

•
Funding
Summary

•
Details by Project Category

•
Endorsement Consideration (vote)


–
Appendix







p.
21
-
26

•
Summary Project Descriptions




Business Integration Update
–

Agenda (revised)

3

Date

Project Portfolio
–

as of 6/13/2011
–

Sorted by Go
-
Live Date

4

Date

Project Portfolio
–

as of 6/13/2011
–

Sorted by Go
-
Live Date

5

Date

Project Portfolio
–

as of 6/13/2011
–

Sorted by Go
-
Live Date

6

Date

Project Portfolio
–

as of 6/13/2011
–

Sorted by Go
-
Live Date

7

Project Portfolio
–

Recent Developments

•
TAC and Board Approved Several Additions to the PPL

–
NPRR310, NPRR350, SCR764


•
Go
-
Lives Planned for June / July

–
NPRR285
–

Settlements portion

•
Effective 6/6/2011

–
NPRR341
–

Remove AS Offers from SASM that Do Not Meet the Lead Time

•
Effective 6/22/2011

–
NPRR339
–

Modifications to Heuristic Rules

•
Effective 6/22/2011
–

Day Ahead and Real Time

•
Effective 7/20/2011
–

CRR

–
NPRR146
–

ICCP Telemetry Information Submittals

•
Effective 7/1/2011 if Board approves at June meeting

–
NPRR323
–

Correct DAM Credit Exposure Language and Enable Qualified Expiring


CRRs to Offset PTP Bid Exposure

•
Effective 7/20/2011

–
NPRR282
–

Dynamic Ramp Rates Use in SCED

•
Effective 7/22/2011

8

Parking Deck Impact Assessments
–

Phase 2 / 3
–

Comments

•
ERCOT has completed the Impact Analysis for 10 of the NPRRs in the
Phase 2 / Phase 3 portion of the Parking Deck

–
Summary of results on the next slide


•
Since the 2012 project prioritization process is also underway, ERCOT has
suggested delivery targets for these NPRRs

–
See “Delivery Target” column on the next slide

–
These dates coincide with future year funding recommendations
(slides 16
-
17)


•
CBAs

–
CBAs for these Parking Deck items are being worked in parallel with the approval
process

–
Goal: Have draft CBAs ready for 6/23 PRS meeting and final CBAs ready for 7/7 TAC


•
ERCOT will initiate market discussions on the remaining Parking Deck
items

–
These items will benefit from additional discussion before the IAs are completed

9

Parking Deck Impact Assessments
–

Phase 2 / 3
–

IA Results

Rev
Request

Description

Estimated
Cost

Estimated
Duration

Delivery
Target

NPRR181

FIP Definition Revision

$210k
-
$225k

10
-
12 weeks

2013

NPRR207

Unit
Deselection

$50k
-
$55k

9
-
11 weeks

2012

NPRR210

Wind Forecasting Change to P50, Sync w/PRR841

$45k
-
$55k

8
-
16 weeks

2013

NPRR222

Half
-
Hour Start RUC
Clawback

$15k
-
$20k

5
-
7 weeks

2012

NPRR240

Proxy Energy Offer Curve

$50k
-
$60k

12
-
14 weeks

2013

NPRR241

AIL
Calc

and Credit Reports Publish Corrections

$100k
-
$120k

5
-
10 months

2013

NPRR244

Clarification of Other Binding Documents

$10k
-
$15k

n/a

2011

NPRR256

Sync w/PRR787, Add Non
-
Compliance Language to QSE
Performance Standards

$120k
-
$135k

9
-
10 months

2013

NPRR258

Sync with PRR824 and PRR833

$55k
-
$60k

8
-
10 weeks

2011

NPRR272

Definition and Participation of Quick Start Generation Resources

$145k
-
$160k

20
-
22 weeks

2012

NPRR257

Synchronization with Nodal Operating Guide Section 9,
Monitoring Programs

TBD

TBD

TBD

NPRR260

Providing Access to MIS Secure Area to MIS Registered Users

TBD

TBD

2012

NOGRR034

Rescind Telemetry Performance Calculation Exclusions

TBD

TBD

TBD

SCR755

ERCOT.com Website Enhancements

TBD

TBD

TBD

Further Discussion with the Market Requested

Completed Impact Analyses

*

*

O&M effort
–

no project required

10

–
Suggested endorsement language:


•
PRS endorses the Impact Analysis documents for the following Parking
Deck revision requests :


–
NPRR181: FIP Definition Revision

–
NPRR207: Unit Deselection

–
NPRR210: Wind Forecasting Change to P50, Sync with PRR841

–
NPRR222: Half
-
Hour Start RUC Clawback

–
NPRR240: Proxy Energy Offer Curve

–
NPRR241: Aggregate Incremental Liability (AIL) Calculation and Credit



Reports Publish Corrections

–
NPRR244: Clarification of Other Binding Documents

–
NPRR256: Sync with PRR787, Add Non
-
Compliance Language to QSE



Performance Standards

–
NPRR258: Sync with PRR824 and PRR833

–
NPRR272: Definition and Participation of Quick Start

Generation Resources

Parking Deck Impact Assessments
–

Phase 2 / 3
–

Endorsement

11

2012 Project Prioritization
–

Schedule

•
April 2011

–
ERCOT prepares draft 2012 project list and reviews schedule with market

•
Request input from the market on new additions

•
May 2011

–
Initial review at market subcommittee meetings

•
COPS

(May 10)

•
WMS

(May 11)

•
ROS

(May 12)

•
RMS

(May 18)

•
June 2011

–
Approval/endorsement by market subcommittees

•
COPS

(June 14)

•
WMS

(June 15)

•
ROS

(June 16)

•
RMS

(June 22)

•
PRS

(June 23)

•
July 2011

–
Approval/endorsement by TAC

(July 7)

–
Available for F&A and Board review

(July 18)








COPS endorsed 3 changes in rank

12

2012 Project Prioritization
–

Introductory Comments

•
ERCOT is working diligently to limit the 2012 budget to the most
critical needs


•
$15M has been allocated for capital projects


•
Is $15M sufficient for ERCOT’s capital project needs?

–
Answer: Yes

–
Due to the recent Data Center Hardware project, 2012 is expected to
have a more labor
-
intensive project mix than usual

–
Supporting information:

•
2012
–

total project labor estimate = 108,000 hours

•
2011
–

YTD internal PPL project labor = $2.31M (~35,500 hours)

•
2010
–

total internal PPL project labor = $2.73M (~42,000 hours)

•
2009
–

total internal PPL project labor = $3.96M (~61,000 hours)


13

Project Category Definitions

•
Key Areas of Focus (Project Categories)

–
Regulatory

•
Required by Legislature, PUCT, NERC, FERC or legal ruling

–
Business Strategy

•
Market driven enhancements and efficiencies

•
ERCOT strategic initiatives

–
Efficiencies & Enhancements

•
Internally driven operational improvements

•
Enhanced customer service

–
Technical Foundation

•
Required maintenance and upgrades

•
Technical evolution and performance

•
Systemic growth

14

2012 Project Prioritization
-

Funding Summary

Project Category

Target Funding

Projects Started in
Previous Years

New 2012
Projects

Regulatory

$ 1,600,000

2

1

Business Strategy

$ 5,950,000

5

15

Efficiencies &
Enhancements

$ 2,050,000

2

9

Technical Foundation

$ 6,500,000

4

7

Total

$ 16,100,000

13

32

ERCOT will manage within the projected $15M project funding allocation.


As active projects move through the project lifecycle and new projects are
considered for initiation, they will be reassessed for criticality, cost/benefit
and resource availability against other projects in the portfolio.


Inclusion on the preliminary 2012 PPL does not guarantee funding!

15

2012 Project Prioritization
–

Regulatory

Project Category
2012
Rank
Project
2012 Budget
2013 Budget
2014 Budget
Regulatory
1
REC Enhancements
$500k-$1M
-


-


Regulatory
2
CFTC Compliance
$100k-$250k
-


-


Regulatory
3
Compliance Software Tool
$500k-$1M
-


-


*

*

*

Projected carryover project from 2011

See Appendix for brief project descriptions

16

2012 Project Prioritization
–

Business Strategy
(page 1)

*

*

Projected carryover project from 2011

*

*

*

Project Category
2012
Rank
Project
2012 Budget
2013 Budget
2014 Budget
Business Strategy
1
TXSET4.0
$250k-$500k
-


-


Business Strategy
2
SCR760
$1M-$2M
$100k-$250k
-


Business Strategy
3
Cyber Security Project #1
$50k-$100k
-


-


Business Strategy
4
Cyber Security Project #2, Phase 1
<$50k
-


-


Business Strategy
5
TSAT Wind Model
$100k-$250k
-


-


Business Strategy
6
PRR830/NPRR269 - Reactive Power Capability
$250k-$500k
-


-


Business Strategy
7
Demand Response (Look Ahead SCED)
$500k-$1M
$3M-$5M
-


Business Strategy
8
Facilities Project
$1M-$2M
-


-


Business Strategy
9
Cyber Security Project #3
$500k-$1M
-


-


Business Strategy
10
Cyber Security Project #4
$500k-$1M
-


-


Business Strategy
11
NPRR347 - Single Daily Invoice
$50k-$100k
-


-


Business Strategy
12
NPRR260 - MIS Secure Access
$100k-$250k
-


-


Business Strategy
13
MarkeTrak Upgrade/Enhancements
$500k-$1M
-


-


Business Strategy
14
TML Transition to MIS
$100k-$250k
-


-


Business Strategy
15
Planning Site Transition to MIS
$100k-$250k
-


-


Business Strategy
16
NPRR222 - Half Hour Start Clawback
<$50k
-


-


Business Strategy
17
Cyber Security Project #2, Phase 2
$100k-$250k
-


-


*





Ranking changes by COPS





See Appendix for brief project descriptions

17

2012 Project Prioritization
–

Business Strategy
(page 2)

Project Category
2012
Rank
Project
2012 Budget
2013 Budget
2014 Budget
Business Strategy
18
NPRR326 - Adjust RT SPP Calc.
<$50k
-


-


Business Strategy
19
NPRR272 - Quick Start Resources
$100k-$250k
-


-


Business Strategy
20
NPRR207 - Unit Deselection
$50k-$100k
-


-


Business Strategy
21
Cert. Data Product Subscription Stand.
-


$100k-$250k
-


Business Strategy
22
EPS Metering DB Redesign
-


$250k-$500k
-


Business Strategy
23
NPRR181: FIP Definition Revision
-


$100k-$250k
-


Business Strategy
24
NPRR210: Wind Forecasting Change to P50, Sync with PRR841
-


<$50k
-


Business Strategy
25
NPRR241: AIL Calc & Credit Reports Publish Corrections
-


$100k-$250k
-


Business Strategy
26
NPRR256: Sync with PRR787, Add Non-Compliance Language to QSE Performance Standards
-


$100k-$250k
-


Business Strategy
27
NPRR240 - Proxy Energy Offer Curve
-


<$50k
-


Business Strategy
28
Incremental Update Capability - Phase 2
-


$1M-$2M
$1M-$2M
Business Strategy
29
MP Online Data Entry - Ph 2
-


$1M-$2M
-


Business Strategy
30
MP Online Data Entry - Ph 3
-


-


$1M-$2M
Business Strategy
31
NPRR257: Sync with NOG Section 9
-


-


-


Business Strategy
32
SCR755: Access to MIS Secure Area
-


-


-


Business Strategy
33
NOGRR034: Rescind Telemetry Perf Calc Exclusions
-


-


-


See Appendix for brief project descriptions

18

2012 Project Prioritization
–

Efficiencies and Enhancements

Project Category
2012
Rank
Project
2012 Budget
2013 Budget
2014 Budget
Efficiencies/Enhancements
1
Incremental Update Capability - Phase 1
$100k-$250k
-


-


Efficiencies/Enhancements
2
MP Online Data Entry - Ph 1
$500k-$1M
-


-


Efficiencies/Enhancements
3
CMS and MIR replacement
$250k-$500k
$500k-$1M
Efficiencies/Enhancements
4
ERCOT Website Enhancements - 2012
$250k-$500k
-


-


Efficiencies/Enhancements
5
Macomber Map NERC SA/Compliance Enhancements
$250k-$500k
-


-


Efficiencies/Enhancements
6
IGRID Implementation
<$50k
-


-


Efficiencies/Enhancements
7
Contingency Functionality Enhmts.
<$50k
-


-


Efficiencies/Enhancements
8
SMTNET Improvements
$50k-$100k
-


-


Efficiencies/Enhancements
9
MP Communications Tool
$50k-$100k
-


-


Efficiencies/Enhancements
10
Smartphone Interface ("MyGrid")
$100k-$250k
-


-


Efficiencies/Enhancements
11
OA Grid Health Operator View
<$50k
-


-


Efficiencies/Enhancements
12
Secure File Transfer
-


$50k-$100k
-


Efficiencies/Enhancements
13
EMIL and View by Protocol Enh.
-


$100k-$250k
-


Efficiencies/Enhancements
14
Replace N2N System
-


$50k-$100k
-


Efficiencies/Enhancements
15
Contract Mgmt Software
-


$100k-$250k
-


Efficiencies/Enhancements
16
Voice Analytics
-


$100k-$250k
-


Efficiencies/Enhancements
17
OTS Enhancements
-


$100k-$250k
-


Efficiencies/Enhancements
18
ERCOT Website Enhancements - 2013
-


$100k-$250k
-


Efficiencies/Enhancements
19
ERCOT Website Enhancements - 2014
-


-


$100k-$250k
*

*

Projected carryover project from 2011

*

See Appendix for brief project descriptions

19

2012 Project Prioritization
–

Technical Foundation

Project Category
2012
Rank
Project
2012 Budget
2013 Budget
2014 Budget
Technical Foundation
1
Data Center Migration
$100k-$250k
-


-


Technical Foundation
2
Minor Cap - Critical - 2012
$500k-$1M
-


-


Technical Foundation
3
Information Lifecycle Mgmt Phase 2
$500k-$1M
-


-


Technical Foundation
4
Settlement Upgrade
$1M-$2M
$1M-$2M
-


Technical Foundation
5
Oracle 11g Upgrade
$1M-$2M
-


-


Technical Foundation
6
EMS Upgrade
$1M-$2M
$3M-$5M
$1M-$2M
Technical Foundation
7
Enterprise DW Platform Transition
$500k-$1M
$3M-$5M
-


Technical Foundation
8
Job Scheduling Upgrade v8
$100k-$250k
-


-


Technical Foundation
9
Siebel Upgrade
$250k-$500k
-


-


Technical Foundation
10
NMMS Upgrade
$100k-$250k
-


-


Technical Foundation
11
DC Growth & Asset Replacement - 2012
$500k-$1M
$1M-$2M
-


Technical Foundation
12
CRR Upgrade
-


$100k-$250k
-


Technical Foundation
13
Business Intelligence Software Upgrade
-


$500k-$1M
-


Technical Foundation
14
Capacity growth - storage/comp.
-


$250k-$500k
-


Technical Foundation
15
Job Scheduling Upgrade v9
-


$250k-$500k
-


Technical Foundation
16
User Authentication Upgrade
-


$50k-$100k
-


Technical Foundation
17
Replace Sun DSEE
-


$500k-$1M
$500k-$1M
Technical Foundation
18
Replace Sun IDM
-


$500k-$1M
$500k-$1M
Technical Foundation
19
Minor Cap - Critical - 2013
-


$1M-$2M
-


Technical Foundation
20
Minor Cap - Critical - 2014
-


-


$1M-$2M
Technical Foundation
22
DC Growth & Asset Replacement - 2013
-


$1M-$2M
-


Technical Foundation
23
DC Growth & Asset Replacement - 2014
-


-


$3M-$5M
*

*

Projected carryover project from 2011

*

*

*

See Appendix for brief project descriptions

20

2012 Project Prioritization
–

Motion

Suggested Motion



Motion to approve/endorse ERCOT’s initial project rank and
preliminary funding by project category

•
<as amended by PRS>

21

Appendix


22

Project Descriptions
–

Regulatory

Rank

Project Name

Project Description

1

REC Enhancements

Enhance the REC tool to comply with PUCT rules and
incorporate additional functionality

2

CFTC Compliance

Funds for use in a project to support ERCOT’s application
for a CFTC exemption

3

Compliance Software Tool

Automate the tracking of compliance obligations

23

Project Descriptions
–

Business Strategy

Rank

Project Name

Project Description

1

TX SET 4.0

Continuation of TX SET 4.0 project

2

SCR760

SCR760 Recommended Changes Needed for Information
Model Manager and Topology Processor for Planning Models

3

Cyber Security Project #1

Enhancement to system administrator infrastructure

4

Cyber Security Project #2, Phase 1

Enhancement to virus protection

5

TSAT Wind Model

Implement wind models in TSAT application. Enhance
reliability by delivering closer to real time stability information.

6

PRR830/NPRR269
–

Reactive
Power Capability

Potential system changes needed due to final resolution
between ERCOT and market stakeholders

7

Demand Response / Look
-
Ahead
SCED

Initial planning phase of the next major evolutionary phase of
the Nodal systems (Nodal 2.0)

8

Facilities Project

Funding reserved for relocation of remaining functions from
the Met Center (if necessary)

9

Cyber Security Project #3

Enhancement to remote access capability

10

Cyber Security Project #4

Enhancement to malware protection

24

Project Descriptions
–

Business Strategy

Rank

Project Name

Project Description

11

NPRR347
–

Single Daily Invoice

NPRR347
-

Single Daily Invoice

12

NPRR260
–

MIS Secure Access

NPRR260
-

MIS Secure Access

13

MarkeTrak

Upgrade/Enhancements

Enhance underlying
MarkeTraksoftware

and deploy
enhancements agreed upon by ERCOT and market
stakeholders

14

TML Transition to MIS

Migrate remaining functions that support the Retail market
from TML to MIS

15

Planning Site Transition to MIS

Migrate Planning functions/data that currently reside on the
POI to MIS

16

NPRR222
–
Half Hour Start
Clawback

NPRR222
-

Half Hour Start
Clawback

17

Cyber Security Project #2, Phase 2

Extend capabilities developed in the phase 1

18

NPRR326
–

Adjust RT SPP Calc.

NPRR326
-
Adjut
RT SPP Calc.

19

NPRR272
–

Quick Start Resources

NPRR272
-

Quick Start Resources

20

NPRR207
–

Unit
Deselection

NPRR207
-

Unit
Deselection

25

Project Descriptions
–

Efficiencies / Enhancements

Rank

Project Name

Project Description

1

Incremental Update Capability
–


Phase 1

Provide incremental update capability to all production systems for all
model related data

2

MP Online Data Entry
–

Phase 1

Allow Market Participant and Resource registration through an electronic
user interface to submit and view MP and Resource registration
information

3

CMS and MIR Replacement

Replace applications used to deploy web content to enhance scalability
and reliability

4

ERCOT Website Enhancements 2012

Continuous improvement of www.ercot.com and public market
communications

5

Macomber

Map NERC SA/Compliance
Enhancements

Enhance the
Macomber

Map application to further address control room
situational awareness

6

IGRID Implementation

Improve operator situational awareness by bringing the Market, Outage
Scheduler and EMS into a set of operator dashboards

7

Contingency Functionality Enhancements

Enhance NMMS capabilities to allow business owners to submit, via
NOMCR, contingency group configurations with a higher level of
specificity

8

SMTNET Improvements

SMTNET time point improvements to troubleshoot time points

9

MP Communications Tool

Create a tool to be placed in market participant control rooms, to ensure
that they are receiving continual high
-
level status information

10

Smartphone Interface (“
MyGrid
”)

Create a smart
-
device (e.g., Android, Apple
iOS
, Blackberry) application
showing a high
-
level view of system status

11

OA Grid Health Operator View

Give operators a view into overall grid health that incorporates a variety
of operational parameters into a single graphical dashboard interface

26

Project Descriptions
–

Technical Foundation

Rank

Project Name

Project Description

1

Data Center Migration

Completion of Data
Center Hardware project

2

Minor Cap
–

Critical
–

2012

Critical Minor Cap items for 2012

3

Information Lifecycle Management
Phase 2

Continuation of project to implement a strategy for efficient
data storage utilization while continuing to meet Protocol data
retention requirements

4

Settlement Upgrade

Continuation of project to rewrite the modules of the
settlement system so they run more efficiently and are easier
to maintain

5

Oracle 11g Upgrade

Upgrade database software to the latest version

6

EMS Upgrade

Upgrade EMS software to the latest version

7

Enterprise Data Warehouse Platform
Transition

Evaluate the platform that is the core foundation of market
data transparency and archival requirements to determine the
long
-
term approach to increasing overall reliability and
maximize capacity utilization

8

Job Scheduling Upgrade v8

Upgrade batch job software to a more current version

9

Siebel Upgrade

Upgrade software to the latest version

10

NMMS Upgrade

Upgrade NMMS software to the latest version

11

Data Center Growth & Asset
Replacement

Funding for continued demand for growth of computing
environment (storage, servers, etc.)