Nodal EducationInitial Staff Concepts

11/30/05

Agenda

• Integrated Approach• Roadmap and Processes• Curriculum Development• ERCOT Education Advisory Council• MP Content Advisors• Education Requirements• Timeline Scenario• TPTF Input• Next Steps

ERCOT Market Education

Education Mission Facilitate knowledge transfer of Market Concepts and tasks for ERCOT and Market Participant to support successful transition to the Nodal Market.

MARKET CONCEPTS

TASKS

ERCOT Market Education

Market EducationAn Integrated Approach

USER SERVICE NEEDS

RE

QU

IRE

ME

NT

S/

DE

SIG

N

MARKET AND SYSTEM

OPERATIONSUSER

TOOLS

AND

DATA

OBSERVE MP

PERFORMANCE

Proposed Development, Delivery and Reporting

Content Library (LMS)

InstructionalFace to Face

InstructionalTrain the Trainer

InstructionalWeb based

Web basedSelf Study

Delivery Methods

Learning Success

LMS

FIrm

Market Segment

Curriculum and Course abstracts

(LMS)

CD

CD

CD

CD

Content Development Tracking Readiness

Proposed Curriculum Development

A = Approval

R = Responsible

C = Contribute

Curriculum Development

R/A

C

C

R/A

Transition Plan Task

Force

Market Participant

Content Advisors

ERCOT Subject Matter

Experts

ERCOT Content Owners

Education Advisory Council

C

ERCOT Education

Team

R

Proposed Education Advisory Council

• Responsibilities

– Cross functional coordination– Review Testing/Readiness criteria– Course timeline/sequencing– Review Course curriculums and content

• ERCOT Members (6)– Chair – Market Education

– Wholesale Client Relations, Retail Client Relations, Market Operations, System Operations, Human Relations

Market Participant Content Advisors

• MP SMEs provide course content review and recommendations to ERCOT

• Voluntary, yet consistent, participation

• Representation - Market function by Segment (including large and small entities)

• Adhoc Conference calls - face to face meetings as needed

Market Participant Content AdvisorsSample Member Matrix

Market Function

Market Segment

Settlements Scheduling/Dispatch

Reports/Extracts

Market Operations

Congestion Management

Independent Retail Electric Providers

Independent Power Marketers

Independent Generators

Investor Owned Utilities

Municipals

Cooperatives

Consumer

Representation will include large and small entities.

ERCOT Education Strategy

• Change existing attitude

• Early involvement

• Encourages business process analysis

• End-user focus

• Contributes to Market success

EDUCATE EARLY

Education Requirements (per Nodal Transition Plan)

• One of four tracks for Market Readiness (Page 5)

• Conduct training for Market Participants and ERCOT (Page 7)

• Develop basic training information for Interested Parties (Page 7)

• After Protocol approval (Page 8):– How the nodal market will function

Education Requirements

• After nodal system specifications (Page 8):– Develop training program for both Market and

ERCOT roles• Synchronize with System Testing and Nodal market

Implementation• Leverage current delivery systems (WebEx)• Mandatory, highly recommended, recommended• Repeatable

• Running inventory of training progress and aggregate by MP (Page 8)– Learning Management System

• ERCOT may require MPs to complete certain training modules to participate (Page 8)

• TPTF will review course curriculums for completeness and applicability (Page 8)

ERCOT System Operations:

Transmission & Generation Planning (OPS 202)

The Transmission & Generation Planning Seminar (Operations 202) is ERCOT’s primary overview of transmission & generation planning processes and issues for the ERCOT Region. Topics for the seminar will focus on the purposes of planning processes, including planning criteria and reliability in transmission planning. Major project stakeholder input, official communications, transmission project review and proposed new and additional generation are also addressed as major considerations in transmission and generation planning.

Topics:

Transmission planning overview Purposes Understanding Networks Understanding Reliability Planning Criteria Regulations and Rules Open Process:

o Regional Planning Groups o Transmission Owners o Stakeholders o PUCT Staff

Planning Responsibilities Planning Process

o Posting and Communications o Input from Stakeholders o New and Additional Generation o Transmission Projects for Review

Projection of Operating Conditions

Intended Audience:

All attendees involved in aspects of transmission and generation system operations will benefit from attending this class. The target audience for the Transmission & Generation Planning Seminar (Operations 202) class are employees of Qualified Scheduling Entities (QSE), Transmission and Distribution Service Companies (TDSP), Power Generation Companies (PGC) and Power Marketers. Prerequisite Knowledge: No specific prerequisites. However, approval by employees’ management regarding need for this training is recommended. Offering: Transmission and Generation Planning (Operations 202) is offered as a one-day training session in a classroom setting. Materials for the class can be accessed through the following:

Sample Module Abstract

Proposed Education Development Roadmap (Pilot 3 Courses)

AnalyzeNeeds

Design Development Implementation Evaluation

Del

iver

able

s

• Business Goals• Audience Analysis• Learning Objectives

• Design Document • Training Materials• Instructor Guides• Participant Guides• Assessment Tools

• Completed Courses• Completed Evaluations

• Feedback/Input

ER

CO

T S

pec

ific

Ob

ject

ives

• Define a process that identifies and prioritizes training needs

• Select three courses to test and validate the process

• Assemble the ERCOT Advisory Council

• Establish goals with market participants

• Develop timeline

• Begin to define ERCOT curriculums

• Decide on the most effective methods to deliver courses to market participants

• Identify approach for evaluating training

• Develop a common look-and-feel of training materials

• Create course materials• Plan and communicate

schedules for pilot sessions

• Begin development of templates/forms for future courses

• Validate process through Pilot Test

• Develop understanding for administrative needs and processes

• Deliver training and collect feedback

• Begin gathering of evaluation data (Levels 1 thru 3)

• Validate evaluation processes

• Evaluate pilot courses• Refine templates/forms to

support future development

• Investigate additional delivery methods and LMS requirements

• Gather additional evaluation data (non-participant)

2 weeks 2 weeks 2 months X weeks 1 week

Nodal Timeline

1/1/2006 1/1/2009

4/1/2006 7/1/2006 10/1/2006 1/1/2007 4/1/2007 7/1/2007 10/1/2007 1/1/2008 4/1/2008 7/1/2008 10/1/2008

5/1/2008Market Trials & Initial

Readiness Assessment1/1/2008System Testing

7/1/2007Complete Content

Development

1/1/2006Begin Content Development

12/1/2008Final Readiness

Assessment

Example Timeline (Network Model Management System)

DRAFT

1/1/2006 1/1/2009

4/1/2006 7/1/2006 10/1/2006 1/1/2007 4/1/2007 7/1/2007 10/1/2007 1/1/2008 4/1/2008 7/1/2008 10/1/2008

3/31/2006Protocol Approval

– Nodal course

1/1/2007Network Model Testing begins

7/31/2007Network Model Testing Ends

9/1/2006Telemetry/Network

Training

1/1/2009Nodal Market1/1/2006

Education Department

Seeking Input Regarding

• Market Participant Content Advisor matrix

• “How the Nodal Market will function”?– LMP 101 vs. ERCOT Nodal– Outsource LMP 101 Q1 2006

• Recommend 3 Nodal Courses to pilot during Q2 2006– How ERCOT’s Nodal Market Will Function– Market Timeline– Network Operations Model Change Requests

(NOMCR)– Current Operating Plan– Others

TPTF Future Input

• Curriculum review• Readiness criteria

– Minimum requirements– Testing– Reporting

• Market Participants “test for knowledge” rather than take required courses?

• Ongoing readiness criteria for existing and new MPs

Next Steps

• Confirm approach

– Establish EAC

– Establish MPCA

– Determine interim solution for LMP 101

– Begin “Analyzing Needs” for 3 Nodal Pilot courses

Pamela Dautel

512-248-3955

pdautel@ercot.com

QUESTIONS?

NODALEducation

Richard Gruber

512-248-3986

rgruber@ercot.com