Texas Regional Entity Report

1

TEXAS REGIONAL ENTITY

AN INDEPENDENT DIVISION OF ERCOT

Texas Regional Entity Report

December 2007

2



Performance Highlights

• ERCOT’s Control Performance Standard (NERC CPS1) score for October – 118.38

• Initial scores for October indicate 34 non-wind-only QSEs passed and 1 non-wind-only QSE failed the PRR 525 measure

3



Texas RE Monthly Summary

• For October………. Protocol & Operating Guides violations

• 1 new alleged NERC Standards violations

• 17 new alleged – all resulting from entity self-certifications

0 New events reported• 2 Compliance Reviews in progress

Final on-site Compliance Audit completed for 2007 2 Registration appeals denied by NERC Board of

Trustees Compliance Committee 1 Appeal remanded to the Texas RE for resolution 1 Pending registration appeal

4



Texas RE Developments

• October 18th – FERC conditionally accepted the proposed 2008 NERC and Regional Entity Budgets and Business Plans Allows Regional Entities to collect their budgets as

provided in their income statements December 14, 2007 – Compliance filing required to

clarify Texas RE’s non-statutory cost for 2008 April 1, 2008 – File 2007 budget true-up comparing

2007 proposed budget to actual expenditures

• October 23rd – NERC Board of Trustees approved the amended and restated Texas RE/NERC Delegation Agreement October 30th – Regional Delegation Agreements filed

with FERC

5



Texas RE Fall Workshop Report

• November 2nd – Austin Met Center• Updated participants on the 2007

Compliance Monitoring & Enforcement Program

• Provided a “sneak peek” at the 2008 Compliance Program

• Over 100 attendees + additional participants on WebEx

• Speakers included Texas RE and NERC Staff

6



Texas Regional Entity

Report Details

7



NERC CPS1 Performance

• ERCOT’s CPS1 Performance October Performance

• Monthly comparison 2007: 118.38 2006: 137.26

• 12 month rolling average comparison November 2006 October 2007: 129.89 November 2005 October 2006: 142.68

• PRR 525 Performance Scores for October indicate 34 non-wind-only QSEs

passed and 1 non-wind-only QSE failed the measure Scores posted on the ERCOT Compliance Website

• SCE Performance Scores

8



ERCOT CPS1 Performance Comparison

100

110

120

130

140

150

No

v

De

c

Ja

n

Fe

b

Ma

r

Ap

r

Ma

y

Ju

n

Ju

l

Au

g

Se

p

Oc

t

CP

S1

Tre

nd

100

110

120

130

140

150

Nov'06-Oct'07 Nov'05-Oct'06 Nov'04-Oct'05 Nov'03-Oct'04

Start of SCE Performance MonitoringJanuary '06

9



ERCOT CPS1 Year-to-Year Comparison

0

20

40

60

80

100

120

140

160

180

0

20

40

60

80

100

120

140

160

180

10



ERCOT’s CPS1 Monthly Performance

100

110

120

130

140

150

160

170

Au

g-0

1

Oc

t-01

De

c-0

1

Fe

b-0

2

Ap

r-02

Ju

n-0

2

Au

g-0

2

Oc

t-02

De

c-0

2

Fe

b-0

3

Ap

r-03

Ju

n-0

3

Au

g-0

3

Oc

t-03

De

c-0

3

Fe

b-0

4

Ap

r-04

Ju

n-0

4

Au

g-0

4

Oc

t-04

De

c-0

4

Fe

b-0

5

Ap

r-05

Ju

n-0

5

Au

g-0

5

Oc

t-05

De

c-0

5

Fe

b-0

6

Ap

r-06

Ju

n-0

6

Au

g-0

6

Oc

t-06

De

c-0

6

Fe

b-0

7

Ap

r-07

Ju

n-0

7

Au

g-0

7

Oc

t-07

CP

S1

Av

era

ge

100

110

120

130

140

150

160

170

Monthly Avg 12 Mo Rolling Avg

11



ERCOT CPS1 by Interval

0

20

40

60

80

100

120

140

160

180

CP

S1

Av

g %

Oct'07 Shaded Oct '06

2300 - 2330

0015

0815

0600 - 0630

2200 - 2230

12



QSE PRR 525 10-Minute Interval Scoring

17 1820

1820

18 18 18 1719 20 19 19

17 18

13

19

2426 27

30 30

35

32 32 31 3234 34

32 32 32 32 33 34 34 34 34

13 12 9

10

9 1210 10 12

11 10 11 1113 12

16

9

4

55

3 3

1

1 1 2 1

1 2

13 2 3 1

1

1 11

11

1

1 11

2 2 2 2 2 3 44 4

44

6 6

6

6 7 7 7

77

7

77

88 8 8 8

8

02468

101214161820222426283032343638404244

Sep '04

Oct '04

Nov '04

Dec '04

Jan '05

Feb '05

Mar '05

Apr '05

May '05

Jun '05

Jul '05

Aug '05

Sept '05

Oct '05

Nov '05

Dec '05

Jan '06

Feb '06

Mar '06

Apr '06

May '06

Jun '06

Jul '06

Aug '06

Sep '06

Oct '06

Nov '06

Dec '06

Jan '07

Feb '07

Mar '07

Apr '07

May '07

Jun '07

Jul '07

Aug '07

Sep '07

Oct '07

Nu

mb

er

of

QS

Es

Passing QSEs Failing QSEs Failing Wind

13



October 2007 – SCPS2 Scores

0

10

20

30

40

50

60

70

80

90

100

Pe

rce

nt

35 Non-Wind QSE's 8 Wind QSE's

14



October 2007 Resource Plan Performance Metrics

DK BT DE IP AP AO HA BY BC JA AY AM AR BR HJ DF BP CI AE AD BJ BH CJ JD CFResource Status 100 - 100 99 100 100 98 99 100 100 95 99 100 99 - 100 99 100 - 100 100 - 100 99 100LSL as % of HSL 95 - 100 99 100 95 95 99 100 100 100 100 99 98 - 99 99 96 - 99 98 - 100 100 98Day Ahead Zonal Schedule 99 95 100 100 100 99 100 100 100 100 88 99 100 98 100 100 100 84 - 100 98 100 100 100 96Adjustment Period Zonal Schedule 96 91 99 99 96 96 97 97 99 97 98 99 97 96 94 97 99 91 - 100 98 96 100 99 94Down Bid & Obligation 94 94 87 100 95 94 97 98 100 100 98 95 99 98 92 92 98 95 - 98 95 95 98 89 100Total Up Ancillary Services - - 99 - 100 97 97 99 96 100 98 97 99 96 - 100 - - 100 - - - 100 96 98

ET DA GR GS BF BE DP EU JC BG CX FK HW IN IZ JB BX CC CD FS AC CQ IV IO FYResource Status 88 99 - - - - 100 100 - 99 97 99 100 100 100 - 99 100 97 100 100 100 - 100 -LSL as % of HSL 100 100 - - - - - 100 - 99 100 100 98 85 94 - 100 99 97 100 100 93 - 100 -Day Ahead Zonal Schedule 100 93 99 95 100 100 - 100 97 100 100 98 88 94 100 100 100 95 98 100 100 97 98 100 -Adjustment Period Zonal Schedule 100 95 99 93 99 99 - 100 98 99 98 99 94 96 100 97 99 97 96 97 87 99 99 95 -Down Bid & Obligation 100 94 100 99 99 98 - 93 100 100 97 99 97 99 99 100 98 96 96 - 96 99 95 97 -Total Up Ancillary Services 100 92 - - - - 100 100 - 100 99 99 97 91 - - 100 98 99 - - 92 - - 92

4 Consecutive Failing Scores 3 Consecutive Failing Scores

2 Consecutive Failing Scores 1 Failing Score

PARTYNAME

PARTYNAME

ID

ID

15



Organization Registration Status

• Of 228 functions registered in the ERCOT Region, 9 entities have officially appealed their registration 4 appeals resolved by the Texas RE 3 appeals heard by NERC Board of Trustees

Compliance Committee (BOT CC)• 1 entity appealed their registration as a Transmission

Owner – appeal denied• 1 entity appealed their registration as a Transmission

Owner/Planner – appeal denied• 1 entity appealed their registration as a Generator

Operator – appeal remanded to Texas RE for continued discussion and resolution with appealing entity

2 appeals pending and may go before the BOT CC for resolution• 1 entity appealing their registration as a Generator

Operator• 1 entity appealing their registration as a Generator Owner

16



Registration Activities

• Purchasing-Selling Entity (PSE) Registration Initially, registration notices sent to 33 entities Registration criteria used

• Entity operates as a Qualified Scheduling Entity (QSE) in the ERCOT Market

• Entity shown on NERC TSIN (Transmission Service Information Network) List

• Entity schedules transactions across a HVDC tie

• ERCOT PSE registration being removed

17



NERC Functional Entity Types

DP – Distribution Provider GO – Generator Owner GOP – Generator

Operator TO – Transmission Owner TP – Transmission

Planner

RC – Reliability Coordinator

BA – Balancing Authority TOP – Transmission

Operator PA – Planning Authority TSP – Transmission

Service Provider RP – Resource Planner PSE – Purchasing-Selling

Entity

18



Compliance Process Flowcharts

• NERC Compliance Monitoring and Enforcement Program – Reliability Standards Link to NERC Reliability Flowcharts

• ERCOT Compliance Process – ERCOT Protocols and Operating Guides Link to Protocols & Guides Flowcharts

19



2007 Compliance Audits

6

1

5

2

0

1

2

3

4

5

6

7

DP GOP RC BA TOP TO

Scheduled On-Site Visit Completed Report Issued

20



2008 Audit Schedule

• The 2008 Texas RE Audit Schedule is available here.

21



Compliance Reviews of Events by Month

3

5

7

5

32 2

12

3

2

1

1 3

1

1

21

1

1

12

1

0

1

2

3

4

5

6

7

8

9

10

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Reviewed Ops Only Report Investigation

22



Violations of ERCOT Protocols

34

8

3 34 4

12

41

10

1

2

3

4

5

6

7

8

9

10


Confirmed - Mitigated Confirmed - Mitigation in Progress Alleged

1

00

7

9

33

8

4

3

23



Violations of NERC Standards Reported by Month

2 2

17

1 1

5

0

2

4

6

8

10

12

14

16

18

20


Alleged Confirmed - Mitigation in Progress Confirmed - Mitigated

0 0 0 0

2

6

1 2

17

0

24



NERC Standards Self-Certification

• NERC Registered Entities NOT audited in 2007 required to self-certify to the Actively Monitored Reliability Standards applicable to their Registration(s) 101 GOs 41 GOPs 23 TOs 165 Total Registered Functions

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• Self-Certifications were due October 1st 95% overall response 18 Entities required second notice 8 responses outstanding

• 3 requested extensions which were granted• 5 Entities will receive third notice

• Utilizing NERC escalation process for non-submittal of requested data

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• To date, 19 alleged violations identified (September & October) 6 FAC-008 – lack documented process

• 2 GOs

4 FAC-009 – lack documented process• 2 GOs

4 CIP-001 – lack documented process• 1 GOP

3 IRO-004 – lack documented process• 2 GOs; 1 GOP

2 PRC-005 – relay maintenance delinquent• 1 TO; 1 GO

27



NERC Standards Self-Certification Violation Details

Std Qty Req'mt VSL VRF Time Horizon Impact Category

PRC-005 2 R2 Moderate Lower LT Plan Minimal TechFAC-008 2 R1 Severe Lower LT Plan Minimal AdminFAC-008 2 R2 Severe Lower OP Plan Minimal AdminFAC-008 2 R3 Severe Lower OP Plan Minimal AdminFAC-009 2 R1 Severe Medium LT Plan Minimal AdminFAC-009 2 R2 Severe Medium LT Plan Minimal AdminIRO-004 3 R4 Not Spec High OP Plan Minimal AdminCIP-001 1 R1 Lower Medium LT Plan Low AdminCIP-001 1 R2 Lower Medium LT Plan Low AdminCIP-001 1 R3 High Medium LT Plan Low AdminCIP-001 1 R4 Lower Medium LT Plan Low AdminTotal 19

Violation Risk Factors

0 5 10 15

Admin

Training

Tech

High

Medium

Low er

Violation Severity Level

0 5 10 15

Admin

Training

Tech

Severe

High

M oderate

Lower

Not Spec

28



NERC Standards Self-Reported ViolationsPre-June 18th

Mitigation Plan Status

0

5

10

15

20

25

30

35

40

45

50P

RC

-01

8-1

CIP

-00

1-1

FA

C-0

08

-1

PR

C-0

01

-1

FA

C-0

09

-1

VA

R-0

02

-1

PR

C-0

05

-1

TO

P-0

02

-2

TO

P-0

01

-1

TO

P-0

03

-0

PR

C-0

04

-1

IRO

-00

4-1

CO

M-0

02

-2

FA

C-0

02

-0

BA

L-0

05

-0

IRO

-00

1-1

MO

D-0

10

-0

MO

D-0

12

-0

TO

P-0

06

-1

FA

C-0

01

-0

TP

L-0

03

-0

TP

L-0

04

-0

Nu

mb

er

of

Vio

lati

on

s

Mitigation Plans Completed Mitigation Complete This Month Mitigation Plans In Progress

29



Risk Factors for Self-Reported NERC Standards Violations – Pre-June 18th

High, 36, 19%

Medium, 58, 30%

Lower, 100, 51%

Risk Factors are being assigned to each NERC Standard as part of the Standard Development Process

30



NERC Standards Self-Reported Violation Categorization – Pre-June 18th

23 55 53

10 5 1

31 43

0 20 40 60 80 100 120 140

Admin

Training

Tech

High

Medium

Lower

Violation Risk

Factors

Texas Regional Entity Report

Documents

Transcript of Texas Regional Entity Report