APX is pleased to provide you with the latest ERCOT information as well as an update on APX MarketSuite^®.

This issue includes:

·         APX MarketSuite^® for ERCOT TX Nodal

·         APX MarketSuite^® Shadow and Estimated Settlements

·         SCADA Upgrades in 2011

·         APX Announcements

Throughout 2010, APX clients have been undergoing a transition to the ERCOT Texas Nodal Market and have been participating in the market trials using the APX MarketSuite^®.   APX implemented new functionality to the APX MarketSuite^® for the ERCOT Texas Nodal Market.  Below is a list of the new functionality: 

Notification Web Listener: Implemented for ERCOT issued Notifications used for obligations, trade confirmations, market submissions, market awards, specific instructions, and other market information such as general market alerts.

Notification Monitor: Implemented for clients to view ERCOT notifications. Based on client feedback, we implemented an audible alarm to alert when ASObligations, AwardedAS, and ASDeployment notifications are received.

Notification Multiplexor: Implemented for clients to subscribe to APX to forward ERCOT messages that are also processed by the APX MarketSuite^®. The implementation of the multiplexor was driven by ERCOTs inability to send notifications to multiple web listeners for a QSE.

SCADA Integration: APX MarketSuite^® is integrated with GMS/SCADA so clients can update their COP limits in the APX MarketSuite^® and the information will be dynamically updated in SCADA to avoid inconsistent information provided to ERCOT that could result in protocol violations.  It is also integrated to provide other necessary information for monitoring and deployment needs.  SCADA supplies the APX MarketSuite^® with operational data also relevant to settlements such as SCADA Meter, Base Points, and A/S dispatches. This data can be accessed by clients in the reports section of the APX MarketSuite^®.

Meter Data Report for users to view, compare and download ERCOT settlement quality meter data and SCADA meter data at its lowest granularity by Region, Market Participant, Source, Trade Date and Location.  This report can be especially valuable for clients that want to programmatically pull the resource level meter data and load it into their system.

Wind Forecast Integration: Through the use of our ERCOT Web Listener, APX can harvest the ERCOT provided Wind Forecast and submit the COP, Three Part Offer, and the 5 minute updated HSL for Wind Generators as required by ERCOT though our integration.

APX MarketSuite^® Shadow & Estimated Settlements

Shadow and Estimated Settlements were implemented in the APX MarketSuite^®  and produce estimated DA charge types on the operating day and estimated RT charges the day after the operating day, providing clients with immediate insight into their settlement exposure long before ERCOT publishes statements.  Estimates can also be used to support internal financial reporting and accounting true-up processes.  Shadow DA and RT charge types are produced to enable market participants to verify the accuracy of the ERCOT settlement amounts and support filed settlement disputes when there are differences between the APX and ERCOT amounts.

In addition to comparing different ERCOT settlement statement versions, the APX MarketSuite^® Settlement can be used by clients to compare APX settlement calculations to ERCOT settlement calculations.  Clients can view comparisons and differences at a summary and detailed level.  Clients can also set tolerances to flag charge types that exceed the tolerance levels.  This application is useful for validating settlement amounts, identifying potential disputes.

If you are interested in learning more about this new product please contact Moises Melgoza at mmelgoza@apx.com   or (408) 517-2154.

APX has started the process of upgrading the SCADA application to a .NET version which will bring important updates for APX customers and administrators of the application.  Highlights of this upgrade are:

User Interface (UI) will have Windows like Look & Feel.  This will give the UI a modern appearance and will allow for customers to customize the appearance of the screen and provide additional features such as allowing users to create widgets and re-size certain items on the screen.

·         Provide and exceed NERC CIP compliance related to accounts and password handling.

·         Expand the RTU / DCS interface capabilities through upgrades in protocol support.

·         Improved administrative capabilities that will allow faster response to customer requests with better reporting tools.

This upgrade is currently in progress and is slated to be completed by Q3 of 2011

APX is a member of the NERC Cyber Attack Task Force.

As part of the NERC and DOE report on "High Impact, Low Frequency Risk to the North American Bulk Power System", NERC has created several Task Forces to address several severe-impact scenarios outlined in the report.  APX Power Markets has received a seat on the Cyber Attack Task Force which will focus on the "early detection of coordinated cyber attacks and the means to continue to reliably operate the bulk power system"

APX Power Markets participation in the Task Force is an important component of our continued security commitment to our customers to make sure their interests are part of the submission to NERC related to any program put in place as part of the Task Force recommendations.

2010 TRE Reliability and Security Activity

APX Power Markets Inc., completed the NERC/TRE registration process to add the GOP function type to our NCR.  Additionally, APX Power Markets completed the TRE annual self-certification for all applicable function types; all applicable standards were self-certificated as compliant.

WECC Audit - FERC Order 693

In December 2010 APX Power Markets participated in an off-site audit in accordance with FERC Order 693 and WECC compliance standards.  The WECC audit team evaluated APX Power Markets for compliance with twenty-eight (28) requirements in the 2010 NERC Compliance Monitoring and Enforcement Program ("CMEP"). The audit team assessed compliance with the NERC Reliability Standards, and applicable Regional Reliability Standards, for the period of June 18, 2007 through December 14, 2010.

Based on the information and documentation provided by APX Power Markets, the audit team found APX Power Markets to have no findings of non-compliance. The audit team identified zero (0) Possible Violations.

PJM Operator Certified

APX has received PJM Operator Certifications which is a requirement by PJM in order to provide Operations support in this control area.

Zonal System Decommissioning

Legacy Zonal APX Market Engine and Market Window systems were retired as part of the final ERCOT Texas Nodal upgrade implemented in the APX MarketSuite^®. Although the legacy systems were retired, the legacy settlement data can still be accessed via settlement website and archived data/files can be requested from your account manager.

About APX MarketSuite^®

The platform of the APX MarketSuite^® features new technology that improves access to information and can be rapidly expanded to address additional client needs and geographic markets. APX will expand the scheduling and settlement capabilities to other ISO Markets in the near future.

APX MarketSuite^® is an easy-to-use, web-based solution that supports essential scheduling and settlement business processes, reduces costs, and provides rapid market entry for market participants including power marketers, load serving entities, resource managers, and utilities.

For More Information

Contact your Account Manager Cris Gallegos (408.517.2154) or Moises Melgoza (408.517.2129) for more information.

About APX Power Markets, Inc.
APX Power Markets, Inc. provides trusted transaction and data infrastructure, strategic consulting, and expert operational services to assist wholesale power market participants reduce costs and improve performance in power scheduling, settlement, market operations, system operations support, and demand response programs. APX Power Markets, Inc. is a privately held company.

More information is available at www.apx.com  or contact us at 408.517.2100.