ERCOT continues to march towards a December 1st 2008 go-live date for Nodal implementation. ERCOT is actively implementing systems and conducting testing internally and with market participants. ERCOT’s testing methodology is to incrementally add functionality to their test systems while continuing to test and use previously tested functionalities. As the testing has already started, its complexity and requirements on market participants will continue to increase over the coming year.    

APX is actively working to support our clients’ testing and market readiness activities. APX is planning a phased implementation of our APX Nodal Platform. This will be a completely new platform using a robust architecture and enhanced user interface that we feel will greatly support the short and long-term business requirements of our clients. The functionality will be released over multiple releases throughout 2008 and is timed to meet ERCOT testing timeframes. To the extent possible APX will conduct testing on behalf of our clients, however during later stages of the testing, APX will transition testing responsibilities to our clients with APX available to provide additional support if needed.

We would like to notify you of several key upcoming ERCOT testing milestones and recommend activities so that your staff is prepared for nodal go-live.

• November to December 2007 – EDS3.5.2 (RT SCED) - ERCOT conducts Real-Time Security Constrained Economic Dispatch testing. ERCOT requires QSE to provide ICCP data points per resources and submit Current Operating Plans (COP) and 3-Part Offers (3PO) that reflect the resource’s actual operating conditions. The submittal of data by QSEs continues until market go-live to support follow-on testing. 

• January to June 2008  - EDS 3.5.3 (6-Month LMP) – ERCOT generates LMPs and Base Points for 6 months based on RT ICCP data, COPs and 3POs submitted by QSEs.

• January to July 2008 - EDS 3.6 (LFC) – ERCOT conducts Load Frequency Control testing by testing each QSE’s ability to respond to ERCOT’s resource specific Base Points and AS instructions. This test culminates in ERCOT issuing applicable instructions to all resources for a 48-hour period.

• January to July 2008 - EDS 3.7 (CRR) – ERCOT conducts mock Congestion Revenue Rights auctions. Starting with connectivity testing, mock monthly and multi-month auctions, and finally including settlements and secondary market CRR trading.

• February to October 2008 – EDS 4.8 and 4.9 (DA Market and Settlements) – ERCOT starts running test DA and RT markets based on QSE submitted data. ERCOT will incrementally add in the AS and RUC markets, trading, and RT and DA settlements. This test culminates in ERCOT successfully running the market and associated systems for a 168-hour period.
  
  

• November 2007 to market go-live
  
  
• If necessary, continue to work with APX SCADA Engineers to ensure accurate SCADA information is being sent to ERCOT.
• It is very important that the QSE’s and Resource’s SCADA systems that are downstream from APX’s SCADA system be able to receive and incorporate ERCOT’s resource specific instructions (Base Points, AS deployments, etc) into applicable generation control systems.

• November 2007 to APX Nodal Platform release date (~Q1 2008)
  
  
• APX personnel will create and submit COP and 3PO on behalf of QSEs.
• In the zonal Day-Ahead period, QSEs continue to submit accurate Resource Plans via the legacy APX Platform, and APX Operators will modify COPs to reflect Resource Plan information.
• If a Resource Plan changes during the Adjustment Period and during business hours (8AM-5PM M-F) QSEs should manually update COP information in the ERCOT EDS user interface.
• Applicable QSE personnel should review ERCOT’s EDS 3 - SCED Market Participant Handbook.

• January to March 2008
  
  
• APX SCADA Engineers will work with ERCOT to verify that APX’s SCADA system communicates necessary signals to support LFC testing. Clients are welcome to participate in calls with ERCOT during their QSE’s testing period.

• Post APX Nodal Platform release date (~Q1 2008) to October 2008
  
  
• Upon release of APX Nodal Platform, QSEs will be responsible for submitting via the APX Nodal Platform, daily COP and 3PO data to support nodal testing.
• Personnel performing the creation and submittal of COP and 3PO data should:
• Attend applicable ERCOT nodal training prior to late January 2008.
• Attend ‘APX Nodal Platform R1’ user interface training.

• April to June 2008
  
  
• QSEs are required to coordinate with Resource Operators, APX and ERCOT to test their ability to respond to ERCOT’s resource specific Base Points and AS instructions.
• Prior to performing this coordination and testing, QSEs and Resource Operators should review the EDS 3 - LFC Market Participant Handbook and attend applicable ERCOT Training.

• December 2007
  
  
• QSEs interested in participating in the CRR market should register as CRR Account Holders. Registration information is available at http://nodal.ercot.com/readiness/rq/index.html.

• February to October 2008
  
  
• CRR Account Holders should perform the following:
  
  
• Prior to this time period CRR Account Holders should have attended the applicable ERCOT Training.
• QSEs should review the EDS 3 CRR Market Participant Handbook.
• Attend ERCOT CRR workshops and weekly conference calls to test your ability to use the ERCOT CRR User Interface and upload/download files. NOTE: While APX is not planning to support functionality around the submittal of CRR bid/offer data via the APX Nodal Platform, APX will work with clients to provide applicable support.
  
• Participate in the various mock CRR auctions.    
  
  
• QSEs planning to participate in the DA or RT market to include bilateral energy and ancillary service trading should perform the following:
  
  (Note: ERCOT is expected to confirm timelines and provide a detailed task list in mid-November.)

• Prior to this time period QSEs should have already attended or be scheduled to attend applicable ERCOT training.
• Attend ‘APX Nodal Platform R1’ user training.
• On a daily basis or as required by ERCOT test conditions submit the DA and RT market trades and bids and offers via the APX Nodal Platform.
• As supported by ERCOT and the APX Nodal Platform, review settlement statements and related market data for accuracy.
• Work to define and incorporate nodal business processes into daily business processes.
• Review contractual terms of trades to determine settlement locations and buyer/seller obligations and responsibilities.
• Attend ERCOT’s Settlement Training.
  

For additional Information on each phase of testing review the ERCOT provided testing handbooks and associated presentations available at http://nodal.ercot.com/readiness/eds3/documents/index.html

If you have questions about APX’s Texas Nodal Readiness activities, please do not hesitate to contact Robert Douglas (408.517.2129) or Wendy Brown (281.489.7633).

If you are currently working to meet ERCOT’s stringent testing requirements, or trying to prepare for the testing requirements coming for REPs or power marketing firms, contact Wendy Brown (281.489.7633). 

We are managing the Nodal testing and implementation activities for APX clients, and will provide a user-ready platform for each APX client for Nodal implementation.  If your firm is expending time and energy on Nodal requirements, do yourself a favor and contact Wendy Brown (281.489.7633) for more information on how our solutions can help you successfully meet the new market requirements and keep you focused on your core business.