Texas Regional Entity Report
Larry GrimmApril 15, 2008
TRE Board of Directors April 15, 2008
Page 2 of 32
Texas RE Monthly Summary●
For March……….Protocol & Operating Guides violations
•
No new violations
NERC Standards violations•
No new alleged violations
Reportable events•
7 new events reported•
5 past events closed
Complaints•
1 complaint initiated
Audits•
3 entities audited•
4 entities issued audit reports
Mitigation Plans in progress for NERC Standards•
1 resulting from self-reporting violations•
6 resulting from self-certification violations
Settlements•
4 settlements in progress
TRE Board of Directors April 15, 2008
Page 3 of 32
Performance Highlights●
ERCOT’s Control Performance Standard (NERC CPS1) score for March = 112.08
Performance Disturbance Control Working Group continues to perform some high level analysis of control performance during periods with low scores
●
Initial scores for March indicate 34 non-wind-only QSEs passed and 1 failed the PRR 525 measure
●
There are 11 active wind-only QSEs or sub-
QSEs
TRE Board of Directors April 15, 2008
Page 4 of 32
More Texas RE Activities●
Continue to fill vacant positionsNet filled in February – 3 Net filled in March – 1Vacancies as of April 1st – 3
●
Statutory & Non-Statutory Budget preparation●
Texas RE Staff (Susan & Larry) scheduled to visit with FERC Senior Staff on April 29th
●
Updating/Revising PUCT-approved ERCOT Compliance Process (for monitoring & reporting ERCOT Protocols & Operating Guides compliance
●
Completed and distributed the first edition of the Texas RE newsletter, “The Texas REview”
TRE Board of Directors April 15, 2008
Page 5 of 32
2009 Texas RE Budget Development Schedule
●
April 15 –
Review Preliminary Draft of 2009 Budget at F&A Committee
●
May 1 –
F&A Committee Special Meeting (if necessary)
●
May 9 –
Draft #1 of Business Plan & Budget (BP&B) due to NERC
●
May 20 –
F&A Committee & Board Discussion of Draft #1 of BP&B
●
May 21 –
Open Meeting Presentation of Proposed Texas RE BP&B
●
May 30 –
Draft #2 of BP&B due to NERC
●
June 17 –
Texas RE Board Approval of Texas RE BP&B
●
July 9 –
Final Texas RE Board-Approved BP&B due to NERC
Page 6 of 32
TRE Board of Directors April 15, 2008
Texas Regional Entity
Report Details
TRE Board of Directors April 15, 2008
Page 7 of 32
NERC CPS1 Performance●
ERCOT’s CPS1 PerformanceMarch Performance
•
Monthly comparison♦
2008: 112.08♦
2007: 120.59•
12 month rolling average comparison♦
April 2007 March 2008: 124.42♦
April 2006 March 2007: 139.59
●
PRR 525 PerformanceScores posted on the ERCOT Compliance Website
•
SCE Performance Scores
TRE Board of Directors April 15, 2008
Page 8 of 32
ERCOT CPS1 Performance Comparison
100
110
120
130
140
150
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
CPS
1 Tr
end
100
110
120
130
140
150
Apr'07-M ar'08 Apr'06-M ar'07 Apr'05-M ar'06 Apr'04-M ar'05
S tart o f S C E P erfo rm ance M onito ringJanuary '06
TRE Board of Directors April 15, 2008
Page 9 of 32
ERCOT’s CPS1 Monthly Performance
100
110
120
130
140
150
160
170
Mar-02
Jun-02Sep-02Dec-02M
ar-03Jun-03Sep-03Dec-03M
ar-04Jun-04Sep-04Dec-04M
ar-05Jun-05Sep-05Dec-05M
ar-06Jun-06Sep-06Dec-06M
ar-07Jun-07Sep-07Dec-07M
ar-08
CPS
1 A
vera
ge
100
110
120
130
140
150
160
170
Monthly Avg 12 Mo Rolling Avg Trend (12 Mo Rolling Avg)
TRE Board of Directors April 15, 2008
Page 10 of 32
ERCOT CPS1 by Interval
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
1 8 0
001501150215031504150515061507150815091510151115121513151415151516151715181519152015211522152315
CPS
1 A
vg. %
M a r '0 8 S h a d e d M a r '0 7
0 6 1
2 2 1
0 0 1 5
1 0 1 51 9 1 5
TRE Board of Directors April 15, 2008
Page 11 of 32
QSE PRR 525 10-Minute Interval Scoring
1 7 1 82 0
1 82 0
1 8 1 8 1 8 1 71 9 2 0 1 9 1 9
1 7 1 8
1 3
1 9
2 42 6 2 7
3 0 3 0
3 53 2 3 2 3 1 3 2
3 4 3 43 2 3 2 3 2 3 2 3 3 3 4 3 4 3 4 3 4 3 4 3 3
3 5 3 4 3 4
1 3 1 2 91 0
9 1 21 0 1 0 1 2
1 1 1 0 1 1 1 11 3 1 2
1 6
9
4
55
3 3
1
1 1 2 1
1 2
13 2 3 1
1 11 0 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 99
9 1 11 1
02468
1 01 21 41 61 82 02 22 42 62 83 03 23 43 63 84 04 24 44 6
Sep '04
Nov '04
Jan '05
Mar '05
May '05
Jul '05
Sept '05
Nov '05
Jan '06
Mar '06
May '06
Jul '06
Sep '06
Nov '06
Jan '07
Mar '07
May '07
Jul '07
Sep '07
Nov '07
Jan '08
Mar '08
Num
ber o
f QSE
s
P a ss in g Q S E s F a ilin g Q S E s F a ilin g W in d
TRE Board of Directors April 15, 2008
Page 12 of 32
March 2008 – SCPS2 Scores
0
10
20
30
40
50
60
70
80
90
100
Perc
ent
35 N on -W ind Q S E 's 11 W ind Q S E 's
TRE Board of Directors April 15, 2008
Page 13 of 32
March 2008 Resource Plan Performance Metrics
JG DK BT DE IP HP AP AO HA BY BC JA AY AM AR BR HJ DF BP CI AE AD BJ BH JD CF ET DA GRResource Status - 100 - 99 100 - 100 99 100 100 100 100 99 99 100 96 - 100 100 97 - 100 99 - 100 100 100 100 -LSL as % of HSL - 95 - 91 100 - 100 95 90 99 100 99 100 100 98 90 - 100 99 100 - 99 98 - 100 100 100 99 -DA Zonal Schedule - 100 99 100 100 100 100 100 100 100 100 100 98 100 100 100 100 100 100 77 - 86 100 100 100 100 100 95 99AP Zonal Schedule 100 98 95 98 100 - 100 100 98 99 99 99 99 100 99 97 98 98 100 96 - 97 99 98 100 100 43 99 99Down Bid & Obligation 99 90 95 94 100 - 92 97 87 99 99 99 99 99 97 100 99 98 99 98 - 96 97 99 94 99 98 94 100Total Up AS - - - 100 - - 100 100 100 97 97 100 99 98 100 98 - 97 - - 96 - - - 99 99 98 95 -
GS BF BE DP EU FX JH JI JJ JC BG CX FK HW EL IN IZ BX CC JE CD FS AC CQ IV CR IO FYResource Status - - - 100 100 - - - - - 100 99 100 100 - 100 100 100 100 - 99 100 100 100 - - 100 -LSL as % of HSL - - - 100 100 - - - - - 99 100 90 97 - 100 97 100 100 - 92 100 - 96 - - - -DA Zonal Schedule 97 100 100 100 100 - - - - 100 97 100 99 100 100 100 100 98 99 100 100 100 - 99 100 100 - -AP Zonal Schedule 99 99 100 99 100 100 100 100 100 99 99 99 99 98 - 99 99 99 98 100 99 100 - 99 100 - - -Down Bid & Obligation 100 99 97 94 100 99 100 100 99 100 100 98 100 100 - 99 99 99 92 98 93 - - 99 98 - - -Total Up AS - - - 99 100 - - - - - 99 99 98 95 - 96 98 100 99 - 100 - - 99 - - - 91
4 Consecutive Failing Scores 3 Consecutive Failing Scores
2 Consecutive Failing Scores 1 Failing Score
Resource Plan Performance Metric
Resource Plan Performance Metric
ID
ID
TRE Board of Directors April 15, 2008
Page 14 of 32
Registration Activities
●
Entity Registration issues continue to be addressed and are being resolved
●
Load-Serving Entity (LSE) registration issues being addressedNERC submitted a LSE compliance Filing on March 4th proposing a two-step process to address a potential reliability gap that would result by not registering retail power marketers
•
Short-term step –
changes to NERC’s Registry Criteria to define “Non-
Asset Owning LSEs”
as a subset of LSEs•
Longer-term step –
determine changes necessary to terms and requirements in Reliability Standards
♦
LSE and Compliance Workshop scheduled on April 15th
to identify and address issues
FERC issued its Order on April 4th accepting the procedural aspects of NERC’s plan
●
Joint Registration Organization (JRO) of some entities remains likely
TRE Board of Directors April 15, 2008
Page 15 of 32
NERC Functional Entity Types
•
DP –
Distribution Provider•
GO –
Generator Owner•
GOP –
Generator Operator•
TO –
Transmission Owner•
TP –
Transmission Planner•
PSE –
Purchasing-Selling Entity
•
LSE –
Load-Serving Entity
•
RC –
Reliability Coordinator•
BA –
Balancing Authority•
TOP –
Transmission Operator•
PA –
Planning Authority•
TSP –
Transmission Service Provider
•
RP –
Resource Planner
TRE Board of Directors April 15, 2008
Page 16 of 32
Compliance Process Flowcharts
●
NERC Compliance Monitoring and Enforcement Program –
Reliability StandardsLink to NERC Reliability Flowcharts
●
ERCOT Compliance Process –
ERCOT Protocols and Operating Guides
Link to Protocols & Guides Flowcharts
TRE Board of Directors April 15, 2008
Page 17 of 32
2008 Audits by Registered Function
6 557
1
16
23
5
4
1
3
2
0
5
10
15
20
25
GOP GO RC BA TOP TO TP DP
Scheduled Audit Performed Report Issued
TRE Board of Directors April 15, 2008
Page 18 of 32
2008 Compliance Audits Scheduled by Entity
34
2
7
2
54
3 34
5
0
1
2
3
4
5
6
7
8
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Scheduled Audit Performed Report Issued
TRE Board of Directors April 15, 2008
Page 19 of 32
2008 Audit Schedule
●
The 2008 Texas RE Audit Schedule is available here.
TRE Board of Directors April 15, 2008
Page 20 of 32
Compliance Reviews of Events by Month
3
5
7
5
32 2
12
3
3
2
1
1 3
12
1
1
6
4
1
21
1
1
1 16
3
3
1
1
0
2
4
6
8
10
12
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan'08
Feb Mar
Reviewed Ops Only Report TRE Report Issued Under TRE Review
TRE Board of Directors April 15, 2008
Page 21 of 32
Violations of ERCOT Protocols
34
8
3 3
9
4
111 1
2
2
1
-1
1
3
5
7
9
11
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan'08 Feb Mar
Confirmed - Mitigated Confirmed - Mitigation in Progress Alleged
4
8
3 3
9
7
3
0
1 1
0
1
3
0 0
TRE Board of Directors April 15, 2008
Page 22 of 32
Violations of NERC Standards Reported by Month
0
2
4
6
8
10
12
14
16
18
20
Jan
Feb
Mar Apr
May Jun Jul
Aug Sep Oct Nov DecJa
n'08 Feb
Mar
Preliminary Alleged Confirmed - Mitigation in Progress Confirmed - Mitigated
0 0 0
6
1 0 0
2 2
17
6
12
13
1
TRE Board of Directors April 15, 2008
Page 23 of 32
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)
279 Total Registered Functions 25 violations identified
•
9 FAC-008 –
lack documented process (3 GOs)•
6 FAC-009 –
lack documented process (3 GOs)•
4 CIP-001 –
lack documented process (1 GOP)•
3 IRO-004 –
lack documented process (2 GOs; 1 GOP)•
3 PRC-005 –
relay maintenance delinquent (1 TO; 2 GOs)
TRE Board of Directors April 15, 2008
Page 24 of 32
NERC Standards Self-Certification Violation Status
Mitigation Plan Status
0
1
2
3
4
5
6
7
8
9
10
FAC
-008
-1
FAC
-009
-1
CIP
-001
-1
PRC
-005
-1
IRO
-004
-1
Num
ber o
f Vio
latio
ns
Mitigation Plans Completed Mitigation Complete This Month Mitigation Plans In Progress
TRE Board of Directors April 15, 2008
Page 25 of 32
NERC Standards Self-Certification Violation Details
Std Qty Req'mt VSL VRF Time Horizon Impact CategoryPRC-005 2 R2 Moderate Lower LT Plan Minimal TechPRC-005 1 R1.1 Lower High LT Plan Minimal AdminFAC-008 3 R1 Severe Lower LT Plan Minimal AdminFAC-008 3 R2 Severe Lower OP Plan Minimal AdminFAC-008 3 R3 Severe Lower OP Plan Minimal AdminFAC-009 3 R1 Severe Medium LT Plan Minimal AdminFAC-009 3 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 25
Violation Severity Level
0 5 10 15 20 25
Admin
Training
Tech
SevereHighM oderateLowerNot Spec
Violation Risk Factors
0 5 10 15 20 25
Admin
Training
Tech
High
Medium
Low er
TRE Board of Directors April 15, 2008
Page 26 of 32
NERC Standards Self-Reported Violations Pre-June 18th
Mitigation Plan Status
0
5
10
15
20
25
30
35
40
45
50PR
C-0
18-1
CIP
-001
-1
FAC
-008
-1
PRC
-001
-1
FAC
-009
-1
VAR
-002
-1
PRC
-005
-1
TOP-
002-
2
TOP-
001-
1
TOP-
003-
0
PRC
-004
-1
FAC
-001
-0
IRO
-004
-1
CO
M-0
02-2
FAC
-002
-0
BA
L-00
5-0
IRO
-001
-1
MO
D-0
10-0
MO
D-0
12-0
TOP-
006-
1
TPL-
003-
0
TPL-
004-
0
Num
ber o
f Vio
latio
ns
Mitigation Plans Completed Mitigation Complete This Month Mitigation Plans In Progress
TRE Board of Directors April 15, 2008
Page 27 of 32
Risk Factors for Self-Reported NERC Standards Violations Pre- June 18th
High, 36, 18%
Medium, 65, 32%
Lower, 100, 50%
Risk Factors are being assigned to each NERC Standard as part of the Standard Development Process
TRE Board of Directors April 15, 2008
Page 28 of 32
NERC Standards Self-Reported Violation Categorization Pre-June 18th
23 59 53
10 5 1
31 46
0 20 40 60 80 100 120 140
Admin
Training
Tech
HighMediumLower
Violation Risk
Factors
Page 29 of 32
TRE Board of Directors April 15, 2008
Texas Regional Entity
February & Year-to-Date February Financial Overview
TRE Board of Directors April 15, 2008
Page 30 of 32
February & YTD February Actual Workforce
Texas Regional EntityHeadcount
Statutory & Non-Statutory CombinedFor The Month Ended February 29, 2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecActual Headcount 18.0 21.0 Budgeted Headcount 25.0 25.0 Variance Under/(Over) 7.0 4.0
Actual Labor Hours 3,397.3 3,513.6 Standard Labor Hours 3,060.0 3,217.8 Variance Under/(Over) (337.3) (295.8)
Texas Regional Entity ‐ Workforce Exhibit
18.0
21.0
25.0 25.0
‐
5.0
10.0
15.0
20.0
25.0
Jan Feb
ActualHeadcount
BudgetedHeadcount
Texas Regional Entity ‐ Labor Hours
3,397.3 3,513.6
3,060.03,217.8
‐
500.0
1,000.0
1,500.0
2,000.0
2,500.0
3,000.0
3,500.0
4,000.0
4,500.0
Jan Feb
ActualLaborHoursStandardLaborHours
TRE Board of Directors April 15, 2008
Page 31 of 32
February & YTD February Operating Expenses
Texas RE ‐ Income Statement by SegmentConsolidated Statutory & Non‐Statutory
February 2008
$‐$100,000$200,000$300,000$400,000
Revenue PersonnelExpenses
TravelExpenses
OperatingExpenses
TotalExpenses
ActualBudget
Texas RE ‐ Income Statement by SegmentConsolidated Statutory & Non‐Statutory
Year‐to‐Date February 2008
$‐
$200,000
$400,000
$600,000
$800,000
Revenue PersonnelExpenses
TravelExpenses
OperatingExpense
TotalExpenses
ActualBudget
February & YTD February Comments
Revenue - Revenue is on target for the year.
Personnel Expenses - Lower due to personnel vacancies.
Travel Expenses - Lower due to personnel vacancies.
Operating Expenses - Lower primarily related to not usingthe contingency reserve.
TRE Board of Directors April 15, 2008
Page 32 of 32
February & YTD February Operating Expenses
Texas Regional EntityConsolidated Income Statement
Statutory & Non-Statutory CombinedFor The Month Ended February 29, 2008
Period to Date Year to Date AnnualActual Budget Difference Actual Budget Difference Budget
Revenue 1-Assessments 333,445 333,445 - 666,891 666,891 - 4,074,849
2-Workshops - - - - - - 70,000 Total Revenue 333,445 333,445 - 666,891 666,891 - 4,144,849
Personnel Expenses 1-Salaries 125,878 183,719 57,841 249,736 367,438 117,702 2,242,782
2-Payroll Taxes 10,628 15,249 4,621 23,749 30,497 6,748 186,151 3-Employee Benefits 14,466 22,371 7,905 27,983 44,743 16,759 273,034
4-Saving and Retirement 17,116 21,495 4,379 33,384 42,990 9,606 262,406 Subtotal Personnel Expenses 168,088 242,834 74,746 334,853 485,669 150,816 2,964,373
Travel & Meetings 1-Meetings - 353 353 - 707 707 74,240
2-Travel 3,490 7,250 3,760 8,257 14,499 6,243 97,135 Subtotal Travel & Meetings 3,490 7,603 4,113 8,257 15,206 6,949 171,375
Operating Expenses 1-Rent & Improvements 8,094 22,583 14,489 16,188 45,167 28,979 271,000
2-Consultant - - - 7,196 - (7,196) - 3-Office Costs 879 30,633 29,755 985 61,267 60,281 380,600
4-Professional Services 7,713 22,333 14,620 14,419 44,667 30,247 268,000 5-Computer Purchase & Main 13,132 7,417 (5,715) 26,659 14,833 (11,826) 89,000
6-Other - 42 42 - 83 83 500 Subtotal Operating Expenses 29,818 83,008 53,190 65,448 166,017 100,569 1,009,100 Total Expenses 201,396 333,446 132,050 408,557 666,891 258,334 4,144,849 GAIN or (LOSS) 132,050 0 132,050 258,334 0 258,334 0