October 23, 2007TPTF Meeting
Texas Nodal Program Update
Jerry SullivanProgram Director, Market Redesign
2Texas Nodal Program UpdateOctober 23, 2007 2
CostScheduleScope / Quality
Legend
Summary
Overall program status remains amber
Green
Effort being made to keep costs to $263 Million. Latest forecast as of Oct
5 is between $273 and $280 with continuing effort being made on
efficiencies and finding savings without jeopardizing quality issues.
Amber Amber
Currently fully aligned with
protocols
Red
Amber
Green Estimate at Complete = <$263m
Estimate at Complete = < $263m + 10%
Estimate at Complete = >$263m + 10%
Go-live = 12/1/08
Go-live = <30 days+
Go-live = >30 days+
Program is aligned with current protocols
Program is aligned to previous protocol version
Program is not aligned to protocols
Concerns over key upstream deliverable slippage.
Looking to optimize sequence of releases into Early Delivery Systems.
Scope/Quality
Nodal
Cost
ScheduleScope/Quality
Schedule
Cost
Nodal Delivery
Amber
Current product quality is not sufficient for Nodal launch
Most Nodal products currently achieve quality standards
All Nodal products currently achieve quality standards
Resolved IDA and Integration Test PM losses;
reduced leadership
concerns over future quality.
3Texas Nodal Program UpdateOctober 23, 2007 3
ERCOT Staffing including Nodal contractors, employees
0
100
200
300
400
500
600
700
800
900
ALL STAFF FTEs Nodal Charges Nodal > 60% Spec ial Case
Nodal Contractors on - site
Employees not on Nodal
Nodal Hours less than 60%
Numbers are approximate as of September 2007
Key Nodal Critical
100100
300
100- 200
250
25+
4Texas Nodal Program UpdateOctober 23, 2007 4
Classification of individual assessments
Classification Description of Typical Employee Situation in this Type
Type 1 Those that state that they are here for Nodal only, and are at risk for leaving
Type 2 On Nodal, but whose job was backfilled by an employee. At risk because job future is fairly uncertain
Type 3 On Nodal, but whose job now is clear, but reporting relationship, and new Nodal job clarity is needed.
Type 4 In support, admin, or staff, or, but whose future job maybe uncertain, but who is needed for go live.
5Texas Nodal Program UpdateOctober 23, 2007 5
Worksheet Used in ERCOT Executive Session
Type 1 Only wants to stay for Nodal, not beyond go live. At risk because they could go at any time.Type 2 On Nodal, but whose job was backfilled by an employee. At risk because job future is fairly uncertainType 3 On Nodal, but whose job now is clear, but reporting relationship, and new Nodal job clarity is needed.Type 4 In support, admin, or staff, or, but whose future job maybe uncertain, but who is needed for go live.
EmployeeCurrent Grade Current Title
Critical to Project
1=Highest, 5 Lowest
Nodal Program Director's
Assessment of Flight Risk % Nodal
Intervention Retention Category
Up Grade Level
Title Change/ Promoti
onSalary
IncreaseReporting
Relationship
New Nodal Job post - Go
Live
Vacation Carry-over
Hour Worked Straight
Time
Bonus, may need
to be universal
INDIVIDUAL / SPECIFIC OVERALL
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Program
Director
EMS MMS NMMS MERMISCRRCOMS EIPINTINF EDS
IDA/
NSAPC
EDWReal
TimePortal Training TPTF
Network
Design Authority & Nodal System Architecture
Program Controls
Raj Chudgar, and a small team
ERT
$Energy Mgmt
System
Market Com-mercial
Enter prise Data Ware-
house
Early D
elivery
System
ER
CO
T Readiness
Contractor Employee
Nodal Program (New updates in Red)
Infrastructure
Enterprise Integration
1
2 3Judy Ply
(Contractor) Proposal being evaluated
Integrated TestMkt E
ngagement
Market P
articipant Training$
New changes/
updates$ = November request (board template)
Legend
TPTF Slide for October 23, 2007
7Texas Nodal Program UpdateOctober 23, 2007 7
Top Items discussed at Executive Forum
Resourcing•Quality of Life and Work environment issues
– identified top items to address for managing current attrition trends-priority planning session held between nodal and human resources executive team-Presenting options to Executive Committee on October 22, 2007
•Shorten length of On boarding process•Effective deployment and re-deployment strategies to meet nodal staffing demands•Procurement Review of rate card
•Timeline•‘Co-location’ possibilities for reducing communication issues and cycle times
-Improving working relationships-Co-authoring effective solutions
•Identified several opportunities to improve best practices for code delivery:-Separate new development from ‘bug’ fixes-Identify causes for large number of work-arounds and revise processes to solve-Optimize releases with workload
•Integration and Testing•Low level of interaction between vendors, MPs, and project staff does not foster sharing expertise and content knowledge
-Work with MPs as experts for testing and SoSA prioritization
TPTF Slide for October 23, 2007
Executive
Management
Emphasis
Conducting
a series of
Workshops
Revitalizing
Testing
Team
8Texas Nodal Program UpdateOctober 23, 2007 8
Results will be exposed via the Readiness Scorecard, transparent to all, this week
• First round of self reporting completed by ERCOT leadership
• Analogous to existing reporting by Market Participant “Accountable Executives”
• “Initiation” gaps relate to completion of business impact assessment
• All areas have committed to being ready for the trials using Early Delivery Systems
ERCOT Engagement Status
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• Overall ERCOT Readiness on track
• Non-market-critical departments in CFO and Information Technology organizations have not yet completed training
• These departments’ training status is pulling ERCOT’s overall score yellow
• ERT team is working with the yellow departments to catch up on training
Drill-down to department-level metrics available on the Readiness Scorecard this week
ERCOT Readiness Update
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Market Readiness Update – Scorecard
• http://Scorecard.ercot.com
• Accountable Executive login available from ERCOT Client Service
• We are measuring Market Participants across a wide range of metrics, spread over the appropriate timeframe on the Nodal Delivery Schedule.
• The tool allows drill-downs to visualize ` Market Participant-specific data
The second round of MP self reporting begins in late October
11Texas Nodal Program UpdateOctober 23, 2007 11
Market Participant & EDS Metric Highlights October 18, 2007
Market Participant Engagement = Amber based on July Survey results. New survey planned the end of this month
Metric measuring QSE with Resources connectivity to EDS environment 100 percent complete on time and on plan.
Metric measuring QSE with Resources submission of SCED to EDS environment 100 percent complete on time and on plan.
ICCP Point to Point Telemetry testing nearing completion slightly behind plan. Plans in place for all remaining MPs to complete testing:
Tenaska, Denton, and Xtend ready to test and waiting for ERCOT to be available to test this week
RCEC - Rayburn to test week after next Austin Energy using a temporary workaround until they get
systems in place. N1 EDS Readiness metric yellow until 95 percent point-to-point
completion metric met
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EMS Delivery Recovery Update
• Improved Dates– EMS 3c (R 6.2) From March 1st to Feb. 15th
– EMS 4 From Feb. 22nd to Feb. 15th
• Added Staff– Added William Malcom (Partial Wei Liu Replacement )
– Added Jim Randolph, AREVA Support Person Dedicated To EDS• 2nd Position Under Evaluation To Be Filled.
• Current Improvement Actions In Process– Reviewing Advantages Of Consolidating Remaining Deliveries To
Single Program Delivery Per PMO • No Advantage At Project Level
– Moving Pre-FAT & FAT Activities To Multi-Shift Cycles
– Shift Hours To match Time Zones
– Exchange Staff To Improve Long Pole Activities
– Extending KEMA Staff Through June 2008
12Texas Nodal Program UpdateOctober 23, 2007
13Texas Nodal Program UpdateOctober 23, 2007 13
EDS Schedule Update
# Topic Solution/Action
1 EDS 1 Start: 6/4/07End: Revised to Oct 30th for 99% Revised to Nov 15 for 100%
• Confidence in achieving the milestone is High: 95% complete with P2P, with 4% error rate
2 EDS 2 State Estimator and TelemetryStart: 9/4End: 12/31/07
• EDS 2 R 3, SE tuning activities started on 9/7 as planned• TAP estimation to be reconfigured / software corrected by end of EDS 2 Release 3• ICCP clean up of 20-25% of Nodal generation is yet to occur
3 EDS 3 Nodal Registration Data UpdateStart: 10/15/07End: 10/31/08
• Started EDS 3 Release 5.2 as planned on 10/15• EDS environment (MMS and EIP) upgrades to production hardware• Updated Registration data in MMS based on RARF submissions
3 EDS 3 EMS interfacing with SCED Start: 8/24/07End: 7/15/08
• Confidence in achieving the milestone (11/1) is medium (EMS to MMS)• Preparing for testing the EMS – MMS interface for SCED. Working through data and environment issues currently• Delivery of SCED reports, confidence is medium – MIS team working with EMS, MMS and EIP to ensure delivery
of reports
4 EDS2 R4 NMMS NOMCRStart: 11/1/07End: 3/31/08
• Confidence in achieving the milestone is low, with known challenges (initial data load from AREVA, Hardware, Software variances)
• ERCOT Network Model yet to be loaded into NMMS without significant errors• Phase 1c delivery at end of Sept 2007 being pushed to late Oct; Defining testing approach to leverage system
functionality in the order it’s delivered • Lack of hardware to start EDS phase
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Nodal Budget Update
Var. (o)/u Var. (o)/uCost Element Budget Actual Budget Budget Forecast Budget
Internal Resource Costs $ 17.7 $ 19.4 $ (1.7) $ 36.7 $ 42.2 $ (5.5)
External Resource Costs 43.9 42.0 1.9 71.5 86.3 (14.8)
Vendor 37.4 31.3 6.1 56.4 65.1 (8.7)
Hardware / Software 44.1 51.9 (7.8) 58.8 54.9 3.9
Taxes and Other 5.4 5.2 0.2 7.6 8.7 (1.1)
Subtotal $ 148.5 $ 149.8 $ (1.3) $ 231.0 $ 257.2 $ (26.2)
Facilities Allocation 3.2 2.0 1.2 6.4 4.1 2.3
Contingency - - - 15.0 - 15.0
Total Nodal Program $ 151.7 $ 151.8 $ (0.1) $ 252.4 $ 261.3 $ (8.9)
Finance Charge - 4.4 (4.4) 10.6 10.6 -
Total $ 151.7 $ 156.2 $ (4.5) $ 263.0 $ 271.9 $ (8.9)
ERCOT - Nodal ProgramCost Element Summary - September 2007
($ Millions)
Life to Date (LTD) Estimate at Complete (EAC)
15Texas Nodal Program UpdateOctober 23, 2007 15
Top Items identified at Executive Forum
Resourcing
•Quality of Life and Work environment issues -Identified top items to address for managing current attrition trends-Priority planning session held between nodal and human resources executive team-Presenting options to Executive Committee on October 22, 2007
•Shorten length of On boarding process•Effective deployment and re-deployment strategies to meet nodal staffing demands•Procurement review and revision of rate card
Timeline•‘Co-location’ possibilities for reducing communication issues and cycle times
-Improving working relationships-Co-authoring effective solutions-Best ways to implement
•Identified several opportunities to improve best practices for code delivery:-Separate new development from ‘bug’ fixes-Identify causes for large number of work-arounds and revise processes to solve-Optimize releases with workload
Integration and Testing•Low level of interaction between vendors, MPs, and project staff does not foster sharing expertise and content knowledge
-Work with MPs as experts for testing and SoSA prioritization