Development of Wholesale Electricity Scheduling and OASIS

1. Development of Wholesale Electricity Scheduling and OASIS Determining the Future Needs of the Open Access Same-time Information System Andy Rodriquez, PJM Interconnection 1

2. 1988 - 1996Open Access • Issue: Limited access to transmission system constrains sales of economy energy to the detriment of consumers • Organization – FERC • Response – Merger Conditions, Orders 888, 889 • Result – OATTs, OASIS • Cost – High • Benefit – High for Business, Low for Reliability 2

3. 1995 -1997Reliability and Curtailments • Issue: Reliability Coordinators needed a way to quickly identify transactions to halt should reliability be threatened • Organization – NERC • Response – Tagging Requirements • Result – Automation of the TLR process • Cost – Medium • Benefit – Low for Business, High for Reliability 3

4. 1997 - 1999Coordination of Complex Wheeling • Issue: As wheeling become more common, it became critical to improve the speed for processing tags • Organization – NERC • Response – E-Tag Requirements • Result – Automation of the Tagging process • Cost – High • Benefit – Med for Business, Med for Reliability 4

5. 1999 - 2002Technology Improvements • Issue – E-Tag technology not able to easily support process enhancements or changes • Organization – NERC • Response – E-Tag 1.7 XML schema • Result – Further integration and automation throughout the industry • Cost – High • Benefit – Med for Business, Med for Reliability 5

6. Changing Environment • Challenges of the past have largely been addressed through updates to OASIS and E-Tag • Increasing maturation of industry has reduced scheduling complexity significantly • The growth of large ISOs, RTOs, Regional Tariffs, and Joint OASIS nodes is eliminating the need for “how to do it” standards, focusing on “what to accomplish” standards • Reduction in number of “pure marketers” and “speculative traders” reduces schedule complexity • Growth of centralized energy markets reduces need for complex schedules • Development of new congestion management methods eliminating need for schedule documentation 6

7. ISONE NYISO PJM 147 Scheduling Entities

8. ISONE NYISO PJM ERCOT As of March 2005 133 Scheduling Entities

9. ISONE NYISO MISO PJM ERCOT 104 Scheduling Entities

10. ISONE NYISO Grid West MISO PJM WestTrans OASIS SPP ERCOT Grid Florida Est. 2008-2010 55 Scheduling Entities

11. Today’s IssuesProblems to be Solved by OASIS II • Standardized Data Exchange • Enhanced Posting of Data (Pub/Sub) • Standardized Market Interfaces • Elimination of Seams through Technology 11

12. Today’s Responses • Standardized Data Exchange • E-Tag and OASIS are standards already in wide-use • Additional standards are being developed as needed on a regional, voluntary basis • Third-Party software products provide much of this functionality 12

13. Today’s Responses • Enhanced Posting of Data (Pub/Sub) • Many regional tools have already been developed to provide this functionality • Third-Party software services have been developed to help address this need 13

14. Today’s Responses • Standardized Market Interfaces • The growth of RTOs, ISOs, and Coordination Agreements has reduced complexity that drove this issue • Third-Party software products also provide much of this functionality • Reduced call for standardization due to trading environment changes 14

15. Today’s Responses • Elimination of Seams through Technology • The growth of RTOs, ISOs, and Coordination Agreements has significantly reduced this concern • Seams are also being eliminated through local initiatives and coordination agreements • Third-Party software products have been developed that reduce the impact of seams 15

16. Conclusion • The Industry has been given adequate signals to incent resolution of customer concerns • ISOs, RTOs, and Transmission Providers are developing processes and tools to eliminate scheduling complexity and improve data exchange • Costs associated with a major change to the OASIS may be high, and possibly not justified by the benefits 16