Market Operator User Group Meeting May 18 th

Market Operator User Group Meeting May 18 th, 2010 Belfast 1 Market Operator User Group Meeting

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 2 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

Review of Action Items q Updates to April payment dates on Settlement Calendar q Website - list of dynamic reports q Reducing Ad-hoc Resettlement discussion 3 Market Operator User Group Meeting

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 4 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

2010 Published Reports 5 Market Operator User Group Meeting

Key Performance Indicators 6 Market Operator User Group Meeting / June 30 th 2009

P&S Issues Trade Date Issue Resolution 29 th Mar q. EP 2 publication late due to publication events running q Events were rerun. Awareness of publication events before data was pushed to Market Interface Database (DSP module) 31 st Mar q SONI I/C trade file for EP 1 could not be automatically loaded to an initial error in the schema. This delayed the publication time for EP 1 3 rd & 4 th April Missing reports q PUB_D_Initial. Ex. Post. Mkt. Sch. Detail report missing from website and MPI q PUB_D_EPInit. Shadow. Prices report missing from website and MPI 7 times highlighted to Market Controllers q File corrected and sent through to Market Controller for manual upload q ABB investigating. Additional logging in SEM R 1. 7. 0 release Market Operator User Group Meeting / June 30 th 2009

Settlement Issues Settlement Run Type Issue Resolution 25 th March 2010 Capacity Indicative Late Publishing q Temporary script deployed into Settlements system to ensure a ‘P’ type statements were issued to Participants. q This scenario will be tested and fixed in the next system release q Due to resource type change from PPMG to PPTG on this date. q Issue calculating CPGPF preventing settlement processing. March 2010 Capacity Initial Late Publishing q Knock on effect from Capacity Indicative publication March 2010 Capacity Invoicing Late Publishing q Knock on effect from Capacity Initial publication being delayed Week 52, 2009 M+4 Energy Resettlement Energy Indicative 31 st March 2010 Late Publishing q Late file submission for settlement dates 27 th and 28 th December by MDP delaying processing q Due to Ex Post Indicative pricing run being delayed as a result of SONI file requiring manual upload 8 q Published one working day late. Participants notified via market message. q Published two working days late. Participants notified via market message. q Published one working day late. Participants notified via market message. q Published at 17: 59 instead of 17: 00 obligation timeline under T&SC. Participants notified via market message. Market Operator User Group Meeting / June 30 th 2009 Market

Recent Registrations Party q q q Castledockrell Supply Ltd – Effective 06/05/2010 Crystal Energy Ltd – Effective 06/05/2010 NRG Vend Ltd – Effective 15/04/2010 Hunters Hill Windfarm Ltd – Effective 20/03/2010 No other Party applications currently in progress Units Generation q Hunters Hill Windfarm Ltd (Hunter’s Hill APTG) – Effective 13/05/2010 q Garvagh Glebe Power Ltd (Garvagh Glebe APTG) – Effective 06/05/2010 q Hibernian Wind Power Ltd (Tullynahaw APTG) – Effective 29/04/2010 q ESB AER (Arklow Bank Phase 1 APTG) – Effective 22/04/2010 transfer from Arklow Energy Ltd q Airtricity Ltd (Kingsmountain Phase 2 (Dunniel) APTG) – Effective 08/04/2010 q Viridian Energy Ltd (Ballincollig Hill APTG) – Effective 04/03/2010 q Five other Generator Unit applications in progress Supply q Six Supplier Unit applications in progress 9 Market Operator User Group Meeting / June 30 th 2009

Recent Registrations Party q q q Castledockrell Supply Ltd – Effective 06/05/2010 Crystal Energy Ltd – Effective 06/05/2010 NRG Vend Ltd – Effective 15/04/2010 Hunters Hill Windfarm Ltd – Effective 20/03/2010 No other Party applications currently in progress Units Generation q Hunters Hill Windfarm Ltd (Hunter’s Hill APTG) – Effective 13/05/2010 q Garvagh Glebe Power Ltd (Garvagh Glebe APTG) – Effective 06/05/2010 q Hibernian Wind Power Ltd (Tullynahaw APTG) – Effective 29/04/2010 q ESB AER (Arklow Bank Phase 1 APTG) – Effective 22/04/2010 transfer from Arklow Energy Ltd q Airtricity Ltd (Kingsmountain Phase 2 (Dunniel) APTG) – Effective 08/04/2010 q Viridian Energy Ltd (Ballincollig Hill APTG) – Effective 04/03/2010 q Five other Generator Unit applications in progress 10 Market Operator User Group Meeting / June 30 th 2009

Recent Registrations Units Supply q Six Supplier Unit applications in progress Unit Type Change q Garves Windfarm from APTG to VPTG – Effective 25/03/2010 q Aughinish Alumina Ltd two PPMG to PPTG – Effective 25/03/2010 11 Market Operator User Group Meeting / June 30 th 2009

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 12 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

SEM R 1. 7. 0 Release q Release postponed – notification issued April 28 th. q Why the delay? § Market Trial uncovered issue downloading a small number of Settlement reports via Type 3 – this was as a result of the Java 3 rd party upgrade. § Workaround was available (Type 2) but this was deemed unacceptable to support Production operations. § Not enough time remaining to: • Take delivery of the fix; • Test internally (system & regression); and • Test with Participants (Market Test). Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 7. 0 Release q What has this identified? q Our vendors § § Vendor Unit / System testing must be expanded Quality of deliverables must be improved q SEMO § Internal Integration Testing must be broadened to cover all reports (Type 2 and Type 3 was tested but not all reports were run for each channel) q Our Participants § Must engage in a meaningful way with Market Test phases. SEMO cannot verify impact on downstream Participant systems. The onus is on the Participant to ensure interfaces are functioning as expected. q Overall § Must guard against complacency. Each stakeholder has a responsibility for the successful implementation of change. “Past Performance is not a guarantee of future success”. Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 7. 0 Release q What is being done to mitigate future risk? q SEMO § Expanding Integration Testing coverage to include all reports for both Type 2 and Type 3. § Investigating Automated Testing to: • Allow for greater coverage in same test period duration; • Ensure more robust and consistent testing; and • Reduce the risk of “human error”. § Have agreed a release checklist / procedure with our vendors to improve quality of deployments to test environments. § Exploring the implementation of KPI’s with our vendors to measure improvements. § Have established monthly meeting with senior ABB management to evaluate quality issues, implement appropriate controls and monitor progress. Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 7. 0 Release q What is being done - Vendors? § Established Fact: Up to this point the vendor testing function has been too closely aligned to the development teams. § Set up of a dedicated “offshore” test team to • Ensure impartial testing takes place; and • Increase test coverage. § Vendors are also investigating Automated Testing. § Monthly management meetings with SEMO. Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 7. 0 Release q The methodology worked: Market Test fulfilled it’s function. q SEMO have identified and will implement more thorough and robust controls with our vendors q Refocus: § All of us must guard against complacency – we have been very successful to date but “past performance …………. ” § Delivering change to a complex suite of systems across multiple platforms is not a simple task. § Importance of engagement – all stakeholders (SEMO, Participants, MDPs, TSOs etc) are responsible for their own testing – this cannot and should not be delegated. Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 7. 0 Release – Updated Deployment q May 7 th : Vendors deliver software update to SEMO to resolve issue q May 10 th to May 21 st: SEMO executes internal testing q May 10 th: SEMO issues revised Market Test Schedule to the SEM q May 17 th to May 27 th: Market Test Phase - Conference Calls daily at 16: 30 § § Phone No: Participant PIN : 01 6647777 79592 q May 28 th: Deployment of SEM R 1. 7. 0 to Production (subject to successful conclusion of testing). Market Operator User Group Meeting / 22 nd September 2009

SEMO IT – SEM Release R 1. 7. 0 – Scope Reminder Change Requests Ref. Mod. Ref Sub-System Description Raised By SEM_PC_CR 139 N/A MI Change to Daily Load Forecast Report. Current reports on a Trading Day basis. The T&SC code stipulates this report should be on a Calendar Day basis. SEMO SEM_PC_CR 151 N/A Settlements / Metering SEMO Internal Meter Data Loading Mechanism SEMO SEM_PC_CR 157 N/A MI Enhance SEMO ability to update Registration Effective Date as required. SEMO SEM_PC_CR 165 N/A Settlements Invoice Job – Confirmation for Approval of Invoices. SEMO SEM_PC_CR 166 N/A Settlements Invoice Job – Self-Billing Invoice Due Dates Defaulted. SEMO SEM_PC_CR 169 N/A MI Single entry of Exchange Rates. SEMO SEM_PC_CR 175 88_07 MI Actual Load Summary Report: Provide a new version of the Daily Actual Load Summary Report to be run at d+4 and to include EP 2 data only. Mods Cmte SEM_PC_CR 177 N/A MI / Settlements Data Service for the transfer of data from the Central Market Systems to the new SEMO website (Regulatory approved project). SEMO SEM_PC_CR 194 N/A MI Remove ability of Interconnector Units to enter default data (e. g. COD). SEMO SEM_PC_CR 196 N/A RCUC VPT Optimisation SOs q In addition 73 defects (46 raised from Production) are included in scope. Market Operator User Group Meeting / 22 nd September 2009

SEM Release R 1. 7. 0 – MP Functional Changes q Release will have minimal functional impact on Participants: § 1 new report – D+4 Daily Actual Load Summary • § 1 modified report – 4 Day Load Forecast Report • • q MPUD has been issued along with sample reports on Jan 14 th to aid Participants development effort Switching from Trading Day to Calendar Day No interface change required however contents will differ (TD Vs CD) Specific tests for verifying that these changes function correctly were included in the Market Test Pack issued on April 8 th. Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 8. 0 – Scope Reminder q Defined scope includes 12 Change Requests: Change Requests Ref. Mod. Ref Sub-System Description Raised By SEM_PC_CR 145 34_08 MI/MA Dual Rated Generator Amendment Mods Cmte SEM_PC_CR 148 47_08 MI / MA Enduring Solution for the validation of Technical Offer Data – dependency on SEM_PC_CR 158. Mods Cmte SEM_PC_CR 150 N/A Settlements Cross Border VAT. Legislative SEM_PC_CR 158 N/A MI Registration – Additional Validations. SEMO SEM_PC_CR 164 N/A Settlements Inter-day Batch Dependency SEMO SEM_PC_CR 167 N/A Settlements Processing Environment Dashboard SEMO SEM_PC_CR 179 N/A MI Unit Under Test Scheduling SEMO SEM_PC_CR 191 N/A Settlements Fix for Eligible Availability Workaround SEMO SEM_PC_CR 195 N/A MI SEMO MPI User Effective Date in the past SEMO SEM_PC_CR 197 N/A MI M+13 JESU Feed Eir. Grid TSO SEM_PC_CR 202 N/A Settlements Dispatch Start Up Cost Calculation SEMO SEM_PC_CR 208 N/A Settlements IPCCEN IPCCCP Batch Alert SEMO

SEM R 1. 8. 0 – Major Milestones q March 18 th: Scope confirmed q March 26 th: High-Level scope document issued to Participants q March 30 th: Potential Participant impact document issued to Participants q May 14 th: First official draft of interface documentation from vendors (SEMO review) q End May: Issue of first draft (post SEMO Review) to Participants q Early June: Participant Workshop – feedback q End June: Final Documentation issued from vendors q Early July 2010: Follow up Participant workshop q September 27 th - October 22 nd: Market Test (4 weeks) q October 29 th: Deployment Market Operator User Group Meeting / 22 nd September 2009

SEM R 1. 8. 0 Timeline

SEMO IT – SEM Release R 1. 9. 0 (April 2011) Release Cut-Off Date for the SEM R 1. 9. 0 release Friday, August 27 th, 2010 Market Operator User Group Meeting / 22 nd September 2009

SEMO-IT Infrastructure Update Ø Central Market Systems – Planned Maintenance Ø Tuesday 24 th of April Ø The CMS were taken offline as part of our monthly planned maintenance. Ø Tuesday 4 th of May Ø The CMS were taken offline to perform Database maintenance. Ø Monday 17 th of May – 27 th of May 2010 Ø Market Test (MT) performed by Participants – covering both functional and technical upgrades. SEMO strongly recommends that all participants test their systems (which will include their upgrades). These tests should include both Type 2 & Type 3 and cover all critical business processes. Market Operator User Group Meeting / 18 th May 2010

SEMO-IT Infrastructure Update ØIssues: Date 7 th & 8 th of May 17/5/10 Issue Some Market Participants received an error when trying to retrieve certain reports. All CMS applications stopped responding to requests at 12: 30 pm. Cause Resolution Issue identified in cross-site synchronisation application. Issue only effected retrieval requests that were serviced by the Belfast site, an interruption to one of the Wide Area Network circuits caused the sync application to fall behind. The application was allowed to ‘catch-up’. All reports were available on the Dublin side during the issue. Still under investigation but initial indications are pointing towards a network infrastructure issue. Stopped all CMS applications and brought the second Oracle server into the cluster. Market applications were then restarted. Market Operator User Group Meeting / 18 th May 2010

SEMO-IT Infrastructure SEM Release R 1. 7. 0 (May 2010): Release time ØRevised release window: ØSEMO will bring the Central Market Systems offline at 6 pm on Friday the 28 th of May until 6 am of Saturday the 29 th at 6 am. ØThe Dublin servers will be upgraded first followed by Belfast site. Market Operator User Group Meeting / 18 th May 2010

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 28 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

Query Statistics Mar-Apr 2010 No. of calls older than 30 days: 12 29 Market Operator User Group Meeting

Query Statistics Mar-Apr 2010 30 Market Operator User Group Meeting

Disputes – May 2010 q There are currently no outstanding disputes q 2 disputes have been resolved since the last MOUG in March 31 Market Operator User Group Meeting

Group Customer Survey q Eirgrid Group Customer Survey § Eirgrid TSO, SONI & SEMO q Participant consultation at development phase q Timescales – July 2010 q Findings will be reported – MOST & Group Customer Conference 32 Market Operator User Group Meeting

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 33 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

SEMO Website Project q. Project Update Testing ongoing § User Awareness – June § Go Live – late June § For further details visit www. sem-o. com § 34 Market Operator User Group Meeting

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 35 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

Introduction ØUnderstanding of SEMO market system for units requesting to go under test ØUnit under test current process ØProposed new unit under test process ØProcess for units requesting to come off test Market Operator User Group Meeting / June 30 th 2009

UUT Semo Market System Ø Parameters that are submitted by Market Participant for Unit Under Test Effective Date - SEMO controller will accept unit under test request in market system. It’s only when effective date equals the Ex-Ante date, the details will be processed in our system. The request expires when new request has been accepted. Only 1 valid request in the system at any one time. Its specific to SEMO Market Systems in order to change units from PPMG to PPTG. Start Date & End Dates are inclusive. Submit start date and end dates relating to the trading days the unit will be under test. For example if the unit is going under test from the 06 th to the 15 th, the unit will be under test from 6 am on the 06 th until 5. 59 am on the 16 th. If the test is for 1 day only, Test Start Date = Test End Date. Participant Name & Number Generator Number Ø Ø Ex Ante pricing schedule is run ONE DAY BEFORE the TRADE DATE. Under test flag follows TRADING day convention, not calendar day. Market Operator User Group Meeting / June 30 th 2009

UUT Current Process Example: • The Trading and Settlement code states that 5 working days notice in advance of unit under test start date. • Approval/Rejection time is required from the TSO (currently around 24 hours) • Effective date is prior to Start Date option to make amendments to Unit Under Test request. • Accept/ Reject can be delayed until more information is obtained. Effective Date: 04/02/10 Start Date: 06/02/10 End Date: 15/02/10 Monday D-5 = 01/02/10 1. Market Participant submit request through MPI by 12 noon. 2. SEMO email request to TSO Tues D-4 =02/02/10 1. TSO Accept/Reject Request by 16: 00 2. SEMO Accept through MPI 3. Alert Market Participant and TSO • New request can overwrite current accepted request up until effective date. • Market Participant cancel request. Wed D-3 = 03/02/10 and Thurs D-2 = 04/02/10 Market Participant can submit COD. • System has been designed and tested around the 5 working day’s notice. Fri D-1 = 05/02/10 Market Participant submit COD by 10: 00 am SEMO run Ex-Ante @10 am for 06/02/10 Market Operator User Group Meeting / June 30 th 2009

UUT proposed new 5 working day Process Example: • Before submission of request through the MPI date range and profiles will be agreed. • Strict response timeline by all making process more efficient. • SEMO market operator will review under test request @ 12 noon for D-2. If a Market Participant submits a request through MPI ahead of D-2 this request will not be picked up until D-2. Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10 Monday D-5 01/02/10 Market Participant send email notification Tues D-4 =02/02/10 and Wed D-3 = 03/02/10 Market Participant can finalise information with TSO • TSO has just 4 -5 hrs to review and accept request. • System not fully tested to deal with criteria, defects may arise. • Impossible to change start date once it’s been accepted in SEMO market system. A script will be required. • Must receive 5 working day notice. If email notification is not received, request will be rejected. • Process not applicable at weekends. Thurs D-2 = 04/02/10 1. Market Participant submit through MPI by 12 noon. 2. SEMO email TSO to accept or reject by 12: 30. 3. TSO Accept/Reject Request by 16: 00 & email SEMO. 4. SEMO Accept through MPI by 16: 30 and change MP status. 5. Alert Market Participant and TSO 6. Market Participant can submit nomination profile. Fri D-1 = 05/02/10 Market Participant submit COD until 10: 00 am SEMO run Ex-Ante @10 am for 06/02/10 Market Operator User Group Meeting / June 30 th 2009

Changing End Date Extending or Reducing End Date: -Request must be submitted D-2 from test end date as per the trade and settlement code. -The end date and effective date is required to be equal. -The Ex-Ante for the prior date must be completed before new request is accepted. -The same process applies, TSO must approve any changes. Example of Extending End Date Original Request: Example: Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10 New Request: Extend to 20/02/10 Example: Effective Date: 16/02/10 Start Date: 16/02/10 End Date: 20/02/10 • Can only be accepted in SEMO market system after Ex-Ante for Trade Date 15/02/10 has been completed. Example of Reducing End Date Original Request: New Request: Reduce to 10/02/10 Example: Effective Date: 06/02/10 Start Date: 06/02/10 End Date: 15/02/10 Effective Date: 10/02/10 Start Date: 10/02/10 End Date: 10/02/10 • Can only be accepted in SEMO market system after Ex-Ante for Trade Date 09/02/10 has been completed. Market Operator User Group Meeting / June 30 th 2009

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 41 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009

Cost to the Market of Resettlement • Approx 75 Participant Accounts in Market • ½ day per resettlement event to reconcile and pay • MO time, 5 -10 person days per event => Estimate of 45 Person Days for each Resettlement event • 24 ad-hoc resettlement events per year => 3 people for a year • 200 Post M+13 resettlement events per year => 24 42 people for a year Market Operator User Group Meeting

Effective Resettlement Quality of Feeds & Calculations 43 Timing of Corrections Market Operator User Group Meeting Criteria for Ad-hoc

Errors by Responsible Party 44 Market Operator User Group Meeting

Effective Resettlement Quality of Feeds & Calculations 45 Timing of Corrections Market Operator User Group Meeting Criteria for Ad-hoc

Resolution of Errors by Resettlement Run 40% 20% 46 Market Operator User Group Meeting

Effective Resettlement Quality of Feeds & Calculations 47 Timing of Corrections Market Operator User Group Meeting Criteria for Ad-hoc

48 Market Operator User Group Meeting

Conclusions Effective Resettlement Quality of data feeds and processing needs continue to improve Timing of Queries needs to be appropriate Changes to criteria for adhoc resettlement needs considered, especially due to re-pricing and Post M+13 Quality of Feeds & Calculations Timing of Corrections Criteria for Ad-hoc 49 Market Operator User Group Meeting

Lets Discuss……. . Option 1: Discrete periods for Query of Resettlement Option 2: Increase Materiality Level Option 3: Timetabled Resettlement of Re-pricing only Option 4: Threshold for Whole Market Resettlement Post M+13 50 Market Operator User Group Meeting

Agenda Review of Action Items Market Operations 10: 40 Releases and Infrastructure Customer Service 10: 50 11: 00 Website Update 11: 10 Unit Under Test Discussion 11: 30 Resettlement Discussion 11: 55 Questions and Answers 51 10: 30 12: 20 Market Operator User Group Meeting / 11 th August 2009