What we want to be when we grow

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What we want to be when we grow up (Software Standards for the wholesale electric business. ) Don Watkins Bonneville Power Administration

Visualize §Banking using your credit card or debit card at a business or ATM §How you got here by airline §How the products you buy got to the store §The difference between businesses making it or failing (managing the processes) §The use of your cell phone or doing long distance on this trip. What do these have that the Wholesale electric business doesn’t?

Of Note We have an interconnected electric system that is the most sophisticated and complex system in the world. But we have electronic transaction systems that fall far short of the standard needed to assure a reliable, efficient and flexible use of the wholesale electric grid (perhaps we should even be embarrassed!).

What we can’t do effectively § Transaction connectivity between energy markets and transmission use. § Transaction seamlessness within and across reliability/RTO seams. § Ability to effect rapid transmission loading changes for reliability within and across seams and to all stakeholders in an energy transaction. § Complete and accurate electronically generated information for settlement.

What are we missing? Common/Open: § § Unique definitions of everything Business Process models Adequate standardized data models. Protocols

Where Do We Need Connectivity? A continuum from cradle to grave Energy Buy / Sell • Buy • Sell Transmissi on Rights and Market systems • Obtain T rights • Rights tracking Real-Time Operations • Manage schedules • DSM • Curtailments Settlement & Billing • Reconciliation • Settlements • Billing & Accounting Electronic Funds Transfer Transmissio n Scheduling • Pre-schedules • Same day

What are the impacts? § Watching a system fall apart with no effective ability to mitigate (8/14/03) § Manual data conditioning, Restricted information across seams § Siloed data (have to go looking) § Reduced market transparency and difficult market monitoring § Encumbered settlement and payment § A TLR or equvalent can’t be implemented in urgent situations.

Some History § About 10 years ago……. . – We concretely discussed and envisioned cradle to grave electronic transaction management for transmitting power in 1995 as FERC 889 was developed. § Now – We’ve had much discussion but ……. – We’ve had a couple efforts defining broad based systems but have failed to produce a product. § 10 years from now – If we want to fix this deficiency we’d better start some effective work NOW

Gotta have a plan § Must have incentivized parties (business drivers) to develop open/common standards § Must have market demand for assimilation in Vendor products (and vendors need to help with standards). § Do it in a glass house with all major stakeholders somehow accounted for.

Proposed Development Model Proprietary Applications Vendors Market Participants Electric Grease Consortium- Chartered and Managed by incentivized party • Develop and implement, and maintain common/open architecture and systems. Process Management • Performance driven. • Design with intrinsic drivers for success. Audit & Standards Control Policy and direction Others Regulators FERC Standards Groups NAESB

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