Market Systems Enhancement

Market Systems Enhancement Update for the Technology Committee MISO Board of Directors November 28, 2017

Executive Summary Market System Enhancement Program is refining its seven-year plan, including key milestones, resource loading, and dependencies Execution is underway, with performance and risk monitoring established MSE strategy includes close collaboration with stakeholders 1 Technology Committee Update Market Systems Enhancement

Market Systems Enhancement is a critical program that aligns with MISO s corporate strategy 2 Technology Committee Update Market Systems Enhancement

The Program team created a dashboard to provide a comprehensive program overview 3 Technology Committee Update Market Systems Enhancement *Includes Market System Evaluation 2017 funding **Green <=5%, yellow >5% to <=10%, red >10% Data date: 10/31/17 Financial data date: 10/31/17

The team developed an 18-Month look-ahead plan that integrates with MISO s corporate plan 4 Technology Committee Update Market Systems Enhancement

The 2018 program plan, with a budget of $21.7M, is also fully integrated and resource loaded with the MISO corporate plan 2018 Spend ($M)* Investment Category Investment Themes CapEx OpEx Total Extend & upgrade legacy systems Cyber-security Performance improvements $4.3 $1.4 $5.7 Foundational Advances Market System Options Data management Model management design Specification of requirements Business process transformation Algorithm/math engine optimization Platform investigation $4.7 $6.1 $10.8 $1.8 $3.4 $5.2 Total $10.8 $10.9 $21.7 5 Technology Committee Update Market Systems Enhancement

Stakeholder engagement is a priority for the program team Vision MISO operates the most reliable, value-creating market platform Mission Transform MISO s market platform to increase reliability and value External Engagement Constant interaction with MSE Consortium Quarterly updates to Board of Directors Quarterly updates to Market Subcommittee Regular updates with senior technology leadership 6 Technology Committee Update Market Systems Enhancement

Next Steps December 2018 budget approval Stakeholder update (Market Subcommittee) Program retention strategy (HR Subcommittee) Q1 2018 Member CIO-IT workshop (February) Technology/Markets Committee update (March) Quarterly stakeholder updates (Market Subcommittee) 7 Technology Committee Update Market Systems Enhancement

Appendix

Program sequence spans seven years with key upgrades and projects starting in 2017 9 Technology Committee Update Market Systems Enhancement

The MSE Program team identified key outcomes and milestones for the master plan Key Outcomes 1. Modeling Upgrade Implementation Complete 2. Initial Performance Enhancements Complete: To support Market Roadmap Project performance requirements we need to complete implementation of Extend Legacy GE Market Systems (several projects), and the Data Transfer Enhancement (Phase 1 Upgrade) 3. Phase 1 Market System Upgrades Implemented by MISO (includes Part 1 & Part 2) 4. Phase 2 Market System Vendor Enhancement Complete 5. Phase 2 Market System Consortium Product Implementation 6. Phase 2 Market System Custom Product Implementation & MSE Program Complete Interim Milestones A. GE provides access to the Data Transfer Enhancement product to MISO (in GE Sandbox) B. MISO Completes Delivery Platform and Automated Testing to Support GE Product Implementation: Note that we will also replicate the current environment to establish a performance baseline against which we will measure improvements C. Completion of Requirements Baseline & Mgmt Plan: To support requirements workshops we will establish document baseline performance and develop a plan for the ongoing management of requirements D. Completion of Future State Market Characterization: To support requirements workshops we will present gaps identified during the MSE Study and MISO 2020 report to further characterize future state market conditions from 2023-2038 E. Completion of Next Gen Requirements Workshops: upon completion we will begin develop the v2.0 of our Technical Foundation products and begin validation of preferred vendors and viable alternative(s) F. Completion of Next Gen Custom Requirements: MISO will incorporate the Next Gen Study v3.0 impacts into requirements and perform a gap analysis to identify additional product customizations of the Next Gen Market System including business process improvement impacts. 10 Technology Committee Update Market Systems Enhancement

The MSE Program s approach allows MISO to adapt, apply lessons learned and identify opportunities to accelerate Business process transformation and maturity for foundational capabilities requires long-term effort Off-the-shelf options not available Participation in an ISO/RTO partnership balances reduced cost and risk mitigation Potential vendor partners can assist us in accelerating specific projects MSE program is part of balanced portfolio which includes improved security posture and audit support 11 Technology Committee Update Market Systems Enhancement

MSE s Data Strategy & Roadmap aligns with the program strategy and value proposition Current Roadmap Q4 2017 Baseline / catalog Integrated requirements workshop Reference architecture 2018 Integrated requirements scenarios Platform technology testing Integration development 2019 Integration dev & testing GE integration Extract, Transform, Load (ETL) replacement 2020 New integrations deployment to production Value Proposition Reduces threats and risks to business operations and reliability Underpins, enables, and expedites migration to a micro-service based architecture and operating model Increases optionality and reduces vendor lock-in 12 Technology Committee Update Market Systems Enhancement

MISO s current data infrastructure creates data access, quality and protection challenges What we have: What we need: Super complex data structure ~ 300 point-to-point integrations 54 unique system interfaces Unified data strategy Simplified structure and processes Advanced analytic capabilities 13 Technology Committee Update Market Systems Enhancement

The data integration strategy uses an industry standard reference model 14 Technology Committee Update Market Systems Enhancement