NEC Launches Pilot to Opt In to Competitive Market

The Retail Client Services group is working with Nueces Electric Cooperative (NEC) on the first effort by an entity to “opt in” to Texas’s competitive choice electricity market.  Texas’s restructuring law (Senate Bill 7) allowed electric cooperatives and municipally-owned utilities to remain non-opt-in entities (NOIEs) until they choose to enter competition.  Consistent with the law and PUCT rules, NEC launched a competitive choice Pilot on Aug. 16, 2004, and enrolled its first customer through the market’s retail transaction system two weeks later.

NEC made the decision to enter competition during a territory expansion that began in 2001, and since then has been building the necessary IT systems and training its staff in preparation for the Pilot.  The Pilot allows NEC to test its systems and procedures and resolve issues on a small subset of the meters (224) in its system through daily use of ERCOT tools, such as the FasTrak system and the Texas Market Link.  The Pilot is scheduled to conclude on November 16, 2004, setting the stage for NEC to open its full territory to competitive choice in 2005, if it chooses to do so.  NEC’s territory is near the Texas Gulf Coast west of Corpus Christi, and includes approximately 12,000 electricity meters.

* For more information, contact Mike Davis at x6763 or Paul Wattles at x7242

Independent Member David Baggett Resigns Board Seat

Independent, unaffiliated ERCOT board member David Baggett has submitted his resignation to the board, citing a personal move to Houston where he has accepted a partner-level position at a major consulting firm.  In his letter to CEO Tom Schrader and board chairman Mike Greene, Baggett said he submits the resignation with regret.  “I have truly enjoyed working with you, the balance of the Board, the ERCOT Staff, and the PUCT.  I trust our paths will cross again.”

Greene said, “David has been a thoughtful and valuable member of this board.  He has brought an important independent voice to our proceedings at a crucial time.  He will be missed.  All board members wish him all the best in his future endeavors.”

Baggett was appointed to the board for an 18-month term in June 2003.  ERCOT Bylaws require that a replacement for a departing unaffiliated board member be identified through an executive search process.  This will be discussed at the Sept. 21 Board Meeting.

Baggett was also chair of the Finance and Audit Committee. Clifton Karnei, vice chair of the Finance & Audit Committee, will now assume the chairmanship duties.

* For more information, contact Margaret Pemberton x7070 or Mark Walker x7076

Congestion Zones for 2005 Approved for Submission to Board

The Technical Advisory Committee (TAC) approved a recommendation to the board on the congestion zones for 2005.  If approved by the board, the congestion zones and the Commercially Significant Constraints (CSC) will be the same as the 2004 zones and CSCs except for the addition of another CSC from the north zone to the west zone.  The north to west CSC will use the same transmission elements as the current west to north CSC.

* For more information, contact Cheryl Moseley at x7057

TAC Approves Project Priority List

TAC also approved the project priority list for the 2005 budget process (see Power System Planning Charter and Processes Updates under Reports and Presentations 2004) at its monthly meeting on Sept. 9.  The project list will be included in the budget package that is submitted to the board of directors in October.

* For more information, contact Cheryl Moseley at x7057

ERCOT Releases Annual Capacity, Demand and Reserve Report

ERCOT recently released its updated, projected Capacity Demand and Reserve Report.  Based upon the TAC approved calculation methodology, ERCOT has a reserve margin greater than 20% from 2005 through 2009.  This exceeds the minimum requirement of 12.5% and indicates that ERCOT continues to have sufficient installed generation capacity to meet customer’s energy requirements.

* For more information, contact Ken Donohoo at x3003.

ERCOT 2003 Official Peak Demand Revised Up to 60,095 MW

The August resettlement of 2003 indicates that ERCOT’s all time peak demand has been revised to 60,095 MW on Thursday August 7 at 5:00 PM.  This official record indicates that ERCOT has exceeded 60,000 MW of Peak Demand.  Preliminary unofficial peak demand for 2004 is about 58,500 MW and is directly related to the cooler than normal weather.

* For more information, contact Ken Donohoo at x3003.

Other News

Sunset Commission Meeting Preview

The Texas Sunset Commission will make its final recommendations on the future of the PUCT  at a “decision meeting” on Wednesday, Sept. 15, at the State Capitol.   The PUCT’s Sunset review — a process required of all state agencies every 10-12 years — will culminate in a reauthorization of the Commission by the 2005 Texas Legislature.  The Sunset Commission, a 12-member body consisting of legislators and two appointed public members, investigates the agencies and submits recommendations to the Legislature.

ERCOT will figure prominently in the discussion.  Among the ERCOT-related issues addressed in the Sunset staff report issued in April are board structure, PUCT oversight responsibilities, ERCOT’s role in market monitoring, and the ERCOT board’s open meeting practices.

* For more information, contact Paul Wattles at x7242 or Mark Walker at x7076

ERCOT Meetings

• Tuesday, September 14 - ROS – Austin Airport Marriott South – 9:30am-4:00pm
• Wednesday, September 15 - Sunset Commission Decision Meeting - State Capitol, Rm. E1.030, 9 a.m.
• Thursday, September 16 - WMS –Austin Airport Marriott South – 9:30am-4:00pm
• Thursday, September 16 - TNT Economist Workshop – ERCOT Austin 206 – 9:00am-4:00pm
• Friday, September 16 - TNT Economist Workshop – ERCOT Austin 206 – 9:00am-4:00pm

* For more information, contact Brittney Albracht at x7027