Wholesale Client Services Reorganizes to Improve Support to Market Participants

In an effort to more efficiently provide services to market participants, the ERCOT wholesale client relations group has reorganized.  The central idea behind the reorganization is the creation of two teams: account management and market support services, each designed to focus on delivery of market support services such as facilitation of issues, communication and education. The account management team will concentrate on specific market participant services, while the market support services team will focus its efforts on providing support to market participants and various ERCOT business departments on a market-wide basis.

* For more information, contact Ted Hailu at x3873

TNT Market Design Concepts Discussed at Economist Workshop

The Texas Nodal Team facilitated the Economist Workshop on September 16-17.  The purpose of this meeting was to discuss the TNT market design concepts as outlined in the TNT whitepapers and draft protocols in an open forum, with four industry economic experts.  Dr. Shmuel Oren, Dr. David Patten, Dr. Frank Wolak and Dr. Roy Shanker each made comments and provided written analysis on the Texas Nodal Market Design.  For two days, TNT presented topics on the Day Ahead Market, Reliability Unit Commitment, Congestion Revenue Rights, Ancillary Services and Market Mitigation.  In the session, stakeholders presented and explained each of the design elements and the economists responded with their thoughts, criticisms and suggestions.  The TNT will reconvene September 27-28 to discuss the outcomes of the Workshop and evaluate the comments and suggestions and how they will be considered.  All copies of the presentations, including a short bio on each speaker, can be located on the TNT Web site at www.ercot.com/tnt.

* For more information, please contact Jim Galvin at x3870

TNT Facilitator Testifies at House Subcommittee

Texas Nodal Team independent facilitator Trip Doggett testified Friday, Sept. 24 before a House subcommittee investigating  economic dispatch of electricity resources.  The subcommittee of the Texas House Regulated Industries Committee is responding to its Interim Charge No. 3 to study the “process of economic dispatch and determine possible methods to improve the competitive electric utilities markets and reduce costs and pollution caused by inefficient power plants.”  The subcommittee is chaired by Rep. Todd Baxter, R-Austin.

PUC Julie Parsley presented the subcommittee with an overview of electric system economic dispatch concepts and an update on consideration of alternative wholesale market designs.  Trip  Doggett focused his testimony on the extensive stakeholder process and cost benefit analyses that are integral to the TNT effort to develop wholesale market design options for Commission evaluation.  Several industry representatives also testified, primarily on wholesale market design issues.

* For more information, contact Trip Doggett at x7007 or Jim Galvin at x3870

New EMMS Enhancement Allows Users to Manage Local Congestion Constraints

System operations announced the deployment of the Constraint Activity Manager (CAM) application to the EMMS production environment. CAM represents a major enhancement to the ERCOT EMMS system.  It allows ERCOT operators to manage local congestion constraints addressed in the Real Time Balancing Energy Schedule (RTBES) market. CAM will allow operators to automatically generate and activate a constraint to the RTBES for any transmission congestion detected in real-time operations while significantly improving both power system reliability and market efficiency.

* For more information, contact Tim Mortensen at x3019

Update of ERCOT Geographic Map Underway

The annual update of the ERCOT geographic system map is underway and printing of the map will begin next week.  The map graphically represents the ERCOT system and includes all transmission facilities within the system from 69 kV to 345 kV.  It also includes generation stations, substations, DC Ties and existing and proposed transmission facilities.  The map can also be configured to show congestion zones, weather zones and even planning bus numbers.  Every year the map is improved, providing more detail about the ERCOT system.  Within the next several weeks maps will be delivered to members, board, officers, directors, managers, PUCT staff and other parties.  Maps at ACC and TCC will be replaced with the updated map.  The map will also be available for download in several formats from the "Operations and Planning" data area on the internet.  ERCOT employees needing a printed copy should contact Jan Grisham.

*For more information contact Ken Donohoo at x3003.

Representatives from the Fujian Province of China visit ERCOT

Employees from the congestion and renewable credits group met with representatives from the Fujian Province of China last week. The Chinese dignitaries were interested in the Texas Renewable Energy Credit Trading Program (REC) and the Texas Renewable Portfolio Standard. ERCOT is the program administrator for the Texas Renewable Credits Trading Program under the direction of the PUC. The program is designed to facilitate the SB7 requirements to ensure that an additional 2,000 megawatts (MW) of generating capacity from renewable energy technologies (such as wind or solar power), is installed in Texas by 2009.

China is beginning to undergo many changes and enhancements in their wind energy programs and is very interested in the REC Program and how ERCOT is managing congestion problems on the system. The Texas model is recognized as the premier program in the country and provides additional financial incentive for people that want to build renewable resource generation in Texas. Texas was the first entity to develop a REC trading program in the U.S.

* For more information contact Roy McCoy at x3131.

Board of Directors Meeting News/Updates

Term Loan Extension

The board authorized ERCOT staff to extend the time for drawing down funds under its Term Loan for up to an additional 6 months.  Because capital projects have come in under budget thus far in 2004, ERCOT has been able to defer planned indebtedness.  This action by the board will preserve ERCOT borrowing capacity into next year.

* For more information, contact Maxine Buckles at x7012

Voltage Study

ERCOT will supervise a study of the potential voltage issues related to the future retirement of the B. M. Davis power plant in Corpus Christi.  This plant is currently under an RMR contract - it is no longer profitable for its owner, but is needed for system reliability.  Current plans are to terminate the RMR contract when certain transmission upgrades are completed.  An industrial customer in the area has concerns about voltage impacts if the plant is closed and has requested the new study, which the customer will fund.

* For more information, contact Ken Donohoo at x3003

2005 Congestion Zones approved

The board approved transmission congestion zones for 2005.  The five zones approved are the same as current 2004 zones with the addition of an additional constrained path (CSC or Commercial Significant Constraint) from the North zone to the West zone.

* For more information, contact Ken Donohoo at x 3003

Load Profile IDs Assignment suspended for 2004

Pursuant to a new PRR, the board approved suspension of load profile ID assignment and validation for residential customers this year.  The calculations used to assign load profiles, has produced some anomalous results, and the ERCOT Load Profiling Working Group needs time to address the underlying causes of the problem.  Suspension of the ID assignment process will avoid significant effort by the TDSPs that can be applied to working on the issue.

* For more information, contact Betty Day at x3877

Special Committee

The Special Committee of the Board met with external auditors examining management practices, internal controls, and security issues - as well as with ERCOT’s internal auditor and outside financial auditor.  The auditors provided updates of the all the auditing activities now underway.

* For more information, contact Margaret Pemberton at x7070

Nominating Committee

The board authorized ERCOT staff to seek a search firm to find candidates to replace the unaffiliated board position left vacant by David Baggett.  Mr. Baggett left the board shortly before his term expired, to seek other opportunities.  After the search firm identifies qualified candidates, the board's Nominating Committee will make a recommendation for ERCOT members to consider.  Final approval of the new member selection must be made by the PUC.

* For more information, contact Margaret Pemberton at x7070

ERCOT Meetings

• Tuesday, September 28 – ERCOT 101: Understanding the Tools of the Texas Retail Market – ERCOT Austin 206, 9-5pm
• Wednesday, September 29 – Electric Utility Restructuring Legislative Oversight Committee will meet jointly with the Senate Business and Commerce Committee and the House Committee on Regulated Industries to discuss matters pertaining to the restructuring of the electric utility industry, including ERCOT matters – State Capitol, Rm. E1.036 (Finance Com Rm.), 10 am
• Wednesday, September 29 – ERCOT 101: Understanding the Tools of the Texas Retail Market – ERCOT Austin 206, 9-5pm
• Thursday, September 30 – Congestion Management Seminar – ERCOT Austin 206A, 9-4pm
• Thursday, September 30 – NERC Functional Model Registration Workshop – ERCOT Austin 206B, 9:30-2:30pm
• Thursday, September 30 – PUCT Open Meeting – Travis Building, 7th Floor, noon
• Friday, October 1 – Energy Market Regulatory Authority of Turkey (Host: Joel Mickey) – ERCOT Austin 206B, 2:30-4pm

ERCOT at a Glance is an electronic summary of the timely and topical events going on within the organization. ERCOT at a Glance will update employees on the newsworthy and noteworthy events and accomplishments related to the business of ERCOT. We are seeking milestones, accomplishments and everyday news. If you’ve got important stories or information to share with us, please provide us with your news in electronic summary format, after first coordinating with the managers and directors in your area. We welcome your summaries (due by 5 p.m. on Thursday of each week) and look forward to hearing from you. If you have questions, please contact Heather Tindall at 512-225-7023 or htindall@ercot.com.