ERCOT Reaches Fee Agreement with PUC, Stakeholders

ERCOT reached an agreement Tuesday with Public Utility Commission (PUC) staff and a broad-based group of stakeholders to reduce the administrative fee from $.44 to $.42 per megawatt hour, effectively cutting the ERCOT budget by $6 million, and to reduce debt by $5 million by the end of 2005.

The settlement will be considered by the ERCOT Board of Directors in its Dec. 14 meeting, and, if approved, filed with the PUC for its approval.

CEO Tom Schrader said the settlement will impose a rigorous level of fiscal discipline on the ERCOT organization.  In addition to the budget reduction, substantial new funding will be required to address the findings of the recently-completed PUC-ordered assessments of internal management controls and internal IT security.  Spending will be limited to projects and services with the highest value to the ERCOT mission, and some activities may need to be deferred, Schrader said.  Employees across the board will be asked to find ways to meet this challenge, and stakeholders will be asked to revisit market priorities.

Pat Wood, chairman of the Federal Energy Regulatory Commission, and Paul Hudson, chairman of the Public Utility Commission of Texas, are scheduled to speak at ERCOT’s 34th annual membership meeting from 11 a.m. to 1 p.m., Dec. 14, at the Hilton Austin Airport Hotel.  The regular December meeting of the board is scheduled from 1-4 p.m.

Board materials and presentations are posted each month on the ERCOT Web site Meeting Calendar by date of the board meeting.

ERCOT Meeting Dates

• 12/14/04 -- TNT Protocols, 0830-1700, ERCOT Austin 206B
• 12/14/04 -- ERCOT Board Meeting, 1300-1600, Hilton Austin Airport
• 12/14/04 -- Finance & Audit Committee Meeting, 0800-1000, Hilton Austin Airport Hotel, Chennault Room
• 12/14/04 -- H.R. & Governance Committee Meeting, 0900-1000, Hilton Austin Airport Hotel, Del Valle Room
• 12/14/04 -- Special Committee Meeting, 1000-1100. Hilton Austin Airport Hotel, Del Valle Room
• 12/15/04 -- ROS, 0930-1600, ERCOT Austin 206A
• 12/15/04 -- PRS, 0930-1530, ERCOT Austin 206B
• 12/16/04 -- TNT Protocols, 0900-1700, ERCOT Taylor 253
• 12/16/04 -- Black Start TF, 1000-1500, ERCOT Taylor 252
• 12/16/04 -- RMS, 0900-1600, ERCOT Austin 206
• 12/16/04 -- PUCT Open Meeting, 0930-1700, Travis Building, 7th Floor
• 12/17/04 -- TNT Protocols, 0900-1500, ERCOT Austin 206B
• 12/17/04 -- PWG, 0900-1500, ERCOT Austin 168
• 12/23-24/04 -- ERCOT Administrative Office Holiday
• 12/31/04 -- ERCOT Administrative Office Holiday

If you have a submission for ERCOT at a Glance, please contact Dottie Roark, 512.225.7024 or droark@ercot.com.