FERC Chair Praises ERCOT’S Progress

Federal Energy Regulatory Commission (FERC) Chairman Pat Wood III praised ERCOT’s accomplishments over the past five years in a presentation at ERCOT’s 34th annual meeting Tuesday.

Wood was chairman of the Public Utility Commission of Texas (PUCT) from 1995-2001, during the time that ERCOT assumed new responsibilities as an independent system operator and was assigned huge responsibilities for opening the retail market.  He reviewed ERCOT’s growth from 30 employees in 1996 to more than 400 in 2004 to meet the challenges of the Senate Bill 7 electricity restructuring law.

“We were in moon-launch mode….You got it done on time and on budget,” which he noted, no other market has succeeded in doing.

Wood acknowledged there were some problems when the retail market opened in January 2002, but added, “There would have been problems even if we had waited two years.  It wasn’t perfect, but it never could have been perfect.”

Wood said it has been “painful” to observe the aftermath of the allegations of the contract irregularities.

“I am wounded for you,” he said, and urged ERCOT’s members to remain positive.

“A few bad eggs are not going to ruin the grocery store,” Wood said.  “You have done so much for the good of the state of Texas.  Be proud of what you’ve done.  This is such a strong, resilient group.”

Wood praised the members for the “Texas way” of “burying private interests for the public interest.”

In closing, Wood encouraged the members and new CEO Tom Schrader to continue moving forward.

“Cherish this great organization,” Wood said.  “Build it.  Sustain it.  Embrace the changes,” he said.  “I love this organization.  I appreciate all the good work you’ve done for this great state.  Keep doing a great job because it matters for everybody.”

Security Director Announced

Chander M. Ahuja has been appointed as ERCOT’s director of security, CEO Tom Schrader announced today.  Chander will report directly to the CEO and will head up a reconstituted security group which will include both cyber and physical security.

Employees can expect to see some changes in how security is handled as a result of initiatives Chander will be putting into place, Schrader said, including:

• Services provided by the security group are mandated services that every department MUST utilize. No department can establish security practices independent of the security group’s involvement.
• Departments (not the security group) are the responsible party for executing all security practices that are required of their group. The departments (in consultation with the security group) are also responsible for establishing the applicable policies and the procedures they must follow to meet security requirements.
• Each business unit will need to designate and provide adequate staff resources (“security coordinators”) to maintain a compliant security posture.

Schrader emphasized that the fundamental principle underlying the changes is that security is the responsibility of every ERCOT employee and contractor.

ERCOT Meeting Dates

• 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