PRESS RELEASE
February 14, 2007
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ERCOT at a Glance: News Update - Feb. 14, 2007

TOPICS:

CEO REVIEWS STATE’S FUTURE ENERGY NEEDS

ERCOT President and CEO Sam Jones presented an unofficial update of the region’s future energy needs to the House Regulated Industries Committee Tuesday.  Without new resources, the region’s power supply is projected to fall below the 12.5 percent minimum beginning in 2009, instead of 2008, as previously reported in June’s Capacity, Demand and Reserves report.  The most significant differences for the short term were the addition of several natural gas units and a delayed date on plans to mothball a large unit, Jones said.  The unofficial estimate also added planned generation projects with interconnection agreements and Texas Commission on Environmental Quality permits.   

ERCOT’s official projected reserve margin is released each June, based on the information available at the time regarding load forecasts and available generation resources.  

ERCOT REGION RESERVE MARGINS – ABSENT NEW OR RETURNING RESOURCES 

 

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Reserve Margin (Minimum Target: 12.5%)

15.5%

13.2%

10.2%

8.2%

5.9%

5.2%

2.5%

0.3%

-2.0%

-4.2%

Deficit (megawatts)

0

0

1,480

2,837

4,472

5,050

7,096

8,872

10,746

12,652

 

Jones attributed the declining reserve margin to several factors including the state’s growing economy and population.   

The complete presentation is available online in the News/Reports and Presentations section of the ERCOT Web site. 

159 GENERATION REQUESTS UNDER REVIEW

System Planning is currently tracking 159 generation interconnection requests totaling over 76,000 megawatts (MW), and approximately $133 million in transmission projects are currently under review, according to the January System Planning Report.   

The active generation interconnection requests include 50 in security screening, 79 in full-interconnection studies, and 30 with a completed transmission interconnection agreement.  

Other highlights from the report include:

  • Two wind farms with a total capacity of 214 MW started commercial operations in December 2006.
  • A draft scope for a coal unit integration study was sent to the Regional Planning Group for comment. This study will evaluate the transmission projects that would be needed with different combinations of units proposed for 2009-2012.
  • A dynamic stability study of possible transfers out of West Texas, including wind models, has been completed.  Results will be presented to the Reliability and Operations Subcommittee on Feb. 15 and the Regional Planning Group on Feb. 16.
  • Approximately $133 million worth of transmission projects are currently under RPG and/or ERCOT Independent review. The TNP/CNP Alvin 345kV Tie Project, $19.4 million, was presented to and endorsed by the ERCOT Board of Directors in January.   

The January System Planning Report is posted on the Web site with the Reliability and Operations Subcommittee Feb. 15 meeting documents.  

LOAD FORECAST FORUM PRESENTATIONS ONLINE

ERCOT market participants and staff presented the 2007 Load Forecasting Forum Jan. 24.  The presentations included:

The presentations are posted in the calendar section of the ERCOT Web site.

SIXTH INDIVIDUAL PLEADS GUILTY TO FRAUD AGAINST ERCOT

Steve Wallace, former program development director, pled guilty Friday to a first-degree felony (misapplication of fiduciary property) for his role in the 2003-2004 criminal conspiracy to defraud ERCOT through a web of shell companies. He is scheduled for sentencing in Williamson County District Court on May 1 at 1:30 p.m. 

According to the plea agreement, Wallace is expected to be sentenced to 12 years in prison and be required to pay approximately $749,000 in restitution to ERCOT. Wallace also faces indictments in Travis County.   

The other five individuals have received the following sentences: 

  • Kenneth Shoquist: Former chief information officer; sentenced to 8 years in prison; paid $120,000 in restitution to ERCOT
  • Carlos Luquis: Former physical security manager; sentenced by jury to 12 years in prison; $10,000 fine; ordered to pay $205,000 in restitution to ERCOT
  • Chris Uranga: Former director of IT operations and corporate security; sentenced to 7 years in prison; ordered to pay $505,000 in restitution to ERCOT
  • Chris Douglas: Former senior data warehouse manager; sentenced to 90 days in prison, 10 years probation; and 500 hours community service; ordered to pay approximately $500,000 in restitution to ERCOT
  • John Cavazos: Former contractor; sentenced to 4 years deferred adjudication probation; paid $8,700 in restitution to ERCOT.

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to 21 million Texas customers – representing 85 percent of the state’s electric load and 75 percent of the Texas land area. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects 38,000 miles of transmission lines and more than 550 generation units. ERCOT also manages financial settlement for the competitive wholesale bulk-power market and administers customer switching for 6 million Texans in competitive choice areas. ERCOT is a membership-based 501(c)(4) nonprofit corporation, governed by a board of directors and subject to oversight by the Public Utility Commission of Texas and the Texas Legislature. ERCOT's members include consumers, cooperatives, independent generators, independent power marketers, retail electric providers, investor-owned electric utilities (transmission and distribution providers), and municipal-owned electric utilities.

Contact
Dottie Roark 512-225-7024