TOPICS:

• PUC Chair to Speak at Annual Membership Meeting
• System Operations Completes Winter Storm Drill
• First Phase Of Wind Impact Study Completed
• Over 85,000 MW In Generation Requests Under Review
• Energy Use For Year 2.5 Percent Below Forecast
• Wind, Transmission Presentations Posted

PUC CHAIR TO SPEAK AT ANNUAL MEMBERSHIP MEETING

Barry Smitherman, the new chairman of the Public Utility Commission (PUC), is scheduled to speak at ERCOT's 37th annual membership meeting, 11 a.m.-1 p.m., Dec. 11, at the Hilton Austin Airport Hotel, 9515 New Airport Drive.  The annual meeting will also include a presentation from ERCOT CEO Bob Kahn and a membership vote to approve the 2008 Board of Directors.

The ERCOT board will hold its regular monthly meeting following the membership meeting at the Austin Met Center at 1:30.  The agenda and meeting documents are posted on the Web site. 

SYSTEM OPERATIONS COMPLETES WINTER STORM DRILL

More than 33 transmission operators and energy schedulers from across the ERCOT region participated in a severe weather drill Nov. 14.  The drill simulated a severe winter ice storm with multiple transmission outages and generation shortages, culminating in rotating blackouts over 200,000 households to prevent a system-wide blackout.  Energy schedulers and transmission and distribution providers were able to test backup emergency plans and practice communications with ERCOT during events leading up to the ice storm and the rotating outages, as well as simulated restoration activities.   

This year, public information officers and communications staff from eight electricity and transmission providers also participated in the drill with ERCOT and PUC representatives, to test procedures for making appeals to the public for conservation. 

ERCOT coordinated the drill from its operator training center in Taylor.  

The annual severe weather drill is required under ERCOT Operating Guides.  The Operations Working Group, comprised of market participants and stakeholders, will review and critique the results to ensure effectiveness and recommend changes as necessary.  ERCOT will verify and report entity participation to the Reliability and Operations Subcommittee.  Next year’s drill will be in May and will simulate a hurricane hitting the Texas coast. 

FIRST PHASE OF WIND IMPACT STUDY COMPLETED

ERCOT is expected to have over 4,500 MW of installed wind generation – approximately 7 percent of the peak demand forecast for 2008 – by the summer of 2008.  At increasing levels of penetration, the impact of wind generation will affect the reliability of the ERCOT system.  In order to quantify these impacts, ERCOT contracted with GE International to provide an analysis of ancillary service requirements associated with additional interconnected wind.  

Phase I findings of the wind impact/ancillary services study were presented at an open stakeholder meeting of the Wind Impact Task Force, Oct. 22.  GE is evaluating four scenarios of wind capacity on the ERCOT system: 5000 MW, two scenarios of 10,000 MW, and 15,000 MW.  Phase 1 included a statistical analysis of increased variability with increasing amounts of wind.   

Phase 2 will evaluate the ancillary services requirements relative to increased wind penetration and will recommend changes needed to accommodate wind.  

OVER 85,000 MW IN GENERATION REQUESTS UNDER REVIEW

The system planning division is currently tracking 197 active generation interconnection requests totaling over 85,000 MW, including more than 39,000 MW of wind generation, according to the October System Planning Report.  

Wind projects increased to 39,555 MW from 35,511 MW, and coal projects decreased from 9,949 MW to 7,549 MW.  Natural gas projects in the interconnection queue remain at 25,525 MW.  Nuclear projects remain at 12,386 MW. 

The regional planning group – including transmission owners, market participants and other stakeholders, led by ERCOT staff – is reviewing proposed transmission improvements with a total cost of $105.6 million. 

ENERGY USE FOR YEAR 2.5 PERCENT BELOW FORECAST

Preliminary ERCOT settlement data for demand and energy indicates total energy use through October is 2.5 percent below the normal weather forecast for consumption.  

The unofficial peak demand for 2007 is 62,188 MW, which occurred on August 13 in the 3-4 pm interval, based on 60-day final settlement data which is subject to change after the six-month true-up.  The all-time maximum peak demand is 62,337 MW, set on Aug.17 in the 4-5 pm interval. 

Energy consumption for the year as measured by fuel type is:

• Natural gas – 47 percent
• Coal – 36.5 percent
• Nuclear – 13 percent
• Wind – 2.7 percent
• Water – 0.5 percent
• Other – 0.4 percent  

WIND, TRANSMISSION PRESENTATIONS POSTED

Vice President of System Planning Bill Bojorquez presented “Nuts and Bolts of Connecting Projects to ERCOT” at a wind power development workshop in Houston, Nov. 28.  The presentation includes an overview of the Texas renewable energy program and history, the ERCOT Competitive Renewable Energy Zones (CREZ) study, and the generation interconnection process.  The presentation is posted in the reports and presentations section of ERCOT news on www.ercot.com. 

System Assessment Manager Warren Lasher presented an update of ERCOT’s CREZ transmission optimization study at the Regional Planning Group meeting, Nov. 15.   The presentation is posted with the key documents for the meeting.