News Release

June 15, 2006

ERCOT at a Glance: News Update - June 15, 2006


  • Nodal vendors announced
  • 2006 Capacity, Demand and Reserves report released
  • ERCOT board meeting Tuesday
  • E-mail list sign-up instructions for market notices

ERCOT Selects Vendors for Nodal Systems

ERCOT announced today the selection of six key vendors to build requirements for the critical nodal systems supporting the implementation of a new Texas Nodal Market.  This event marks the accomplishment, on schedule, of a major milestone in the program.

Requests for proposals, sent out April 14, 2006, resulted in the selection of the following vendors:

  • ROME Corporation (Credit Monitoring)
  • Nexant, Inc. Energy Solutions Division (CRR, Network Modeling and Telemetry)
  • ABB, Inc. PSN/Power Systems Division (Market Operations and Outage Scheduler)
  • Siemens Power Transmission & Distribution Inc. Energy Management & Automation Division (NMMS)
  • AWS Truwind, LLC, (RPP forecast)

AREVA T&D, Inc., will remain the provider of the Energy Management System and Load Forecast. Commercial systems, including billing and settlement, will be developed internally by ERCOT Nodal team staff. 

"ERCOT’s rigorous selection criteria, consistent with the Nodal Charter, require vendor offerings to align with ERCOT’s focused technology footprint, and select only proven software solutions that are capable of minimizing bugs and integration risk," said Nodal Program Director Kathy Hager.  "The preferred vendor teams consist of exemplary individuals who bring to ERCOT a commitment to excellence in project management and a proven track record of delivery and results."

Preferred vendors will start joint development of requirements beginning July 5. Upon satisfactory completion of requirements, ERCOT will contract for software purchase, customization and implementation.

In September 2003, the Public Utility Commission of Texas (PUC) ordered ERCOT stakeholders to develop a nodal wholesale market design. In April 2006, the PUC signed the order approving the nodal protocols. The Texas Nodal project exists to facilitate the transition from a zonal to a nodal market and affects many business processes and systems. The primary components of the nodal market include a day-ahead market, reliability unit commitment, real-time or security constrained economic dispatch, and congestion revenue rights. In the nodal market, ERCOT will consist of more than 4,000 nodes which will replace the ERCOT region’s current five congestion management zones. 

The nodal market is expected to deliver improved price signals, improved dispatch efficiencies and direct assignment of local congestion.

Capacity, Demand, Reserves Full Report Posted

ERCOT released the 2006 annual Capacity, Demand and Reserves report early this week.  The report includes:

  • Forecasts for summer and winter load, generation resources, and reserve margins for 2006-12
  • Long-term projections - graphs of capacity and demand - through 2026
  • Generation capacity by fuel type for 2006-12
  • Load by county
  • Generation by county
  • Import or export by county
  • Summer and winter capacities by unit.

The report also includes a section summarizing changes and updates from last year’s report, such as the inclusion of planned units with signed interconnection agreements and use of latest net dependable capabilities.  Also, the percentage of wind used in the reserve margin calculation this year was 2.6 percent instead of the 2.9 percent used last year, the result of an adjustment made by the Generation Adequacy Task Force based on historical wind performance.

The report is posted on the ERCOT Web site in the News Room Reports and Presentations section.

ERCOT Board to Meet Tuesday

The ERCOT Board of Directors monthly meeting is scheduled for 10 a.m. - 2:30 p.m., Tuesday, June 20, at ERCOT Austin, 7620 Metro Center Drive. The agenda and background materials are available on the meeting calendar.

Market Notice e-mail Lists Reminder

Earlier this year, ERCOT instituted a new distribution process for e-mail market notices to replace the previous practice of using subcommittee and working group e-mail lists for market notifications. The new list management system allows ERCOT to more accurately direct notices to the intended audiences.

The new lists are for distribution of information by ERCOT. Subcommittee and working group business will continue to be conducted through their appropriate lists. In addition, individuals who need to provide information to the market should continue using the existing exploder lists.

Individuals can subscribe to the e-mail lists under "Quick Links" at or at ERCOT Mail Lists.

ERCOT Meeting Calendar

June 2006

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 25 million Texas customers -- representing about 90 percent of the state’s electric load. As the independent system operator for the region, ERCOT schedules power on an electric grid that connects more than 46,500 miles of transmission lines and 650+ generation units. It also performs financial settlement for the competitive wholesale bulk-power market and administers retail switching for nearly 8 million premises 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. Its members include consumers, cooperatives, generators, power marketers, retail electric providers, investor-owned electric utilities, transmission and distribution providers and municipally owned electric utilities.