Market Information System Grid and Market Conditions

News Release

May 19, 2008

ERCOT Switching Pre-Buy Customers

Electric Reliability Council of Texas, Inc., grid operator for most of the state, announced today that customers of Pre-Buy Electric, LLC, are being switched to another retail electric provider due to the company’s default on payment obligations to ERCOT, as of 5 p.m., Friday. 

The number of customers being switched to retail electric providers designated for default circumstances is 8,430, including 8,394 residential and 36 small non-residential customers.  The size of the associated load is approximately 255 megawatt-hours per day. 

ERCOT implemented the automated switching process early Saturday morning, and all switching is expected to be completed by the close of business today.   

This is the first time ERCOT has administered the automated switching process for a customer mass-transition.  ERCOT stakeholders approved the expedited switching procedure in 2006 after a series of defaults to reduce the duration of the switching process.   

ERCOT has been working closely with the Public Utility Commission (PUC) and affected market participants to ensure an efficient and effective transfer of customers. 

Customers who are transitioned from Pre-Buy Electric to a default provider will be notified in accordance with PUC rules which require both the defaulting retail electric provider and the new provider to notify the customer. 

Electric customers who have questions or issues may contact the PUC Consumer Hotline, 1-888-782-8477, or go to the PUC’s Consumer Web Site

The Electric Reliability Council of Texas (ERCOT) manages the flow of electric power to more than 26 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 710+ 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.