Summary of Event:

1. Antitrust admonition
2. Goal for the day is to finalize CMWG’s recommendation for CSCs and Congestion Management Zones for 2006.
3. Beth Garza reviewed the 4 scenarios that ERCOT was asked to analyze.
   1. The Zorn-Marion, Zorn-Clear Spring potential CSC was discussed. The group present did not believe that this should be included as a CSC for the following reasons.
      1. Transmission projects that are expected to relieve congestion in the area are scheduled for completion before mid-year 2006.  However, it was acknowledged that congestion during construction may be a issue.
         1. Clearspring Auto upgrade
         2. Zorn Auto changeout
         3. Kendall -- Cagnon line
      2. Congestion in the area is typically caused by 345kV outages overloading 138kV lines.  Having this element as a CSC would likely result in the three combined cycle units being deemed Boundary Generators.  The result being their output would be held constant during zonal congestion.
   2. The Trinidad CSC was discussed -- in the Dallas area the most limiting elements were Watermill -- Cedar Hill  and Watermill - Tricorner. These have both been fixed. The next most limiting element is expected to be  Trinidad -- Tricorner/Watermill.
   3. There was discussion of the Trinidad RAP. No one present wanted to see this included as a new CSC.
4. A recommendation was made to use the current CSCs and 5 Zones for 2006. There were no objections expressed by market participants in attendance. This recommendation was subject to ERCOT’s additional review of both new Potential CSCs Beth stated that ERCOT will take the issues raised under advisement and study the situation. ERCOT reserves the right to include either  as a CSC for WMS consideration, subject to notification to the CMWG first.
5. If nothing changes, CMWG will recommend to WMS that the same CSC and Zones be used for 2006.

Action Items / Next Steps:

• ERCOT will reconsider both new Potential CSCs
• ERCOT to notify the group if no meeting is necessary on 8/5/05 by Wed 8/3/05

Attendees: