TAC Report to the TAC Report to the ERCOT BoardERCOT Board

October 21, 2003October 21, 2003

October 21, 2003 2

SummarySummary• RMR exit strategies for La Palma and RMR exit strategies for La Palma and

Fort Phantom endorsedFort Phantom endorsed• TNT recommendationsTNT recommendations• Operating Guide RevisionOperating Guide Revision• 2004 Test Plan schedule revisions2004 Test Plan schedule revisions• Daily Uplift Cost Estimation ReportDaily Uplift Cost Estimation Report• PRRs 381, 427, 428, 444, 447, 460PRRs 381, 427, 428, 444, 447, 460

•2004 CSCs and zones2004 CSCs and zones – LCRA and STEC exemption requestsLCRA and STEC exemption requests

October 21, 2003 3

Notification of TAC Notification of TAC actionsactions

Operating Guide RevisionOperating Guide Revision• OGRR 137 – Revision due to PRR415OGRR 137 – Revision due to PRR415

Establish 50% as Limit for LaaRs Establish 50% as Limit for LaaRs PProviding RRSroviding RRS

Market Testing Flight SchedulesMarket Testing Flight Schedules• Four flights scheduled for 2004: v1.6-Four flights scheduled for 2004: v1.6-

0104, v1.6 -0304, v2.0-0504, v2.0-0104, v1.6 -0304, v2.0-0504, v2.0-09040904

Endorsed the prioritization of Endorsed the prioritization of 2004 projects by PRS2004 projects by PRS

October 21, 2003 4

Uplift Cost Uplift Cost ElementElement

Estimated Estimated Interval Interval AmountAmount

AssumptionAssumption

BENABENA ( by 15 Minutes)( by 15 Minutes) 1. QSEs follow schedules and 1. QSEs follow schedules and instructionsinstructions

2. Adjustment Meter Load equals to 2. Adjustment Meter Load equals to ERCOT LFERCOT LF

RPRSRPRS ( by Hour)( by Hour) No Under Schedule ChargeNo Under Schedule Charge

OOMCOOMC ( by Hour)( by Hour) Pay as Generic CostPay as Generic Cost

OOMEOOME ( by 15 Minutes)( by 15 Minutes) QSEs follow instructionsQSEs follow instructions

BES for Local BES for Local CongestionCongestion

( by 15 Minutes)( by 15 Minutes) QSEs follow instructionsQSEs follow instructions

RMRRMR ( by 15 Minutes)( by 15 Minutes) QSEs follow RMR instructionsQSEs follow RMR instructions

Black StartBlack Start ( by Hour)( by Hour)

October 21, 2003 5

PRR381 – Update QSE PRR381 – Update QSE DesignationDesignation

• Defines steps for LSE or Resource Defines steps for LSE or Resource to designate a new QSEto designate a new QSE

• Allows LSE to become ‘Emergency Allows LSE to become ‘Emergency QSE’ for seven daysQSE’ for seven days

• Impact: Intense manual Impact: Intense manual workaround required infrequentlyworkaround required infrequently

• Recommend November 1, 2003 Recommend November 1, 2003 effective dateeffective date

October 21, 2003 6

PRR427 – RMR General PRR427 – RMR General ClarificationsClarifications

• Provides more details related to Provides more details related to eligible costs to be paid to RMR unitseligible costs to be paid to RMR units

• Impact: ERCOT Staff and business Impact: ERCOT Staff and business processes. No impact to ERCOT processes. No impact to ERCOT computer systems or operating computer systems or operating processes.processes.

• Recommend November 1, 2003 Recommend November 1, 2003 effective dateeffective date

October 21, 2003 7

PRR428 – RMR Scheduling PRR428 – RMR Scheduling ClarificationsClarifications

• Clarifies scheduling procedures Clarifies scheduling procedures for RMR unitsfor RMR units

• Impact: Minor ERCOT Staff and Impact: Minor ERCOT Staff and operating processes impacts. operating processes impacts. Potential impact to ERCOT Potential impact to ERCOT computer systems.computer systems.

• Recommend November 1, 2003 Recommend November 1, 2003 effective dateeffective date

October 21, 2003 8

PRR444 – PRR444 – MoveMove In / Move Out In / Move Out StackingStacking

• Addresses significant issues related Addresses significant issues related to non-sequential transactions on a to non-sequential transactions on a single ESI IDsingle ESI ID

• Impact: ERCOT computer systems Impact: ERCOT computer systems and operating processes, significant and operating processes, significant impact to ERCOT staffingimpact to ERCOT staffing

• Recommend November 1, 2003 Recommend November 1, 2003 effective date for portions that don’t effective date for portions that don’t require system modifications, require system modifications, remainder effective upon system remainder effective upon system implementationimplementation

October 21, 2003 9

PRR447 – TCR Austin PRR447 – TCR Austin Posting and PCR Cost Posting and PCR Cost

DeterminationDetermination• Clarifies posting requirementsClarifies posting requirements• Adds formula to determine cost of Adds formula to determine cost of

PCRsPCRs• Impact: None to ERCOT computer Impact: None to ERCOT computer

systems or operating processes.systems or operating processes.• Recommend November 1, 2003 Recommend November 1, 2003

effective dateeffective date

October 21, 2003 10

PRR460 – CSC Exemption PRR460 – CSC Exemption CriteriaCriteria

• Documents the process and criteria Documents the process and criteria by which exemption requests are by which exemption requests are evaluatedevaluated

• Impact: Potential impact to ERCOT Impact: Potential impact to ERCOT Staffing and computer systems.Staffing and computer systems.

• Recommend November 1, 2003 Recommend November 1, 2003 effective dateeffective date

• Approved by TAC with a vote of 24 Approved by TAC with a vote of 24 in favor, 6 opposed.in favor, 6 opposed.

October 21, 2003 11

2004 CSC / zone saga2004 CSC / zone sagaMAYMAY• TAC ready to recommend keeping 3 CSCs TAC ready to recommend keeping 3 CSCs

and 4 Zones for 2004and 4 Zones for 2004• Significant North to Houston congestionSignificant North to Houston congestion• Recommendation withdrawnRecommendation withdrawn

JULYJULY • Significant Royse – Farmersville Significant Royse – Farmersville

congestioncongestion• Accelerated PRR440 to eliminate Market Accelerated PRR440 to eliminate Market

Solution for local congestionSolution for local congestion

October 21, 2003 12

2004 Proposals2004 Proposals• Existing ModelExisting Model

– 4 Zones/3 CSCs4 Zones/3 CSCs

• North/Houston CSCNorth/Houston CSC– 4 Zones/4 CSCs (Adds CSC between North 4 Zones/4 CSCs (Adds CSC between North

& Houston zones)& Houston zones)

• Northeast ZoneNortheast Zone– 5 Zones and 5 CSCs (Adds CSC between 5 Zones and 5 CSCs (Adds CSC between

North & Houston zones and adds Northeast North & Houston zones and adds Northeast Texas zone/CSC)Texas zone/CSC)

• 7 Zones and 11 CSCs7 Zones and 11 CSCs– Subdivides the North zone into 3 zones and Subdivides the North zone into 3 zones and

subdivides the South zone into 2 zonessubdivides the South zone into 2 zones

October 21, 2003 13

EXISTING 2003 4 ZONE / 3 CSC

S – H CSC

S – N CSC

W – N CSC

1

2

3

4

October 21, 2003 14

1

2

3

4

5

6

7

7 ZONE / 11 CSC

October 21, 2003 15

Final_4_4Final_4_4

October 21, 2003 16

Final_5_Final_5_55

Load GenWest 4,104 4,159 North 24,911 22,179 Houston 19,939 17,871 South 17,167 20,211 Northeast 1,488 4,679 Grand Total 67,608 69,100

October 21, 2003 17

Road to a Road to a RecommendationRecommendation

• Sep 17: WMS eliminates 3 CSC/4 zone Sep 17: WMS eliminates 3 CSC/4 zone and 11 CSC / 7 zone options from and 11 CSC / 7 zone options from further considerationfurther consideration

• Oct 2: WMS recommends 5 CSC/5 zone Oct 2: WMS recommends 5 CSC/5 zone option to TAC with a vote of 4.25 in option to TAC with a vote of 4.25 in favor, 3.25 opposedfavor, 3.25 opposed

• Oct 9: TAC takes four different votes Oct 9: TAC takes four different votes but is unable to make recommendationbut is unable to make recommendation

• Oct 17: On its third vote, TAC approves Oct 17: On its third vote, TAC approves 5 CSC/5 zone recommendation with a 5 CSC/5 zone recommendation with a vote of 19 in support, 7 opposed and 4 vote of 19 in support, 7 opposed and 4 abstentions.abstentions.

October 21, 2003 18

CSCsCSCs

CSC Name Lines in InterfaceInterface Flow

North to Houston GIBCRK B (967)' to bus 'OBRIEN 5 (44500)' circuit 99 209.24

  JEWETT S (3390)' to bus 'T_H_W_ 5 (45500)' circuit 1 121.77

South to North SANDOW (3429)' to bus 'TEMPSSLT (3413)' circuit 1 362.27

  SANDOW (3429)' to bus 'TEMP SS (3414)' circuit 1 362.03

South to Houston SO TEX 5 (5915)' to bus 'DOW345 5 (42500)' circuit 18 372.13

  SO TEX 5 (5915)' to bus 'DOW345 5 (42500)' circuit 27 372.13

West to North GRAHAM (1430)' to bus 'PARKER (1436)' circuit 1 72.49

  GRAHAM (1430)' to bus 'BENBRK (1873)' circuit 1 49.24

Northeast to North FARM SW (1685)' to bus 'ROYSE S (2461)' circuit 1 449.24

  FARM SW (1685)' to bus 'ROYSE N (2478)' circuit 1 402.05

October 21, 2003 19

Exemption RequestsExemption Requests• STECSTEC

– Three busses from Houston to SouthThree busses from Houston to South– Total load affected is ~10 MWTotal load affected is ~10 MW

• LCRALCRA– Two busses from Houston to SouthTwo busses from Houston to South– At end of a radial transmission line from At end of a radial transmission line from

the South zone until June 2004. the South zone until June 2004. – Total load affected is ~20 MWTotal load affected is ~20 MW

• TAC recommends granting both TAC recommends granting both exemptionsexemptions

October 21, 2003 20