ERCOT Operations Update
January 22, 2003 Board Meeting
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Relaxed Balanced Schedules
Update
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ERCOT RBS Update
Two Months (September and October)
before RBS implementation and two
months (November and December) after
RBS implementation November 1, 2002:
• Balancing Market v.s. Bilateral Market
• Balancing Deployment
• Clearing Prices for Balancing Energy
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Average Balancing Deployed
Each Interval
Average Balancing Deployed
850
800
750
MW
700
650
600
Sep-02
Oct-02
Nov-02
Dec-02
Month
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Average MCPE
Monthly Average MCPE
31
30
29
28
MCPE($) 27
26
25
24
23
Sep-02
Oct-02
Nov-02
Dec-02
Month
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Percentage Balancing of Total
ERCOT Energy Requirements
% Balancing Market of Total
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Sep-02
Oct-02
Nov-02
Dec-02
Month
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RMR Contracts
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Current Contracted RMR Units
Unit
San Angelo 2
Rio Pecos 6
J.L. Bates 1
J.L. Bates 2
B.M. Davis 1
LaPalma 4
LaPalma 5
LaPalma 6
LaPalma 7
Laredo 1
Laredo 2
Laredo 3
Fort Phantom 2
1Q 2003 RMR Total
MW
102
98
74
109
335
23
23
153
50
35
32
105
202
1341
Estimated Monthly Cost
for 1st Quarter 2003 (1)
$626,667
$503,333
$573,333
$340,000
$1,346,667
$110,000
$110,000
$1,020,000
$233,333
$320,000
$196,667
$883,333
$1,563,333
$7,826,666
4Q 2002 RMR Total
Actual
1868
$11,900,000
(1) Estimated monthly stand-by, start-up, energy payment and
BENA credit for market value of energy during January to March
2003 based on actual costs during October to December 2002.
2003 contracts are one year term with ERCOT option to
terminate with 90 days notice.
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December 2002 Relative RMR and OOMC
Unit-Days
Relative Activity Capacity Purchases - RMR & OOMC
80
70
60
50
OOMC
40
30
RMR
68
20
32
0
0
31
30
20
10
20
9
0
Dallas-Ft.
Worth
Area
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Laredo
Area
Rio Pecos
Area
Corpus
Christi
area
East Rio
Grande
Valley
9
1
1
West Rio Northw est San
Grande
area
Antonio
Valley
Area
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Market Solution Review
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Status of Market Solution Review
 System sent false market solution flags for
Local Balancing Energy Service for some
intervals starting May 6, 2002
 Fix put into production system December 23,
2002
 Have begun use of off-line software to check
interim intervals for resettlement if necessary
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Other Operations News
 New Coleto Creek to Pawnee 345 KV line



put in service January 7, 2003
January 8, 2003 implementation of State
Estimator in security analysis.
Testing Simultaneous Feasibility Test (SFT)
software to automate congestion
management
No problems with morning load pickup
during first cold weather of season 1/17/03
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