TAC Report to the ERCOT Board September 21, 2004

TAC Report to the TAC Report to the ERCOT BoardERCOT Board

September 21, 2004September 21, 2004

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SummarySummary• NotificationsNotifications

– Read Comstock TAC Chair for remainder of 2004 and Read Comstock TAC Chair for remainder of 2004 and Mark Dreyfus TAC Vice Chair for remainder of 2004Mark Dreyfus TAC Vice Chair for remainder of 2004

– Retail Market Guide RevisionRetail Market Guide Revision– RMS System Changes RequestsRMS System Changes Requests– TX SET Versions 2.0a and 2.1TX SET Versions 2.0a and 2.1

• PRRs 509, 518, 522, 528, 537, 409, 534PRRs 509, 518, 522, 528, 537, 409, 534• Partial Suspension of 2004 Load Profile Partial Suspension of 2004 Load Profile

ID Assignment and Validation ProcessID Assignment and Validation Process• 2005 Project List2005 Project List• 2005 Commercially Significant 2005 Commercially Significant

Constraints (CSCs) and ZonesConstraints (CSCs) and Zones• 2005 Exemptions2005 Exemptions

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RMS UpdateRMS Update• TAC approved two new scheduled versions (2.0a and 2.1) of TAC approved two new scheduled versions (2.0a and 2.1) of

the Texas SET Implementation Guides to be developed and the Texas SET Implementation Guides to be developed and the timeline for development.the timeline for development.– Version: TX SET 2.0A Version: TX SET 2.0A

• Implemented: November 2004Implemented: November 2004• TX SET does not recommend that 2.0A be associated TX SET does not recommend that 2.0A be associated

with a Test Flight. The Change Controls associated with a Test Flight. The Change Controls associated with this release will not be impacting MPs systems, with this release will not be impacting MPs systems, and therefore do not require testing.and therefore do not require testing.

– Version: TX SET 2.1Version: TX SET 2.1• Implemented: December 2005Implemented: December 2005• Will provide CRs with “Billing Determinants” on the Will provide CRs with “Billing Determinants” on the

810_02 Invoice.810_02 Invoice.• 650_04 will have indicator requesting MVO for 650_04 will have indicator requesting MVO for

permanent meter removal.permanent meter removal.• 814_24 will have indicator code for 2814_24 will have indicator code for 2ndnd MVO request. MVO request.

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Retail Market Guide RevisionRetail Market Guide Revision

• RMGR 2004-011RMGR 2004-011 – – Disconnect/Reconnect Disconnect/Reconnect Process GuideProcess Guide – – This RMGRR affects the DNP This RMGRR affects the DNP Process Guide Section D.i. (will soon become Process Guide Section D.i. (will soon become Section E.i.) – Disconnection Activity During Section E.i.) – Disconnection Activity During Extreme Weather, and provides a Extreme Weather, and provides a communication requirement within the communication requirement within the document to define the process more document to define the process more completely. Provides public access to an e-completely. Provides public access to an e-mail to notify the PUCT of disconnection mail to notify the PUCT of disconnection activity during an extreme weather activity during an extreme weather emergency.emergency.

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System Change RequestsSystem Change Requests

• SCR 738 – Enhancements to FasTrak ToolsSCR 738 – Enhancements to FasTrak Tools - - Creates a Project to Implement the System Requirements for an Creates a Project to Implement the System Requirements for an Enhanced FasTrak Process as defined by Market Participants using Enhanced FasTrak Process as defined by Market Participants using the work done in SCR 732.the work done in SCR 732. The FasTrak tool will allow issues to be The FasTrak tool will allow issues to be better tracked and manipulated by Market Participants for better tracked and manipulated by Market Participants for purposes of better managing the retail transaction issue resolution purposes of better managing the retail transaction issue resolution process. This SCR was assigned a priority of 1.1. process. This SCR was assigned a priority of 1.1.

• SCR 739 – Pending Load Loss Report for CRsSCR 739 – Pending Load Loss Report for CRs - - Provides CRs with a daily extract of customer loss notifications Provides CRs with a daily extract of customer loss notifications based on ERCOT’s receipt of a TDSP’s accepted response to a based on ERCOT’s receipt of a TDSP’s accepted response to a transaction that would cause a CR to lose the customer (and their transaction that would cause a CR to lose the customer (and their associated load). This SCR was assigned a priority of 1.2. associated load). This SCR was assigned a priority of 1.2.

• SCR 740 – Enhancements to SCR 727 ExtractsSCR 740 – Enhancements to SCR 727 Extracts - - Facilitates more accurate SCR 727 data from ERCOT and Facilitates more accurate SCR 727 data from ERCOT and ensures auditing capabilities for MPs. This report will ensures auditing capabilities for MPs. This report will provide MPs with more complete usage data and will assist provide MPs with more complete usage data and will assist them in confirming the accuracy of their entire SCR 727 them in confirming the accuracy of their entire SCR 727 data. This SCR was assigned a priority of 1.2. data. This SCR was assigned a priority of 1.2.

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System Change Requests (cont.)System Change Requests (cont.)

• SCR 737 – Estimated Meter Read DataSCR 737 – Estimated Meter Read Data – – This SCR creates a calendar month, summary This SCR creates a calendar month, summary report to be presented at the RMS that will report to be presented at the RMS that will provide Market Participants with estimated provide Market Participants with estimated meter reading information broken down by TDSP meter reading information broken down by TDSP territory and indicating customer class. This territory and indicating customer class. This SCR was assigned a priority of 3.1. SCR was assigned a priority of 3.1.

• SCR 736 - TML ESID TXN Portal FlagSCR 736 - TML ESID TXN Portal Flag - - Provides a data flag to indicate Portal Provides a data flag to indicate Portal generated ESI ID registration transactions generated ESI ID registration transactions displayed under TML Market Activities > Query displayed under TML Market Activities > Query ESI ID Transactions > Find Transactions ESI ID Transactions > Find Transactions function. This SCR was assigned a priority of function. This SCR was assigned a priority of 3.2.3.2.

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PRR 509 – Initiation, Procedure, PRR 509 – Initiation, Procedure, and Settlement of Disputes and Settlement of Disputes

through ADRthrough ADR • Rewrite of Section 20 (ADR) by Commercial Rewrite of Section 20 (ADR) by Commercial

Operations Working Group (COPs).Operations Working Group (COPs).• Goal was to clarify ADR process and bring more Goal was to clarify ADR process and bring more

consistency to payments for resolved ADRs.consistency to payments for resolved ADRs.• ERCOT is required to participate as a facilitator ERCOT is required to participate as a facilitator

if any party requests such involvement.if any party requests such involvement.• ADR will apply to disputes involving variances ADR will apply to disputes involving variances

that are filed through FasTrak or any other data that are filed through FasTrak or any other data discrepancy tracking method.discrepancy tracking method.

• Must file a written request & serve on General Must file a written request & serve on General Counsel of ERCOT.Counsel of ERCOT.

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PRR 509 – Initiation, Procedure, and PRR 509 – Initiation, Procedure, and Settlement of Disputes through ADR Settlement of Disputes through ADR

(cont.)(cont.)• ADR request must be submitted within 45 days of ADR request must be submitted within 45 days of

date dispute is denied or failure to agree.date dispute is denied or failure to agree.• If ADR is not timely pursued, ERCOT can send a If ADR is not timely pursued, ERCOT can send a

notification. If the MP wants to pursue the ADR, notification. If the MP wants to pursue the ADR, then the MP must submit an affirmative written then the MP must submit an affirmative written statement that includes a recommended course of statement that includes a recommended course of action.action.

• Provides 15 day response time for request for data.Provides 15 day response time for request for data.• Provides for treatment of Protected Information.Provides for treatment of Protected Information.• Provides for methods of delivery.Provides for methods of delivery.• Requires written agreement of resolution.Requires written agreement of resolution.• Establishes procedures for adjustments to MP Establishes procedures for adjustments to MP

accounts.accounts.• Establishes procedures for payment.Establishes procedures for payment.

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PRR 509 – Initiation, Procedure, and PRR 509 – Initiation, Procedure, and Settlement of Disputes through ADR Settlement of Disputes through ADR

(cont.)(cont.)• Negligible budget impacts; very minor staffing Negligible budget impacts; very minor staffing

impact to ERCOT Wholesale Client Relations impact to ERCOT Wholesale Client Relations until the system change is implemented; a until the system change is implemented; a minor change to ERCOT computer systems; minor change to ERCOT computer systems; some impact to ERCOT business functions; no some impact to ERCOT business functions; no impact to grid operationsimpact to grid operations..

• Proposed effective date is October 1, 2004.Proposed effective date is October 1, 2004.• TAC approved by unanimous voice vote with TAC approved by unanimous voice vote with

all segment represented.all segment represented.

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PRR 518 – Clarification of PRR 518 – Clarification of Requirements Related to Retail Requirements Related to Retail

TransactionsTransactions• Rewrite of Section 15 addressing retail transactions Rewrite of Section 15 addressing retail transactions

to clarify deadlines, Market Participant requirements to clarify deadlines, Market Participant requirements and improve readability.and improve readability.

• Adds new definitions to Section 2 for Retail Business Adds new definitions to Section 2 for Retail Business Day, CR of Record and Safety-Net Move-In.Day, CR of Record and Safety-Net Move-In.

• Adds new point-to-point transactions to Section 24.Adds new point-to-point transactions to Section 24.• No impact on ERCOT budget; staffing; business No impact on ERCOT budget; staffing; business

functions or operations; minimal computer system functions or operations; minimal computer system impact; no credit implications,impact; no credit implications,

• Proposed effective date is October 1, 2004.Proposed effective date is October 1, 2004.• TAC approved by unanimous voice vote with all TAC approved by unanimous voice vote with all

segments represented.segments represented.

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PRR 522- Collateral PRR 522- Collateral Requirements and Credit Requirements and Credit

ChangesChanges• This PRR strengthens ERCOT’s ability to utilize collateral and This PRR strengthens ERCOT’s ability to utilize collateral and

offset amounts or liabilities due to ERCOT appropriately in offset amounts or liabilities due to ERCOT appropriately in bankruptcy or other situations. Also, the changes adjust bankruptcy or other situations. Also, the changes adjust collateral requirements for known or estimated potential collateral requirements for known or estimated potential liability. The PRR also refines the requirements for disclosure liability. The PRR also refines the requirements for disclosure of affiliate companies.of affiliate companies.

• Remanded to PRS from TAC to resolve three issues:Remanded to PRS from TAC to resolve three issues:– Creditworthiness test for new entrantsCreditworthiness test for new entrants

• Resolved by limiting ERCOT to investigate QSE applicant Resolved by limiting ERCOT to investigate QSE applicant bill payments in other markets only if it believes the bill payments in other markets only if it believes the applicant is failing to complyapplicant is failing to comply

– Affiliate reporting requirementsAffiliate reporting requirements• Clarified the information required to be provided to Clarified the information required to be provided to

ERCOTERCOT– Reconsider additional collateral requirement attributable to Reconsider additional collateral requirement attributable to

payment planspayment plans• No changeNo change

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PRR 522 – Collateral PRR 522 – Collateral Requirements and Credit Requirements and Credit

Changes – (cont.)Changes – (cont.)• No budgetary impact; no impact to No budgetary impact; no impact to

ERCOT staffing; no impact to ERCOT ERCOT staffing; no impact to ERCOT computer systems; benefit to business computer systems; benefit to business functions; no impact to grid operations.functions; no impact to grid operations.

• Proposed effective date is October 1, Proposed effective date is October 1, 2004.2004.

• TAC approved by unanimous voice vote TAC approved by unanimous voice vote with all segments represented.with all segments represented.

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PRR 528 – Deadline for Filing ADR PRR 528 – Deadline for Filing ADR ClaimsClaims

• Companion PRR to PRR 509 (Section 20 Companion PRR to PRR 509 (Section 20 Rewrite)Rewrite)

• Amends Alternative Dispute Resolution filing Amends Alternative Dispute Resolution filing deadline for denied disputes from 30 to 45 deadline for denied disputes from 30 to 45 daysdays

• No impact to ERCOT budget, staffing, No impact to ERCOT budget, staffing, computer systems, business functions and computer systems, business functions and operations; no credit implicationsoperations; no credit implications

• Effective October 1, 2004Effective October 1, 2004• TAC approved by unanimous voice vote with TAC approved by unanimous voice vote with

all segments represented.all segments represented.

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PRR 537 – Increased Congestion PRR 537 – Increased Congestion Management FlexibilityManagement Flexibility

• This PRR provides ERCOT with additional options to use in This PRR provides ERCOT with additional options to use in the management of congestion both in day-ahead and real-the management of congestion both in day-ahead and real-time operations. time operations.

• PRR allows ERCOT to issue OOMC instructions where, to PRR allows ERCOT to issue OOMC instructions where, to solve a constraint, ERCOT would otherwise move a unit with solve a constraint, ERCOT would otherwise move a unit with a shift factor equal to or less than 5% or the total of unit-a shift factor equal to or less than 5% or the total of unit-specific deployments exceeds 1K MWs.specific deployments exceeds 1K MWs.

• Urgent status requested by PRS and approved by unanimous Urgent status requested by PRS and approved by unanimous voice vote by TAC with all segments represented.voice vote by TAC with all segments represented.

• Budget impact Budget impact 5L ($100-500k);5L ($100-500k); no impact on no impact on staffing; some impact on business functions and staffing; some impact on business functions and operations; no credit implications.operations; no credit implications.

• Effective October 1, 2004Effective October 1, 2004• TAC approved by unanimous voice vote with all TAC approved by unanimous voice vote with all

segments represented.segments represented.

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PRR 409 – Voltage Support PRR 409 – Voltage Support ServiceService

• This PRR originated from Generator Reactive Compensation This PRR originated from Generator Reactive Compensation Task Force.Task Force.

- Existing Protocols recognized this issue would be - Existing Protocols recognized this issue would be addressed at a later date. addressed at a later date.

• PRR maintains +/- .95 power factor envelope and allows for PRR maintains +/- .95 power factor envelope and allows for compensation when ERCOT instructs generators to go outside compensation when ERCOT instructs generators to go outside the envelope.the envelope.

• Compensation based on the avoided cost of reactive support Compensation based on the avoided cost of reactive support devices on the transmission networkdevices on the transmission network– $2.65/MVARhr based on $50/installed KVAR$2.65/MVARhr based on $50/installed KVAR

• Compensation allowed for:Compensation allowed for:– Reactive support outside the .95 bandwidth based on Reactive support outside the .95 bandwidth based on

the avoided cost of reactive support devices on the the avoided cost of reactive support devices on the transmission networktransmission network• $2.65/MVARhr based on $50/installed KVAR$2.65/MVARhr based on $50/installed KVAR

– Reduction in real powerReduction in real power• Paid as OOME DownPaid as OOME Down

• VSS settled on a Load Ratio Share basisVSS settled on a Load Ratio Share basis

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PRR 409 Voltage Support PRR 409 Voltage Support Service (cont.)Service (cont.)

• This PRR was declared urgent by TAC (26 to 1 with all This PRR was declared urgent by TAC (26 to 1 with all market segments represented) to accept comments market segments represented) to accept comments from ERCOT and clarifying language from TAC.from ERCOT and clarifying language from TAC.

• Impacts to ERCOT budgeting; staffing; computer Impacts to ERCOT budgeting; staffing; computer systems; business functions and operations; no credit systems; business functions and operations; no credit impact. impact. Frequency of VSS dispatch determines levels Frequency of VSS dispatch determines levels of impact.of impact.

• Proposed effective date is upon system Proposed effective date is upon system implementation.implementation.

• Approved by TAC 24-0 with three abstentions. Approved by TAC 24-0 with three abstentions. All All market segments represented.market segments represented.

• TAC also approved a motion that the ROS review TAC also approved a motion that the ROS review applicable Operating Guides and reconcile with PRR applicable Operating Guides and reconcile with PRR 409. 409. Unanimously approved by voice vote with all Unanimously approved by voice vote with all segments presentsegments present..

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PRR 534 – Temporary Modifications to PRR 534 – Temporary Modifications to Annual Load Profile ID Assignment and Annual Load Profile ID Assignment and

Validation ProcessValidation Process• Inserts language allowing the Board to suspend the annual Inserts language allowing the Board to suspend the annual

requirement in the existing Protocols.requirement in the existing Protocols.• The Load Profiling Working Group (LPWG) has discovered a The Load Profiling Working Group (LPWG) has discovered a

pattern of certain types of Load Profiles being assigned pattern of certain types of Load Profiles being assigned inappropriately. The LPWG will review this problem and inappropriately. The LPWG will review this problem and attempt to correct prior to 2005 validation process.attempt to correct prior to 2005 validation process.

• The PRR was declared urgent by the TAC. The PRR was declared urgent by the TAC. Unanimously Unanimously approved by voice vote with all segments presentapproved by voice vote with all segments present..

• This PRR revision was declared urgent for the purpose of being presented to This PRR revision was declared urgent for the purpose of being presented to the ERCOT BOD at the September meeting. The reason for this urgency is the ERCOT BOD at the September meeting. The reason for this urgency is that the current Load Profiling Guides require completion of the annual load that the current Load Profiling Guides require completion of the annual load profile ID validation process prior to the October BOD meeting. profile ID validation process prior to the October BOD meeting.

• No impact to ERCOT budget, staffing, computer systems, No impact to ERCOT budget, staffing, computer systems, business functions or operations; no credit implications.business functions or operations; no credit implications.

• Effective upon Board approval.Effective upon Board approval.• TAC approved by unanimous voice vote with all segments TAC approved by unanimous voice vote with all segments

present.present.

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PRR 530 – Short Pay Uplift to PRR 530 – Short Pay Uplift to LSEsLSEs

PRR 530 would require the uplift of and PRR 530 would require the uplift of and short payment to Load on a more short payment to Load on a more timely basis.timely basis.

TAC affirmed the PRS recommendation TAC affirmed the PRS recommendation to reject PRR 530 by a 21 to 2 vote with 2 to reject PRR 530 by a 21 to 2 vote with 2 abstentions. All market segment were abstentions. All market segment were represented.represented.

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Partial Suspension of 2004 Load Partial Suspension of 2004 Load Profile ID Assignment and Profile ID Assignment and

Validation Process Validation Process • This action was a follow-up to the approval by TAC of PRR This action was a follow-up to the approval by TAC of PRR

534.534.• TAC recommended by unanimous voice vote with all segments TAC recommended by unanimous voice vote with all segments

present present that the Board properly notice and place on its that the Board properly notice and place on its meeting agenda a discussion regarding the suspension of the meeting agenda a discussion regarding the suspension of the Annual Load Profile ID Assignment and Validation ProcessAnnual Load Profile ID Assignment and Validation Process..

• PRR 534 requires TAC approval of a RMS request to suspend PRR 534 requires TAC approval of a RMS request to suspend the validation process before it can be submitted to the BOD the validation process before it can be submitted to the BOD for approval.for approval.

• RMS met on September 16RMS met on September 16thth and approved a recommendation and approved a recommendation to suspend the Annual Load Profile ID assignment and to suspend the Annual Load Profile ID assignment and validation process for the residential sector only.validation process for the residential sector only.

• TAC approved the RMS recommendation by e-mail vote on TAC approved the RMS recommendation by e-mail vote on September 20September 20thth. . TAC approved 22-0 with one abstention and TAC approved 22-0 with one abstention and all market segments represented.all market segments represented.

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System PrioritizationSystem Prioritization

PRRs, SCRs, System, Facility & PUC Improvement ProjectsPRRs, SCRs, System, Facility & PUC Improvement Projects

MarketMarket ERCOTERCOT PUCPUC

Prioritization ProcessPrioritization Process

Priority Assignments for ERCOT Budget ProcessPriority Assignments for ERCOT Budget Process

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Priority AssignmentsPriority Assignments

HighHigh(1.X)(1.X)

1.1 High1.1 High1.2 Medium1.2 Medium1.3 Low1.3 Low

ForcedForcedRankRank

MediumMedium(2.X)(2.X)



LowLow(3.X)(3.X)



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Priorities For 2005Priorities For 2005

HighHigh(1.X)(1.X)

PUC (5)PUC (5)Market (12)Market (12)ERCOT (60)ERCOT (60)


MediumMedium(2.X)(2.X)



LowLow(3.X)(3.X)



Projected Cut LineProjected Cut Line

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System Prioritization (cont.)System Prioritization (cont.)• PRS met on August 27PRS met on August 27thth to prioritize the 2005 ERCOT to prioritize the 2005 ERCOT

Project List.Project List.• Cut line is contingent on the 2005 budget approved by the Cut line is contingent on the 2005 budget approved by the

BOD.BOD.• PRS and TAC did not change any of ERCOT’s priorities.PRS and TAC did not change any of ERCOT’s priorities.• List was approved by PRS and TAC without any estimates List was approved by PRS and TAC without any estimates

of cost for ERCOT to implement. This information will be of cost for ERCOT to implement. This information will be provided directly to the BOD.provided directly to the BOD.

• TAC approved Prioritized Project List for 2005 by TAC approved Prioritized Project List for 2005 by unanimous voice vote with all segments represented.unanimous voice vote with all segments represented.

• TAC did flag items certain items for BOD consideration. TAC did flag items certain items for BOD consideration. TAC believes non-IT capital projects and security issues TAC believes non-IT capital projects and security issues are best left to the BOD for assignment. TAC flagged #s are best left to the BOD for assignment. TAC flagged #s 16, 96, 105, 108, 125, 127, 128, 129, 130, and 131 as 16, 96, 105, 108, 125, 127, 128, 129, 130, and 131 as examples. examples.

• PRS and TAC will continue to update the list as new PRS and TAC will continue to update the list as new PRRs/SCRs are approved.PRRs/SCRs are approved.

• TAC recommends BOD approval of 2005 priorities.TAC recommends BOD approval of 2005 priorities.

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2005 Commercial Significant 2005 Commercial Significant Constraints and ZonesConstraints and Zones

• Section 7.2.1.1 Process for Determining CSCs of the Section 7.2.1.1 Process for Determining CSCs of the ERCOT Protocols states: “ERCOT will reassess CSCs ERCOT Protocols states: “ERCOT will reassess CSCs annually, based on changes to the ERCOT System annually, based on changes to the ERCOT System topology, and will identify new Congestion Zones based topology, and will identify new Congestion Zones based on the reassessed CSC’s on the reassessed CSC’s by November 1 by November 1 of each year. “of each year. “

• CMWG completed their data collection and evaluation of CMWG completed their data collection and evaluation of congestion.congestion.

• WMS recommended to TAC that the same Commercially WMS recommended to TAC that the same Commercially Significant Constraints (CSCs) with the addition of a N to Significant Constraints (CSCs) with the addition of a N to W CSC using the same elements as the W to N CSC be W CSC using the same elements as the W to N CSC be adopted.adopted.

• WMS also recommended the same zones in 2005 as 2004 WMS also recommended the same zones in 2005 as 2004 (Houston, North, Northeast, South, and West).(Houston, North, Northeast, South, and West).

• The recommendation includes no changes to the The recommendation includes no changes to the generation and load buses from 2004.generation and load buses from 2004.

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2005 CSCs and Zones (cont.)2005 CSCs and Zones (cont.)• TAC approved the WMS recommendation and recommends TAC approved the WMS recommendation and recommends

that, with the addition of a North to West CSC using the same that, with the addition of a North to West CSC using the same elements as the current West to North CSC, the same CSCs elements as the current West to North CSC, the same CSCs and number of zones that currently exist for 2004 be approved and number of zones that currently exist for 2004 be approved for 2005. TAC approved by unanimous voice vote with all for 2005. TAC approved by unanimous voice vote with all segments represented.segments represented.

CSCs:CSCs:• - West to North – Graham to Parker and Graham to Benbrook- West to North – Graham to Parker and Graham to Benbrook• - South to North – Sandow to Temple double circuit- South to North – Sandow to Temple double circuit• - South to Houston – South Texas Project to Dow (Valasco) double circuit- South to Houston – South Texas Project to Dow (Valasco) double circuit• - North to Houston – Gibbons Creek to O’Brien, Jewett to T.H. Wharton- North to Houston – Gibbons Creek to O’Brien, Jewett to T.H. Wharton• - Northeast to North – Farmersville to Royse double circuit- Northeast to North – Farmersville to Royse double circuit• - North to West – Parker to Graham, Benbrook to Graham (new CSC)- North to West – Parker to Graham, Benbrook to Graham (new CSC)

Congestion Zones: Congestion Zones: • - - West 2005West 2005• - North 2005- North 2005• - Houston 2005- Houston 2005• - South 2005- South 2005• - Northeast 2005- Northeast 2005

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2005 Exemptions2005 Exemptions• LCRA and STEC requested exemptions for certain facility LCRA and STEC requested exemptions for certain facility

placements in the 2005 Zones, pursuant to the process set placements in the 2005 Zones, pursuant to the process set forth in Protocols Section 7.2.1.1(5). These exemptions are forth in Protocols Section 7.2.1.1(5). These exemptions are identical to the exemptions approved for the 2004 identical to the exemptions approved for the 2004 Congestion Zones.Congestion Zones.

• LCRA: Move the SeaWay (7670) and Macedonia (7671) LCRA: Move the SeaWay (7670) and Macedonia (7671) load buses (on the 138 kV system) from the Houston Zone load buses (on the 138 kV system) from the Houston Zone to the South Zone. These are the only loads served by LCRA to the South Zone. These are the only loads served by LCRA in the Houston zone and represent approximately 13 and 11 in the Houston zone and represent approximately 13 and 11 MW at summer peak respectively. MW at summer peak respectively.

• STEC: Move three load buses from the Houston Zone to the STEC: Move three load buses from the Houston Zone to the South Zone – two 69 kV buses Franklin's Camp (5566) and South Zone – two 69 kV buses Franklin's Camp (5566) and Sargent (5564) and one load bus on the 138 kV side of the Sargent (5564) and one load bus on the 138 kV side of the 69/138 kV auto at Franklin’s Camp (5568). It is also 69/138 kV auto at Franklin’s Camp (5568). It is also possible that, when the final zone determination is made, a possible that, when the final zone determination is made, a third STEC 69 kV load bus, Bay City could fall into the third STEC 69 kV load bus, Bay City could fall into the Houston Zone. These load buses (including Bay City) Houston Zone. These load buses (including Bay City) represent 13.3 MW. represent 13.3 MW.

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2005 Exemptions 2005 Exemptions (cont.)(cont.)

• TAC discussed TAC discussed whether or not exemption whether or not exemption requests required separate notice as a voting requests required separate notice as a voting item from the recommendation on congestion item from the recommendation on congestion zones and CSCs for 2005 voting item. zones and CSCs for 2005 voting item.

• TAC voted to waive the seven day notice to TAC voted to waive the seven day notice to allow TAC to consider the exemptions at the allow TAC to consider the exemptions at the September TAC meeting. TAC approved the September TAC meeting. TAC approved the waiver 17 to 6 with 5 abstentions. All waiver 17 to 6 with 5 abstentions. All segments were represented.segments were represented.

• TAC approved the exemptions 26 to 2 with TAC approved the exemptions 26 to 2 with two abstentions. All segments were two abstentions. All segments were representedrepresented

Documents

TAC Report to the ERCOT Board September 21, 2004