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October 3, 2002

2002 Report on Existing and Potential Electric System Constraints and Needs Within the ERCOT Region. October 3, 2002. Contents. Transmission system and constraints overview Cost of CSC and Local congestion Completed transmission Transmission underway Transmission under review

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October 3, 2002

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  1. 2002 Report on Existing and Potential Electric System Constraints and Needs Within the ERCOT Region October 3, 2002

  2. Contents • Transmission system and constraints overview • Cost of CSC and Local congestion • Completed transmission • Transmission underway • Transmission under review • ERCOT generation and demand outlook • Transmission planning outlook

  3. Transmission System • Backbone for retail and wholesale competition • Complex network • Not a one way system • Flows change with changing system conditions • Events on the network can have far reaching effects across the whole system • Under rapid and continuous change • New generation interconnections • Generation retirements • Transmission upgrades

  4. Transmission Constraints • Function of the impedance and voltage of network • Three types of limits: • Thermal Limits • Voltage Limits/Stability • Unit Stability Limits

  5. Transmission Constraints’ Impacts: • Complicates system security management • Leads to economic inefficiencies • Creates captive markets • Reduces liquidity of the market • Creates for “Must Run” generation • Reduces utilization of efficient units • Creates opportunity for market power

  6. North West Significant LC Areas Wind Austin San Antonio Laredo Corpus Christi Valley 2002 Commercially Significant Constraints (CSCs) and Local Constraints (LCs) Wind

  7. Congestion Costs

  8. TCRs and Direct Assignment Costs

  9. Completed Transmission • Limestone-Watermill 345-kV Double-Circuit Line • Monticello-Farmersville 345-kV Line • Lon Hill-Rio Hondo and Lon Hill-Edinburgh 345-kV Lines Series Capacitor Compensation • Military Highway STATCOM • Laredo STATCOM • San Miguel-Pawnee 345-kV Line and Establish Pawnee 345-kV Station • Centerville Switch-McCree Switch 345-kV Line • White Point 345-kV Switching Station and 138-kV Upgrades • Cedar Bayou-King-North Belt-TH Wharton 345-kV Corridor Upgrades • Many 138-kV and 69-kV System Additions/Upgrades including Autotransformers

  10. Transmission Underway • Morgan Creek-Twin Buttes-Red Creek-Comanche Switch 345-kV Line • Graham-Jacksboro 345-kV Line • Farmersville-Valley Junction-Anna Switch 345-kV Line • Paris-Anna 345-kV Line • Venus-Liggett 345-kV Line • Edinburg-Bates-McAllen 345-kV Line • McAllen-Brownsville-La Palma 345-kV Line • Pawnee-Coleto Creek 345-kV Line • Many 138-kV and 69-kV System Additions/Upgrades including Autotransformers

  11. Transmission Under Review Dallas/Fort Worth • Jacksboro-West Denton 345-kV Line • Jacksboro-Willow Creek-Parker 345-kV Line Upgrade • West Denton-NW Carrollton 345-kV Second Circuit • Watermill-Cedar Hill 345-kV Second Circuit • Anna Switch-Collin-NW Carrollton 345-kV Line Upgrade South to North and South to Houston • Salem-Bryan/College Station-TNP One 345-kV Line and Establish New 345/138-kV Station • Clear Springs-Zorn-Harris Branch-Gabriel-Salado 345-kV Line • Cuero-Holman 345-kV Line and Establish Cuero 345-kV Switch Station • Coleto Creek-Cuero 345-kV Line • Whitney-Concorde 345-kV Line • Twin Oak-Lake Creek 345-kV Second Circuit

  12. Transmission Under Review (cont.) Laredo and Valley • San Miguel-Laredo 345-kV Line • Laredo-Bates-Edinburg 345-kV Line West Texas to North Texas and Wind Area • Red Creek-Comanche Switch 345-kV Second Circuit • Twin Buttes-McCamey 345-kV Line and 345/138-kV Autotransformers • Comanche Switch-Killeen Switch 345-kV Line • Many 138-kV and 69-kV System Additions/Upgrades including Autotransformers

  13. MW Load Duration Curve for 2001 60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 10 20 30 40 50 60 70 80 90 100 Load Peak Load Base Load Percent of time load was at or above indicated level Overview of ERCOT Load • Typical picture: • Load growth reflects historic “load management” efforts • Demand participation opportunities: • Energy price reductions • Lower probability of outages

  14. ERCOT Generation Capacity and Demand MW 90000 85000 Total Capacity 80000 Capacity 75000 w/o units >50 years Capacity 70000 w/o units >40 years Capacity 65000 w/o units Demand >30 years Peak 60000 Demand at 2.1% growth 55000 50000 45000 2002 2003 2004 2005 2006 2007 ERCOT Capacity and Demand

  15. Transmission Planning Process • Propose needed bulk transmission facility additions based on identified constraints. • TDSPs • ERCOT • Any interested party • Conduct regional planning evaluation • Conduct an open process of public review and comment on proposed facility additions through committees. • Submit all final recommended bulk/large transmission facility additions to the ERCOT Board of Directors. • Determine the designated transmission service providers of the additions. • Notify the Public Utility Commission of Texas (PUCT) of all Board supported transmission facility additions and their designated providers.

  16. Regional Planning Groups • ERCOT Regional Transmission Planning Process • Includes TDSP’s and PUCT Staff • Confidentiality Major Issue • Market Sensitive Information • Review by Stakeholders via Committee’s • ROS, WMS, TAC • Large projects reviewed by ERCOT Board of Directors • Final Authority is PUCT in the form of a CCN

  17. Key Issues in Planning

  18. ERCOT’s Perspective • Focus on security of the entire control area • Take multiple needs and plans into account • Look beyond specific entities’ requests • Identify broader regional needs • Promote efficient use of transmission corridors • Promote margins on new transmission additions • Consolidate projects where practical • Ensure compliance with ERCOT planning criteria

  19. Planning Internet Links • SYSTEM PLANNING • http://www.ercot.com/Participants/SystemPlanning.htm • Capacity, Demand & Reserve Reports (CDR) • Generation Project Interconnection Information • DETAILED SYSTEM PLANNING DATA & TRANSMISSION MAPS • http://www.ercot.com/tmaps/Login.cfm • Includes data sharing items with transmission plans of TDSP’s • Includes Power Flow Base Cases • CSC detailed data & CM zone maps • Controlled access area due to security requirements • MANUALS, DOCUMENTS AND REPORTS • http://www.ercot.com/drp.htm • Demand & Energy Reports (D&E) • Includes ERCOT Load by Settlement Period for Each Month • Historical ERCOT Hourly Load (FERC 714)

  20. Questions?

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