01/17/20021

4-CP Discussion

October 16,2002Retail Market Subcommittee

Austin, Texas

2

Protocol References

9.8 Transmission Billing Determinant Calculation

ERCOT will provide the market with the determinants defined below to facilitate billing of Transmission access service. ERCOT will not be responsible for billing, collection or dispersal of payments associated to Transmission access service.

9.8.1

ERCOT shall calculate and provide to Market Participants via MIS the following data elements annually to be used by TDSP’s as billing determinants for Transmission access service. This data shall be provided by December 01 of each year. This calculation shall be made in accordance with the requirements of the PUCT. The data used to perform these calculations shall come from the same system(s) used to calculate settlement-billing determinants used by ERCOT:

1. The 4-Coincident Peaks (4-CP) for each TDSP, as applicable.

2. The ERCOT average 4-CP.

3. The average 4-CP for each TDSP, as applicable, coincident to the ERCOT average 4-CP.

Average 4-CP is defined as “the average Settlement Interval coincidental MW peak occurring during the months of June, July, August, and September.”

Settlement Interval MW coincidental peak is defined as “the highest monthly 15 minute MW peak for the entire ERCOT Transmission Grid as captured by the ERCOT settlement system.”

3

Data Aggregation Process

Initial AggregationProcesses

SETTLEMENT DATA PROCESSING

AggregateGeneration and

Zonal Data

Aggregate DC TieData

Apply LoadProfiles &

Aggregate IDRData

IDR Estimation

NOIE LoadAggregation

FinalAggregation for

SettlementDeterminants

Apply DistributionLoss Factors

ApplyTransmissionLoss Factors

Calculate andAllocate UFE

TDSPProvided

ConsumptionData

ERCOTEPS Meter

ConsumptionData

ResourceRelationships

EPSCompensation

Factors

EPSNetting &Splitting

NOIEMeter Point

Relationships

DC Tie DailySchedules

LoadProfiles

ESI-ID / RIDRelationships

UFE ZonalMeter Data

DistributionLoss Factors

TransmissionLoss Factors

4

Quantity Conversion & Sum by TDSP

LSEGUFE_1_14_RESLOWR_COAST_NIDR_NWS_NOTOU_D_U1_S01_1

• For each load cut, there are 96 interval of MWH data

• Unique combinations of LSEGUFE for the 4CP trade dates• 949 in August • 1,121 in September

Quantity Conversion consists of converting the MWH data into KW

KW = MWH X 4 X 1000

LSEGUFE Load Cuts are Summed by TDSP for the peak interval.

Note: Cuts where the Lodestar LSE Code equals a DC Tie name were omitted from the TDSP totals.

5

Data Cut Definitions

LSEGUFE_1_14_RESLOWR_COAST_NIDR_NWS_NOTOU_D_U1_S01_1

Load Segment Cut Type:LSEGUNADJ = Base Load valuesLSEGDL = Base Load + Distribution LossesLSEGTL = Base Load + Distribution Losses +Transmission LossesLSEGUFE = Base Load + DL + TL + UFE

Lodestar LSE Code: (1 = RELIANT LSE)

Lodestar QSE Code: (14 = RELIANT)

Load Profile Code:

Distribution Loss Factor Code (A-E or T)

UFE Settlement Zone

Congestion Management Zone

Lodestar TDSP Code: (1 = RELIANT)

6

Lodestar TDSP to 4 CP Entity Mapping

126 Unique TDSPs in Lodestar

126 Unique TDSPs in Lodestar

77 Load Entities in

4 CP Submission

s

77 Load Entities in

4 CP Submission

s

TXLA Tex-La Electric CoopRUSK COUNTY ELECTRIC CO OP (TDSP)Deep East Texas Electric Co Op IncHouston County Electric Co Op IncJasper-Newton Electric Co Op IncSAM HOUSTON ELECTRIC CO OP INC (TDSP)CHEROKEE COUNTY ELEC CO OP ASSOC

Versus

• Lodestar TDSPs are mapped to the corresponding 4-CP Load Entity Listing.

• KW Per Lodestar TDSP is summed per mapping.

• Complete mapping list is included in ERCOT filing with PUC

STEC South Texas Electric Coop JACKSON ELECTRICAL CO OP INCKARNES ELECTRIC CO OP INCNUECES ELECTRIC CO OP INCNUECES ELECTRIC CO OP INC AEP (TDSP)SAN MIGUEL ELECTRIC CO OP INC (TDSP)SAN PATRICIO ELECTRIC CO OP (TDSP)VICTORIA ELECTRIC CO OP INCVICTORIA ELECTRIC CO OP INC AEP (TDSP)WHARTON COUNTY ELECTRIC CO OP INC

7

Process Summary

Select Peak Interval and

Convert MWH to KW

Sum KW per Lodestar TDSP(Omitting DC Ties)

Sum Lodestar TDSPs to 4CP

Entity List

Compile 4 Months data into Average 4CP for PUC Filing

Determine Time of Peak for each

4 CP Month

Secure Aggregation Load

Cut Data for 4 CP Trade Days

8

UFE Data

• 433.02 MWH

• 1,732,080 KW

August 15th @ 16:30

• 414.85 MWH

• 1,659,400 KW

September 7th @ 16:30

Energy is allocated to load cuts in competitive TDSP service areas based

upon UFE allocation mechanism in Section 11 of Protocols.

9

What’s New with the Resettlement Data?

Less Estimation• 100% of IDR Data was Present• 99+% or Non-IDR Data was Present

Data Modifications• Corrections to NOIE Wholesale Points• Removal of ESI IDs created in error• Removal of Substation ESI IDs• Correction to Generation Site Data

New Peak Day Revealed for August• New Peak is August 15th @ 4:30 PM

• (Previous August peak was August 22nd @ 4:45 PM)

10

Comparison of August Data (March ’02 data VS October ’02 Data)

0.0% Change For The Remaining 70 Entities

LSE Acronym

Load Serving Entity Name08-15-01@16:30

Oct '02 Filing

08-22-01 @16:45

March '02 Filing

Oct Data

MarchData

OctMinusMarch

ACPL AEP Central Power and Light 4,113,736.4 4,042,408.8 7.5% 7.3% 0.2%AWTU AEP West Texas Utilities 1,065,863.6 1,009,483.6 1.9% 1.8% 0.1%AENX Austin Energy 2,184,916.4 2,165,702.8 4.0% 3.9% 0.1%BEPC Brazos Electric Coop 1,784,782.8 1,677,008.4 3.3% 3.0% 0.2%CPST City Public Service 3,850,907.6 3,752,652.8 7.0% 6.8% 0.2%GARL Garland Power and Light 476,502.4 445,490.4 0.9% 0.8% 0.1%PECX2 Pedernales Electric Coop -LCRA 770,412.0 744,879.2 1.4% 1.4% 0.1%REIL Reliant Energy HL&P 12,920,150.4 14,574,787.6 23.6% 26.5% -2.9%TXUE TXU 22,274,928.8 21,316,478.8 40.7% 38.7% 1.9%

SUBTOTAL 54,784,105.6 55,012,781.2

Contribution to the Peak For the Month

11

Comparison of Sept 7th Data (March ’02 data VS October ’02 Data)

0.0% Change For The Remaining 72 Entities

LSE Acronym

Load Serving Entity Name09-07-01@16:30

in Oct '02

09-07-01@16:30

in March '02

Oct Data

MarchData

OctMinusMarch

ACPL AEP Central Power and Light 3,726,146.8 3,588,063.6 7.5% 7.2% 0.3%AWTU AEP West Texas Utilities 975,359.2 932,835.6 2.0% 1.9% 0.1%REIL Reliant Energy HL&P 12,628,106.4 14,026,363.2 25.5% 28.2% -2.7%

TNMP Texas-New Mexico Power Company 1,158,645.2 1,110,883.2 2.3% 2.2% 0.1%TXLA Tex-La Electric Coop 64,465.6 103,618.0 0.1% 0.2% -0.1%TXUE TXU 19,574,897.2 18,626,547.2 39.5% 37.5% 2.1%WEAT Weatherford, City of 55,498.4 29,786.8 0.1% 0.1% 0.1%

SUBTOTAL 49,494,230.8 49,726,134.0

Contribution to Peakfor the Month

12

Comparison of March ‘02 Filing to October ‘02 Filing

0.0% Change For The Remaining 72 Entities

LoadEntity

AcronymLoad Entity Name

Load Ratio Share based

upon March 02

data

Load Ratio Share based

upon October 02

data

OctoberMinusMarch

ACPL AEP Central Power and Light 6.92969% 7.04454% 0.1%AWTU AEP West Texas Utilities 2.36324% 2.41549% 0.1%BEPC Brazos Electric Coop 3.11076% 3.16886% 0.1%CPST City Public Service 6.91034% 6.97224% 0.1%REIL Reliant Energy HL&P 26.49353% 25.09876% -1.4%TXUE TXU 38.97831% 39.97117% 1.0%

13

Transmission Connected IDR Information

Count of IDR with DLF Code of T 1,409

NOIE 988

Competitive 421Reliant 169TXU 140TNMP 6CPL 46WTU 60

14

Questions