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RMR Exit Strategies for La Palma and Fort Phantom October 21, 2003

RMR Exit Strategies for La Palma and Fort Phantom October 21, 2003. BILL BOJORQUEZ Director of Transmission Services. RMR UNITS. APPROACH. Staged approach to determine cost effective and timely transmission alternatives

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RMR Exit Strategies for La Palma and Fort Phantom October 21, 2003

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  1. RMR Exit Strategies for La Palma and Fort PhantomOctober 21, 2003 BILL BOJORQUEZ Director of Transmission Services

  2. RMR UNITS

  3. APPROACH • Staged approach to determine cost effective and timely transmission alternatives • Near-term Alternatives: Upgrades to existing infrastructure that can be expedited • Do not require CCN • Can be completed in less than three years • Long-term Alternatives: Future lines and system upgrades necessary to ensure that load is served reliably and without uneconomic RMR support

  4. OPEN PROCESS • September 11, AEP Service Company (the TDSP) provided short-term alternatives for RMR units • September 15, ERCOT hosted stakeholder meeting in Austin to review short-term alternatives • September 22, Stakeholders submitted comments to the short-term alternatives • September 30, ERCOT issued a draft recommendation on RMR short-term exit strategies • October 7, Stakeholder Comments on ERCOT‘s draft recommendation due • October 9, TAC voted in support of near term alternatives • October 10, Second stakeholder meeting to present longer-term alternatives • October 24, Briefing on CFE-ERCOT Interconnections Study

  5. MITIGATION UNDERWAY • RIO PECOS (near McCamey) • Two 20 MVAR shunt reactors and one 29 MVAR capacitor placed in-service July 2003 • Agreement to terminate in November 2003 • SAN ANGELO POWER STATION • 345 kV line from Morgan Creek to Red Creek to Comanche Peak placed in-service June 2003 • Twin Buttes Cut-in of the Big Lake to SAPS 138 kV line CCN approved at 9/18/03 PUCT Open Meeting • Planned to be in-service during Summer 2004, which will release SAPS from RMR • Rebuild of cut-in to SAPS 138 kV line to follow in Fall 2004

  6. EXIT STRATEGY - FT. PHANTOM • FORT PHANTOM (near Abilene) • 10-ohm reactors on each Mulberry 345/138-kV autotransformer • Shunt capacitors in the Abilene area • 100-Mvar 345-kV shunt reactor at Red Creek substation • 36-Mvar reactor on the tertiary of the Mulberry East autotransformer • TOTAL ESTIMATED COST $6.4M IN 2004 • HISTORIC RMR ANNUAL COST $13M • EXPECTED NPV OF COSTS TO CONSUMERS • Continued RMR $45M • Transmission Upgrades $7.2M

  7. EXIT STRATEGY – LA PALMA • LA PALMA UNITS (near Harlingen) • Add 2nd 600 MVA 345/138 kV autotransformer at Rio Hondo, upgrade 138-kV bus • Rebuild the existing LaPalma to Rio Hondo 138-kV line with 2-795 ACSS , double circuit capable • Upgrade the LaPalma 138-kV terminal bus • TOTAL ESTIMATED COST $13.6M • HISTORIC RMR ANNUAL COST $26M • EXPECTED NPV OF COSTS TO CONSUMERS • Continued RMR $104M • Transmission Upgrades $15M (plus Long-Term upgrade cost)

  8. UNDER STUDY • BM DAVIS (Corpus Christi) • Additional studies performed and reviewed by Stakeholders • Near term exit strategy expected be presented in November • LAREDO and BATES (near McAllen) • Projects and agreements needed for exit strategy recommendations for these units are still under development and analysis • NEXT STEPS • October 24 briefing on technical study findings • Economic evaluation of alternatives

  9. QUESTIONS/MOTION • ERCOT Staff recommends that the Board approve the near term RMR Exit Strategy for Fort Phantom and LaPalma RMR service, as identified in the Board materials.

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