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RMR Exit Strategies Update

RMR Exit Strategies Update. TAC November 6, 2003. RMR UNITS. Exit Timelines. Next Steps. Exit strategy for B.M. Davis will be presented to TAC and Board in December Bates and Laredo remain:

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RMR Exit Strategies Update

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  1. RMR Exit Strategies Update TAC November 6, 2003

  2. RMR UNITS

  3. Exit Timelines

  4. Next Steps • Exit strategy for B.M. Davis will be presented to TAC and Board in December • Bates and Laredo remain: • Long Term solutions presented by AEP require extensive 345kV upgrades – will require thorough evaluation • Phase I or ERCOT-CFE study provide short term alternatives • TECO and ERCOT are discussing an alternative that would use Frontera as a short-term alternative to Bates • ERCOT continues to receive and validate key input data required for full economic analysis

  5. CFE / ERCOT Interconnection Study Findings

  6. Contents • Study History and Systems Overview • Phase I and II Studies Scope • Phase I Assumptions and Findings • Interconnection Applications and Market Overview • Enabling Protocols and Agreements • Conclusions and Next Steps

  7. Mexico and United States Border Region CFE/ERCOT

  8. Border Systems Overview

  9. System Overview

  10. System Overview

  11. System Overview

  12. System Overview

  13. Conclusions • Mutual support benefits to end use customers are recognized in the near term: • Block Load Transfers at Acuña, • Asynchronous ties at Laredo and McAllen • Asynchronous ties afford significant flexibility and reliability to CFE and ERCOT • New interconnections have the potential for providing services beyond reliability, • Facilitate competition and trade • Enhance economic efficiencies

  14. Conclusions (cont.) • Larger ties will have broad policy and economic impacts • Phase II studies will identify larger ties • Cost vs. impact to the energy markets • Phase II involvement of DOE/PUCT and SENER/CRE is recommended

  15. Next Steps • ERCOT to complete economic evaluations of alternatives to RMR services, • CFE and ERCOT to develop system support services agreement, • Ensure ERCOT protocols support and facilitate transactions over CFE/ERCOT ties, • Transmission Service Providers to complete transmission upgrades to support and build the CFE/ERCOT interconnections, • Proceed with the applicable presidential permits for the CFE/ERCOT interconnections

  16. Questions?

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