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RMR Exit Strategies Update

This update outlines exit strategies and next steps for energy systems at the Mexico-U.S. border, highlighting potential solutions and economic impacts. It discusses study findings, system overviews, and recommendations for interconnection improvements.

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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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