SWEDE 2008 ERCOT Power Factor Compliance/Non-Compliance LOU WHITE, P.E.

1. SWEDE 2008ERCOT Power FactorCompliance/Non-ComplianceLOU WHITE, P.E.

2. ERCOT Power Factor Compliance/Non-Compliance kVA kVAR θ kW

3. ERCOT Power Factor Compliance/Non-Compliance Reduction in kVAR (lagging) • Increase system power factor • Decrease system current • Increase system voltage • Decrease system kW losses FY 2006-2010 TSIP

4. ERCOT Power Factor Compliance/Non-Compliance • Power Factor Improvement • CAPACITOR BANK ADDITIONS • FEEDER RECONFIGURATIONS • FEEDER RECONDUCTOR • FEEDER ADDITIONS • NEW SOURCE (SUBSTATION) • DISTRIBUTED GENERATION (COST EFFECTIVE)

5. ERCOT Power Factor Compliance/Non-Compliance Distribution Power Factor Improvement • Distribution System Advantages • Power Factor Improvement • Voltage Support • Conductor Load Reduction • kW Loss Reduction (= $$$)

6. ERCOT Power Factor Compliance/Non-Compliance Distribution Power Factor Improvement • Transmission System Advantages • Defer Transmission System Improvement Projects • Greater Emergency Reactive Generation Margins • Better Economical Solution at Distribution Level • Established Minimum Standards for DSPs

7. ERCOT Power Factor Compliance/Non-Compliance ERCOT VOLTAGE AND REACTIVE REQUIREMENTS AND COMPLIANCE MONITORING TDSP REQUIREMENT • Sufficient static reactive power capability shall be installed by a DSP in substations and on the distribution voltage system to maintain at least a 0.97 lagging power factor for the maximum net active power supplied from a substation transformer at its distribution voltage terminals to the distribution voltage system. For any substation transformer serving multiple DSPs, this power factor requirement shall be applied to each DSP individually for its portion of the total load served. ROS Reactive Standard 04-09-03 as approved.doc

8. ERCOT Power Factor Compliance/Non-Compliance • TRE Enforcement of Reactive Requirements • Initial Violation • Concern/Complaint ISO/RTO driven • Violation posted on TRE website • Letter of Violation sent to DSP and PUC • DSP to provide Plan to Correct Violation • Continued Violation • PUC Letter of Violation sent to DSP and/or Fine

9. ERCOT Power Factor Compliance/Non-Compliance • TRE Considerations for Compliance • History of Compliance • Future System Planning • Project Scheduling

10. ERCOT Power Factor Compliance/Non-Compliance • ERCOT Annual Load Data Request (ALDR) • LCRA currently files on behalf of 41 customers • Load Data includes delivery point kW & p.f. for: • Current Year Winter & Summer NCP • Future Years (1-6) Winter & Summer NCP • ERCOT Current Year Winter & Summer CP • ERCOT Current Year Coincident Minimum • Load Data is reflected to PWT high-side for use in ERCOT load flow cases

11. ERCOT Power Factor Compliance/Non-Compliance ERCOT VOLTAGE AND REACTIVE REQUIREMENTS AND COMPLIANCE MONITORING TDSP REQUIREMENT • Sufficient static reactive power capability shall be installed by a DSP in substations and on the distribution voltage system to maintain at least a 0.97 lagging power factor for the maximum net active power supplied from a substation transformer at its distribution voltage terminals to the distribution voltage system. For any substation transformer serving multiple DSPs, this power factor requirement shall be applied to each DSP individually for its portion of the total load served. ROS Reactive Standard 04-09-03 as approved.doc

12. ERCOT Power Factor Compliance/Non-Compliance Load Forecast • Performed annually • Includes historical kW and power factors

13. ERCOT Power Factor Compliance/Non-Compliance • Support Your Power Factor • Monitor Delivery Point Data • System Maintenance/Inspections

14. ERCOT Power Factor Compliance/Non-Compliance Questions ?