1. txho/10627 HLP089.PPT
DSWG LaaR Update
May 13, 2005

2. LaaR Supply – What is a LaaR?
A Load Acting as a Resource, or LaaR, is a customer with an interruptible load that meets ERCOT requirements and is qualified to provide Ancillary Services under ERCOT’s “LaaR” program
Responsive Reserve is one Ancillary Service that a Load can provide if the customer is capable of instantaneously interrupting their power supply
LaaR providers can sell their capacity by either:
Contracting directly with an REP (fixed price, term)
Bidding into the daily ERCOT Ancillary Service Auction

3. Limit to Quantity of LaaR in ERCOT
Current limit for LaaR provided RRS in ERCOT is 1,150 MW per hour (ERCOT nominates percentage limit monthly)
REPs can self arranged 50% of their Responsive Reserve obligations with LaaR Responsive
LaaRs are beginning to bid very aggressively (most negative bid for was -$14.00 in bid stack)

4. Where are we headed?

5. Where are we headed?

6. Where are we headed?

7. RRS Bid Stack for Thursday May 12th
53 negative priced blocks in the RRS bid stack
725 MWs bid at a negative price
LaaRs are beginning to bid very aggressively (most negative bid for 05/12/05 was -$14.00