1. LCRA Manages Meters and Interval Data in ERCOT Tom Knutsen, LCRA SWEMA Corpus Christi, TX June 6, 2005

2. 6 Jun 05 2 Lower Colorado River Authority Wholesale only –8 rural cooperatives –33 municipal utilities –One anomaly  Cap Rock Energy  IOU –30,000 square miles

3. 6 Jun 05 3 “Our” Colorado River

4. 6 Jun 05 4 Wholesale Billing LCRA bills its customers at the substation; our agreement is that ownership of electricity changes hands on the low side of the transmission transformer –Power arrives at transmission voltage –Power leaves at distribution voltage –Wholesale metering and billing have not changed

5. 6 Jun 05 5 Value of Meter “Everything stems from that meter working properly. That’s our foundation, it’s our measuring system,” – Deena Hemphill, Cap Rock Energy

6. 6 Jun 05 6 Solid State Interval Data Recorder “Technology is now available that can track an intangible that cannot be stored.” Carolyn Kinsman, Automated Communications Links, Inc.

7. 6 Jun 05 7 Metering and Data Changes LCRA management decided to split generation and transmission functions physically in re-regulated environment LCRA could no longer read and manage meters for Wholesale Customers’ Key Accounts – they are retail

8. 6 Jun 05 8 LCRA and its Key Account Program LCRA manages outside contractors for metering and data collection services for Customers’ Key Accounts We adapted this set up to other markets

9. 6 Jun 05 9 Metering and Data Services LCRA offers meter services through Texas Meter and Device, Waco

10. 6 Jun 05 10 Metering and Data Services LCRA offers daily metering reading and data posting through MeterSmart of Arlington, Texas

11. 6 Jun 05 11 Key Account Data Flow

12. 6 Jun 05 12 Key Accounts -- Education Customers monitor their customers’ loads End-Users plan operations and budgets

13. 6 Jun 05 13 LCRA in Opted-In Area LCRA owns three irrigation districts in AEP Texas Central Company Since market opened, LCRA buys from another provider; AEP is Transmission and Distribution Service Provider (TDSP)

14. 6 Jun 05 14 Three Irrigation Districts

15. 6 Jun 05 15 Responsibilities AEP owns, tests, and services meters LCRA owns and oversees phone link LCRA uses data

16. 6 Jun 05 16 LCRA & AEP Texas Central Company

17. 6 Jun 05 17 Value of Data kWh / AcFt by plant kWh / AcFt by pump River Plant has 2 inefficient motors

18. 6 Jun 05 18 LCRA in Austin Until April 2003, LCRA’s energy use in Austin was netted vs. generation at shared plants Transmission Services’ center now gets a bill

19. 6 Jun 05 19 LCRA & Austin Energy

20. 6 Jun 05 20 Communications “My allegiance goes to the first guy who shows me something that works.” Leon Henderson, LCRA

21. 6 Jun 05 21 We’re Guinea Pigs

22. Questions?