ERCOT Board Approves 2009 Budget

The Electric Reliability Council of Texas' 2009 revised budget is the fifth in a row to feature flat or declining fees.

PRESS RELEASE, Jan. 22, 2009 -- The Board of Directors for the Electric Reliability Council of Texas (ERCOT), grid operator for most of the state, approved a revised 2009 budget excluding nodal activities and maintaining the current system administration fee at its Tuesday board meeting.

The base operating budget includes a $168.5 million total spending authorization, based on a system administration fee of $0.4171 per megawatt hour (assessed on wholesale energy transactions). This marks the fifth straight year that ERCOT has maintained a flat or declining fee, CEO Bob Kahn told the board.

The board had previously approved a 2009 budget in May; however, it assumed a nodal market launch in December 2008. The revised budget excludes operating cost increases necessary to operate a nodal market, given the delay in the nodal market implementation date, which is tentatively scheduled for December 2010 pending board and regulatory approval.

The budget presentation is available for download at http://www.ercot.com/content/meetings/board/keydocs/2009/0120/Item_15a_-_2009_Revised_Budget_Presentation.pdf.