1. RPG - 10/12/2007 Competitive Renewable Energy Zones (CREZ) Update Bill Bojorquez Vice President, System Planning

2. RPG - 10/12/2007 2 Review In 2005, Texas Senate passed bill that increased renewable portfolio standard and set up process for the PUC to designate transmission for Competitive Renewable Energy Zones (CREZs) In 2006, ERCOT performed a study to determine locations in Texas with best wind resource potential and developed transmission plans from those areas to load centers and filed with PUCT In 2007, PUCT heard contested case to select CREZs; written Interim Order issued October 2 nd

3. RPG - 10/12/2007 3 PUCT Interim Order Designates CREZs in five areas of the Panhandle and West Texas Identifies parties who demonstrated financial commitment Orders ERCOT to develop transmission plans for four different levels of installed wind in these CREZs –To be filed with PUCT by 4/2/2008

4. RPG - 10/12/2007 4 Selected Zones - Geographically Panhandle B – CREZ 4 Panhandle A – CREZ 2A Central – CREZ 9A Central West – CREZ 19 Mc Camey – CREZ 5&6

5. RPG - 10/12/2007 5 Zone(s) Scenario 1 (10,000* MW) Scenario 2 (16,403* MW) Scenario 3 (22,806* MW) Scenario 4 (22,366* MW) Panhandle A – 2A 1422319149606660 Panhandle B – 4 1067239337200 Central – 9A 1358304747355615 Central West – 19 474106316512051 McCamey – 5&6 829185928903190 CREZ Scenarios for Study * assumes baseline of 4850 MW, to be adjusted to match current interconnection agreements

6. RPG - 10/12/2007 6 CREZ Transmission Optimization (CTO) Study ERCOT Staff initiated Study in anticipation of written Interim Order at Regional Planning Group(RPG) meeting on 8/24 Have initiated subgroup of RPG for more frequent meetings and communications related to CTO Study –Sign up for RPG-CREZ distribution list at http://lists.ercot.comhttp://lists.ercot.com –Website at http://www.ercot.com/committees/other/rpg/crez/index.htmlhttp://www.ercot.com/committees/other/rpg/crez/index.html

7. RPG - 10/12/2007 7 Questions?