Control Number: 27706

item Number: 119

Addendum StartPage: 0

PROJECT NO. 27706

REPORTS OF THE ELECTRIC 8 PUBLIC UTILITY COMMISSION RELIABILITY COUNCIL OF TEXAS 5 OFTEXAS + - * F h )

§ : c a F r e a

ar - r2 ERCOT'S 2007 ANNUAL REPORT ON THE TEXAS ct " I '

RENEWABLE ENERGY CREDIT TRADING PROGRAM K, L-4

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COMES NOW, the Electric Reliability Council of Texas, Inc. (ERCOT) an&files: u - pursuant to the Public Utility Commission of Texas (PUC, Commission) SVSST. R. $25%3(g),

its 2007 Annual Report on the Texas Renewable Energy Credit Trading Program (REC

Program). The Report is attached hereto as Attachment A. ERCOT has filed portions of this

Report containing Protected Information, Exhlbits 1 thou& 4 of Attachment A, confidentially in

accordance with PUC PROC. R. $22.71 and PUC SUBST. R. $25.362.

Respectfully Submitted,

By: Michael G. Gryabye General Counsel Texas Bar No.: 24002165 (5 12) 225-7076 (Phone)

mgrable@ercot .corn Lori Cobos Associate Corporate Counsel Texas Bar No.: 24042276 (512) 225-7073 (Phone) (5 12) 225-7079 (Fax) lcobos@,ercot.com ERCOT 7620 Metro Center Drive Austin, Texas 78744

(512) 225-7079 (Fax)

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Attachment A

2007 Annual Report on the REC Program

This report responds to the requirements of PUCT Subst. R. 25.173(g) and Protocols Section 14. Portions of the report containing Protected Information, Exhibits 1 throufi 4, are filed as confidential. Participants in the REC Program may view their individual information (used in the creation of the confidential reports) via their online REC accounts.

r. Existing and New Renewable Capacity

New renewable capacity in the Renewable Energy Credit Trading Program increased in 2007. At the end of 2007, there are fifty-six (56) REC generation accounts, with an installed capacity of 4600 MW. There are a total of eight (8) Offset generator accounts with a total of 319 MWs of capacity. The current breakdown of previously existing (Offset generation) and new capacity as of December 3 1 , 2007 is:

Technology Type

Biomass Hydro Landfill Gas Solar Wind Total (rounded)

Accts

~

19.9 11 I 2 I 67.1

4491.8 4600

Offset MW Capacity

0.0 197.0 6.3 0 .o

115.8 319

Total Current MW Capacity

19.7 216.9 73.4 1.2

4607.6 4919

NOTE: The Texas REC program is a voluntary program for generation entities. They are not required to participate. The program tracks only the generation that is registered and earning RECs. Also, the Texas REC program is responsible to track all renewable generation in Texas and not just in ERCOT. For these reasons, the MW of capacity of this report does not match the total Renewable Resource generation registered in ERCOT System Planning Reports.

11. Eligible Non-Texas Capacity

At this time, there is no non-Texas capacity serving Load in the REC Program.

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111. REC Aggregation Company Activities

Aeolus Wind Airtricity Forest Creek Wind Farm, LLC Airtricity Sand Bluff Wind Farm, LLC American Wind Power Center

Changes to the REC rule 25.173 stemming from Senate Bill 20 changed the definition and requirement for market participants that want to register as REC Aggregators. The rule defines REC Aggregator as an entity managing the participation of two or more microgenerators in the REC trading program. Further, a microgenerator is defined as a customer who owns one or more eligible renewable energy generating units with a rated capacity of less than one megawatt operating on the customer’s side of the utility meter.

12/21/2004 1 2/2 1 /2006

2/2/2 007 711 2/2005

This will require all currentIy registered Aggregators to re-register in the program under the new guidelines. Currently there is only one that has re-registered.

IV. Facility Information

As of December 31, 2007, the REC Program reports fifty-six (56) accounts for new REC generation. The owner(s)/operator(s) of each REC generation Facility and its enrollment date for REC Program participation are provided in the following table:

Generation Company I Date Enrolled

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V. Renewable Enerey Generated

The total amount of energy generated by renewable energy resources tracked by the REC Program for 2007 is 10,132,645 MWh. This represents an increase of about 43% in MWh of renewable generation this year compared to 2006. This program is optional for generation entities; therefore, there may be renewable generation in Texas not registered in the REC Program. The following table shows total participating renewable generation, including “offset” generation, for 2007 by technology type and by quarter (Please note that each of these numbers is rounded to the nearest whole M m ) :

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VI. Renewable Enerw Unit Retirements

In 2007, no generation account holder retired units.

VII. Participating Competitive Retailers

At the time of this report, one hundred twenty-four (124) Competitive Retailers had accounts in the REC Program. These Competitive Retailers are identified below:

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POLR POWER LP Pre-Buy Electric Reach Energy, LLC RELIANT ENERGY HL AND P (LSE) Reliant Energy Retail ,LLC Reliant Energy Solutions, LLC

1 / I 5/2002 1 /31/2007 1 /29/2008 6/28/2002 1 /14/2002

12/2 1 /2001 REPower, LLC SEMPRA ENERGY SOLUTIONS

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1 /29/2007 12/20/2001

VIII. Final REC Requirements

Each Competitive Retailer’s Final REC Requirement is provided as CONFIDENTIAL and attached hereto as part of Exhibit 1. The total REC requirement for all Competitive Retailers for 2007 after adjustments for previous true-ups as required by the PUCT was 3,421,626 RECs.

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IX. REC Offsets Allowed

There were a total of six entities that made use of a total of 391,977 Offsets in 2007. A CONFIDENTIAL report of the Offsets used is attached hereto as Exhibit 2.

X. REC Offsets Generated

The following table of REC Offset Generators shows the Offsets allocated by the PUCT to each Resource compared to each Resource’s actual generation for 2007.

XI. REC Retirements

A CONFIDENTIAL table, attached hereto as Exhibit 3, shows the list of participants retiring RECs and the number of RECs each retired for the 2007 compliance period. The total RECs retired for mandate were 3,388,063. This includes adjustments for previous year true-ups as required by the PUCT. There was an additional 1,637,871 RECs retired voluntarily. ERCOT retired a total of 4,922 RECs due to expiration on April 1, 2008 as required by the PUCT Rule 25.173 (k)(5).

XII. REC Retirement Compliance

The following list identifies which Competitive Retailers complied with their REC Requirement and the percentage of failure to comply, if any. A CONFIDENTIAL table, attached hereto as Exhibit 4, identifies the exact amount of each Competitive Retailer’s shortfall.

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9

TXU Energy TXU ET SERVICES COMPANY (LSE)

0 0

TXU SESCO Energy Services Vantage Power Services, LP

10

0 0

WTU RETAIL ENERGY LP 0

XIII. Historical Information

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A. General Historical Information

2006 107 124

Market Participants Registered in

Competitive Retailers

~

9

I REC Brokers I 25

9 8

Others

Offset Capacity New Capacity

38 15

7.68 MW 5.28 MW

15

YEAR

2004

2005 2006 2007

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Total Renewable New Renewable REC Offset Mixed Generation: Generation Generation Generation

3,685,014 MWh 3,158,237 MWh 486,337 MWh 40,440 MWh 4,804,512 MWh 4,178,156 MWh 573,616 MWh 52,740 MWh 7,107,800 MWh 6,546,730 MWh 525,036 MWh 36,034 MWh 10,132,644 MWh 9,438,737 MWh 628,355 MWh 65,552 MWh

Offset Generator Accounts Registered with ERCOT: 9 Hydro Generation Capacity 203.0 MW

YEAR

2004

2005

2006

2007

I Landfill Gas Generation CaDacitv I 6.3 MW

Total Texas Competitive Load: 243,206,876 MWh 245,236,077 MWh 256,801,491 MWh 257,288,432 MWh

Wind Generation Capacity Total REC Offset Generation Capacity Mixed Generation CaDacitv :

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115.8 MW

325.1 MW 1

25 I 25 I 26

15 15 15 15 I 15 I 19 20 I 24 I 35

203.0MW I 197.0MW I 197.0MW 6.3 MW I 6.3 MW I 6.3 MW

10.68 MW I 10.68MW I 10.68MW 6.28MW I 6.28 MW I 6.28 MW

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B. 2006 Detailed Historical Information (Confidentiality Status Expired)

Hino Electric Power Company

Accent Energy Texas LP ACN ENERGY INC (LSE) AEP Texas Commercial & Industrial Retail, LP Affordable Power Plan Alliance Power Company, LLC Am bit Energy AmeriPower Amigo Energy AmPro Energy LP Andeler Corporation APN Starfirst, LP APS Energy Services Company Inc. Assurance Energy ASSURANCE ENERGY (TXU RESIDENTIAL POLR) BP Energy CALPINE POWER AMERICA, LP Champion Energy Services CIRRO GROUP INC Commerce Energy, Inc. ConEdison Solutions ConocoPhiltips Company Constellation NewEnergy Coral Power LLC DBA Coral Power Solutions Coral Power, LLC CPL RETAIL ENERGY LP CPL Retail Energy LP, d/b/a CPL DE Multi-Family Direct Energy Business Services Direct Energy, LP Dynegy Energy Marketing Dynowatt LP ECONnergy Energy Company Electric Now, L.P. Entergy Gulf States TX ENTERGY SOLUTIONS LTD EPEC EXTEX RETAIL SERVICES COMPANY LLC First Choice Power Special Purpose, LP FPL Energy Power Marketing, Inc. Freedom Group d/b/a Freedom Power Gexa Corp. Glacial Energy Inc. Green Mountain Energy Company Green Mountain Energy, Commercial Service

11,593

2006 REC REQUIREMENTS Competitive Retailer FRR

1,295 0

4,835 1,566 2,342

129 1,232

632 10

452 2,449

714 0 0

10,044 13,198 13,281 28,513 4,844

61 4,035

298,988 10,348

636 0

13,609 4,927

67,669 81,274

724 3,565 1,357

217 166,325 16,974 78,422

533 62,857

254 493

70,794 157

13,813 9,548

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Hudson Energy Services Just Energy Texas Liberty Power Corp. LPT LLC DBA LPT SP LLC MPOWER RETAIL ENERGY LP (LSE) Mutual Energy SWEPCO, LP N M Energy of Texas, LLC National Power Company, Inc. Neumin Production Company Nueces Electric Coop - CR Occidental Power Marketing, L.P. Pegasus Alliance Corporation dba OnPAC Energy Pilot Power Group, Inc. Pre-Buy Electric Reliant Energy Retail ,LLC Reliant Energy Solutions, LLC REPower, LLC SEMPRA ENERGY SOLUTIONS Southwestern Public Service Co. Spark Energy, L.P. StarTex Power Strategic Energy dba Expert Energy Stream Gas and Electric, Ltd. SUEZ Energy Resources NA, Inc. Tara Energy, Inc. Tenaska Power Services Co dba TPS I Tenaska Power Services Co dba TPS II Tenaska Power Services Co dba TPS I l l Tenaska Power Services Co. Tenaska-Oxy Power REP Services LP Tenaska-Oxy Power REP Services LP dba TOPS I Texas Commercial Energy dba Texas Wholesale Energy Texas Power LP Texas Retail Energy TriEagle Energy. L.P. TXU Energy TXU ET SERVICES COMPANY (LSE) TXU SESCO Energy Services Vantage Power Services, LP W Power & Light, LP WPS Energy Services of Texas LP WPS Energy Services, Inc.

I 48 6,503

70 1 475

43,666 8,075 1,119

21 9 4,278

0 28,998

269 736 351

476,470 465,182

I 79,009

188,021 15,614 6,038

105,993 38,893

125,105 14,680 20,609 12,524

1 34,115

145 31,935

482 1,889

23,159 3,696

636,314 23,138 11,111 1,367 1,090

77 1 1,847

WTU RETAIL ENERGY LP 0 Total (Including adjustments) 3,420,077

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2006 OFFSETS ALLOWED

Competitive Retailer CPL RETAIL ENERGY LP Entergy Gulf States TX Mutual Energy SWEPCO, LP

Allowed Offsets

94,969 61,535

99.272 I Nueces Electric COOP - CR 1 5.661 I

TXU Energy WTU RETAIL ENERGY LP

Totals

129,924 17,493

408,854

2006 REC RETIREMENT

CPL Retail Energy LP, d/b/a CPL DE Multi-Family

13,609 0 0 4,927 0 0

Direct Energy Business Services Direct Energy, LP

67,669 50 1 0 81,274 1,046 0

Dynegy Energy Marketing Dynowatt LP ECONnergy Energy Company Electric Now. L.P.

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724 0 0 3,565 0 0 1,357 0 0 717 n n

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TXU Energy C0104 TXU ET SERVICES COMPANY (LSE) TXU SESCO Energy Services Vantage Power Services, LP W Power & Light, LP WPS Energy Services of Texas LP WPS Energy Services, Inc.

Totals

2006 REX COMPLIANCE DETAIL

0 2,238 0 23,138 0 0 11,111 0 0 1,367 0 0 1,090 0 0

77 1 0 0 1,847 0 0

3,419,240 781,735 1,972

Mandatory Competitive Retailer FRR Retirements

AmPro Energy LP 10 0 N M Energy of Texas, LLC 1,119 0 Texas Commercial Energy dba Texas Wholesale Energy 482 0

Totals I ,611 0

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Voluntary #REC to Retirements Comply

0 10 0 1,119

0 482 0 1,61 I