HOUSTON, Texas, Aug. 6, 2001 — Automated Power Exchangeâ„- Inc. (APX®), a provider of online market services for the electric power industry, today announced that the Electric Reliability Council of Texas (ERCOT) has awarded APX a contract to provide all default Qualified Scheduling Entity (QSE) services for wholesale electric power.
The APX service will be provided in ERCOT’s new single control area, which opened July 31, to assure interruption-free power scheduling when an assigned QSE is unable to perform.
Fail-safe power scheduling aids ERCOT in its reliability responsibility, which requires precise balancing of the amount of power going into and being consumed from the transmission grid.
“ERCOT evaluated proposals from multiple vendors for the default QSE service,” said Tom Noel, CEO of ERCOT. “APX was selected due to its scheduling capabilities and its ability to meet ERCOT technical, reliability, and readiness requirements.”
Said Rosalie Day, APX director, ERCOT and Southeast, “APX will provide reliable back-up scheduling to market participants when needed. ERCOT and the industry are assured of confidential, impartial service because APX does not take a position in the market.”
Interim default QSE services will be provided by APX for competitive retailers, municipal and cooperative power companies, generators, and power marketers whose assigned QSE becomes unable to function due to technical or business reasons or loss of ERCOT qualification.
In a default, ERCOT will transfer the scheduling function to APX for a period of 72 hours to ensure transmission system reliability until the participant can sign up with a new permanent QSE. APX will electronically submit to ERCOT the schedules that detail the amount of electric power the market participant will deliver to and/or use from the transmission grid the next day. APX also will perform financial settlements with ERCOT and between itself and market participants. The around-the-clock service will be operated from the APX Houston and Silicon Valley offices.
“As the independent power scheduler in the U.S. with increasing volumes in deregulating markets, APX is pleased to support the reliability needs of Texas with our expert staff and proven technology,” said John Yurkanin, APX president and CEO.
In addition, APX has been selected as the assigned QSE by several major market participants and is operating the APX ERCOT Market for online trading of physical power. As the only independent QSE and exchange market operator in ERCOT, APX offers its clients the assurance that their transaction details will not be used to compete with them in buying or selling power.
The default QSE contract is the second APX contract with ERCOT. In 2000 ERCOT awarded APX a contract for more than $500,000 to develop the computer system for the implementation of the Texas Renewable Energy Credit (REC) Program. APX delivered the system April 10, 2001.
ERCOT helps keep the lights on in Texas and is one of 10 regional reliability councils in North America. The organization currently oversees the operation of nearly 70,000 megawatts of generation and 37,000 miles of transmission lines in the State of Texas. The primary regulatory authority for ERCOT is the Public Utility Commission of Texas. ERCOT’s members include retail consumers, investor and municipally owned electric utilities, rural electric co-ops, river authorities, independent generators, power marketers, and retail electric providers. More information is available at www.ercot.com.
APX provides the market and scheduling technologies needed to support power system administration and operates Internet-based markets, voice brokerages, and clearinghouses for the buying and selling of electric power. A privately held company, APX has its world headquarters in Santa Clara, Calif., Southeast U.S. office in Houston, and European headquarters in London. More information is available at www.apx.com.