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News Analysis


And in Texas, all customer information flows through ERCOT.
Fortnightly Magazine - May 15 2001

million customers, however, certainly will have its own set of challenges. "Obviously, this approach puts a lot of pressure on internal systems from a performance standpoint, because you're just dealing with vast amounts of data," points out Structure Consulting principal Lelon Winstead. The question becomes, then, is the new approach better? Having consulted extensively in ERCOT, Krajecki may be biased, but he offers some insight. "I definitely think Texas has probably the best retail deregulation program out there." In terms of the customer data approach, the idea, he says, is to get the most accurate settlement in the end. If ERCOT's customer data approach is successful, other regions conceivably would pay heed, chanting the clichŽ that there's no need to reinvent the wheel. But there is, in fact, a problem with applying ERCOT's approach outside of ERCOT: Like its own customer data approach, ERCOT itself, by definition, is unique. ERCOT, unlike most ISOs, is entirely self-contained. "The reason [ERCOT] could do this was because they're fully located inside of Texas," observes Krajecki.

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