A spokesperson for the Electric Reliability Council of Texas Inc. (ERCOT) yesterday expressed optimism that ERCOT will be able to meet a Friday deadline to complete additional interactive testing with utilities and new market competitors before it begins operating as a single control area, which will in turn clear the way for a full ramp-up of the state’s deregulation pilot. But ERCOT’s Heather Tindall also refused to rule out further delays if the council determines that its systems are not up to snuff by the time the latest deadline rolls around July 20.

The Texas Public Utility Commission (PUC) earlier this month announced that electric customers enrolled in the state’s pilot program will be switched to new retail electric providers at a more gradual pace than previously anticipated (see Daily GPI, July 6). The PUC said that such a move would allow ERCOT to continue testing its new systems and market processes to ensure a smooth transition to full retail competition on Jan. 1, 2002. The latest delay marked the second time the state’s deregulation pilot has been pushed back. The pilot was originally slated to kick off on June 1, but was shut down in late May (see Daily NGI, May 23).

Although ERCOT has been testing its operating systems for weeks, it recently decided that additional interactive testing with utilities and new market competitors is needed before it begins operating as a single control area. ERCOT has pushed back the date for starting operations as a single control area to July 20 to allow for the additional testing, meaning that customers will not be switched to new providers until after this date.

“We plan on making that date right now, but as we have said all along, if we reach that date and we find that the systems are still not ready, then we’ll delay it again,” Tindall told NGI. “We will continue to do that until everything is ready to go — there’s absolutely no point in just trying to make a date for the sake of saying we made the date if things are not going to work as they should be.”

ERCOT today will report to its board on “where they think they stand right now” with respect to the pilot, Tindall noted.

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