Spending ERCOT funds?

Groups hit overseer of power grid
Consumer activists slam budget secrecy
Associated Press
FORT WORTH -- The Electric Reliability Council of Texas, which manages the state's power grid and oversees the transition to electric deregulation, is being criticized by consumer groups for keeping details of its budget a secret.
"There is no accountability on the spending at ERCOT," said Janee Briesemeister, a senior policy analyst at the Austin office of Consumers Union. "They adopt their budget in secret ... and the budget results in a fee on every consumer electric bill."
Officials say since the council is a nonprofit, it isn't obligated to divulge budget information.
The council has released general figures but will not go into specifics.
"The presumption is that somehow, by putting this out before the public, that's going to do something for you -- but I don't think it's functionally required," said Tom Noel, the council's chief executive officer.
"You have people out there that think public scrutiny is what keeps prices down."
Noel said that is "not necessarily the case."
Officials of the Texas Public Utility Commission, which oversees the council, said ERCOT's 2002 budget includes $52 million for operations and management, $36 million for capital expenditures and $6 million for debt service.
Consumer groups said a 22-cent fee tacked onto residential bills has gone up seven cents since 2000 and could continue to rise as the electric market deregulates.
The groups say there are ways for ERCOT to release relevant budget data to interested parties without divulging proprietary information.
Now, the council must get the PUC's approval before implementing any fee increase, but Briesemeister said the commission needs to keep a closer eye on ERCOT.
"Without the commission adopting standards and exercising oversight prior to ERCOT incurring expenses, there is no incentive for the organization to manage its financial affairs to minimize costs to ratepayers," Briesemeister and other consumer activists said in a petition filed in August.
PUC officials said they closely monitor ERCOT and that commission Chairman Max Yzaguirre holds a nonvoting position on the ERCOT board and has access to budgetary items.
"Clearly, the commissioners are asking for more -- not less -- information from ERCOT," PUC spokesman Terry Hadley was quoted as saying in the Fort Worth Star-Telegram over the weekend.
"They realize the importance of getting a very open line of communication," Hadley said. "And a lot of that budget information is needed to set the market rules. Those rules are under continued review by the commission."

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