PV Bottleneck - PLEASE READ

FYI -

Roger called today to inform us of a transmission capacity bottleneck at Palo Verde. Apparently, El Paso cannot take more than 50 mw into their system at Palo in any given hour; therefore, we will need to monitor El Paso's net schedule to ensure that it does not exceed this. This poses some obstacles and opportunities related to the lending agreement. If El Paso is taking a net of 50 mw in at PV, you'll need to procure energy at Four Corners or Greenlee or buy transmission with SRP-PNM-TNP-APS-etc.to fill the lending short. Note: EPE will still deliver us energy at PV. Then enter a zero priced buy-resale in Enpower to get the energy from an alternate delivery point to PV.

This is how it should take place -
Day-Ahead
Buy from El Paso at PV
Sell to STSW at PV
Hour-Ahead
Buy from Counterparty such as PNM, SRP, TNP, or APS at FC or Greenlee
Buy-Resale from El Paso from FC or Greenlee to PV

Please let me know if you have questions.

Thanks,
Kate