Regarding the response to question no. 2:

In my reading and understanding of the Protocols, the only requirement for
the submission by QSEs of monotonically increasing ordered pair bids is for
balancing energy service bids.  This requirement does not appear to apply to
the submission of AS capacity bids by QSEs, although the selection process
does require the stacking of all bids in a monotonically increasing fashion.


Also, my understanding is that "monotonically increasing ordered pairs" does
not necessarily mean a linear function, i.e., there does not have to be a
"straight-line" relationship between all QSE bids.

thanks,

Dan Jones
Market Policy & Planning
City Public Service of San Antonio
401 W. 15th Street, Ste. 800
Austin, TX 78701
tel:? (512) 477-7601
fax: (512) 477-5329


-----Original Message-----
From: Brad Jones [mailto:BJONES5@txu.com]
Sent: Thursday, January 11, 2001 5:00 PM
To: Operations@ercot.com
Cc: Jerry Ward
Subject: Examples in Response to Staff Request in Project No. 23220




OWG members,

Jerry Ward has prepared the following set of responses to the request of the
Commission Staff for several examples of the operation and clearing of
Ancillary
Services markets.  The Staff has asked that the examples be provided prior
to
the next Technical Conference scheduled for January 19.

As chair of the Operations Workgroup, I had asked Jerry to develop the first
draft of responses so that each of you could then review and provide
comments
upon them.  Comments should be provided by the close of business on Monday,
January 16th.  All comments should be copied to the full workgroup by
e-mailing
them to operations@ercot.com.  Jerry and I will then incorporated the
comments,
as appropriate, into the examples and communicate to the workgroup the final
version of the examples prior to sending them to the Staff on the 17th.

(See attached file: 23220 Examples.doc)

Thanks -- Brad