Drew:

Here is the ERCOT document that lays out the requirements for Qualification.  
We have the XML servers installed but keep in mind that any new resource 
would have to have its connection made to us.  Lloyd can explain the nuts and 
bolts but he has told me that this could take a month or 2 because 
contractors have to lay physical phone lines to each facility, and then 
connection and configuration would have to be done before any test is 
scheduled with ERCOT.  

 At this time ERCOT is very skittish about giving a hard test date because 
they claim the market start will use up all the resources they have for 
that.  They claim they may have to hold off test for later this year but they 
have been working well with us so far.  It may not be as bad as they say.   
Personally I think that by the time we get through the structure, the 
attorneys and leg work to do a deal June 1 would already be here.  This does 
not include the test phase.  I don't see how we could move that fast with all 
the limits put on us but I would like to be proven wrong because more 
resources would be good for business.

We should keep in mind that this is still a pilot program and is still very 
much a test bed for the real thing next year.   There is nothing wrong with 
pursuing resource customers and bringing them online this fall for the Jan 
start of the full open market if that is what we have to do.

Regards,


Smith