ERCOT is making final preparations to begin conducting Transmission
Congestion Right (TCR) auctions which will be implemented in preparation
for direct assignments of congestion costs beginning on February 15th,
2002.  TCRs function as financial hedges against marginal costs
associated with Zonal Congestion. TCRs are a financial right on a
specified directional Commercially Significant Constraint (CSC) for a
particular date and hour that entitles the holder of record to receive
remuneration from ERCOT for congestion costs on that CSC for that time
and date. 
The TCR Program is open to any entity that qualifies as a TCR Account
Holder, except for Transmission and Distribution Service Providers
(TDSPs). TCR Account Holders must complete the Registration, and Credit
Application forms located on ERCOT's website:
http://www.ercot.com/mkt_part_apps/market_participant_application_f.htm

The first auction for the TCR Program will be for 100% of the TCRs from
February 15 - 28, 2002. Bidding on the first TCR auction is scheduled to
start on January 30, 2002.   
Bidding on the annual auction which will be for 60% of the TCRs from
March 1, 2002 to December 31, 2002 is scheduled to start on February
7th. The remaining 40% of the TCRs for March 1, 2002 to December 31,
2002 will be conducted at monthly auctions during the upcoming months.
The notices for the annual action and the February monthly auction are
currently posted on the ERCOT website.  Please visit the ERCOT website
at the link provided below regarding these notices. Notices for monthly
auctions for the remainder of the year will be posted at the same
location according to the TCR auction calendar which can also be found
at the link below:
https://tcr.ercot.com/default.cfm?func=tcrpostings

ERCOT conducted training sessions on TCRs and the auction process for
market participants over the past two weeks. The presentation materials
used for these training sessions may be found at the following location
on the ERCOT website:
http://www.ercot.com/Training/

For further communications with regards to TCR auctions and the TCR
program, ERCOT will send notices to registered market participant
contacts.  If you are not a contact person for a registered ERCOT market
participant and would like to be receive further communications from
ERCOT on the program, please send an e-mail to Postmaster@ercot.com
requesting that you be added to the tcr@ercot.com e-mail distribution
list.

If you have further questions, please call your ERCOT client service
representative or call the general client relations number at (512)
248-3900. You may also e-mail your inquiries to the ERCOT TCR
Coordinator at tcr@ercot.com .


Ted Hailu
ERCOT Client Relations Manager
Telephone: (512) 248-3873