***NOTICE***

There are several outage/curtailment/operating parameters having to do with the Eddy DC converter operation and this note is intended to clarify the outage postings. One outage posting concerns area load of 1200 megawatts (MW) or more.

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EPE Reliability requests that shut downs of the Eddy County HVDC Terminal be minimized to the extent possible to avoid further component damage to the Terminal. EPE Reliability strongly recommends that instead of a Terminal shut down, that the Terminal be operated at the minimum level or higher at all times.

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EPE is instituting new modeling for the Palo Verde East system (PVEast). This modeling merges the TTC and ATC for the Palo Verde-Westwing, Palo Verde-Jojoba, and Jojoba-Kyrene paths (and their reciprocals). This modeling does not increase or decrease TTC or ATC on PVEast, but redistributes the TTC and ATC between the component Palo Verde paths as dictated by the market. This modeling will allow PVEast to be more fully utilized by market participants. It is noted that using this modeling, the ATC on any one component path can be directly affected by the transactions that take place on any of the other component paths. For example, assume that Palo Verde-Westwing path and Palo Verde-Jojoba path each show an ATC of 100 MW. An “Accepted” transmission reservation of 100 MW on the Palo Verde-Westwing path will utilize the ATC on both the Palo Verde-Westwing path and the Palo Verde-Jojoba path, thus rendering a 0 MW ATC for both paths. A more complete explanation of the modeling is given in the document "Principles, Practices and Methods for the Determination of Available Transmission Capacity for El Paso Electric" located on EPE's website at www.epelectric.com, "Transmission", "Document".

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For information regarding EPE's transmission system, please go to EPE website at www.epelectric.com and reference "Transmission" page.

To contact EPE, please call the following:

Dennis Malone, Manager, System Planning 915-543-5757

Bill Massie, Manager, System Control 915-543-5887

Luis Zaragoza, Supervisor, Energy Analysis 915-543-2017

***Transmission Customers***

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Please review the Allocation Procedure for Transmission Losses on the ANPP Valley Transmission System document located in the Tariff folder for updated losses procedures.

Applicability:

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For past news, please view the Archived EPE News documentation located on the EPE OASIS.

All paths with a POR of LOCALGEN have been deactivated. Please use POR of EPE.LOCALGEN instead.