LEW HANES: Bill, please talk about load balancing and planning.

BILL MELTON: All of the planning process is important.  You have to not only look at the current hour, but also the next hour, and two hours in advance.  You must have adequate time to schedule the power out of your system if you have excess to sell or in to your system whether it be due to the fact that it is more economical to purchase or you are unable to meet your projected demand.

You have to be alert to any transmission loading relief  (TLR's) procedures that may be exist across the system. The TLR process is handled through the security desk.  There is a list of TLR's so you can keep up with them visually or I can print a copy of the list for reference. A TLR is used to maintain system reliability.  It allows an operator of the company or control area to curtail or cut schedules that may be causing line overloads within the control area.  A purchase from the American Electric Power (AEP) control area may come across TVA to us.  If  TVA starts experiencing an overload condition in their control area, they might call a TLR.  This would curtail or cut electricity scheduled to come across that control area in order for them to stay within their operating limits.