Texas REPs: ALJ's Proposed Order Would Force REPs To Include Prices Of PCM, DRRS In Current Fixed Rates Despite Programs' Uncertain Parameters

Paul Ring | Source: Energy Choice Matters | Posted 09/19/2024

Related controls:

55959

Keyword Tags: Texas retail electric providers (REPs) ERCOT Contingency Reserve Service (ECRS) Fixed rate contracts Dispatchable Reliability Reserve Service (DRRS) Performance Credit Mechanism (PCM)

Adopting the reasoning set forth in a proposed order from a Texas PUC ALJ which would deny retail electric providers' petition to designate ERCOT Contingency Reserve Service (ECRS) as an ancillary service product under which REPs incur charges, "beyond the REP’s control for a customer’s existing contract," would, as stated in exceptions filed by the REP Coalition, force REPs to price into current fixed price contracts costs from programs such as Dispatchable Reliability Reserve Service (DRRS) and even the Performance Credit Mechanism (PCM), whose parameters and designs remain uncertain, and for, PCM, may ultimately not even be implemented due to a cost cap (the observation on PCM's viability is solely ECM's own and was not an observation made by the REPs, though REPs did note uncertainty surrounding PCM's ultimate design)

AI generated summary

The Texas PUC's ALJ proposed order denying retail electric providers' petition to label ERCOT Contingency Reserve Service (ECRS) as an ancillary service product is under scrutiny by the REP Coalition. The rejection would prevent REPs from adjusting prices in existing fixed rate contracts due to ECRS costs, prompting concerns about incorporating uncertainties in programs like Dispatchable Reliability Reserve Service and the Performance Credit Mechanism into fixed rates.

The proposed order suggests that REPs should have foreseen ECRS costs before its implementation, prompting objections from REPs who argue against including speculative costs in fixed rates. The REP Coalition warns that requiring REPs to account for hypothetical future expenses in fixed rates would go against the rule's purpose and lead to unnecessary cost burdens for customers.

Link to Original Article

Please find the link to the full article below. (Please note that content provider might require a paid subscription)

Source Link: http://www.energychoicematters.com/stories/20240918b.html

Create a free trial account: Sign Up

Grid monitor is free to try. No credit card required

Texas REPs: ALJ's Proposed Order Would Force REPs To Include Prices Of PCM, DRRS In Current Fixed Rates Despite Programs' Uncertain Parameters

AI generated summary

Link to Original Article

Create a free trial account: Sign Up

Already have an account? Login