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PUCT's Anderson Outlines Options To Move Emergency Response Service Into Day-Ahead ERCOT Market

May 4, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Texas Public Utility Commissioner Kenneth Anderson filed a memo outlining options for moving Emergency Response Service into the ERCOT day-ahead market

As previously reported, Anderson said at a recent open meeting that ERS should be moved into the competitive market and made a day-ahead product, just like non-spin or responsive reserves

Anderson provided more details on such proposed changes in a May 3 memo, stating, "[I]t is time to convert the entire ERS program by moving the service into the energy market with procurement occurring in the ERCOT Day Ahead Market (DAM) like other ancillary services."

"Because they will have more accurate information concerning system conditions, daily capacity bids will permit providers of curtailment services more flexibility to price the risk of involuntary curtailment and high energy prices. In addition, daily procurement will permit ERCOT to make more informed decisions as to the amount of ERS to procure based upon more current system conditions and weather data," Anderson wrote

"I would like the Public Utility Commission of Texas (PUCT) Staff to open a rulemaking to achieve this end. Two possible approaches are (1) simply repeal the rule and direct ERCOT to adopt an ERS-like ancillary product procured (or modifying the non-spin service to include load resources (LRs)) in the DAM, or (2) amend the rule to direct ERCOT to undertake the actions identified in option 1," Anderson wrote

Currently, ERCOT procures ERS three times annually for four-month Standard Contract Terms (SCT). In each SCT, ERCOT procures ERS according to two different response times-thirty minutes ("ERS-30") and ten minutes ("ERS-10")

ERS is authorized by Public Utility Commission Substantive Rule §25.507

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