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Texas Co-op Seeks PUCT Approval To Move Certain Load From SPP To ERCOT

December 22, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

East Texas Electric Cooperative, Inc. (ETEC) petitioned the Public Utility Commission of Texas for approval for ETEC to transfer two wholesale delivery points, totaling 35 megawatts (MW) of load, into the Electric Reliability Council of Texas (ERCOT) from the Southwest Power Pool (SPP).

ETEC provides power to its three generation and transmission (G&T) cooperative members, Northeast Texas Electric Cooperative, Inc., Sam Rayburn G&T Electric Cooperative, Inc., and Tex-La Electric Cooperative of Texas, Inc. These three G&T members, in turn, collectively sell power to ten distribution cooperatives that serve their members in certificated service territories throughout east Texas.

ETEC's service territory in east Texas is uniquely located along the seams of three Regional Transmission Organization (RTO) markets, which include ERCOT, SPP, and the Midcontinent Independent System Operator (MISO). Currently, the east Texas cooperatives serve approximately 1,000 MW of load in SPP, approximately 450 MW of load in MISO, and approximately 150 MW of load in ERCOT. The proposed transfer would increase ETEC's load in ERCOT to about 185 MW in total.

Specifically, ETEC requests authority to transfer two wholesale delivery points, consisting of approximately 35 MW of load, out of SPP and into ERCOT. "The transfer is expected to benefit ETEC's cooperative members -- and ultimately the retail customers -- by reducing power costs and better balancing ETEC's load among the three RTOs, thereby diversifying ETEC's exposure to each market. This transfer is expected to result in energy savings for each of the 330,000 member consumers served by ETEC's distribution cooperative members," ETEC said

"This requested transfer was made possible by Oncor Electric Delivery Company LLC's (Oncor's) plan to rebuild its 138 kV Jewett-Lufkin transmission line. This line is in close proximity to ETEC's load and offers ETEC the opportunity to transfer load into ERCOT at minimal cost. In fact, the total estimated construction cost for the transfer and the work at the two delivery points is estimated to be approximately $2.5 to 3.0 million," ETEC said

The transfer involves disconnecting existing 138 kV transmission service from SPP and Southwestern Electric Power Company (AEP), and reconnecting the load via two short radial taps to Oncor's rebuilt 138 kV Jewett-Lufkin transmission line in ERCOT. With the move, approximately 35 MW of cooperative load in Houston County, Texas, east of the City of Crockett, would be transferred into ERCOT. For context, the amount of load involved equates to service to approximately 10,000 homes.

Presently, Houston County Electric Cooperative ("HCEC") serves load in SPP from its Berea, Latexo, and Mustang Prairie substations. The total annual peak demand served by these stations today is approximately 27 MW. ETEC, on behalf of itself and HCEC, intends to move these stations and the associated load into ERCOT.

ETEC will disconnect the Berea, Latexo, and Mustang Prairie substations from SPP and connect them into ERCOT via two interconnections into the Oncor Crockett to Lufkin 138 kV transmission line, which is the eastern portion of the Oncor Jewett to Lufkin 138 kV line. Berea and Latexo will be connected with radial taps from the Oncor line. Mustang Prairie will be served radially from Latexo, as it is today. Oncor will construct the interconnection tap points for Latexo and Berea consistent with Oncor's standard guideline for radial points of interconnection.

At the conclusion of this load transfer, the Berea, Latexo, and Mustang Prairie substations will all be located in ERCOT, and load currently in SPP that is served via Berea, Latexo, and Mustang Prairie will be served from ERCOT. ETEC and HCEC are also developing a new Weldon substation that will be connected radially from Mustang Prairie to allow some loads currently served via distribution points of delivery to have a local transmission point of delivery and to accommodate future load growth in the area.

The targeted in-service date for Latexo and Berea is May 31, 2018. The targeted in-service date for Weldon is November 1, 2018.

Docket 47898

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