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ERCOT: Up To Nearly 2,500 MW Of REP/NOIE Price Responsive Demand Seen During August 2019 Peak
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ERCOT filed with the Texas PUC a report on demand response during the summer of 2019
As noted further below, ERCOT noted that ESI IDs may participate in more than one form of demand response (DR) and, when categorizing DR into individual categories, there may be double counting. This double counting is eliminated in the total amounts of DR megawatts listed by ERCOT
Data is collected from information provided to ERCOT by REPs and NOIEs
ERCOT said that the load reduction quantities reported in the table below represent those results for the peak week, hour-ending
17:00 (5:00 PM) for Summer 2019 (again, August 12 - 16). The day-to-day variability in
response for 4-Coincident Peak (4CP)/NearCP and Price Response is a consequence of individual
ESI ID and NOIE decisions about the cost-benefit of responding on a particular day. Significant
overlap among competitive ESI IDs does exist across 4CP/NearCP, Price Response, Emergency
Response Service (ERS) and Transmission and/or Distribution Service Provider (TDSP) Standard
Offer Programs (SOPs). Significant overlap also occurs among NOIEs between 4CP/NearCP and
Price Response, ERCOT said
The overlap can be significant and can result in an overestimate or an underestimate of total
demand response. For example, if one was to calculate the total demand response resulting from
the survey results and compared that total to the actual observed reduction in demand, the survey
results would overestimate demand response by 2,609 MW on August 13 and underestimate
demand response by 1 MW on August 16, ERCOT said
The basis for the overlap is that categories are behavioral and surveying the REPs and NOIEs does
not allow ERCOT to definitively know the reason load responded on a particular day.
Differentiating between price response and 4CP is difficult because they are not necessarily
structured programs but incentives that exist in the market for load response. Some load may
respond to a $9,000 price whereas other load may need the $9,000 price plus the value of 4CP to
respond on a particular day, ERCOT said
On the other hand, the ERS program administered by ERCOT and the TDSP SOPs are programs
that do not allow overlap as there is a prohibition on dual participation between the two programs.
However, an ERS participant could curtail for 4CP or price. In summary, the 'Total System Level
DR/PR' column in the table eliminates double counting and represents the best indication of
overall demand and price response for that peak week, ERCOT said
ERCOT's report of the demand response amounts during the summer 2019 period stated above is below. A large version of the chart is available by clicking the image or clicking here
Project 49852
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146 MW of Peak Rebate/Direct Load Control
February 7, 2020
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Reporting by Paul Ring • ring@energychoicematters.com
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