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Oncor Reveals Details Of Proposed New Pilot 24/7 Winter Load Management Program; Size, Payments, Other Details

Encourages REP Participation, Customer Portfolios

October 18, 2021

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Copyright 2010-21
Reporting by Paul Ring •

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Oncor has filed with the Texas PUC details of a proposed Winter Emergency Load Management Program that would operate 24 hours a day, 7 days a week from December 2021 until the end of February 2022

"The Winter Emergency Load Management Program (Program) provides incentives to program participants (Participants) for curtailing electricity demand when requested by ERCOT, and during ERCOT emergencies. Participants include commercial customers, Retail Electric Providers (REPs), and commercial aggregation groups. The Program will operate December 1 of the current program year through the last day in February of the following year (Program operating period). Participants must be available to curtail 24 hours a day, seven days a week, and be capable of curtailing load within 30 minutes notice. The minimum load reduction that may be subscribed in the Program is 100 kW," Oncor said

The Program seeks to achieve 50 MW in load reduction during the Winter operating period, with a budget of $2 million.

"Standard incentives are offered for demand savings, based on TRM calculations. Incentive payments shall not exceed current avoided costs and the Program is required to be cost-effective," Oncor said

At the end of the Program operating period, Oncor will analyze Participant response across all events and determine if the average response is at least 90% of the contract Obligation. If the Participant qualifies, Oncor will calculate the incentive payment based on current Program rules and incentive levels. In the absence of events beyond the test event, or if events are called outside the existing parameters of the TRM, the customer payment will be based on their baseline Obligation. The specific scenarios will be logged, and Oncor will work with the State Evaluator to address them in the TRM prior to opening the Standard Offer Program in December 2022.

Oncor said that, "Program incentives will be market based[.]"

Under the Program, participants must curtail a minimum of 90% of their Obligation across all events to be eligible for payment

All Oncor commercial customers who have not opted out of the EECRF tariff, are eligible to participate.

"Additionally, REPs and aggregation groups may participate by enrolling a portfolio of eligible commercial customers in the Program," Oncor said

Each Participant must subscribe a minimum of 100 kW of load reduction to be eligible in the Program. Critical load and customers participating in other load management programs, such as ERS are ineligible. Eligibility is determined at the ESIID level.

Oncor will reach out directly to large commercial customers, aggregation groups, and Retail Electric Providers (REPs) to recruit participants. Additionally, Oncor will work internally with the Large Account Management organization to offer the Program to managed accounts.

Oncor said that the program's objectives are, among other things,·to, "encourage involvement by a wide range of Participants, including REPs."

Participants must be capable of curtailing their Obligation within 30 minutes of notification. Events may be called at any time during the Program operating period. Oncor may call a maximum of six events during the Program operating period, with any single event lasting no more than 12 hours.

"The purpose of the above-referenced pilot Program is to provide cost-effective load curtailment during ERCOT emergencies from December 2021 through February 2022 (winter season), and to test the Program design in preparation of a Standard Offer Program to be launched in December 2022," Oncor said

"The Program seeks to support grid resiliency by providing winter load reduction capabilities in the commercial market. Additionally, the Program addresses the requirements of Senate Bill 3 and is designed to comply with 16 Tex. Admin. Code § 25.181 (TAC) relating to the Energy Efficiency Goal implementing § 39.905 of the Public Utility Regulatory Act (PURA)," Oncor said

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