Texas PUC Staff, TDUs File Settlement On Interim Winter C&I Load Management Programs

November 9, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Staff of the Public Utility Commission of Texas, AEP Texas Inc. (AEP Texas), CenterPoint Energy Houston Electric, LLC (CenterPoint Houston), and Texas-New Mexico Power Company (TNMP) have entered into a settlement for the settling TDUs to establish and operate load management programs for nonresidential customers during the period of December 1, 2021 through February 28, 2022

The settling parties said in a motion that, "As this stipulation and settlement agreement resolves all outstanding issues in this proceeding, the Signatories recommend that the remaining deadlines in the procedural schedule are moot and respectfully request this agreement be considered and approved in an expeditious manner."

However, on the same day the settlement was filed (Nov. 9), Texas Competitive Power Advocates, which is not a settling party, filed a motion to intervene, before the settlement document was filed (testimony from signatories in support of the settlement was filed shortly before TCPA's motion to intervene)

The settlement would approve the load management programs as follows:

AEP Texas

The Interim Winter Load Management Pilot Program (Program) provides incentives to Program participants (Participants) for curtailing electricity demand when the ERCOT power region has declared a Level 2 Emergency or a higher level of emergency or has otherwise directed AEP Texas to shed load. Participants include non-residential customers, national or local energy service companies, and commercial aggregation groups that can identify curtailable load. The Program will operate December 1,2021 through February 28,2022 (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 kilowatts (kW).

The Program seeks to achieve 10 MW in load reduction during the Program operating period, with an estimated budget for incentive payments of $650,000.

AEP Texas will pay the project sponsor (i.e., customer or third-party aggregator) an incentive payment of $35.00 per kW of the verified curtailed load, up to the approved kW amount for each site participating in the Program

All AEP Texas non-residential customers, national or local energy service companies, and aggregation groups that can identify curtailable load are eligible to participate. Each Participant must subscribe a minimum of 100 kW of load reduction to be eligible for the Program. Critical load and customers participating in other load management programs, such as ERS are ineligible. Eligibility is determined at the ESIID level. Additionally, load curtailment that will result in negative environmental or health effects are ineligible. This restriction does not preclude the use of self-generation that is in compliance with applicable environmental and health and safety laws.

CenterPoint Houston Electric, LLC

CenterPoint Houston seeks to have between 100 megawatts and 300 megawatts of curtailable load in its Interim Load Management Program.

Program participants (Project Sponsors) will include commercial customers and aggregation groups who can curtail load with 30 minutes' notice, and participate in curtailment events 24 hours a day, seven days a week. CenterPoint Houston will operate the Program from December 1, 2021 through February 28,2022.

CenterPoint Houston will pay the Project Sponsor (e.g., customer or third-party aggregator) an incentive payment of $30.00 per kilowatt for verified curtailed load, up to the approved kilowatt amount for each site participating in the Interim Load Management Program.

Project Sponsors will be required to demonstrate a commitment to fulfilling program objectives and competency in completing their proposed project. Project Sponsors will be required to provide information concerning their loads, facility characteristics, and curtailment process. Eligible Project Sponsors include:

• National or local energy service companies (ESCOs) or other aggregation groups.

• Retail Individual Non-Residential customers that identify curtailable load in their own facilities.

The following Curtailable Loads are excluded from the program:

• Critical load or load curtailment that result in negative environmental or health effects. This restriction does not preclude the use of self-generation that is in compliance with applicable environmental and health and safety laws.

• Curtailable Loads that are eligible to earn incentive payments from other programs, including but not limited to programs available through ERCOT.

Texas-New Mexico Power Company

The Interim Load Management Pilot Program (Program) provides incentives to program participants (Participants) for curtailing electricity demand when requested by ERCOT, and during ERCOT emergencies. Participants include energy service companies, aggregation groups, and individual nonresidential customers that can identify curtailable load. 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 up to 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.

The Program seeks to achieve 1.5 MW in load reduction during the pilot operating period, with a budget of $60,000.

All TNMP individual nonresidential customers, as well as energy service companies, and aggregation groups are eligible to participate. 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. Additionally, load curtailment that will result in negative environmental or health effects are ineligible. This restriction does not preclude the use of self-generation that is in compliance with applicable environmental and health and safety laws.

Project 52689

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