ERCOT Reports RFP Awards, Cost Under New Firm Fuel Supply Service Procurement
September 28, 2022 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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ERCOT reported results from the first procurement of the new reliability product, Firm Fuel Supply Service (FFSS).
The PUC had directed ERCOT to develop and procure this product as part of the Commission’s Phase I Market Design efforts and in response to Texas Senate Bill 3.
On June 30, 2022, ERCOT issued a Request for Proposals (RFP) to provide FFSS during the November 15, 2022 through March 15, 2023 obligation period. Proposals were due by September 1, 2022.
ERCOT received proposals from 5 different Qualified Scheduling Entities (QSEs), offering 19 Generation Resources to act as FFSS Resources during the obligation period. ERCOT confirmed that the offered Generation Resources qualified to provide FFSS and determined that the offered Generation Resources could be procured within the budget cap established by the Commission.
The following are the FFSS procurement results for the November 15, 2022 through March 15, 2023 obligation period:
• All 19 Generation Resources were awarded at a clearing price of $6.19/MW/hr ($18,000/MW);
• 18 of the 19 Generation Resources offered fuel oil as the reserve fuel type;
• 1 Generation Resource offered natural gas storage;
• A total of 2940.5 MW of FFSS capacity was procured; and
• The total cost of procurement was $52,857,722.28.