Texas PUC Staff Propose Pricing Level Under Emergency Pricing Program
September 8, 2023 Email This Story Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Staff of the Texas PUC have filed a draft proposal for publication to establish an emergency pricing program (EPP) for the wholesale electric market as required by Public Utility Regulatory Act (PURA) §39.160.
Under the draft, the EPP must be activated if the average system-wide energy price, as determined by ERCOT, has been at the HCAP for 12 hours within a rolling 24-hour period.
Notably, Staff proposed that, while the EPP is active, the system-wide offer cap will be set to the Emergency Offer Cap (ECAP).
The ECAP will be set equal to the value of the LCAP [low system-wide offer cap], Staff proposes. The low system-wide offer cap (LCAP) is currently $2,000 per MWh and $2,000 per MW per hour
Staff proposed that the EPP will remain in effect until the later of:
(A) "72 hours after the activation of the EPP; or"
(B) "24 hours after ERCOT exits emergency operations."
Staff proposed that, "While the EPP is active, ERCOT must reimburse resource entities for any actual marginal costs in excess of the larger of the ECAP or the real-time energy price for the resource. ERCOT must utilize existing settlement processes to the extent practicable to verify the resource entity’s costs for reimbursement."