Texas PUC Staff Make Recommendation For Interim VOLL

January 26, 2024

Email This Story
Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

Staff of the Texas PUC proposes that the interim Value of Lost Load (VOLL) in ERCOT be set at $25,000 per MWh.

The PUC is currently conducting an ERCOT customer-specific study of VOLL. The interim VOLL is based on prior non-ERCOT-specific studies and analysis, and would be used until the ERCOT-specific study is complete

VOLL in the ERCOT region is currently set at $5,000 per MWh

Staff said, "Staff ... recognizes that many of the proposed [interim VOLL] options are imperfect due to their reliance on an existing model and data that are not specific to the ERCOT region. Therefore, we would also recommend that any study employing the interim VOLL as an input should, whenever feasible, conduct sensitivity analysis to examine how relevant outcomes are impacted by different VOLL values. For example, the interim VOLL will be used to estimate the marginal cost curve as a part of the ongoing reliability standard study, as described by ERCOT in their most recent reliability standard study update. Relying on a single, imperfectly estimated VOLL for the purpose of important, policy relevant projects is ill-advised."

Staff recommends that any study that uses VOLL as an input should conduct sensitivity analysis, varying VOLL between $20,000 and $70,000 per MWh.

Staff said that the number of values within this range that should be considered for the sensitivity analyses may be situation specific, but in each case, the analysis should include sufficiently many different values to ensure a full understanding of how VOLL affects the results. Once the survey of customers in the ERCOT region has been completed and a new VOLL estimate has been obtained, the need for sensitivity analysis and the range of values can be re-evaluated, Staff said

Project No. 55837

ADVERTISEMENT

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Customer Care Specialist I & II- remote/hybrid -- Retail Supplier
• NEW! -- Pricing Analyst - Retail Power
• NEW! -- Electricity Pricing Analyst -- Retail Supplier
• Business Development Manager -- Retail Supplier
• Call Center Manager -- Retail Supplier

HOME

Copyright 2010-23 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.