Texas TDU Seeks Approval For Utility-Scale Microgrid Pilot Under New Resiliency Plan

TDU Addresses Cost Recovery For New Resiliency Plan

April 29, 2024

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CenterPoint Energy Houston Electric, LLC ('CenterPoint Houston' or the 'Company') filed at the Texas PUC a resiliency plan that includes, among other things, a pilot for utility-scale microgrids

"Under the Company’s proposed Microgrid Pilot Program, the Company would coordinate with selected third-party entities in the study, design, implementation, and operation of utility scale microgrids in the Company’s service area," CenterPoint Houston said

CenterPoint Houston said that, if a resiliency event damages the distribution system to where loads interconnected to a utility scale microgrid cannot be served from the distribution system, a utility scale microgrid would enable service to the interconnected loads to be restored, leveraging the energy from the distributed energy resource(s) interconnected to the utility scale microgrid.

CenterPoint Houston would issue an RFP for participation in the pilot

Submitted bids will be evaluated considering criteria such as: total amount of load that would be proposed to be interconnected to the utility scale microgrid; the total amount of and type(s) of local distributed generation resources that would be interconnected to the utility scale microgrid; modifications that would be necessary to the Company’s distribution system, telecommunications network, information technology, and operational technology needed to support safe and reliable operation of the utility scale microgrid and the Company’s distribution system; and the type(s) of customer load that would be interconnected to the utility scale microgrid (e.g. critical load public safety customer, public infrastructure, residential customer, etc.).

"The Company will strive to achieve load diversity in participating utility scale microgrids (e.g. critical load, public infrastructure, residential)," CenterPoint Houston said

"The Company believes that utility scale microgrids may provide a benefit to customers during a Resiliency Event that causes power outages. In the event that a Resiliency Event damages the distribution system to where loads interconnected to a utility scale microgrid cannot be served from the distribution system, a utility scale microgrid would enable service to the interconnected loads to be restored, leveraging the energy from the distributed energy resource(s) interconnected to the utility scale microgrid. The Company seeks to obtain additional operational data and experience as to how a utility-scale microgrid would perform during a Resiliency Event. The Company is therefore proposing the Microgrid Pilot Program so that the Company can obtain additional operational data and experience to inform both the Company and the Commission regarding the demonstrated benefits of utility scale microgrids as a resiliency measure and potential future integration of utility scale microgrids in the Company’s service area," CenterPoint Houston said

CenterPoint Houston commits that the total cost associated with the study, design, implementation, and operation of the Company’s Microgrid Pilot Program will not exceed $35 million.

CenterPoint Houston is not seeking a new rider to recover costs of the resiliency plan

CenterPoint Houston intends to recover costs of the resiliency plan through existing periodic rate adjustment mechanisms (such as the DCRF) or through base rates in the Company's next rate case

CenterPoint Houston requested PUC authorization to defer all or a portion of the distribution-related costs relating to the implementation of the Company’s Resiliency Plan for future recovery as a regulatory asset

Docket 56548

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