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Texas PUC Staff Proposes Draft Rule For Retail Provider Demand Response Programs, Funding
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Staff of the Texas PUC have proposed a draft proposal for publication that would implement a goal for an average total residential load reduction in the ERCOT market, with REPs authorized to secure funding from the ratepayer-funded energy efficiency programs to achieve the goal
The draft proposal for publication would implement SB 1699. See background on the law here
The draft would set the average total residential load reduction goal at 0.25.
"The ratio of load reduced by all responsive device programs during an ERCOT peak period and the total amount of demand of all residential customers participating in the responsive device programs should meet or exceed the average total residential load reduction goal," the draft provides
The draft rule would allow the PUC to modify the target average total residential load reduction goal in the future without needing to open a rulemaking to do so
The draft rule would provide that a REP may offer a responsive device program that offers an incentive to residential customers, with smart responsive appliances or devices, to reduce electricity consumption during an ERCOT peak demand period.
The term smart responsive appliance or device is defined as an appliance or device that allows its electricity usage (or the usage of connected devices) to be adjusted remotely
The draft would define an ERCOT peak demand period to mean an hour with the highest value of peak net load, where peak net load is calculated as gross load minus wind and solar
A REP's responsive device program shall allow demand response participation by residential customers, "where reasonably available," including during the summer and winter seasons, per the draft
Additionally, the draft would require that a REP's responsive device program shall be capable of responding to an emergency energy alert issued by ERCOT
The draft rule would allow a REP to receive funding for a responsive device program through an energy efficiency incentive program established by statute, provided that the REP's program meets the evaluation, measurement, and verification requirements of the incentive program
A TDU would be permitted to use up to 10% of its energy efficiency budget for the REP responsive device programs described above
A REP's program shall not adversely impact critical care or chronic condition residential customers, the draft provides
Under the draft, a residential customer would be limited to participation in a single demand response program
Project 56966
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August 23, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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