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Texas REPs Ask That Texas PUC Designate Dispatchable Reliability Reserve Service As Ancillary Service Beyond REPs' Control, Would Allow Fixed Rate Change For Existing Retail Contracts
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The Texas Retail Electric Provider Coalition requested that, in any Texas PUC order approving ERCOT
Nodal Protocol Revision Request (NPRR) 1309, implementing Dispatchable Reliability Reserve Service (DRRS), the PUC include, in the order, language, "that designates this new ancillary service as one that will incur costs beyond the REPs’ control at the time that service is incorporated into the ERCOT Ancillary Services plan."
Under 16 TAC 25.475(b)(5), for an existing fixed rate to be adjusted to reflect the cost of a new ancillary service, the Commission must first designate the ancillary service as one that incurs charges beyond the REP’s control for existing customer contracts
The REPs seek this designation for DRRS, "solely for customer contracts that were existing prior to the date on which DRRS is included in the applicable ERCOT Ancillary Services Plan."
The REPs said, "This designation will ensure that REPs are not in a position of trying to speculate about what these costs might be for those customers today who desire to sign onto a multi-year electricity service agreement. Further, it keeps customers from incurring any charges for these costs before the costs are actually implemented. In addition, without this designation, REPs may be reluctant to enter into multi-year contracts that would span into the period in which DRRS is expected to be implemented, even though those multi-year contracts provide customer protections, and market stability for those looking to invest in this market to provide generation."
The REPs distinguished this relief with respect to DRRS from a similar prior request for relief with respect to ERCOT Contingency Reserve Service (ECRS), which, as previously reported, the PUC denied, as the PUC found that REPs could have anticipated the costs for ECRS prior to ECRS's effective date
In contrast, for DRRS, the REPs said, "neither the TAC Report nor the Board Report contains the procurement quantity for DRRS, or even a range."
"More tellingly, the most recent Ancillary Services Methodology does not even mention DRRS once, let alone discuss a quantity. Accordingly, until clear quantities and procurement methodologies are established together, REPs can have no way to know or control the cost of DRRS," the REPs said
The specific language that the REPs seek to be included in any DRRS approval order is: "..., which the Commission designates as a new ancillary service that will cause REPs to incur costs beyond their control solely for customer contracts that were existing prior to the date on which DRRS is included in the applicable ERCOT Ancillary Services Plan."
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July 2, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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