Briefly

NRG Texas Power to Pay $35,000 to Resolve Investigation of Ancillaries Obligation

NRG Texas Power LLC would pay an administrative penalty of $35,000 under a settlement with PUCT Staff to resolve Staff's investigation of NRG for violation of Sec. 39.151(j) of PURA and P.U.C. SUBST. R. 25.503(f)(2), regarding failure to adhere to Electric Reliability Council of Texas, Inc. (ERCOT) Protocol Sec. 6.3.2(2), concerning ancillary service provider obligations on February 26, 2008. Commission Staff asserted that NRG did not provide and deploy, in total, sufficient Responsive Reserves and Up Regulation, based on the Texas Regional Entity's examination of real-time operating data.

Utility Coalition Says Socialized Transmission Will Destroy Efficient LMP Pricing

The Coalition for Fair Transmission Policy sought rehearing of FERC's transmission cost socialization ruling (7/22), notably arguing that, as a result of the socialization, "decision-making in competitive electric markets will be skewed by transmission cost socialization that requires consumers to subsidize transmission for which they receive no real benefit." The coalition includes CMS Energy Corporation, Consolidated Edison, Inc., DTE Energy Company, Progress Energy Inc., Public Service Enterprise Group, SCANA Corporation, and Southern Company. "[I]n competitive wholesale markets this [socialization] process could cause generators to make location decisions that would add to the total cost of supply to customers without providing appropriate benefits ... Competitive wholesale markets using locational-marginal pricing will begin to see price signals break down and will become inefficient, again as customers no longer face the true marginal price of purchases at their location," the coalition said.