ERCOT Draft Would Expand EILS to Include Distributed Generation

ERCOT has issued for comment draft amendments to P.U.C. Substantive Rule 25.507, which would, among other things, expand the current Emergency Interruptible Load Service (EILS) program to include distributed generation.

ERCOT said that it understands that the PUCT Staff intends to request authorization to initiate a rulemaking that may incorporate ERCOT's proposed amendments. ERCOT is soliciting market participant comments on its draft amendments ahead of the formal rulemaking to ensure all significant concerns have been considered before the PUCT initiates the rulemaking.

ERCOT said that it contemplates a timeline for the a rulemaking proceeding that will allow the EILS program to be modified in time for the June to September 2012 Contract Period.

The amendments, which would rename the service Emergency Response Service (ERS), would define an ERS Resource as including dispatchable distributed generation or a load or aggregation of loads contracted to provide ERS.

ERCOT's proposed changes would eliminate the 1,000 MW ceiling per ERS contract period in order to allow the service to grow as necessary. This change would not affect the $50 million annual cap.

Furthermore, ERCOT proposes to eliminate the requirement to provide 90 days' notice prior to creating a new ERS contract period, and add an option for ERCOT to renew all ERS resources' obligations for additional hours if ERCOT exceeds the eight-hour requirement in any given contract period. ERCOT said that these changes address the emergency rulemaking that occurred this past April as result of the February 2nd deployment.