Texas Staff File Final Proposal to Grant ERCOT Authority to Conduct Pilot Projects

Staff of the Public Utility Commission of Texas have filed a draft proposal for adoption to amend P.U.C. SUBST. R. 25.361 in order to give ERCOT the authority to conduct pilot projects to evaluate new and emerging technologies, such as energy storage projects, to determine the benefits that these technologies may bring to the ERCOT system (40150).

There are no major changes in the proposal for adoption versus the rule published for comment (see earlier story).

Notable modifications include language that in approving a pilot project, the ERCOT board shall include criteria and reporting mechanisms to determine whether and when ERCOT should propose changes to ERCOT rules based upon results of a pilot project.

Staff's proposal for adoption also clarifies that participation in a pilot project shall not be required as a condition to the deployment of any resource, technology, or process that complies with existing ERCOT rules. Language has also been added stating that the existence of a pilot project does not prohibit any market participant from proposing changes to ERCOT rules that are not dependent on the outcome of the pilot project.

Staff's proposed preamble notes that the Commission is not addressing the recovery of ERCOT's costs for a pilot project, noting that most types of costs incurred by ERCOT are recovered through its system administration fee, but that ERCOT has the discretion to impose user fees, subject to Commission review, pursuant to §25.363(f).