ERCOT Issues Letter to City of Seymour Regarding West Zone Congestion

ERCOT yesterday filed in PUCT project 31600 an August 29 letter to the City of Seymour concerning the city's request for action regarding congestion in the ERCOT west zone.

The city's letter, as well as a subsequent request for action by Priority Power Management, LLC, were fist reported by Matters:

8/17/12: City of Seymour Asks Texas Commission to Address Congestion in ERCOT West Zone

8/27/12: Priority Power Management Seeks PUCT Action on ERCOT West Zone Congestion "Crisis"

The ERCOT letter, available here, details the causes of congestion and actions taken by ERCOT to date in addressing the issue. Most of these causes, and actions, had been noted by PPM and previously reported.

"The primary driver of higher prices in the West Load Zone this summer has been higher load growth in that part of the state due to additional oil and gas exploration and production in the area," ERCOT said.

"Further, a recent Independent Market Monitor (Il12M) report given at the ERCOT Board of Directors (ERCOT Board) meeting in July 2012 indicated that certain locations with high impact on the pertinent transmission constraints have had a 20% Load increase from the same period last year," ERCOT said.

ERCOT also reported various transmission projects approved to address West Zone congestion, and Shadow Price Caps initiated for certain constraints,

Link to ERCOT Letter