Texas to Open Project Addressing Demand Response, Will Also Review Operating Reserve Demand Curve

Commissioners of the Public Utility Commission of Texas on Friday agreed to direct Staff to open a project addressing demand response in ERCOT.

As proposed by Commissioner Kenneth Anderson, the project will explore all issues related to demand response, but with a particular focus on getting demand response into the ERCOT energy market.

Anderson expressed a preference for market-based solutions for demand response -- a view echoed by other Commissioners. Anderson said that when deployed, demand response should assist in price formation and not reverse real-time prices.

This may necessitate a demand curve, Anderson noted.

The project may also serve as a venue to consider the hour-ahead market.

The Commission will also further study issues relating to expanding operating reserves as well as a potential demand curve for operating reserves, as more fully discussed in an earlier memo from Commissioner Rolando Pablos.