Texas Staff, GDF Suez Seek Approval of New Voluntary Mitigation Plan

Staff of the Public Utility Commission of Texas and GDF SUEZ Energy North America, Inc. have filed a settlement for approval of a new Voluntary Mitigation Plan (VMP).

The VMP specifies (1) how GDF Suez will be treated for enforcement purposes under P.U.C. SUBST. R. 25.504(c) for the remainder of 2013, relating to offering its generation resources into the Electric Reliability Council of Texas (ERCOT) real-time energy market, and (2) memorializes the shared understanding that existing local market protections in the ERCOT Protocols and the market are sufficient to prevent an abuse of market power locally.

Actions consistent with this VMP will not be considered an abuse of market power during the term of the agreement.

GDF Suez had previously operated under a VMP which expired at the start of the year (see prior story).

The settlement provides that GDF SUEZ currently controls 3,957 megawatts (MW) of generation in the ERCOT market. GDF SUEZ's controlled market share is 4.85%, which is below the 5% threshold according to P.U.C. SUBST. R. 25.504(c).

Capacity enhancements are planned for the generation controlled by GDF SUEZ, which may be completed during this calendar year. GDF SUEZ has the flexibility to add up to and including 121 MW of capacity without exceeding the five-percent threshold in P.U.C. SUBST. R. 25.504(c). If the full 121 MW of capacity enhancement is realized, it would bring GDF SUEZ's controlled market share to 4.99%.

GDF SUEZ is, therefore, deemed to not have ERCOT-wide market power according to P.U.C. SUBST. R. 25.504(c), the settlement provides.

Docket 41276