ERCOT Adopts Weather-Sensitive Demand Response Pilot

The Electric Reliability Council of Texas (ERCOT) Board of Directors at its March meeting approved a pilot for the upcoming summer that will expand its options to reduce electric use during peak summer conditions when demand is high and power supplies are tight.

The Weather-Sensitive Emergency Response Service pilot is open to electric users -- either as individual customers or as part of an aggregated group of consumers -- who can reduce power use by at least 100 kilowatts (kW). Participants, through qualified scheduling entities, will be paid based on how much they reduce demand, either in testing or an actual event.

ERCOT can use this option beginning with the first level of energy emergency alert (EEA 1), when operating reserves drop below 2,300 megawatts (MW). Most ERCOT demand response programs go into effect during EEA 2, when reserves drop below 1,750 MW.

"During the hottest hours of summer peak days, electric use by residential consumers represents about half of total demand, due mainly to increased use of air conditioning," said ERCOT CEO Trip Doggett. "This pilot will provide new incentives for participants to reduce that weather-related consumption and support reliability for the entire grid."