Texas PUC Chair: Other Loads May Follow Lubbock Power & Light's Request To Join ERCOT, Suggests Rulemaking

Noting that other loads may seek to join ERCOT as Lubbock Power & Light is seeking to do, Donna Nelson, Chair of the Public Utility Commission of Texas, said in a memo in advance of today's open meeting that the Commission should open a rulemaking addressing issues related to such transitions, to the extent current rules do not adequately apply

"I think the threshold issue we must consider is whether the Commission should treat LP&L as any other native load coming into ERCOT. If LP&L should not be treated as any other native load, our existing rules do not adequately address the issues presented by this proposal," Nelson wrote

"While we may decide to conduct a series of contested cases to apply to the particular case before us, this is probably not the last time a request such as the one before us will arise. An approach limited to contested cases might be a faster process initially, but it could ultimately cloud the regulatory certainty for other entities weighing similar transitions. For clarity and efficiency, an initial rulemaking may be more desirable to establish a specific process for transitions between RTOs," Nelson wrote

"Due to unique time constraints posed by LP&L's situation, I favor initiating the production of pertinent studies now while concurrently determining whether we need a rule for a clear framework for similar requests in the future. If we determine that a rule is needed, we should work to complete the rulemaking by the time the studies are complete," Nelson wrote

Among issues to be addressed by any cost/benefit analysis of LP&L's move, Nelson proposes, among other questions, the following:

• What would be the impact to the wholesale and retail customers of any affected utility, including the rates, the quality of service, and any other costs or benefits?

• How would a move of the LP&L load into ERCOT impact ERCOT's wholesale and retail markets and SPP's wholesale market?

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