Texas Staff Recommend Briefing Question of Forum To Determine Whether Utilities Can, Should Own Batteries Under Texas Law (Project Versus Contested Case)

Staff of the Public Utility Commission of Texas, in a proposed list of issues in AEP Texas's application to install two grid-scale batteries to address distribution system reliability (click here for story), said that parties should first brief whether a generic project, versus a contested case, is the appropriate forum for addressing issues concerning whether a Distribution Service Provider (DSP) can and should own utility-scale battery facilities

"As an alternative, the Commission may want to open a project at the conclusion of this proceeding in order to address the ownership and operation issues raised by this application to allow for the participation of all interested parties and market participants. Such an approach could avoid piecemeal decisions concerning ownership of utility-scale battery facilities on the Texas grid, thereby slowing the ability to deploy potentially more cost-effective solutions for common issues and waste resources," Staff said

TXU Energy and Luminant, in a list of issues, proposed that the case answer whether ownership and operation of utility-scale batteries in the manner proposed by AEP TNC would constitute a competitive energy service, as defined by 16 Tex. Admin. Code (TAC) § 25.341, and therefore, whether the ownership and operation of utility-scale batteries in the manner proposed by AEP TNC would violate the prohibition against electric utilities providing competitive energy services

TXU Energy and Luminant also proposed that the case address whether AEP TNC's proposal to take unaccounted-for energy (UFE) to charge utility-scale batteries is just, reasonable, and appropriate

Docket 46368