Texas PUC Staff Seek Comment On Barriers To Load Resource Participation In ERCOT Market; Ask About Relationship Between Retail Providers, Load Resources

Staff of the Texas PUC issued a series of question for comment concerning barriers to participation by load resources in the ERCOT energy and ancillary service markets

Among other things, Staff asked for comment on the following: "What organizational and regulatory obstacles discourage participation by load resources in the ERCOT energy and ancillary services markets? 'Organizational and regulatory' refers to the relationship of load resources to other entities, including but not limited to customers, Retail Electric Providers (REPs), Non Opt-In Entities (NOIEs), Qualified Scheduling Entities (QSEs), Transmission and Distribution Service Providers (TDSPs), ERCOT (including ERCOT financial settlements), and the Commission."

Staff also asked for comment on the following: "What authority, if any, does the Commission have over demand response providers that may seek to participate in the ERCOT energy and ancillary services markets? Is the existing legislative framework sufficient to enable load participation in these markets while ensuring adequate oversight of participating entities?"

The request for comment notes that, in 2011, the ERCOT Technical Advisory Committee (TAC) endorsed the formula "LMP-G" as the basis for compensation of loads participating in the ERCOT energy markets, and asked whether ERCOT stakeholder process agreed to an approach for implementing this compensation method

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