Texas PUC's Marquez: Treatment Of Energy Related To TDU-Owned Electric Storage As Unaccounted-For Energy (UFE) "Problematic"

After hearing oral arguments concerning an application by AEP Texas to install two battery storage facilities on its distribution grid, Commissioner Brandy Marty Marquez said during a Texas PUC open meeting yesterday that AEP Texas's proposed treatment of the energy involved in the battery facilities as unaccounted-for energy (UFE) is, "problematic."

An ALJ in a proposal for decision has recommended approval of AEP Texas' application, but noted in the PFD that the Commission could reach a different conclusion for policy reasons (see background on AEP Texas's application and the PFD here)

Commissioners did not reach a decision on the application yesterday, and will discuss the item further at a future open meeting

However, in discussing the case, Marquez stated, "I agree that UFE is problematic."

Marquez said that she is, "struggling a lot," with the application, noting that the PFD made some strong points and that batteries are coming, and that she is interested in thinking about how there is room for batteries in Texas's electric industry structure and market.

Marquez also agreed with parties that a, "rulemaking is in order here."

However, Marquez said that further discussion among the Commissioners is needed and that she hasn't reached any conclusions.

Marquez stressed that her comments were preliminary. Noting that Commissioners may only speak with each other and work through items at open meetings, Marquez said, "We need to be able to speak candidly with each other [at such open meetings] without there being market responses, if at all possible."

"Everything we say is interpreted in seven different ways," Marquez said