Texas Legislative Committee Chairs Say ERCOT On Wrong Track In Implementing DRRS, Seek Change

October 18, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Texas state Sen. Charles Schwertner and Rep. Todd Hunter and Rep. Justin Holland have written a letter to the PUC of Texas stating ERCOT erred in proposing to implement Dispatchable Reliability Reserve Services as a component of non-spin, rather than a new, separate ancillary service

ERCOT proposed its course of action to expedite implementation and achieve statutory deadlines, but the lawmakers said that Dispatchable Reliability Reserve Services should be a stand-alone service, even if it delays implementation

The lawmakers wrote, "To comply with this directive, ERCOT recently issued Nodal Protocol Revision Request (NPRR) 1203 to establish the DRRS ancillary service program. Rather than developing DRRS [Dispatchable Reliability Reserve Services] as a new, standalone ancillary service, NPRR 1203 proposed implementing DRRS as a component of the existing Non-Spinning Reserve (Non-Spin) product in order to comply with the bill's statutory deadline."

"While we appreciate ERCOT's expeditious efforts to meet this target, we are concerned the current proposal does not meet the legislature's goal of creating an ancillary service product designed to meet actual system needs in a targeted, transparent manner and could have a negative impact on consumer costs. In addition, combining DRRS into Non-Spin will create a single non-spin clearing price, which could have a negative impact on consumer costs, as well as diminish the market incentives to invest in the specific type of dispatchable resources needed to improve reliability," the lawmakers said

"As such, we urge the Commission to direct ERCOT to revise NPRR 1203 to establish DRRS as a standalone ancillary service, even if doing so will cause a delay in the implementation timeline while, of course, still expeditiously pursued. Doing so will ensure the forthcoming DRRS product is implemented in a manner which aligns with the intent of the legislature and provides the most overall benefit to the ERCOT market," the lawmakers said

PUC Project 55156

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